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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.
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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