PLM Software Market Size

Report on Industry Size & Market Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers Product Lifecycle Management (PLM) Software Companies, and it is segmented by deployment type (on-premises, cloud, and professional services), end-user industry (electronics, industrial equipment, high-tech, aerospace and defense, automotive, architecture, engineering, and construction (AEC)), and geography. The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.

PLM Software Market Size

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Product Lifecycle Management (PLM) Software Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 29.00 Billion
Market Size (2029) USD 41.29 Billion
CAGR (2024 - 2029) 7.32 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

PLM Software Market Major Players

*Disclaimer: Major Players sorted in no particular order

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PLM Software Market Analysis

The PLM Software Market size is estimated at USD 29 billion in 2024, and is expected to reach USD 41.29 billion by 2029, growing at a CAGR of 7.32% during the forecast period (2024-2029).

The demand for robust data analytics software platforms in the industry is increasing. The increasing adoption of IoT across the manufacturing industry has augmented these trends. PTC's Windchill is an instance of the PLM software embedded with analytics for discrete manufacturers looking for IoT capabilities. This software can boost the PLM solution to sprint with flexibility.

  • Digitalization transforms products from physical goods and tangible services into digital twins, replicas of the physical product. Industry 4.0 is an important focus aiming at increasing competitiveness by targeting the reduction of production costs while improving product quality and production scalability by utilizing the digitalization of products. SAP explores digital supply chain scenarios where different suppliers submit offers directly to a blockchain platform to improve effectiveness across their business networks.
  • In addition, PLM helps improve approval times and reduce delays by accelerating product introduction to the market, saving costs for adopters. For example, in September 2022, AVEVA Solutions Limited and Aras entered a strategic OEM partnership to deliver industrial 'Asset Lifecycle Management' solutions. AVEVA would license the Aras Innovator platform for providing a series of scalable Asset Lifecycle Management solutions that would integrate Aras' flexible and open portfolio of applications with AVEVA Asset Information Management and AVEVA Unified Engineering.
  • The increased adoption of Industrial IoT (IIoT) in the production process is aiding the market demand for software applications, and IIoT adoption is expected to skyrocket over the forecast period. For instance, according to GSMA Intelligence, the number of IIoT-connected objects is expected to reach 13.7 billion by 2025.
  • For example, in January 2022, Simple Energy, the EV maker, partnered with Siemens and enabled digital transformation in the EV manufacturing industry. The EV company also mentioned including Prolim to share its technologies to strengthen the EV portfolio in India. As part of the partnership, Simple Energy would adopt Siemen's cloud-based product lifecycle management (PLM) software Teamcenter X to establish a robust digital foundation in e-mobility solutions.
  • However, as the companies continue to provide different products and product ranges to tackle market competitiveness, it creates interoperability issues, a matter of constant optimization for the software companies. As continuous improvements continue in the software products, the software implementation in a company's existing product line-up becomes streamlined and manageable, facilitating better results.
  • Many manufacturing industries were affected by the COVID-19 pandemic, creating significant supply chain gaps, and leading to delays. This forced many industries to hasten the Industry 4.0 adoption and digital transformation initiatives, boosting the demand for PLM software to bolster the required growth rates. The increased software penetration after the pandemic has boosted market growth.

PLM Software Market Trends

Increasing Production of Autonomous Vehicles to Drive the Market Growth

  • Due to the rapid penetration of autonomous vehicles, the developers primarily working on autonomous vehicles have to face several increasingly complex challenges and, consequently, need to reevaluate their existing processes and toolsets. Hence, the rising need to overcome these challenges is fuelling the market's growth exponentially.
  • Moreover, the fully functional autonomous driving systems need some of the most complex and sophisticated software implementations that carmakers have ever faced for combining a variety of data feeds, like information from sensors, traffic data from the cloud, data coming from other infrastructure or vehicles, and tying it all into the automobiles's mechanical and electronic components to create a vast network of onboard systems that all work together reliably without the need for user input or correction.
  • The integrated ALM (Application Lifecycle Management) and product development platforms, such as codeBeamer ALM, will be instrumental in modernizing development processes for tackling the challenges introduced by the increasing product complexity and the growing reliance of products on sophisticated software applications in the autonomous vehicle sector.
  • The rising usage of digital manufacturing and the increasing demand for autonomous cars is a key trend expected to drive the PLM software market in the automotive sector during the estimated period. For instance, in October 2022, Siemens and Applied EV declared a partnership with the EV company to utilize Siemens' PLM software to enhance autonomous vehicle design, assembly, and quality assurance. Siemens' software was helping the EV firm meet the growing demand for fully autonomous vehicles through better change management and quality.
  • In June 2023, Aras, which provides the most powerful low-code platform with applications to design, build, and operate complex products, declared that global car manufacturer Nissan Motor Co. Ltd. is utilizing Aras Innovator to streamline the management of complex in-vehicle software variants. This move comes as Nissan extends its electric car production to fulfill the rising consumer demand.
PLM Software Market - Key startups in the field of autonomous driving worldwide as of April 2022, by funding

North America to Account for a Significant Share

  • North America's strong financial position allows it to invest massively, especially in advanced technologies and solutions that have offered a strong competitive edge within the market. Moreover, the region has a robust presence of several significant product lifecycle management software vendors like IBM Corp., PTC Inc., Oracle Corporation, and many others. Hence, there lies intense competition among the market players.
  • The entire automotive industry in North America is growing at a rapid pace. PLM software is primarily utilized in the product development stage, which starts long before manufacturing begins in the automotive industry. It ensures the vehicles' advanced safety features, electronics, and embedded software content. Hence, with the rise in the automotive industry within the region, the market is expected to have various lucrative growth opportunities throughout the forecast period.
  • Other manufacturing industries and markets explore the benefits of deploying PLM software to augment manufacturing and production processes. For instance, in April 2023, Siemens and Microsoft are harnessing the overall collaborative power of generative artificial intelligence mainly to help industrial companies drive efficiency and innovation across the engineering, design, manufacturing, and operational lifecycle of the products. Also, to enhance cross-functional collaboration, the companies are focused on integrating Siemens' Teamcenter software for product lifecycle management with the collaboration platform of Microsoft, Teams, and its language models in Azure OpenAI Service, as well as various other Azure AI capabilities.
  • In September 2022, PTC declared the availability of the Onshape-Arena Connection, a new functionality that mainly connected its cloud-native Onshape product development and Arena product lifecycle management solutions. The Connection allowed the product data to be shared instantly between the Arena and Onshape solutions with the single click of a button, assisting the companies in augmenting the product development process and simplifying collaboration with the supply chain partners.
  • Such collaborations enhance the entire market scenario, stimulating other competitors and vendors to enable PLM software and shaping the whole North American market for vast PLM implementation. Hence, the in-depth implementation throughout several aspects of the product supply chain is actively helping North America's businesses with the evolving Industry 4.0 trends.
Product Lifecycle Management (PLM) Software Market - Growth Rate by Region

PLM Software Industry Overview

The Product Lifecycle Management (PLM) software market is highly fragmented and competitive, mainly due to the presence of numerous global players. Various market players are moving in R&D with the latest software techniques, building a high level of competitiveness throughout the market. The key players include Dassault Systemes Deutschland GmbH, Siemens, Autodesk Inc., ANSYS Inc., Infor Inc., and many others. The companies are thus maximizing their market share by forming various partnerships, investing in projects, and introducing new products in the market.

In February 2023, Global provider of collaboration and design solutions Bricsys, part of Hexagon, declared its partnership with MechWorks, part of ITI Technegroup, a WIPRO Company, to offer an integration between Siemens' Teamcenter software and BricsCAD. The solution primarily provides industry-best features to connect BricsCAD's processes faster and enable designers to focus on its product development.

In September 2022, Holland Capital, the key shareholder of the European Digital Transformation consortium, successfully acquired OnePLM to complement Magnus Digital, Dimensys, Cards PLM Solutions, and Appronto. This created the largest software and service provider of its kind in Europe and allowed international customers to benefit from a vast range of best-in-class expert services.

PLM Software Market Leaders

  1. Siemens AG

  2. SAP SE

  3. Autodesk Inc.

  4. Dassault Systems Deutschland GmbH

  5. PTC Inc.

*Disclaimer: Major Players sorted in no particular order

PLM Software Market Concentration
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PLM Software Market News

  • January 2023: Hunkemöller, one of the significant global omnichannel lingerie brands, selected Bamboo Rose Product Lifecycle Management, Sourcing, and Purchase Order Management applications to connect and streamline development, sourcing, design, and supply chain processes as the brand primarily pursues various aggressive domestic and international growth plans. The teams have also partnered for years to source, audit, and implement replenishment and allocation systems, manage the master data initiative, optimize the wholesale side of the business, and support the implementation of the Bamboo Rose PLM.
  • March 2023: Bamboo Rose, the significant collaborative product development, sourcing & supply chain platform for retailers and consumer brands, declared its acquisition of Backbone PLM of Boulder, Colorado. Backbone offers a designer-centric product development platform that mainly empowers brands and retailers of all sizes across soft goods, apparel, and hard goods, especially to produce products faster, smarter, and at scale.

PLM Software Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Impact of COVID-19 on the Product Lifecycle Management Software Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Adoption of Digitalization to Improve Production

      2. 5.1.2 Introduction of Cloud Technology to Consolidate the Information

    2. 5.2 Market Restraints

      1. 5.2.1 Lack of Interoperability among Dissimilar Product Versions

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Deployment Type

      1. 6.1.1 On-premise

      2. 6.1.2 Cloud

      3. 6.1.3 Professional Services

    2. 6.2 By End-user Industry

      1. 6.2.1 Electronics, Industrial Equipment, and High-tech

      2. 6.2.2 Aerospace and Defense

      3. 6.2.3 Automotive

      4. 6.2.4 Architecture, Engineering, and Construction (AEC)

      5. 6.2.5 Other End-user Industries

    3. 6.3 By Geography

      1. 6.3.1 North America

      2. 6.3.2 Europe

      3. 6.3.3 Asia-Pacific

      4. 6.3.4 Latin America

      5. 6.3.5 Middle East & Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Siemens AG

      2. 7.1.2 Dassault Systems Deutschland GmbH

      3. 7.1.3 Autodesk Inc.

      4. 7.1.4 PTC Inc.

      5. 7.1.5 SAP SE

      6. 7.1.6 ANSYS Germany GmbH

      7. 7.1.7 Oracle Corporation

      8. 7.1.8 Aras Corporation

      9. 7.1.9 Arena Solutions

      10. 7.1.10 Infor Inc.

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

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PLM Software Industry Segmentation

The product lifecycle management (PLM) software market for the study defines revenues generated from adopting the PLM software in various end-user industries, such as electronics, industrial equipment, automotive, aerospace, and defense. The analysis is mainly based on the market insights captured through various secondary research and the primaries. The market also covers the major factors impacting the growth of the PLM software market in terms of drivers and restraints.

The Product Lifecycle Management (PLM) software market witnesses growth, as PLM helps manage complex product lifecycles. The analysis of different metrics of the products provided by these software helps organizations facilitate various stages of designing the product and introducing it in the market.

The Product Lifecycle Management (PLM) Software Market is segmented by Deployment Type (On-premise, Cloud, and Professional Services), End-user Industry (Electronics, Industrial Equipment, High-tech, Aerospace and Defense, Automotive, Architecture, Engineering, and Construction (AEC)), and Geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa). The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Deployment Type
On-premise
Cloud
Professional Services
By End-user Industry
Electronics, Industrial Equipment, and High-tech
Aerospace and Defense
Automotive
Architecture, Engineering, and Construction (AEC)
Other End-user Industries
By Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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PLM Software Market Research FAQs

The PLM Software Market size is expected to reach USD 29.00 billion in 2024 and grow at a CAGR of 7.32% to reach USD 41.29 billion by 2029.

In 2024, the PLM Software Market size is expected to reach USD 29.00 billion.

Siemens AG, SAP SE, Autodesk Inc., Dassault Systems Deutschland GmbH and PTC Inc. are the major companies operating in the PLM Software Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in PLM Software Market.

In 2023, the PLM Software Market size was estimated at USD 27.02 billion. The report covers the PLM Software Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the PLM Software Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The demand for Product Lifecycle Management (PLM) Market is driven by: a) Need for innovation b) Shorter product development cycles c) Necessity to maintain compliance with industry regulations

Automotive, aerospace, defense, pharmaceuticals, and electronics industries are major users, leveraging Product Lifecycle Management (PLM) for complex product development processes.

PLM Software Industry Report

The Global Product Lifecycle Management (PLM) Market is witnessing remarkable growth, propelled by the demand for innovative smart products and the need for cloud-based PLM solutions to ensure scalable, secure IT infrastructure. This expansion is evident across various segments, including on-premise and cloud-based deployments, catering to industries like automotive, aerospace, and healthcare. Advanced technologies such as Internet of Things (IoT) and virtual reality (VR) are enhancing PLM capabilities, with a notable surge in demand from Small and Medium-Sized Enterprises (SMEs) aiming to optimize manufacturing costs. The integration of IoT with PLM solutions is set to revolutionize real-time performance and quality management, significantly advancing product development processes. According to Mordor Intelligence™ Industry Reports, the PLM software market share and size are expanding, with a positive revenue growth rate forecasted. This PLM analysis underscores the market's potential, offering insights into the future landscape. For a comprehensive understanding, access a free report PDF download detailing the PLM software market's forecast outlook and historical overview.

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PLM Software Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)