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The cloud product lifecycle management (PLM) market size is forecast to increase by USD 1.38 billion at a CAGR of 6.78% between 2023 and 2028. The market is experiencing significant growth due to several key trends and factors. One of the primary drivers is the reduction in IT expenditure as cloud-based solutions offer cost savings through subscription models and elimination of hardware and maintenance costs. Another trend is the interlinking of cloud-based PLM systems with other business applications, enabling seamless data flow and improved collaboration. However, challenges persist in the form of cybersecurity and software privacy concerns, necessitating the security measures and compliance with data protection regulations. These factors, among others, are shaping the future growth of the Cloud PLM market.
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The PLM market is witnessing significant growth due to the increasing adoption of PLM software in product conception, design, and disposal stages. Implementation of an effective IT infrastructure based on cloud technology is becoming an essential part of enterprise strategy for small & medium-sized businesses and industrial verticals. The implementation of PLM solutions enables remote working and collaboration among teams located in different factories, enhancing productivity and efficiency. Cloud PLM solutions offer advanced features such as data security, augmented reality (AR), and virtual reality for product innovation. The integration of AR and VR technologies in PLM software allows for more design experiences and real-time visualization of products.
Information strategy plays a crucial role in the successful implementation of cloud PLM solutions, ensuring seamless data flow between various stages of the product lifecycle. The market is expected to grow further as businesses continue to prioritize digital transformation and smart product development.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The CPDM segment is estimated to witness significant growth during the forecast period. The market encompasses various industry verticals, including Aerospace & Defense, Automotive & Transportation, Energy & Utilities, Healthcare & Life Sciences, and Industrial Verticals. Cloud technology has revolutionized PLM, enabling digital transformation through solutions like Design & Engineering Management, Product Innovation, Manufacturing Operations Management, and Change Management. Big data analytics and data-driven decisions are integral to these processes, necessitating the IT infrastructure and information strategy. Cloud PLM offers benefits such as real-time collaboration through Augmented Reality (AR) and Near Field Communication, enabling a digital twin of the product. Cloud deployment mitigates Integration & Deployment challenges and reduces Infrastructure requirements. However, data security concerns, particularly Data theft, necessitate stringent security measures.
Consulting services facilitate Enterprise Strategy and Portfolio Management, ensuring optimal implementation and addressing Integration challenges. The market presents significant opportunities for PLM software companies, with Design, Quality & Compliance Management, and Maintenance being key areas of focus. The shift from on-premise to cloud-based PLM is driven by the need for agility, cost savings, and improved collaboration.
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The CPDM segment accounted for USD 1.30 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 42% 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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Cloud Product Lifecycle Management (PLM) is a critical solution for various industries, including retail and consumer goods, semiconductor and electronics, telecommunication and IT, and manufacturing sectors. This streamlined solution enhances quality assurance through real-time operational data, enabling remote working and collaboration. Radio-frequency identification (RFID) technology integration offers traceability and visibility, while simulation tools ensure efficient design and development. Usability and time efficiency are improved through software and Software-as-a-Service (SaaS) models. Smart manufacturing and smart products are revolutionized with real-time data access, and support & maintenance services ensure seamless operations. Virtual reality and other advanced technologies further enhance the PLM experience.
Subscription-based models and services cater to small and medium-sized businesses, making PLM an indispensable tool for businesses seeking to innovate and stay competitive.
Our researchers analyzed the data with 2023 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.
Reduction in IT expenditure is the key driver of the market. Cloud Product Lifecycle Management (PLM) software is a strategic investment for organizations in various industry verticals, including aerospace & defense, automotive & transportation, energy & utilities, healthcare & life sciences, and manufacturing operations management, among others. This technology enables digital transformation by streamlining design, engineering management, and product innovation through a centralized platform. With cloud technology, companies can access real-time data, facilitate change management, and make data-driven decisions. Cloud-based PLM software offers several benefits, such as lower management costs, efficient infrastructure requirements, and seamless integration with Big Data analytics and Augmented Reality (AR). However, data security remains a concern, and proper implementation, including IT infrastructure and consulting services, is crucial for successful deployment.
The market presents significant opportunities for growth, with portfolio management, disposal, maintenance, and quality & compliance management being key areas of focus. Integration challenges and on-premise deployment are some of the obstacles to adoption, but the advantages of cloud technology far outweigh the potential hurdles. In conclusion, cloud-based PLM software is an essential tool for organizations seeking to remain competitive and innovate in the digital age. It offers a range of benefits, from reducing operational costs to improving product quality, and caters to the needs of various industry verticals.
Interlinking of cloud-based product lifecycle management is the upcoming trend in the market. Cloud Product Lifecycle Management (PLM) software is increasingly being adopted by various industry verticals, including aerospace & defense, automotive & transportation, energy & utilities, healthcare & life sciences, and manufacturing operations management, among others. This digital transformation enables enterprises to make data-driven decisions through the use of big data analytics. Cloud technology offers several advantages, such as easy implementation, infrastructure requirements, and integration challenges resolution. PLM software in the cloud facilitates design and engineering management, product conception, and portfolio management, ensuring product quality and compliance management. Moreover, cloud PLM software offers on-demand access to crucial documents, data, and reports from multiple devices and locations, enhancing collaboration and productivity.
The software's integration capabilities enable seamless interlinking of multiple software, such as bill of materials (BOM) integration, designing modules, and manufacturing management software. Augmented Reality (AR) and Near Field Communication (NFC) technologies further augment the capabilities of cloud PLM software. However, data security remains a concern, with data theft a potential risk. Therefore, enterprises must have a well-defined information strategy and industry-standard security protocols in place to mitigate these risks. Cloud PLM software offers significant market opportunities for consulting firms, as enterprises seek expertise in digital transformation, design, and implementation. The software's capabilities extend beyond the product lifecycle, encompassing disposal and maintenance, creating a digital twin of the product, and enabling enterprise strategy.
Overall, cloud PLM software is a vital component of the IT infrastructure for businesses aiming to stay competitive in today's rapidly evolving market.
Threat to cybersecurity and software privacy is key challenge affecting the market growth. In today's digital transformation era, the market is witnessing significant growth in various industry verticals including Aerospace & Defense, Automotive & Transportation, Energy & Utilities, Healthcare & Life Sciences, and Manufacturing Operations Management. Cloud PLM solutions offer benefits such as real-time data access, change management, and design collaboration. However, data security remains a major concern for businesses, particularly in OpenStack cloud models, where man-in-the-middle (MiTM) attacks can compromise object storage components. Certification authority (CA) credentials of servers must be verified during secure socket layer (SSL) connections to mitigate such risks. The fear of data theft has led some organizations to hesitate in adopting cloud solutions.
Despite the ease of data sharing, cloud PLM is a third-party service, increasing the potential for data being viewed or mishandled by providers. Big data analytics, digital twin, and industry-specific solutions are market opportunities for PLM software companies. Enterprise strategy, infrastructure requirements, and implementation pose integration challenges. Consulting and portfolio management aid in product conception, design, engineering management, and maintenance. Near field communication and on-premise deployment are alternative options for businesses with specific requirements. PLM software enables data-driven decisions, product innovation, product quality, and compliance management.
The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
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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.
Accenture Plc - The company provides advanced cloud-based solutions catering to the specific requirements of the aerospace, automotive, industrial equipment, and public transportation industries.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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.
Cloud Product Lifecycle Management (PLM) is a critical solution for various industry verticals, including aerospace & defense, automotive & transportation, energy & utilities, healthcare & life sciences, and industrial verticals. The adoption of cloud technology in PLM enables design and engineering management, digital transformation, and data-driven decisions. It offers benefits such as real-time access to data, easy integration with other systems, and cost savings. However, the transition to cloud PLM comes with challenges such as data security concerns and integration challenges. Cloud PLM requires the IT infrastructure and implementation strategies to ensure smooth deployment and change management. Big data analytics and AR technology are emerging trends in cloud PLM, providing opportunities for digital twin and near field communication applications.
PLM software in the cloud includes solutions for design, manufacturing operations management, maintenance, portfolio management, and quality & compliance management. The market for cloud PLM is expected to grow significantly due to the increasing demand for digital transformation and the need for on-demand access to product data. Cloud PLM offers a range of benefits, including easier access to datasheets, real-time collaboration, and the ability to make data-driven decisions. It also enables organizations to manage the entire product lifecycle from product conception to disposal, improving product innovation and product quality. Infrastructure requirements for cloud PLM include reliable internet connectivity and secure data storage. Consulting services can help organizations navigate the implementation process and overcome integration challenges.
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Market Scope |
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Report Coverage |
Details |
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Page number |
174 |
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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 6.78% |
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Market growth 2024-2028 |
USD 1.38 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.23 |
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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 42% |
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Key countries |
US, China, Germany, Japan, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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 |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market 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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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 Business Segment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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