PLM Software Market Size

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.