Cloud Product Lifecycle Management (PLM) Market by Deployment, Type and Geography- Forecast and Analysis 2023-2027

Cloud Product Lifecycle Management Market Forecast 2023-2027

The cloud product lifecycle management market size is estimated to increase by USD 1.23 billion and grow at a CAGR of 6.46% between 2022 and 2027. The growth of the market depends on several factors, including a reduction in IT expenditure, growing demand for large-scale product lifecycle management, and rising requirements for remotely accessible product lifecycle management solutions.  The market is propelled by several pivotal factors, with a primary driver being the notable decrease in IT spending. Conventional on-premise PLM solutions typically require significant initial investments in infrastructure and ongoing maintenance expenses. Conversely, cloud-based PLM systems adopt a subscription-based approach, eliminating the necessity for costly infrastructure procurement and maintenance. This reduction in IT expenditure empowers organizations to allocate resources more effectively, resulting in overall operational cost reductions and streamlined budget management.

What will be the Size of the Cloud Product Lifecycle Management Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by product (CPDM, DM, and CAD), business segment (large enterprises, small, and medium enterprises), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By Product

The market share growth by the CPDM segment will be significant during the forecast period. Due to the increasing demand for a strategic business approach that uses a consistent set of business processes, which, put together, provides a wide set of diverse solutions to a single problem, there is a significant demand for CPDM segment during the forecast period.

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The  CPDM segment was valued at USD 1.25 billion in 2017 and continued to grow until 2021. One of the key advantages of the cloud-based CPDM is that it enables better collaboration between the manufacturers and the suppliers by making the product data accessible through any computer with an Internet connection. Another significant feature of this segment is that it allows control access for viewing and editing for specific users, which helps them protect sensitive intellectual property from getting leaked or misused without firewalls and workarounds. As Cloud CPDM requires low upfront implementation and maintenance costs when compared to the traditional on-premises solution, it is expected to have an increase in demand, which, in turn, can fuel the demand for the market, during the forecast period.

By Region

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North America is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Due to the strong existence and penetration of the top vendors of cloud-based product lifecycle management products, there is an increase in the overall market growth in the region. Also, as new and emerging technologies are promoted in North America and the region is an early adopter of advanced technologies across all industries, the market in North America has always been lucrative for vendors of cloud-based product lifecycle management products. Due to the strong financial position of North America, the region is able to make huge investments in implementing the most innovative and cutting-edge technology and tools to guarantee efficient corporate operations. Thus, such factors can significantly drive the Cloud PLM Market in the region.

Market Dynamics and Customer Landscape

The market is experiencing a surge driven by efficiency gains and enhanced accessibility. Cloud PLM systems streamline implementation processes, offering businesses a faster route to deployment compared to traditional on-premise solutions. Moreover, these platforms provide end-to-end management, from product conception to disposal, ensuring comprehensive control and optimization throughout the product lifecycle. As remote working becomes more prevalent, the demand for cloud-based PLM solutions rises, enabling seamless collaboration and access from any location. Enhanced data security measures implemented by cloud PLM providers address growing concerns, particularly in industries like additive manufacturing and industrial IoT, ensuring the protection of sensitive product information.

Furthermore, the integration of cloud PLM systems with emerging technologies such as Augmented Reality (AR), Virtual Reality (VR), and the Internet of Things (IoT) is driving innovation and efficiency across industries. This integration fosters the development of smart products and factories, enhancing operational capabilities and providing a competitive edge. Small and medium-sized businesses benefit from the scalability and cost-effectiveness of cloud PLM solutions, democratizing access to advanced product lifecycle management capabilities. Aligned with enterprise strategies, these platforms enable organizations to synchronize product development efforts with broader organizational goals. With the flexibility and scalability offered by cloud technology, businesses can adapt quickly to changing market demands, positioning cloud-based PLM as a pivotal driver of innovation and efficiency in modern industries.

Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The market is driven by several key factors, foremost among them being the significant reduction in IT expenditure. Traditional on-premise PLM solutions often entail substantial upfront investment in infrastructure and maintenance costs. In contrast, cloud-based PLM systems offer a subscription-based model, eliminating the need for costly infrastructure procurement and maintenance. This reduction in IT expenditure enables organizations to allocate resources more efficiently, driving overall operational cost savings and facilitating easier budget management.

Furthermore, the efficiency enhancement provided by cloud-based PLM software is a major driver propelling market growth. By streamlining product conception, design, production, and disposal processes onto a unified cloud platform, companies can achieve greater collaboration, faster decision-making, and improved project visibility. This efficiency enhancement translates into faster time-to-market for new products, increased productivity, and better resource utilization. Additionally, factors such as the facilitation of remote working, assurance of data security, and market competitiveness further contribute to the increasing adoption of cloud-based PLM solutions across various industries.

Significant Market Trends

A key factor shaping the global market growth is the increasing adoption of automatic real-time tracking of products. In the present market, as multiple users are working on the content in real time, there is an increase in the demand for real-time tracking and collaboration.

Some of the key advantages of these features include increasing overall productivity; and intelligent product lifecycle management. Also, these tools prompt the project managers, engineers, and analysts to do their essential tasks on time as per the pre-plan. Thus, the above features of these systems are expected to drive global market growth during the forecast period.

Major Market Challenge

Rise in bandwidths and performance costs are the key challenges hindering the global market growth. Most of the big cloud players have experienced outages, as all the systems in the organization are dependent on cloud service providers, and the performance of the business intelligence of the organization and other cloud-based applications is tied to the performance of the cloud service provider.

Even though companies can save money on hardware, management, and maintenance by using cloud-based solutions, they have to spend more money on bandwidth while using these services. The cost varies depending on the size of the applications. In order to transmit and deliver sophisticated and intensive data over the network, the company requires sufficient bandwidth. Thus, the increasing cost of these bandwidths poses a significant threat to global Market growth during the forecast period.

Key Market Customer Landscape

The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Cloud Product Lifecycle Management Market Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Accenture Plc: The company offers cloud-based product lifecycle management solutions to the airline, automotive, industrial equipment, and public transportation industries.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:

• ApparelMagic
• Aras Corp.
• Autodesk Inc.
• Dassault Systemes SE
• Edaforce Inc.
• Essig PLM
• IFS World Operations AB
• Koch Industries Inc.
• Oracle Corp.
• Professional Systems Associates Inc.
• PROLIM Global Corp.
• Propel Software Solutions Inc.
• PTC Inc.
• SAP SE

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Product Outlook 
  • CPDM
  • DM
  • CAD
• Business Segment Outlook 
  • Large enterprises
  • Small
  • Medium enterprises
• Geography Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • South America
    • Chile
    • Argentina
    • Brazil
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is experiencing exponential growth across various industries, including Aerospace & Defense, Automotive & Transportation, Healthcare & Life Sciences, and Semiconductor & Electronics. This surge is fueled by the need for streamlined solutions to manage product conception, design, production, and disposal efficiently. With the advent of Cloud technology, integration with the Industrial Internet of Things (IIoT) and Augmented Reality (AR) is becoming seamless, enabling real-time operational data and facilitating data-driven decisions. Moreover, Cloud Based PLM Market addresses integration challenges, ensure data security, and support remote working, driving innovation in business processes and digital transformation in industrial verticals. As companies embrace smart manufacturing and smart products, Cloud PLM solutions offer subscription-based models, enhancing time efficiency and usability while addressing quality and compliance management concerns.

In today's dynamic landscape, additive manufacturing, big data analytics, and digital twins are revolutionizing industries like never before. Cloud-based product lifecycle management (PLM) solutions emerge as the cornerstone, enabling seamless communication between manufacturers and suppliers. Consulting firms navigate change management and information strategy to integrate PLM with IoT, ensuring efficient manufacturing operations management.

The Cloud-based PLM market thrives on its integration capabilities with enterprise systems, addressing data theft concerns through robust security measures. From energy & utilities to retail & consumer goods, market opportunities abound for small and medium-sized businesses. With a focus on quality assurance and innovation, Cloud PLM systems pave the way for smart products and factories, transforming industry verticals worldwide.

Cloud Product Lifecycle Management Market Scope
Report Coverage	Details
Page number	177
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 6.46%
Market growth 2023-2027	USD 1.23 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	6.2
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 48%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Accenture Plc, ApparelMagic, Aras Corp., Autodesk Inc., Dassault Systemes SE, Edaforce Inc., Essig PLM, FusePLM LLC, IFS World Operations AB, Koch Industries Inc., Oracle Corp., Professional Systems Associates Inc., PROLIM Global Corp., Propel Software Solutions Inc., PTC Inc., SAP SE, and Siemens AG
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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