The primary influence on the Product Lifecycle Management (PLM) market in Asia for this reporting period (base year 2011) continues to be the emerging economies of Asia such as China and India. According to a new ARC Advisory Group study, overall, the PLM market is growing led by strong growth in the automotive and aerospace & defense industries, as well as penetration into new industries, such as shipbuilding, consumer goods, and electric power.
PLM solution providers have experienced a robust rebound beginning in 2010 and extending through 2011, with 2011 marking record growth for some companies, and the overall Asia PLM market breaking through the €1.63billion ($2.2 b) boundary for revenues. The ratio of new PLM software licenses to service (implementation, consulting, and maintenance) for PLM mirrors the traditional enterprise software to services ratio of 40:60%. ARC expects this trend of more services to software to continue at the current levels through this forecast period.
PLM focus is on new markets and industries
Product lifecycle management solution providers will continue to aggressively penetrate into new industries. The traditional market share and highest adoption of PLM technology historically has been the discrete industries, such as automotive, aerospace & defense, heavy equipment, industrial fabrication & assembly, machine tools, and high-tech & electronics. These mainstay discrete industries that retreated during the economic downturn of 2008 and 2009 gave more impetus to PLM suppliers to look to non-traditional industries. Solutions are now being readily adopted by a set of industrial verticals, such as medical devices, consumer goods, retail, ship building, energy generation & utilities, and AEC; and the adoption growth rates in these sectors reflect this trend. PLM suppliers are looking for growth in these sectors to fuel revenues as their business growth in the discrete industries matures.
According to G. Ganapathiraman, Country Manager ARC Advisory Group India, and co-author of ARC’s “Product Lifecycle Management for Asia Market Research Study”, “Clearly, the market leaders in PLM, as well as many of the smaller suppliers are focusing well beyond their historical industry strengths and into the process and hybrid industries.” He further adds that these PLM suppliers are leveraging advanced 3D modeling and simulation technologies to penetrate industries such as ship building, energy & power, oil & gas, life sciences, construction & architecture, retail, and even the fashion industry.
In addition to PLM market analysis and forecasts, ARC’s study also covers the current market nuances, strategic issues, and the future outlook. The report also highlights the factors that influence the PLM market in Asia and its dynamics.