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The PLM software market in the automotive sector size is estimated to grow at a CAGR of 7.5% between 2023 and 2028. The market size is forecast to increase by USD 2.61 billion. The growth of the market depends on several factors, including the rise in IoT integration, the need to reduce product development time, and the rise in the production of automobiles. PLM software is used in several lifecycle stages of product development such as design, engineering, manufacturing, and maintenance. The market growth is majorly driven by the increasing adoption of mainstream product lifecycle management solutions. The integration of cloud product lifecycle management enhances collaboration and data accessibility, making it a vital tool for automotive companies. Additionally, advancements in mainstream PLM software are streamlining processes from design to production. These technologies enable automotive manufacturers to improve efficiency, reduce time-to-market, and maintain a competitive edge, thereby driving market growth during the forecast period. PLM is used in the manufacture and R&D of motor vehicles such as passenger cars, light commercial vehicles, heavy vehicles, and electric cars.
The report includes a comprehensive outlook on the PLM Software Market in the Automotive Sector, offering forecasts for the industry segmented by Product, which comprises collaborative product data management, computer-aided design, simulation and analysis, and digital manufacturing. Additionally, it categorizes Application into passenger vehicle and commercial vehicle, and covers Regions, including North America, Europe, APAC, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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The need to reduce product development time is the key factor driving market growth. The rising requirement to meet the growing technological demand and to provide quality products faster than the other key players in short duration to gain a competitive edge in the market is forcing automakers to implement PLM software in their systems. PLM integration in the automotive sector improves time-to-marketing by reducing the product development cycle and testing time. It enhances the swiftness of product design and development to provide reliable and cost-effective products by reducing the analysis time and developing multiple prototypes.
For example, in October 2021, after the multi-year evaluation process, Volkswagen-owned truck manufacturer Scania selected the Dassault Systemes track for its next-generation PLM solutions. Furthermore, Infosys and PTC announced the launch of the Industrial IoT (IIoT) Center of Excellence. Thus, such factors are expected to drive the growth of the global PLM software market in the automotive during the forecast period.
Automatic real-time tracking of products is the primary trend shaping market growth. The demand for real-time tracking and collaboration is increasing, and multiple users are working on the content in real-time. This surge in real-time tracking led Apple and Microsoft to integrate real-time collaboration features in the existing desktop applications such as iWorks and Office. To increase overall productivity, intelligent PLM scheduling tools are integrated into the system. These tools prompt the project managers, engineers, and analysts to do their essential tasks on time as per the pre-plan.
Furthermore, a predefined process library can provide the best possible output for a function using PLM software. The tool will send a message to create the missing process if there is no preset process output. Besides, in the case of the necessary skill required for a task, the machine will refer to the process library, and a system check will be performed for the availability of the resources needed to complete the work. Due to such factors, the global PLM software market in the automotive sector is expected to witness growth during the forecast period.
The high cost of implementation and complexity is a challenge that affects market growth. The PLM tool has become an integral part of the total design and development system, from product design to process design and customer feedback. Nevertheless, the high initial investment needed for large-scale infrastructure and connectivity is posing a challenge to the market players. The deployment of PLM software is an expensive process, which involves defining a clear set of business requirements.
Furthermore, the growing use of multiple technologies has increased complexity. This, in turn, has increased the requirement for additional infrastructure, IT professionals, and extra money to ensure efficient data integration. Furthermore, the short product lifecycle of the IT system has added to the complexity. Thus, due to such factors, the global PLM software market in the automotive sector is expected to witness a hindrance in growth during the forecast period.
The market share growth by the collaborative product data management segment will be significant during the forecast period. Increasing demand for productivity and resource management across the manufacturing value chain in various industries is the major factor driving the demand for CPDM. It is mainly implemented to manage and integrate product data into a centralized product ecosystem for better overall tracking and enhanced collaboration among business units. In addition, the increasing complexity of data management is expected to increase the demand for CPDM.
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The collaborative product data management segment showed a gradual increase in the market share of USD 2.31 billion in 2018. The growing requirement for passenger safety mainly drives the demand for CPDM in the automotive sector. The increase in the number of road accidents is encouraging many countries to mandate the adoption of better safety features in automobiles. This, in turn, fuels the demand for CPDM in the automotive sector. CPDM is widely used for R&D activities related to crash tests and other safety feature measurements. Furthermore, the CPDM software packages help share data among supply chain partners, thereby enhancing the capability, efficiency, and effectiveness of an enterprise. Due to such factors, the demand for cPDM is expected to increase, thereby driving the growth of the global PLM software market in the automotive sector during the forecast period.
The passenger vehicle application segment of the global PLM software market in the automotive industry is expected to grow at a significant rate. Automotive manufacturing companies are placing a greater emphasis on efficiency and innovation, and PLM software makes end-to-end product lifecycle management easier. Prominent corporations such as Toyota, General Motors, and Volkswagen utilize PLM technologies for cooperative design, modeling, and supply chain enhancement. The demand for PLM solutions is further driven by the desire for sophisticated features, such as connectivity and autonomous capabilities, in passenger cars. As a result, the passenger car is a major application segment, which in turn will drive the growth of the global PLM software market in the automotive sector during the forecast period.
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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. North America has always been a lucrative market for players, as the region is an early adopter of advanced technologies across all industries. The strong existence and penetration of the top players increase the overall market growth in the region. The US and Canada are the prime consumers of vehicles in the world.
In addition, most automakers are coming up with new plants in North America. For instance, Mahindra Automotive North America (MANA) opened a new North American HQ and manufacturing operation. Also, Toyota and Mazda chose to construct a car plant worth USD 1.6 billion in Alabama. Hence, increased investments by automakers will drive the market in the region during the forecast period.
The PLM Software Market in the Automotive Sector 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 includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global PLM Software Market in the Automotive Sector Customer Landscape
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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 17 market companies, including:
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 market 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.
The PLM software market in the automotive sector report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028
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PLM Software Market In The Automotive Sector Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.5% |
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Market growth 2024-2028 |
USD 2.61 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.6 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 48% |
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Key countries |
US, China, Japan, India, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ANSYS Inc., Aras Corp., Autodesk Inc., Bentley Systems Inc., Cadence Design Systems Inc., Cadonix Ltd., Dassault Systemes SE, Hexagon AB, Infor Inc., IronCAD LLC, Oracle Corp., PTC Inc., SAP SE, Siemens AG, Trimble Inc., Synopsys Inc., and Arena Solutions Inc |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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