PLM in Discrete Manufacturing Market Size, Share & Trends Analysis Report By Component (Software, Services), By Deployment Model (On-premise, Cloud), By Enterprise Size (Large Enterprises, Small and Medium Enterprises), By Industry Vertical (Automotive & Transportation, Industrial Machinery & Heavy Equipment, High-Tech & Consumer Electronics, Aerospace & Defense, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global PLM in discrete manufacturing market size accounted for a market value of USD 21,022 million in 2021. It is expected to reach USD 38,131 million by 2030, growing at a CAGR of 6.84% during the forecast period (2022-2030).

Discrete manufacturing is employed to construct finished products that are different items proficiently counted, touched, or seen without difficulty. Discrete manufacturing engrosses the manufacturing of elements along with systems like nuts and bolts, brackets, wires, assemblies, and individual products. Additionally, PLM gives manufacturers an accurate bill of materials (BOM), which enables them to find errors more quickly and shorten delivery times. Additionally, most manufacturing involves a multi-step assembly process, and PLM aids businesses in monitoring production processes and assisting operators with decision-making.

The rise in demand for PLM software by a range of small and medium enterprises, as well as the taking up of Industrial IoT amid manufacturing industries, is the primary factor that drives the global PLM in discrete manufacturing market growth. Furthermore, the increase in digital transformation in several sectors from corner to corner of various developing nations has positively impacted the market's growth. Nevertheless, high investment and assimilation expenditures get in the way of market growth. Contrarily, rising demand in support of cloud-based PLM software and the emergence of smart industrial units, as well as smart manufacturing worldwide, are likely to put forward profitable opportunities for the spreading out of the PLM in discrete manufacturing market share during the forecast period.

Market Dynamics

Global PLM in Discrete Manufacturing Market Drivers

The Surge in Demand for Establishing Smart Factories and Products

There is a mammoth demand for building smart factories and smart products throughout the developing nations of certain regions, especially Asia-Pacific and LAMEA. Smart factories make available the incorporated system that lends a hand to companies for renovating their work from conventional automation systems to ultimately linked and automated systems, boosting the market's growth. Additionally, the vast majority of manufacturing firms are heavily investing in transforming their facilities into smart factories to create smart products, accelerating market growth. For instance, 70% of manufacturing industries worldwide have taken steps to change their factories into smart ones, according to a report released by Capgemini in 2019. Due to this reason, companies are making considerable investments in transforming their factories into smart factories to manufacture smart products within a short period. These are majorly driving forces for the PLM in discrete manufacturing market growth.

The Increasing Demand in SMEs

SMEs always tend to decrease operating costs, enhance the organization's productivity, and improve the market's growth. For this reason, SMEs have increased demand for PLM software. Additionally, the introduction of SaaS solutions across a range of industries has made it possible to lower exit and entry barriers for small and medium-sized businesses seeking answers, which is anticipated to open up lucrative business opportunities for the sector. Additionally, PLM software aids numerous industries, including manufacturing and, aerospace & defense, in reducing human error and producing high-quality goods, which promotes market expansion. Plus, PLM software also aids in manufacturing to diminish mistakes made by individuals, which further aids in creating an excellent product that directly augments the market growth. PLM software likewise helps SMEs accumulate information regarding product improvement besides advancing the entire communication procedure with the suppliers.

Global PLM in Discrete Manufacturing Market Restraints

Investment and Maintenance Expenditure is Exceptionally High 

Most software vendors offer PLM software for industries like manufacturing, consumer electronics, heavy machinery, and aerospace & defense. PLM system acquisition and implementation require sizable upfront costs. Worldwide software merchants like SAP SE, Oracle Corporation, and Siemens AG charge a high rate to provide the solutions, offer maintenance and hold up functions. The yearly expenditure of upholding and updating a PLM system consists of internal expenses (user training, salaries for IT, project management, and others), external expenses (IT vendors, contractors, and others), and maintenance, as well as sustain the charge, remunerated yearly to application merchants. Additionally, because software providers charge higher prices, businesses are less willing to invest in additional applications, which restricts the adoption of PLM software.

Global PLM in Discrete Manufacturing Market Opportunities

Incorporation of PLM solutions with IoT Platform

It's been over a few decades since conventional PLM technology was installed. Nevertheless, a boost in embracing highly developed technologies like IoT, AI, and big data analytics has shown the way to expand the industry specifically to the countries of Asia-Pacific like India, China, Australia, and Singapore. These countries are likely to establish various opportunities for the PLM software market. Organizations can identify and eliminate problems like unused assets, human errors, and other crucial product development-related issues by integrating PLM with IoT-based devices.

IoT technology's automation of processes also keeps plant operations on schedule without human intervention. Additionally, PLM software that has been integrated with IoT technology enables manufacturers to gather data on heavy equipment using a variety of smart sensors and smart cameras and store it in a database or central server. Additionally, it enables businesses to identify and resolve product issues before the issue worsens or the product malfunctions. Thus, generating various lucrative opportunities for market development.

Regional Analysis

The regional segmentation of the global PLM in discrete manufacturing market includes North America, Europe, Asia-Pacific, and LAMEA.

The Asia Pacific and North America are expected to lead the regional market

North America will likely command the market while growing at a CAGR of 5.94% by 2030. The US and Canada primarily dominate the region’s share. Demand to develop smart factories and products is the primary driver of the market growth in this region. The market in this region is growing due to a shift in various industries' priorities toward creating smart factories and products in North American nations. Additionally, a rise in the demand for cloud-based PLM software among SMEs and large corporations to develop cutting-edge platforms fuels market expansion.

Due to the low implementation and maintenance costs, businesses in this region are also switching from on-premise to cloud-enabled PLM software, which is a crucial factor in the market's expansion. The market is growing due to increased customer demand for product customization and increased adoption of IoT and industrial IoT to transform manufacturing into smart manufacturing. Additionally, increased automation in the manufacturing sector has sped up production while improving product consistency, which is suitable for market expansion.

The Asia-Pacific will hold the second largest market share of USD 11,828 million, expanding at a CAGR of 8.54%. An increase in the requirement to rationalize product lifecycle procedures and an increase in the need among industries to espouse simulation techniques stimulate market growth. Due to easy access to resources and the availability of low-paid labor, Asia-Pacific has many manufacturing companies, and many regional companies have implemented on-premise PLM software to increase productivity and performance. The market for PLM in discrete manufacturing in Asia-Pacific is led by on-premise PLM software solutions.

The Asia-Pacific region is home to numerous SMEs and start-up businesses. Due to its lower cost than on-premise PLM software, these start-up businesses prefer cloud-enabled PLM software. Due to the expansion of new manufacturing facilities, the region is anticipated to see an increase in the adoption of cloud-enabled PLM solutions.

Segmental Analysis

The global PLM in discrete manufacturing market is segmented by the component, deployment model, enterprise size, industry vertical, and region.

By Component Analysis

Based on the component, the global market is segmented into software and services.

The software segment is reported to grow at a CAGR of 6.46% by 2030 and hold the largest market share. Several industries extensively utilize PLM software to handle the entire product journey, from the preliminary progress to the ultimate stage. In addition, it helps the organizations manage the accumulated information, track each step concerning product lifecycle transversely globalized supply chain, develop functional efficacy, diminish the infrastructure expenditure, eradicate required time, and advance market eminence. These dynamics directly boost the growth of the market.

The service segment will have the second-largest shareholding. Implementation of services chiefly consists of professional as well as managed services. These services primarily include implementation, training, support, and consulting services. The most important service is the implementation process, which provides all-inclusive planning, installing, and configuring of the PLM software. Each of these services makes the particular effective working of PLM software with clarity and control throughout the entire procedure.

By Deployment Model Analysis

As per the deployment model, the global market is classified into on-premise and cloud.

The on-premise deployment model is estimated to hold the largest share and grow at a CAGR of 5.54% by 2030. On-premise deployment for PLM software generally includes software installation and permitting applications to run on existing systems on the grounds of the organization as an alternative to putting on server space or cloud. This method of deploying PLM software provides enhanced security features, which facilitates their adoption by large financial institutions and other organizations where security is a top priority.

The cloud segment will hold the second-largest share. Cloud-based deployment is an application licensing and delivery model. It permits a merchant or a service provider to host an application and entrance to application and functionality, which is dispersed as a service remotely. As cloud-based deployment is low maintenance and does not engross capital costs, it is favored by most financial institutions, directly driving the market growth.

By Enterprise Size Analysis

Per the enterprise size, the segments are large enterprises and SMEs.

The large enterprises section is expected to grow at a CAGR of 5.56% and hold the largest market share. As PLM software delivers a holistic outlook of the complete product lifecycle to diverse departments of an organization, including procurement as well as manufacturing which aids these departments in finding product materials and parts that are long-lasting and cost-efficient. Furthermore, large enterprises worldwide are adopting AI-based PLM software to monitor information regarding the business and clients, which optimistically influences the market growth.

The SMEs segment will hold the second-largest share. As SMEs struggle to attain competitive advantages while existing in the industry, they are adopting PLM software to help their employees work competently. PLM software also provides several benefits like improving sales, devising manufacturing production goals, and advancing high-quality components needed by clients, which unswervingly impact the market growth positively.

By Industry Vertical Analysis

By industry vertical, the global market is segmented into automotive & transportation, industrial machinery & heavy equipment, high-tech & consumer electronics, aerospace & defense, and others.

The automotive & transportation section will dominate and grow at a CAGR of 5.94% by 2030. The automotive and transportation industry is speedily taking up PLM software to modernize the development procedure of independent, allied, and fuel vehicles by assimilating all product procedures into single PLM software. Other than this, technological advancements in this sector also amplify market growth.

The industrial machinery & heavy equipment segment holds the second largest market share. PLM software mechanizes and incorporates each part concerning industrial trade consisting of materials & inventory, production, operations & sales, and accounting & finance to abridge the database sustaining a movement for the whole organization and boosting the market growth.

Impact of covid-19

The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

Recent Developments

• In March 2022- Autodesk Inc launched a new collaboration facility called Bridge that authorizes construction teams to distribute only relevant data to project stakeholders.
• In May 2022- Ansys Inc proclaimed that artificial intelligence (AI)-driven networks called Juniper Networks successfully organized the company's software to hasten the manufacturing of its high-speed networking chips.
• In June 2022- World's First 3D Simulator for Radiotherapy, called VORTHEx Project, was commenced by Dassault Systèmes, the H. HARTMANN Institute, and the Institute Rafaël.