Market Statistics
| Study Period | 2019 - 2030 |
| 2024 Market Size | USD 34.7 Billion |
| 2030 Forecast | USD 59.5 Billion |
| Growth Rate (CAGR) | 9.4% |
| Largest Region | North America |
| Fastest Growing Region | Asia-Pacific |
| Nature of the Market | Fragmented |
Product Lifecycle Management Market Size
Growth Forecast
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Product Lifecycle Management Market Future Prospects
The product lifecycle management market size stood at USD 34.7 billion in 2024, and it is expected to grow at a CAGR of 9.4% during 2024–2030, to reach USD 59.5 billion by 2030.
The market is driven by the rising need for the smart management of products at manufacturing sites, technological advancements in additive manufacturing and augmented reality, and increasing requirement for product design and innovation platforms. Moreover, the growing demand for scalability and smart IT applications in different sectors, such as automotive and electronics, is likely to propel lifecycle management-based solution and service demand.
Moreover, both large companies and SMEs are focusing on managing their complete production process, as part of their smart manufacturing initiatives. Additionally, the penetration of cloud-based solutions is rising for the realization of an IT infrastructure that entails fewer hassles. Furthermore, during the COVID-19 pandemic, the adoption of cloud-based technology rose significantly for ensuring business continuity in the remote working model; therefore, the pandemic had a positive impact on the growth of the market.
Efficient life cycle management allows for the utilization of the right information at the right time for product development, which enhances the quality and quantity of the output. This approach is concerned with the planning, merchandising, progress, design, costing, sampling, quality analysis, raw material sourcing, and delivery processes. Such software and solutions enable operations, time, cost, and final product management, which results in effective product innovation and ideas that support the organization in meeting the changing requirements of the market.
During the last few years, a rapid growth in the demand for such products has been observed in various verticals due to the rising need for operational cost optimization by reducing production time and the chances of errors in product development. Therefore, such solutions have given a vast potential to end users to maximize profits, by helping them manage the lifecycle of their products efficiently.
Currently, a large number of big enterprises are focusing on transferring complete operational workflows to digital platforms, wherein the development of the internet of things has largely supported PLM solutions in gaining widespread acceptance. The integration of IoT has further enhanced the product development and merchandising abilities of PLM solutions, by minimizing the failure of products at all phases.
Additionally, additive manufacturing uses computer-aided-design (CAD) software and 3D printers to deposit material layer by layer and form the product of interest. Lifecycle management has an essential role while using additive manufacturing in mainstream production. For instance, 3D printing is utilized for creating sand cores for casting complete engine parts. From small screws to entire aircraft wings and from electronic circuits to vehicle interiors, 3D printers are useful at every stage of production, with PLM being used to gather data and make the process more efficient.
Additive manufacturing is used by a lot of businesses as it offers significant advantages in cost-effectiveness, complex production process simplification, and time to market management and reduction. Additionally, companies use data for maximum benefits, with product lifecycle management helping in the final product coming out exactly as desired and in repetitive manufacturing. Therefore, the advancements in the additive manufacturing technology, the strong need for regulatory compliance, and the rising need for PLM solutions in the pharmaceutical industry would boost the demand for the associated software and services.
Product Lifecycle Management Market Trends & Drivers
AI Integration in Product Lifecycle Management Drives Market
The integration of machine learning with product lifecycle management software offers the user a more-insightful understanding from the data collected over years on a particular product. AI further helps PLM software extract and utilize the resourceful data, design a prediction, improve suggestions, and perform take productive decisions regarding product development.
Moreover, with the advancement in the IoT technology, AI integration with lifecycle management solutions is growing across several verticals, including healthcare, where this integrated approach is being used to support medical device manufacturing management. Automation and AI help manufacturers utilize data for predictions and recommending alterations, to create products with lower chances of failure.
Product Lifecycle Management Market Analysis
Software Expected To Make Major Contribution to Global Market
The software category held a significant market share in 2022, asmanagement software allows organizations to manage the voluminous information generated throughout the lifecycle of the product in an efficient and cost-effective manner. Such software controls the process from the initial idea and development to final disposal in various sectors, such as automotive & transportation, industrial machinery & heavy equipment, aerospace & defense, and healthcare.
Moreover, many enterprises are using the cloud-based platform as a service (PaaS) model in order to overcome the challenges in the supply chains and make their management and operation smooth. There are several players in the market that offer cloud-based solutions for the lifecycle management of a product. Furthermore, such software is widely used by manufacturing enterprises for the design, development, progress, and formation of the engineering layout.
Moreover, simulation and analysis software enables manufacturers to bring enhancements in product development, performance, and analysis, which is essential to prevent unexpected failures during upstream processes and reduce the time spent in product design. Therefore, the rising need to manage the complete process, decrease the processing cost, and achieve process automation is the key factor favoring the demand for simulation & analysis software.
Cloud Deployment Is Expected Hold Major Revenue Share
The cloud category held the larger share, of 72%, in 2022, as cloud-based PLM allow users to securely access product lifecycle management data from anywhere, at any time, and on any electronic device.
Cloud deployment has become the preferred deployment mode for lifecycle management software due to the control, flexibility, security, and scalability it offers over data. It also helps in eliminating the major challenges of execution, updating, and customization.
Moreover, cloud-based software requires lower expenditure on maintenance and deployment, thereby resulting in a lower total cost of ownership. Additionally, cloud deployment offers vast visibility for the teams involved in project, allows for effective communication among different teams/departments and their supply chains, controls the flow of raw materials from procurement to the emergence of the final thing, and ultimately, leads to optimum product quality and quantity.
The major benefit of the cloud is the anytime, anywhere support from the solution provider, who also provides complete installation, implementation, and maintenance, regardless of the location of the company and software provider.
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Regional Analysis
North America Dominates Market due to Strong Financial Position and Investment Ability
North America held the largest share, of 37%, in 2022, as the U.S. and Canada showcase higher adoption rates for new technologies and heavy investments, supported by the government.
Moreover, the region’s strong economic position supports companies in investing in advanced telecommunication technologies (LTE and 5G), IoT, additive manufacturing, and augmented reality, for efficient business operations. Additionally, the infrastructure advancements, which enable these technologies to function as desired, drive the growth of companies such as Autodesk Inc, IBM, Oracle, Arena, and Ansys in the region.
IBM launched the new version of its Engineering Lifecycle Management (ELM) solution, ELM 7.0, in March 2020, to allow users to scale operations and handle complex projects. The solution utilizes AI to uncover real-time insights across engineering data.
Moreover, APAC is expected to show significant growth during the forecast period, of around 9%, due to the rampant digitization of the processes in many industries, especially in India and China. Further, the region is a hub of industries including automotive, electronics, and telecommunications. All of them have an expansive manufacturing base and, thus, complex supply chain process, which has been driving the product lifecycle management market at a robust CAGR.
Market Breakdown
This report offers deep insights into the product lifecycle management industry, with size estimation for 2019 to 2030, the major drivers, restraints, trends and opportunities, and competitor analysis.
Based on Component
- Software
- Collaborative product definition management software
- Mechanical computer aided-design software
- Simulation and analysis software
- Digital manufacturing software
- Service
- Professional services
- Deployment and integration
- Consulting
- Support and maintenance
- Managed services
- Professional services
Based on Deployment
- On-premise
- Cloud
Based on Organization size
- Small And Medium-Sized Enterprises (SMEs)
- Large Enterprises
Based on Vertical
- Automotive And Transportation
- Industrial Machinery And Heavy Equipment
- Aerospace And Defense
- Semiconductor And Electronics
- Energy And Utilities
- Retail And Consumer Goods
- Healthcare And Life Sciences
Geographical Analysis
- North America
- U.S.
- Canada
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Asia-Pacific
- Japan
- China
- India
- South Korea
- Australia
- Latin America
- Brazil
- Mexico
- Middle East and Africa
- Saudi Arabia
- South Africa
- U.A.E.
Top Product Lifecycle Management Software and Service Providers
- SAP Inc.
- Dassault Systèmes
- PTC Inc.
- Siemens AG
- Autodesk Inc.
- International Business Machines Corporation
- Oracle Corporation
- Atos SE
- Accenture PLC
- HP Inc.
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