PLM Software In Automotive Sector Market Size 2025-2029
The plm software in automotive sector market size is valued to increase by USD 3.64 billion, at a CAGR of 9.4% from 2024 to 2029. Rise in IoT integration will drive the plm software in automotive sector market.
Major Market Trends & Insights
- North America dominated the market and accounted for a 38.9% growth during the forecast period.
- By Application - Passenger vehicle segment was valued at USD 3.35 billion in 2023
- By Deployment - Cloud-based segment accounted for the largest market revenue share in 2023
Market Size & Forecast
- Market Opportunities: USD 4.84 billion
- Market Future Opportunities: USD 3.64 billion
- CAGR from 2024 to 2029 : 9.4%
Market Summary
- The PLM software in automotive sector market is undergoing a profound transformation, driven by the escalating complexity of electric, connected, and autonomous vehicles. This shift necessitates a move away from siloed engineering disciplines toward a unified, data-centric approach where a single source of truth governs the entire product lifecycle.
- Key technologies such as model-based systems engineering (MBSE) and comprehensive digital twin validation are becoming standard practice, enabling automakers to simulate and verify intricate systems virtually. For instance, a manufacturer can leverage digital thread traceability within its PLM platform to manage a global recall.
- By precisely identifying affected vehicles based on specific bill of materials management data and over-the-air update management records, the company can limit the scope of the recall, ensuring regulatory compliance tracking while reducing operational costs by over 30%.
- This integrated framework, which includes robust application lifecycle management integration, is essential for managing the software-defined vehicle lifecycle and accelerating innovation in a hyper-competitive environment.
What will be the Size of the PLM Software In Automotive Sector Market during the forecast period?
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How is the PLM Software In Automotive Sector Market Segmented?
The plm software in automotive sector industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
- Application
- Passenger vehicle
- Commercial vehicle
- Deployment
- Cloud-based
- On-premises
- Product
- Collaborative product data management
- Computer-aided design
- Simulation and analysis
- Digital manufacturing
- Geography
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- APAC
- China
- Japan
- India
- South America
- Brazil
- Argentina
- Colombia
- Middle East and Africa
- Saudi Arabia
- UAE
- South Africa
- Rest of World (ROW)
- North America
By Application Insights
The passenger vehicle segment is estimated to witness significant growth during the forecast period.
The passenger vehicle segment is driven by the paradigm shift toward electrification and autonomous driving, which necessitates advanced digital engineering platforms.
This transformation demands robust model-based systems engineering (MBSE) and application lifecycle management integration to manage the convergence of hardware and software.
The use of a holistic digital backbone is critical, with firms leveraging digital twin validation to reduce late-stage design changes by up to 15%.
This systems engineering approach, which relies on a single source of truth, allows for a concurrent engineering environment, breaking down traditional silos between mechanical, electronic, and software disciplines and enabling more efficient development of complex software-defined vehicle lifecycle architectures and ensuring intellectual property protection.
The Passenger vehicle segment was valued at USD 3.35 billion in 2023 and showed a gradual increase during the forecast period.
Regional Analysis
North America is estimated to contribute 38.9% 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.
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The geographic landscape of the market reveals a dynamic split between mature and high-growth regions. North America and Europe, long-standing automotive hubs, are focused on modernizing legacy systems to support EV and autonomous vehicle development.
North America is projected to contribute nearly 39% of the market's incremental growth, driven by this transition.
In contrast, APAC is the fastest-growing region, with domestic EV makers in China shortening development cycles by an average of 30% through virtual prototype testing and rapid innovation.
Success in these diverse markets depends on robust multi-CAD data management and an effective supplier collaboration portal to manage complex global supply chains and facilitate mechatronics engineering collaboration. These platforms provide a critical integrated product development platform for global teams.
Market Dynamics
Our researchers analyzed the data with 2024 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.
- The challenge of managing software complexity in autonomous vehicles is a primary driver for advanced digital solutions, compelling automakers to rethink their development strategies. The effective management of PLM for electric vehicle battery design is now a core competency, requiring deep integration and simulation capabilities.
- This has made PLM and ALM integration for SDV not just a best practice but a necessity, creating a cohesive environment for hardware and software co-development. A key benefit is the digital twin for predictive maintenance, which leverages in-service data to anticipate failures, a feature heavily influenced by the impact of IoT on automotive plm.
- The choice between the cost of on-premises vs cloud plm is a critical decision point, with SAAS plm adoption for EV startups accelerating due to lower upfront investment. Firms using a cloud plm for automotive supply chain have demonstrated more than double the agility in onboarding new suppliers compared to those with legacy systems.
- The benefits of MBSE in vehicle development are clear, offering a structured approach to handle complexity. However, significant cybersecurity risks in automotive plm systems must be addressed. As the industry advances, the plm role in achieving industry 4.0 becomes central, requiring sophisticated simulation data management in automotive engineering and robust configuration management for vehicle variants.
- This evolution is also shaped by the availability of open-source plm alternatives for automotive and the need for tight integration of PLM with ERP and MES systems, paving the way for data-driven improvements in both design and production.
What are the key market drivers leading to the rise in the adoption of PLM Software In Automotive Sector Industry?
- The pervasive integration of the Internet of Things (IoT) into modern vehicles is a paramount driver for the adoption and evolution of PLM software in the automotive sector.
- The market is propelled by the need to manage escalating vehicle complexity and accelerate time-to-market. The implementation of a data-driven design improvement process, fueled by IoT data, shortens vehicle development cycles by up to 20%.
- A critical enabler is the adoption of a platform-based design strategy, which has been shown to increase component reuse across different vehicle lines by over 30%, delivering significant cost savings.
- This requires a robust manufacturing process planning system and effective software version control. The ability to perform finite element analysis simulation and computational fluid dynamics within a unified environment is crucial for optimizing designs without relying on costly physical prototypes.
- This shift is supported by requirements traceability matrix and mechatronics engineering collaboration tools, ensuring all systems work in harmony.
What are the market trends shaping the PLM Software In Automotive Sector Industry?
- The establishment of a digital thread, which facilitates the automatic, real-time tracking of products throughout their entire lifecycle, is emerging as a transformative market trend.
- Key market trends are converging to create a more integrated and intelligent product development ecosystem. The establishment of a digital thread traceability system offers unprecedented visibility, which has been shown to improve error detection rates by over 25% before production.
- This is complemented by the rise of smart factory integration, where the connection between the digital twin and physical assembly lines enables virtual commissioning, leading to a 15% reduction in production launch times. These advancements rely on an open API-driven platform that supports deep interlinking with other enterprise systems.
- Central to this evolution is the digital mockup unit, a core component of the concurrent engineering environment, which helps teams visualize and resolve issues early, and the engineering bill of materials (EBOM) as the definitive product structure.
What challenges does the PLM Software In Automotive Sector Industry face during its growth?
- The escalating threat to cybersecurity and software privacy represents a paramount challenge confronting the global PLM software market in the automotive sector.
- Navigating market challenges requires a strategic approach to cost, security, and technology adoption. The total cost of ownership for traditional on-premises systems can be 50% higher over five years compared to a more flexible cloud-native PLM architecture, a significant hurdle for smaller suppliers.
- The escalating threat of data breaches necessitates robust intellectual property protection measures, as recovery from a major incident can lead to project delays of up to 40%. Furthermore, the availability of open-source alternatives forces proprietary vendors to innovate, though these alternatives often lack the comprehensive digital mockup unit capabilities and product portfolio management features required by large OEMs.
- Successfully managing the digital thread traceability and predictive maintenance enablement across a hybrid cloud deployment model remains a complex technical and organizational challenge.
Exclusive Technavio Analysis on Customer Landscape
The plm software in automotive sector market forecasting 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 plm software in automotive sector market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape of PLM Software In Automotive Sector Industry
Competitive Landscape
Companies are implementing various strategies, such as strategic alliances, plm software in automotive sector market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Accenture PLC - Enables digital engineering transformation through unified PLM processes and PLM-as-a-Service models for connected product innovation in the automotive sector.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- Accenture PLC
- Altair Engineering Inc.
- ANSYS Inc.
- Aras Corp.
- Arena Solutions Inc.
- Autodesk Inc.
- AVEVA Group Plc
- Bentley Systems Inc.
- CAD Schroer GmbH
- Dassault Systemes SE
- Edaforce Inc.
- Infor Inc.
- Javelin Technologies Inc
- Oracle Corp.
- Propel Software Solutions Inc
- PTC Inc.
- SAP SE
- Siemens AG
- Synopsys Inc.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Recent Development and News in Plm software in automotive sector market
- In September 2024, Synopsys Inc. announced the completion of its acquisition of ANSYS Inc., creating an integrated portfolio for silicon-to-system design and simulation aimed at complex automotive electronics.
- In November 2024, Siemens AG announced the general availability of generative AI capabilities within its Teamcenter X PLM software, leveraging Microsoft Azure OpenAI Service to enhance engineering workflows.
- In January 2025, Renault Group completed the migration of its core vehicle development programs to the Dassault Systemes SE 3DEXPERIENCE platform on the cloud, unifying its global engineering teams.
- In March 2025, Ceer, Saudi Arabia's first electric vehicle brand, began initial production trials at its newly constructed manufacturing complex, which was designed and simulated using a comprehensive digital twin.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled PLM Software In Automotive Sector Market insights. See full methodology.
| Market Scope | |
|---|---|
| Page number | 300 |
| Base year | 2024 |
| Historic period | 2019-2023 |
| Forecast period | 2025-2029 |
| Growth momentum & CAGR | Accelerate at a CAGR of 9.4% |
| Market growth 2025-2029 | USD 3636.9 million |
| Market structure | Fragmented |
| YoY growth 2024-2025(%) | 8.9% |
| Key countries | US, Canada, Mexico, Germany, UK, France, The Netherlands, Italy, Spain, China, Japan, India, Australia, South Korea, Indonesia, Brazil, Argentina, Colombia, Saudi Arabia, UAE, South Africa, Israel and Turkey |
| Competitive landscape | Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Research Analyst Overview
- The automotive industry's strategic imperative is to embrace a comprehensive digital-first model, where PLM software serves as the central nervous system. This requires robust capabilities in digital twin validation and model-based systems engineering (MBSE) to manage the intricate interplay of vehicle systems.
- A key boardroom focus is sustainability, where executive ESG goals directly influence how material data management and sustainability reporting in PLM are implemented. Integrated platforms have demonstrated the capacity to reduce regulatory documentation efforts by up to 20% through automated regulatory compliance tracking.
- This efficiency is driven by a unified approach encompassing everything from generative design optimization and manufacturing process planning to service lifecycle management. Core functionalities such as bill of materials management, change and configuration management, and closed-loop quality control are foundational.
- For software-defined vehicles, application lifecycle management integration and over-the-air update management are non-negotiable, ensuring a continuous digital thread from design to in-field operation.
What are the Key Data Covered in this PLM Software In Automotive Sector Market Research and Growth Report?
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What is the expected growth of the PLM Software In Automotive Sector Market between 2025 and 2029?
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USD 3.64 billion, at a CAGR of 9.4%
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What segmentation does the market report cover?
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The report is segmented by Application (Passenger vehicle, and Commercial vehicle), Deployment (Cloud-based, and On-premises), Product (Collaborative product data management, Computer-aided design, Simulation and analysis, and Digital manufacturing) and Geography (North America, Europe, APAC, South America, Middle East and Africa)
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Which regions are analyzed in the report?
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North America, Europe, APAC, South America and Middle East and Africa
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What are the key growth drivers and market challenges?
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Rise in IoT integration, Threat to cybersecurity and software privacy
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Who are the major players in the PLM Software In Automotive Sector Market?
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Accenture PLC, Altair Engineering Inc., ANSYS Inc., Aras Corp., Arena Solutions Inc., Autodesk Inc., AVEVA Group Plc, Bentley Systems Inc., CAD Schroer GmbH, Dassault Systemes SE, Edaforce Inc., Infor Inc., Javelin Technologies Inc, Oracle Corp., Propel Software Solutions Inc, PTC Inc., SAP SE, Siemens AG and Synopsys Inc.
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Market Research Insights
- Market dynamics are increasingly shaped by the need for greater agility and collaboration across the automotive value chain. Adoption of a robust systems engineering approach has been shown to reduce integration errors by up to 25%, a critical factor in complex vehicle development.
- Firms leveraging a cloud-native PLM architecture report a 40% faster deployment of new project environments compared to traditional on-premises setups, enabling more agile product development. This capability for end-to-end data management is crucial, as integrated platforms have demonstrated a 15% improvement in the efficiency of documenting for functional safety compliance (ISO 26262).
- As the industry moves toward smart factory integration, a holistic digital backbone that supports a component traceability solution becomes essential for maintaining quality and managing the intricate bill of process management required for modern manufacturing.
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