| ARC Advisory Group reported earlier this week that it expects the worldwide market for PLM software and services to grow at a compounded annual growth rate of 14.2% over the next five years. In its report, Product Lifecycle Management Solutions: Worldwide Outlook Market Analysis and Forecast Through 2010 ($4,900), the firm indicates that the market was $6.9 billion in 2005 and will grow to more than $13.3 billion in 2010. One of the most significant trends in the past few years has been a focus by manufacturers to define their enterprise architectures and strategic initiatives within the context of their PLM (product lifecycle management) solution set, the group reports. This has given rise to the expansion of PLM applications well beyond the traditional product authoring and testing applications (CAD/CAM/CAE) to a much broader scope of the product lifecycle that now includes the production processes, new product introduction, content management, product support and expanded service offerings. Robust growth will occur across most sectors of the PLM market, with particularly strong growth of more than 21% projected for digital manufacturing solutions. NPDI (New Product Development and Introduction) solutions are also forecast for strong growth as manufacturers seek innovation to drive top level growth, ARC reports. The author of ARC's study, Dick Slansky, states, "PLM solutions continue to expand and encompass a much broader scope across the product lifecycle. This is especially true in the case of digital manufacturing, where the manufacturing processes are integrated with product design through robust simulation tools to generate the factory production process." Strongest Growth in Asia. Asia represents a significant opportunity for PLM-enabling applications over the next five years as it continues to grow its industrial manufacturing base, according to ARC. Representing more than 20% of the PLM market in 2005, the Asian market will significantly grow to represent more than 23% of the market by 2010. Although Japan continues to be the largest market in Asia for PLM solutions, this market is maturing rapidly. Both China and India will see very strong growth in excess of that forecasted for the entire Asian market through 2010, ARC reports. PLM Suppliers Target SMB Market with Tailored PLM Solutions. PLM suppliers see a rapidly emerging market in the SMB (small- and midsize business) sector and are targeting these companies with a complete PLM solution set across the design/build/support/maintain lifecycle, specifically tailored to meet their requirements in terms of size and cost. The intent is to afford these companies with smaller engineering design seat requirements a comprehensive PLM solution set that compares in functionality and scope to those used by larger tier one companies. Discrete Industries Dominate. The discrete industries remain by far the largest segment for PLM solutions in 2005 representing nearly 90% of the total market. Within the discrete industries, the automotive and aerospace sectors are the largest markets for PLM solutions. The balance of the PLM market is represented by the process industries, which although small, will see substantial growth over the forecast period, according to the report. Both the consumer products goods and food and beverage industries will be particularly fertile markets for PLM solutions over the forecast period.
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