ALTHOUGH SOME SAY THAT CHINA is set to become the manufacturing center of the world, its manufacturing sector isn't keeping up with product lifecycle management software, according to a market research company.

According to the firm, Daratech Inc. in Cambridge, Mass., China's manufacturing sector grew 16 percent in 2004, and is expected to grow 15 percent annually over the next five years, according to the report.

Since 1990, PLM software has helped Chinese manufacturing enterprises grow, according to the report.

Daratech estimates that the Chinese PLM market saw sales of approximately $191 million in 2004 with a 30 percent growth in 2005, which would bring the market to almost $250 million.

Compared with the more established American and European markets, the Chinese market is still in its early stages and so far has greater growth potential than established markets have, the report said.

Revenue is lost in China to the illegal use of engineering software, especially 2-D and 3-D CAD. Daratech estimated that illegal users could outnumber legal users by 5 to 1. The report predicted that illegal use will decline.