Product Lifecycle Management
Overview of the global PLM market in consumer goods industry
Market research analysts at Technavio predict that the global product lifecycle management (PLM) market in consumer goods industry will grow steadily during the next four years and post a CAGR of more than 12% by 2020. This market research analysis identifies the need for effective collaboration among various business units as one of the primary factors that will have a positive impact on the growth of the PLM software market in the coming years. The complex and short production cycles in the global consumer goods industry that increases the need for design and validation of products, consecutively results in creating the need for better interaction among various business units. PLM software helps manufacturers to create a secure and collaborative product development environment. It also streamlines product development phases and by ensuring the availability of updated product information to all divisions, it acts as a single source for product information. Moreover, features such as visualization and integration of computer-aided design (CAD) that result in reducing the time-to-market and product cost and increases profitability of the company, will also boost the demand for PLM software from this industry.
The use of integrated packaging in the packaged consumer goods sector will be one of the major trends that will gain traction in this market in the coming years. To boost brand value, consumer goods companies have the need to have an innovative product and packaging concept. The use of PLM software will help packaging teams to create an
Global outlook of the CAD market in the automotive industry
Technavio’s market research analysts predict the global CAD market in the automotive industry to grow steadily during the next four years and post a CAGR of more than 5% by 2020. This industry research report identifies the increasing number of product recalls by several automobile companies to be one of the major factors that will have a positive impact on the growth of this market in the coming years. The recent years have witnessed a number of major automobile manufacturers recalling their products due to various reasons including defective air bags, faulty light systems, issues with ignition switch parts, and faulty camshaft. From having to incur severe losses based on the number of products recalled to having a bad reputation in case of a major issue, product recalls due to non-compliance of product standards and safety concerns have several negative effects. Since the effective use of product life cycle management (PLM) software such as computer-aided designing (CAD), computer-aided engineering (CAE), and computer-aided manufacturing (CAM) can ensure the reduction in number of product recalls by refining the product, there will be an increase in the adoption of PLM software by automotive industries, which in turn, fuels the growth of the CAD market in the automotive industry.
The shift toward subscription model from the perpetual license model will be one of the major trends that will gain traction in this market in the coming years. Benefits such as simpler and a better user experience will result in the major
Overview of the global mechanical computer-aided design (MCAD) market
Technavio’s market research analyst predicts the global mechanical computer-aided design (MCAD) market to grow at a CAGR of more than 7% by 2020. The growing need for providing quality products at a faster rate has propelled the demand for MCAD software among organizations. MCAD software helps improve the time-to-market by reducing the product development cycle and analysis time. It enhances the speed of the product design cycle, resulting in operational efficiency. It helps in the development of prototypes, which are tested under different environments, to produce quality products. Organizations across the globe are increasingly adopting MCAD software to design products as around 80% of the total product cost depends on the product design. They are also using MCAD software to develop virtual product development models for failure verification, design verification, and concept verification. With the growing need to provide quality products, the MCAD market will witness massive growth over the next four years.
The need for better integration of electronic computer-aided design (ECAD) and MCAD is rising significantly because of the increasing demand for electronics in automobiles and the surging demand for customized products from end-users. Such integration will eliminate the complexity of product development and rework processes and subsequently save the development expenses across industries. The collaboration of ECAD and MCAD has led to a new discipline known as mechatronics, whose major application areas include robotics in the healthcare industry and electric cars in the automotive sector. Electrical Design Mechanical Design Extensible Markup Language (EMD XML) standard is a major factor boosting the integration of ECAD and MCAD.
Competitive landscape and key vendors
Overview of the global cloud electronic design automation (EDA) market
Market research analysts at Technavio have predicted that the global cloud electronic design automation (EDA) market will grow steadily during the forecast period and will post a CAGR of almost 7% by 2020. The adoption of EDA leads to a reduction in the design time, errors, and cost and is mainly used in the manufacture of aerospace and defense equipment. For instance, Bell Helicopter adopted Mentor Graphics Capital product family to streamline the wiring design process for their Bell 525 Relentless program. The company used Capital Suite, an advanced electrical system, and wire harness design software suite to reduce the time taken in electrical system integration by eliminating prototypes. Capital Logic, Capital Integrator, and Capital AutoView software are few other software adopted by the company to streamline and improve the relentless electrical system design process subsequently, providing a faster time to market. The reduction in design time is one of the major advantages that EDA offers and will be one of the primary factors fueling the growth of the cloud EDA market.
The requirement of a huge capital investment by customers is one of the primary barriers affecting the growth of the cloud EDA market. As a result, the coming years will witness the shift from a perpetual model to a subscription-based licensing model. A subscription license model will help vendors offer their users features to create a mix of desired EDA tools and also provide upgrades and maintenance facilities. Moreover, a subscription model will considerably reduce the total cost of operation enabling several large companies and small and medium-sized enterprises to have easy access to EDA tools.
Competitive landscape and key
Overview of the global computer-aided engineering (CAE) market for value-added resellers (VARs)
Market research analysts at Technavio predict that the global CAE market for VARs will grow steadily during the next four years and post a CAGR of more than 11% by 2020. This market research analysis predicts that VARs will help in reducing the gap between suppliers and end-users and this will be one of the primary growth factors for this market. VARs will help new and existing customers by providing contacts with major software providers, in turn, eliminating the need for any research to identify the best supplier. VARs also receive training and certifications from suppliers, which will assist in increasing their credibility in front of the customers. Moreover, VARs adopt latest technological advancements in the computer-aided engineering market, which helps end-users to adopt latest technologies and stay competitive in the market.
An increase in the adoption of computational fluid dynamics (CFD) for battery designing will be one of the major trends gaining traction in this market in the next four years. The recent years have witnessed a rapid increase in the adoption of electric vehicles around the globe. As a result, major automotive vendors have increased their R&D spend to include electric/hybrid vehicles in their product portfolio. Since proper battery temperature helps in increasing battery life and performance, engineers have started using CFD for designing air-cooled systems. CFD also helps in reducing the cost, which also makes it ideal for compact and economic vehicles. Computer-aided designing
Outlook of the collaborative product definition management (cPDM) market
The market research analysts at Technavio predict that the global collaborative product definition management (cPDM) market will grow steadily and post a CAGR of around 10% by 2020. The increase in demand for product lifecycle management (PLM) solutions used for communication, coordination, and collaboration with different business units will be one of the significant factors contributing to the growth of the market. Product outlining will be an important component of the overall manufacturing process and solutions such as cPDM as they enable effective collaboration among various departments that plan, design, manufacture, and support a product throughout its lifecycle. Additionally, it also ensures the availability of updated product information to all units. Also, collaboration techniques conferred by PLM solutions will add to the ease of designing a product, help manage material costs, lower inventory costs, and boost product quality.
A recent trend observed in the global cPDM market is the capability of cPDM to support CAD Files. Several cPDM vendors have incorporated the ability to support different types of CAD files, such as .dwg, .dft, .3dxml, .psm, and database files, which will enable the effective integration of various design records into signal product structures. Furthermore, this ability will aid in the integration of two-dimensional (2D) and three-dimensional (3D) documents for visualization of the product assembly, which will further help in the evolution of the market space.
Competitive landscape and key vendors
In this market, there appears to be intense competition among the existing vendors and new entrants. The sellers will opt for mergers and acquisitions, distribute resources to market products that are distinct, clear, and unique value proposition, and in technological
PLM is software that plays an integral role in different functional levels of organizations, such as product design, engineering, and manufacturing. The need to manage a product from concept to realization has led to the emergence of PLM software and services. Greater product complexity and an increase in product portfolios across organizations have led to a need for a system that can provide solutions to the production process across industries. PLM software is essential for an organization to reduce costs, achieve higher capital efficiency, and ultimately, increase their bottom line.
Some of the markets under Technavio’s coverage area include digital manufacturing software and computer-aided manufacturing software.