CIMdata is an independent worldwide firm, which since 1983 has delivered world-class knowledge, expertise, and best-practice methods on PLM solutions. According to recent statistics compiled by CIMdata, the worldwide comprehensive Product Lifecycle Management (PLM) market experienced a stronger-than-expected 13.5% growth rate and reached an estimated $24.3 billion in 2007. The increase exceeds earlier forecasts most particularly in light of continuing predictions of possible global economic downturn. According to CIMdata PLM investments are forecasted to continue their steady climb over the next five years, increasing at a compound annual growth rate of approximately 9.8% and expanding the market size to nearly $40 billion by 2012.
– If you look at the market in general, the most visible trend is that PLM is becoming a much more extensive solution for enterprises. If you review the footprint of current PLM strategies, you will see how much of the enterprise that PLM is starting to cover. The increasing interest and confidence in PLM is clearly demonstrated in the growing market investment. CIMdata research indicates that PLM spending increased at a strong growth rate of 13.5% in 2007, and we forecast that investments will reach an estimated $24 billion in 2007.
Another key trend that we see is an increase in the variety of industries becoming interested in PLM, including several industries that have not been previously using PLM in any substantial way. We can now see not only traditional mechanically-oriented industries but also companies in industries such as consumer packaged goods, food and beverage, textile and apparel, and services now investing in PLM. We also see additional growth in industries such as power utility that are working with PLM to manage the design and definition of power plants.
If one reviews the industry in terms of suppliers, you will see two major things happening. First, you have companies that have consolidated at the high end, such as Dasault Systemes that have made a series of acquisitions (including MatrixOne), Siemens that has acquired UGS, PTC that has acquired Arbortext, CoCreate and others, Oracle acquiring Agile, etc. At the same time, you see a wide variety of additional companies entering the industry that are focused on specific applications targeted at unique areas - such as rules-driven analysis, data aggregation, configuration management, or a wide range of other areas. Typically those suppliers work within the umbrellas that are provided by the comprehensive solutions.
Companies are struggling to maintain their value in the world wide competitive market. They are considering different approaches to improving their products and how they can reach their market more effectively. There is also a substantial focus on globalisation; the ability to utilise resources from widely distributed operations, including subsidiaries, partners, etc. In large companies particularly, they have to discover how they should use their resources from different groups scattered around the world and how the people can work together more effectively. This has been an objective for several years but it still is a major problem for many companies.
When we consider products, it is important to recognize that a product includes more than just a physical object that a factory ships. You must also consider the delivery environments, service components, or other aspects of the overall product that the customer encounters. In addition to the delivered suite of components that comprise a product, it is also critical to consider how to design products so that they can be manufactured and serviced more effectively. These are not new concepts, but what has happened now is that we actually supporting these concepts much more effectively with the new PLM environments. These initiatives are helping to drive development of the industry. The expanding footprint of PLM is a necessity for companies to focus more holistically on their products’ entire lifecycles.
Many companies are still struggling to effectively manage the full definition of their products. While companies have significantly improved their ability to manage the mechanical aspects of product development and management, most are not well positioned to manage their full product definition, including electronics and embedded software. And in today’s industries, more and more of the products include electronics and embedded software as critical components. Many companies have been looking at this in years. But most have not yet achieved the level of comprehensive product management that they need. In response, we see a broad-based focus on system engineering, because it considers the whole product as an overall system and incorporates all components. This is an important trend in industry, and will help to improve the success that companies achieve in their markets, facilitated by a solid PLM environment.
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For more information on the subject please follow the link to a CIMdata White Paper “PLM Market Growth in 2007 A First Look in 2008”.