Product Lifecycle Management (PLM) is a process used by companies to manage the entire lifecycle of a product from its conception through design and manufacture to service and disposal. PLM integrates people, data, processes and business systems, and provides a product information backbone for companies and their extended enterprise. PLM applications are useful for a variety of industries dealing with product design requirements, compliance, product data management including computer-aided design (CAD), employee, and materials.

The global product lifecycle management market is estimated to be valued at US$ 27,321 Mn in 2023 and is expected to exhibit a CAGR of 8.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Product Lifecycle Management is Estimated to Witness High Growth Owing to Increasing Adoption Across Industries (One driver from heading): The adoption of PLM solutions is growing across industries due to increasing need for centralized product data management and collaboration between cross-functional teams throughout the product development lifecycle. PLM offers capabilities like digital prototyping, simulations, manufacturing process planning, and materials traceability which help companies improve product quality and bring products to market faster and at lower costs. PLM also enables better compliance management with industry standards and regulations.

Increasing Need for Centralized Product Data Management and Collaboration (explanation of driver): As product designs become more complex, there is growing need amongst organizations to centrally maintain critical product data and enable seamless collaboration between engineering, manufacturing, suppliers and other stakeholders. PLM acts as a single source of truth for product data and supports collaboration by allowing concurrent access to information. This drives streamlined processes, reduced product development cycle times, and improved visibility across the organization.

SWOT Analysis
Strength: Product lifecycle management (PLM) provides a centralized system for managing the entire lifecycle of physical products from conception to end-of-life. This centralized system helps streamline processes and enhance collaboration. It also provides a single source for product data which reduces errors and ensures that every department and stakeholder is working with the same accurate information. PLM also allows for simulation of product designs before manufacturing helps reduce costs associated with reworks or failures.
Weakness: PLM implementation requires a significant investment of both time and money. Organizations need to factor in costs associated with purchasing licenses, customizing or integrating the system, employee training, and ongoing subscription costs. There is also a learning curve associated with PLM and users may find the software complex at first. Adopting new processes and systems can lead to some initial resistance from employees.
Opportunity: PLM market is driven by the growing need of enterprises to manage growing product portfolios and comply with stringent government regulations. PLM capabilities around cloud delivery, IoT, and data analytics are key opportunities. More sectors beyond traditional manufacturing industries are adopting PLM to digitally transform product engineering. Increasing R&D investments also fuel need for better collaboration and oversight over product data and design processes.
Threats: Open source PLM offerings provide a low-cost alternative and threat to established vendors. Security concerns around product data stored on PLM platforms pose a challenge. Changing business models like outsourcing, distributed manufacturing threaten centralized control over product data and processes PLM aims to provide.

Key players: Key players operating in the Product Lifecycle Management Market are Dassault Systems, Hewlett-Packard Company, PTC, Inc., Atos SE, Siemens AG, Accenture plc, Autodesk, Inc., IBM Corporation, SAP SE, and Aras Corporation. These players focus on developing user-friendly PLM platforms to expand customer base and enhance existing product offerings through continuous innovation. Strategic partnerships are also important for key players to attain new customers and markets.

Regional analysis: North America currently dominates the PLM market with a share of over 35% in 2023. This is attributed to high technology adoption and presence of major players in the region. Asia Pacific is expected to grow at the fastest pace over the forecast period led by countries like China, India and Japan. Increasing investments in manufacturing and growing technological expertise will drive PLM adoption across industries in Asia Pacific region.

Key Takeaways
The global product lifecycle management market  is expected to witness high growth at a CAGR of 8.9% during the forecast period of 2023 to 2030. The market size for 2024 is expected to reach US$ 27,321 Mn.