Market research has big news for PLM’s big three—but it isn’t all sunshine and rainbows.
According to Verified Market Research, Cloud-based PLM is forecasted to reach a value of $115.77B by 2028. This would represent a CAGR of 16.68 percent and a valuation of $33.64B in 2020. The main trends powering this growth are the manufacturing industry’s push towards digital transformations to increase efficiency, better manage supply chains and produce a single source of truth via cloud-based PLM tools acting as a digital thread.
“Cloud product lifecycle management allows easier, faster and more authentic collaboration between all teams,” writes Verified Market Research. “It gives role-based policy access to assure everyone only has a way to the information they need, which preserves the OEM’s intellectual property (IP) at all times. Cloud PLM has grown in demand with manufacturers across the globe as a way to achieve the complete product lifecycle and deliver high-quality products on time and under budget.”
Other factors increasing the demand of cloud-based PLM tools include:
- Customer management.
- ERP systems integration.
- Industrial Internet of Things (IIoT).
- Additive manufacturing.
- Vendor management.
- Real-time re-engineering and product customizations.
The report notes that a primary goal of today’s organizations is to improve the customer experience to retain their loyalty and increase the customer base. This requires ERP integration with customer management tools. Meanwhile, the PLM tools help to automate the lifecycle of the products to optimize customer satisfaction and productivity. These automations have other advantages including process management, profitability estimations as well as increased robotics, AI, machine learning and mechanizations.
But Verified Market Research does note that the PLM industry will have some challenges during the projected period between now and 2028. The primary ones include:
- Organizations being reluctant to adopt cloud technologies.
- Regions having a limited supply of network providers.
- Customers lacking the skills and resources for security and implementation.
Nonetheless, the markets most likely to implement cloud-based PLM include:
- Automotive and Transportation.
- Industrial Machinery and Heavy Equipment.
- Energy and Utilities.
- Telecommunication and IT.
- Semiconductors and Electronics.
The Telecommunication and IT markets have the highest CAGR between now and 2028. As for how company size factors into this adoption, the largest CAGR is expected to be for mid-sized companies.
According to Verified Market Research, the big players in the PLM world include Oracle Corporation, Accenture, Aras, Arena Solutions, Autodesk, Collaborate Cloud, Dassault Systèmes, Infor, PTC, SAP, Siemens and Softech. Currently, the big three in the PLM world are Siemens, Dassault Systèmes and PTC, but with $115.77B on the table, there is a lot of pie to be eaten even by those with a small slice.
