Home Technology Product Lifecycle Management Market Size, Top Trend, Global Forecast, 2031

Product Lifecycle Management Market

Product Lifecycle Management Market Size, Share & Trends Analysis Report By Component (Software, Support Services), By Deployment (On-premise, Cloud), By End-User (Aerospace and Defense, Automotive and Transportation, Healthcare, IT and Telecom, Industrial Equipment and Heavy Machinery, Retail, Semiconductor and Electronics, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRTE54940DR
Study Period 2019-2031 CAGR 7.02%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 28.01 Billion
Forecast Year 2031 Forecast Year Market Size USD 51.47 Billion
Largest Market North America Fastest Growing Market Asia-Pacific
The sample report only takes 30 secs to download, no need to wait longer.

Market Overview

The global product lifecycle management market size was valued at USD 28.01 billion in 2022. It is estimated to reach USD 51.47 billion by 2031, growing at a CAGR of 7.02% during the forecast period (2023–2031). The anticipated increase in demand for cloud-based Product Lifecycle Management (PLM) systems is attributed to their ease of implementation and reduced cost of ownership. This is projected to positively impact the market's growth over the forecast period.

A product lifecycle management (PLM) data system links people, business systems, processes, and data throughout an extended enterprise. A business may successfully and economically manage product information throughout its whole lifespan by using PLM software. It encompasses the stages of product conception, design, production, and disposal. PLM comprises an information strategy and an enterprise strategy.

PLM software enables businesses to make unified, data-driven decisions at each stage of a product's life cycle. In order to improve the product lifecycle, continuous adjustments are made to various variables, such as time, functions, performance, and cost. Due to these perpetually changing variables, a product innovation adaptable to meet new market requirements has become crucial. Consequently, PLM solutions can aid in achieving operational cost and time efficiency while fostering innovation in business processes.

Market Dynamics

Market Drivers

Rising Adoption of Digital Transformation

Due to expanding business requirements and shifting consumer dynamics, digital transformation is required across all industry verticals to construct the next iteration of smart products and factories. A product lifecycle management platform system can handle many datasheets between devices and people, thus digitizing information and providing a centralized information platform. PLM also enables the digital twin, which denotes the digital reproduction of a physical asset. This helps reduce cost and time to market for manufacturers/service providers as they can streamline their systems and processes digitally.

Furthermore, a PLM solution can easily and seamlessly integrate with current enterprise systems, allowing collaboration across data-focused processes and value chains. Therefore, many key manufacturers and service providers focused on digital transformation are implementing product lifecycle management, driving the market's growth. For instance, in October 2018, VinFast, a private automotive startup, selected Siemens to deploy the product lifecycle management software to track its entire automotive supply chain and thus optimize the supply chain operations.

Growing Popularity of Cloud-Based PLM

A majority of large enterprises are now moving toward cloud-based PLM deployment. Cloud PLM systems fare better at simplifying communication between manufacturers and suppliers, providing a streamlined solution for managing business operations. Other benefits of cloud-based PLM solutions include ease of implementation, innovation facilitation, seamless collaboration, and powerful product data management.

Additionally, key players are expected to offer several subscription-based models in cloud deployment, which help reduce the total cost of ownership of the PLM solution. These benefits associated with the ease of implementation and a lower cost of ownership are expected to boost the demand for cloud-based PLM systems over the forecast period, driving the market.

Market Restraint

High Deployment Costs and Integration Challenges

The on-premise deployment of PLM solutions has a range of drawbacks, including specific infrastructure requirements and high deployment costs, which may not be viable for all organizations. This might hamper the adoption of PLM solutions. Data security and theft concerns also hamper market growth prospects as various users across the supply chain have access to business-critical data.

Due to the continuously changing industry dynamics and shortened product lifecycle, manufacturers and service providers are demanding integrated PLM and supply chain management systems to enable them to achieve clear visibility. During this integration, problems such as user resistance where the systems are not being used properly, data duplication, and bad systems support (network and servers) can hamper the implementation of PLM and its integration with supply chain management systems.

Market Opportunities

Increasing Integration of PLM with IoT and Big Data Analytics

IoT is changing the way product lifecycle management is implemented. With IoT technology, PLM processes continue to be a part of a product's lifecycle even when deployed, enabling organizations to collect real-time operational data and allowing stakeholders to gain complete visibility into the product's post-sales performance. This helps organizations optimize product quality, usability, and maintenance, thus offering maximum support and service to their customers.

PLM solutions integrated with IoT capabilities provide end-to-end perspectives of the product lifecycle for all the stakeholders across the supply chain. Thus, IoT capabilities are becoming an important differentiator for PLM in the age of Industry 4.0 and smart manufacturing. This is positively driving the growth of the market. Key players in the market, such as PTC Inc. through the ThingWorx and Creo platforms and Siemens through the MindSphere IoT platform, are also focusing on integrating PLM and IoT, which is expected to create opportunities for PLM market growth during the forecast period.

Regional Analysis

Based on region, the global product lifecycle management market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global product lifecycle management market shareholder and is anticipated to exhibit a CAGR of 6.51% during the forecast period. North America consists of the U.S. and Canada. In the U.S., companies put a robust emphasis on digitization and are often considered the early adopters of next-generation technologies, like IoT, additive manufacturing, connected industries, big data analytics, artificial intelligence, machine learning, AR, and VR, as well as the latest telecommunication technologies, like 4G, 5G, and LTE. In addition, continued enterprise adoption of cutting-edge technologies in the United States augurs well for the PLM market's expansion. The potential integration of these technologies with PLM solutions is opening new growth opportunities and is expected to drive the growth of the U.S. PLM market over the forecast period.

Additionally, digital technologies create an opportunity for Canada's future economic growth and prosperity. As per the industrial reports, the Canadian government has considered many initiatives to accelerate Canada's digital industrialization and global presence in the PLM software market. There is rapid demand for mechanical computer-aided design, electronic computer-aided design, and other PLM software all over Canada.

Asia-Pacific is estimated to exhibit a CAGR of 7.8% over the forecast period. The continued infrastructure development and industrial expansion, particularly in India and China, among other Asia-Pacific countries, is primarily expected to drive the growth of the Asia-Pacific PLM market. Government initiatives, such as Make in India and Made in China 2025, are driving the growth of the region's manufacturing industry and are expected to boost the demand for PLM solutions in the Asia-Pacific over the forecast period. In addition, Asia-Pacific countries, such as Japan, China, South Korea, and Taiwan, are anticipated to take the lead in smart manufacturing, leveraging the well-established electrical and electronics manufacturing establishments present in these countries, which is predicted to drive the growth of the PLM market in the region. The projected growth of India's electrical and electronics manufacturing industry is also expected to drive the demand for PLM systems in Asia Pacific over the forecast period.

Europe is home to several key automotive brands. Hence, the automotive industry is one of Europe's largest industries. The European automotive brands are expected to aggressively adopt PLM solutions to control product quality, improve supply chain visibility, ensure compliance management, and reduce the time to market, thereby driving the demand for PLM solutions in Europe. The expanding adoption of PLM systems across Europe to enhance industrial safety and product quality is encouraged by the increased investments in digital transformation and Industry 4.0, as well as the use of cutting-edge technology for process automation, like machine learning and artificial intelligence. In addition, the European Commission is collaborating with industries, academic institutions, and other organizations to fully utilize IoT technology's potential. Integrating IoT with PLM solutions can enable real-time tracking of products. Hence, Europe's demand for IoT-compatible PLM systems will increase over the forecast period.

In the Middle East and Africa, industries such as automotive, healthcare, IT and telecom, and industrial machinery are emerging as the central pillars of economic development. Incumbents of all these industries have embarked upon digitization to support the anticipated wave of industrialization and cater to all the evolving growth opportunities. In addition, incumbents of these industries are expected to aggressively embrace PLM platforms as part of the ongoing digital transformation, thereby boosting the growth of the Middle East and Africa PLM market. Several global companies in the market are increasingly partnering with companies catering to the Middle East market. For instance, Aras has partnered with Zinnotech, DXC Technology, and OpsHub to cater to the regional market. All these partnerships are aimed at ensuring local support for the industries.

Report Scope

Report Metric Details
By Component
  1. Software
  2. Support Services
By Deployment
  1. On-premise
  2. Cloud
By End-User
  1. Aerospace and Defense
  2. Automotive and Transportation
  3. Healthcare
  4. IT and Telecom
  5. Industrial Equipment and Heavy Machinery
  6. Retail
  7. Semiconductor and Electronics
  8. Others
Company Profiles ANSYS Inc. Aras Corporation Oracle Corporation SAP SE AUTODESK, INC. Arena Solutions, Inc. Siemens AG PTC Inc. Dassault Systèmes Synopsys Inc.
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports

Segmental Analysis

The global product lifecycle management market is segmented by component, deployment, and end-user.

Based on components, the global market is divided into software and services. 

The software segment owns the largest market share and is estimated to grow at a CAGR of 6.8% during the forecast period. The need to reduce time-to-market while enhancing product performance has been driving the use of PLM software. Moreover, PLM, through simulation management, helps get control of data and processes to escape collective problems such as the analysis of obsolete data and poor visibility over simulation results. The increasing shift of competition from operations management to effective and efficient change management is anticipated to boost the software segment growth over the forecast period.

In addition, the software segment is also bifurcated into portfolio management, design and engineering management, quality and compliance management, simulation, testing, change management, manufacturing, operations management, and others. The design and engineering management field exhibits the highest revenue contribution, demonstrating a CAGR of 6.3%.

The services segment includes various pre- and post-sale services that form an important part of the global market. The segment covers managed consulting, integration and deployment, and maintenance and support services. The integration and deployment segment dominated the services market with a CAGR of 6.8%. In addition, services have become crucial as they are directly concerned with customer issues and satisfaction. Each software vendor has a devoted support team to serve its customers. In order to ensure constant customer satisfaction, service providers constantly improve their product knowledge base through customer feedback via interviews and surveys.

Based on deployment, the global product lifecycle management market and services market is bifurcated into on-premise and cloud segments. 

The cloud segment dominates the global market and is projected to exhibit a CAGR of 7.4% over the forecast period. Cloud deployment is the practice of deploying an application using hosting models that leverage the cloud, like software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS). Cloud deployment has become the most popular method for deploying PLM, which is expected to continue over the forecast period. In addition, cloud-based product lifecycle management solutions help eliminate critical implementation, upgrade, and customization-related obstacles. Numerous factors, including scalability, adaptability, security, and data management, are expected to increase the adoption of cloud-based product life cycle management software deployment.

An on-premise software infrastructure is one in which all software is stored on company-owned hardware. This requires the company's IT department to maintain the infrastructure independently. These solutions also enable organizations to reduce their reliance on the internet infrastructure and to safeguard their data against online fraud and potential losses. These benefits are anticipated to encourage organizations, particularly large ones, to choose on-premise deployment.

Based on end-users, the global market is segmented into aerospace and defense, automotive and transportation, healthcare, IT and telecom, industrial equipment and heavy machinery, retail, semiconductor and electronics, and others. 

The automotive and transportation segment is the largest revenue contributor to the market and is predicted to exhibit a CAGR of 6.1% throughout the forecast period. PLM software allows the automotive sector to track defects and address customer concerns by reducing product time in the field. Product data is extracted from engineering applications, systems, and custom databases. These factors are anticipated to expedite the demand for PLM software in the automotive segment. In addition, PLM software provides several advantages in the transportation sector. Implementing PLM reduces shipment errors, resulting in low product damage, on-time orders, high productivity, improved alignment with customer requirements, and full regulatory compliance. These variables are anticipated to increase demand for PLM software in the transportation industry.

In the IT and telecommunications industry, the demand for PLM is driven by the need to enhance organizational efficiency and documentation processes for reviewing operations and IT services. Increasing convergence and access to advanced technologies have prompted telecom operators to prioritize the rapid development of cost-effective NextGen products. In addition, the PLM software for telecom helps manage such complex products that undergo frequent changes in a dynamic environment. This is anticipated to drive the demand for PLM in the telecom segment.

Market Size By Component

Recent Developments

  • March 2023- Bamboo Rose ,the premier collaborative product development, sourcing, and supply chain platform for retailers and consumer brands, acquired Boulder, Colorado-based Backbone PLM.
  • October 2022- Samsung Electronics announced a partnership with Servify, a global platform for product lifecycle management, to launch Samsung Care+ in Saudi Arabia.

Top Key Players

ANSYS Inc. Aras Corporation Oracle Corporation SAP SE AUTODESK, INC. Arena Solutions, Inc. Siemens AG PTC Inc. Dassault Systèmes Synopsys Inc. Others

Frequently Asked Questions (FAQs)

What is the estimated growth rate (CAGR) of the global product lifecycle management market?
The global product lifecycle management market size is growing at a CAGR of 7.02% from 2023 to 2031.
North America has the largest share of the product lifecycle management market.
Rising adoption of digital transformation,growing popularity of cloud-based PLM are the key driver for the growth of the product lifecycle management market.
Increasing integration of PLM with IoT and big data analytics is one of the upcoming trend in the product lifecycle management market.
The key players in the global product lifecycle management market include ANSYS Inc., Aras Corporation, Oracle Corporation, SAP SE, AUTODESK, Arena Solutions, Siemens AG, PTC Inc., Dassault Systèmes, Synopsys Inc.

We are featured on :