Revenue Forecast

The estimated revenue for the base year is $7,842 million with a CAGR of 7.6% for the study period from 2023 to 2030.

The Impact of the Top 3 Strategic Imperatives on the PLM Industry

Innovative Business Models

• Why:
  • New technologies have revolutionized the way companies access PLM, with cloud-based deployment leading to new business models.
  • Owing to increased competition, software prices must be reduced to attract new customers.
  • A trend gaining traction in the business world is the transformation of products into services.
• Frost Perspective:
  • Industry participants are focusing on the software-as-a-service (SaaS) model to stay ahead of their competitors.
  • Customer demand for affordable software and cloud technology advancements will result in new SaaS offerings.
  • However, the model might affect vendors’ revenues. While revenue will become more stable and predictable over time, it might decline in the short term, alongside rising costs for cloud infrastructure construction.

Disruptive Technologies

• Why:
  • Technology progresses rapidly in the software industry.
  • New technologies, both in software and the industries it serves, can provide PLM developers the competitive edge they are looking for.
  • Companies can stay ahead of their competitors by deploying more advanced software offerings.
• Frost Perspective:
  • New technologies can be integrated into PLM to improve the customer experience by providing new capabilities.
  • These technologies include AI, cloud, digital twin, additive manufacturing, data analytics, compliance, sustainability, supply chain management, and cybersecurity.
  • By configuring its capabilities, different industries, regions, and clients can use PLM.

Competitive Intensity

• Why:
  • New, innovative companies are emerging in the industry.
  • The cloud-native, SaaS offerings they offer are cheaper, simpler, and faster for start-ups that want to acquire their products.
  • Vendors and buyers share a cloud-oriented culture, which eases technology adoption.
• Frost Perspective:
  • These industry disruptors challenge the larger, traditional participants.
  • Their simpler, cheaper, and more flexible offerings open the industry to new companies that may not have been attracted to it before, in addition to causing a migration from companies that deployed PLM software on-premises to cloud alternatives.
  • They also force traditional PLM vendors to review their strategies and adopt new technologies to maintain their leadership.

Scope of Analysis

• PLM manages the entire product lifecycle—from ideation and design to production, deployment, and disposal. It involves a holistic approach that enables a company to manage its products efficiently and effectively by providing a platform for product development and introduction.
• This study analyzes short-, medium-, and long-term PLM growth. It also qualitatively assesses the main trends impacting current and future growth.
• The study segments the industry into regions, verticals, and revenue sources.
• The regional segmentation includes North America and Latin America (NALA), Europe, the Middle East, and Africa (EMEA), and Asia-Pacific (APAC).
• The vertical segmentation includes automotive and transportation (A&T), aerospace and defense (A&D), machinery, semiconductors and electronics (SCE), and medical devices (MEDs) in the discrete segment; consumer packaged goods (CPGs) and others in the hybrid segment; and chemicals and petrochemicals (C&P), power, energy, and utilities (PE&U), and pharmaceuticals in the process segment.
• The revenue segmentation divides revenue according to its 2 main sources: Software and services. Within software, the study considers licensing, sales and subscriptions, and support. Services includes solutions such as implementation, training, and data migration.
• In terms of service providers, the study focuses on system integrators, IT consulting firms, and other companies that offer specialized services for PLM and not just project consulting services. These can include data migration, infrastructure building, and training.
• Owing to the growing interconnectedness of the software industry, it has become increasingly common to refer to PLM as an ecosystem of software that goes beyond strict PLM, encompassing computer-aided design (CAD), computer-aided manufacturing (CAM), computer-aided engineering (CAE), simulation, and electronic design and automation. This study focuses on the core PLM offerings.

Industry Segmentation

Industry

Discrete

• This is the most traditional PLM space as it focuses on manufacturing finished products that are distinct items capable of being easily counted, touched, or seen.
• PLM comes into play in the different stages of production.

Process

• This is a more specialized PLM space because the product is made by refining raw ingredients using a formula or recipe, and the final product cannot be broken down into its basic components.
• Thus, PLM offerings must adapt and provide several functions, such as ingredient management and recipe analysis and management.

Hybrid

• Hybrid combines discrete and process. It includes a mixture of continuous, batch or sequential, and discrete processes.

Regional Segmentation

• NALA
  • The United States and Canada
  • Brazil
  • Rest of LATAM
• EMEA
  • Germany
  • The United Kingdom
  • Italy
  • France
  • Scandinavia
  • Benelux
  • CIS countries
  • Rest of Europe
  • The Middle East
  • Africa
• APAC
  • India
  • China
  • Japan
  • South Korea
  • Southeast Asia
  • Australia and New Zealand (ANZ)
  • Rest of APAC

Competitive Environment