Cloud Based Product Lifecycle Management (PLM) Market Overview
As per MRFR analysis, the cloud based product lifecycle management (PLM) market size was estimated at 22.79 (USD Billion) in 2022. The cloud based product lifecycle management (PLM) market industry is expected to grow from 24.65 (USD Billion) in 2023 to 50.0 (USD Billion) by 2032. The cloud based product lifecycle management (PLM) Market CAGR (growth rate) is expected to be around 8.18% during the forecast period (2024-2032).
Key Cloud Based Product Lifecycle Management (PLM) Market Trends Highlighted
The cloud based product lifecycle management (PLM) market is poised for significant growth due to several key market drivers and trends. One major trend is the increasing adoption of digital transformation strategies by businesses, driving demand for cloud-based solutions that offer greater flexibility, scalability, and cost efficiency than traditional on-premise systems. Cloud-based (PLM) platforms enable businesses to manage their product lifecycles remotely, from concept to retirement, regardless of geographical location or device.
Additionally, the rise of product complexity and regulatory compliance requirements is also fueling market growth. Cloud-based (PLM) solutions offer advanced capabilities such as data analytics, version control, and collaboration tools, empowering businesses to manage complex product portfolios and ensure compliance with industry standards.
The opportunity to harness real-time data and enhance decision-making is another key trend influencing market expansion. Cloud-based (PLM) platforms can provide real-time insights into product performance, customer feedback, and market trends, enabling businesses to respond swiftly to market changes and optimize their products and processes.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Cloud Based Product Lifecycle Management (PLM) Market Drivers
Rising Demand for Digitalization and Automation in Product Development
The rising trend of utilizing digital scale and automation in manufacturing prompts the preferences for cloud-based product lifecycle management solutions. These solutions help companies increase the efficiency and speed of product development from the early concept stages to production.
The use of cloud-based (PLM) can help facilitate collaboration, improve speed to market and enhance product quality. The growing need to digitize and automate production processes will probably remain a significant trend in the upcoming years as well.
Growing Complexity of Products and Supply Chains
The increasing complexity of products and supply chains is also contributing to the growth of the Cloud Based Product Lifecycle Management (PLM) Market. As products become more sophisticated and supply chains become more global, manufacturers are facing challenges in managing product data and ensuring product quality. Cloud-based (PLM) solutions provide a centralized platform for managing product data and processes, enabling manufacturers to improve collaboration and coordination across their extended supply chains.
Increasing Adoption of Cloud Computing
Another major factor driving the expansion of the Cloud Based Product Lifecycle Management (PLM) Market is the rapid adoption of cloud computing. Cloud computing offers manufacturers an affordable, reliable method of running (PLM) solutions.
In addition to the fact that manufacturers no longer have to foot the bill for the upfront hardware and infrastructure costs associated with on-premise (PLM) solutions, they are also not restricted by the on-site limitations of this type of (PLM).
Cloud Based Product Lifecycle Management (PLM) Market Segment Insights
Cloud Based Product Lifecycle Management (PLM) Market Deployment Model Insights
The key growth segment within the global cloud based product lifecycle management market is the deployment model the market is segmented on. The on-premises segment is estimated to have a large proportion of the market with a significant revenue share.
However, the reason for the growth of the cloud segment is likely the fact that businesses of all sizes are increasingly implementing and using cloud solutions. On-premises (PLM) solutions are associated with higher costs because of larger upfront costs associated with purchasing equipment, higher maintenance costs, and the need for regular software updates.
Cloud-based (PLM) solutions are cost-effective with little to no upfront investment and the scalability and flexibility of subscription-based solutions. The increasing adoption of cloud solutions is identified as one of the key growth factors of the global cloud based product lifecycle management market. Also, small and medium-sized businesses are increasingly implementing (PLM) solutions, contributing to the growth of the market.
Key players within the global cloud based product lifecycle management market in 2023 are recognized as SAP, Oracle, Dassault Systmes, PTC, and Siemens. These companies offer sophisticated and comprehensive (PLM) solutions that offer a range of services that cater to businesses of all sizes.
Overall, the global cloud based product lifecycle market is a highly competitive market where key players from manufacturers with decades worth of experience to small startups understand how to compete using various strategies such as product price and customer service. Key growth factors include the adoption and implementation of cloud solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Cloud Based Product Lifecycle Management (PLM) Market Insights
The aerospace & defense sector is projected to hold a significant share of the Cloud Based Product Lifecycle Management (PLM) Market revenue in 2023, owing to the increasing demand for advanced (PLM) solutions to manage complex product development processes.
The automotive industry is another major segment, driven by the need to enhance efficiency and collaboration in product development. The consumer & retail sector is expected to witness steady growth due to the rising adoption of (PLM) solutions for product innovation and supply chain management.
The energy & utilities industry is also experiencing growing demand for (PLM) solutions to optimize asset management and improve operational efficiency. The healthcare & life sciences sector is leveraging (PLM) solutions to streamline product development and regulatory compliance processes. The manufacturing industry is a key segment, utilizing (PLM) solutions to enhance product quality, reduce costs, and improve time-to-market.
Cloud Based Product Lifecycle Management (PLM) Market Function Insights
The function segment of the Cloud Based Product Lifecycle Management (PLM) Market is projected to witness significant growth in the coming years. Product design and development accounted for the largest revenue share in 2023 and is expected to maintain its dominance throughout the forecast period.
This growth can be attributed to the increasing adoption of cloud-based (PLM) solutions by manufacturing companies to streamline their product development processes. Engineering change management is another key segment, driven by the need for manufacturers to manage product changes efficiently and minimize the risk of errors.
Product data management is also gaining traction, as companies seek to centralize and manage their product data more effectively. Quality management and supply chain management are other important segments, driven by the need for manufacturers to improve product quality and optimize their supply chains.
Cloud Based Product Lifecycle Management (PLM) Market Size of Enterprise Insights
The Cloud Based Product Lifecycle Management (PLM) Market is segmented by size of enterprise into small and medium-sized enterprises (SMEs) and large enterprises. SMEs are expected to hold a significant share of the market in 2023, owing to the increasing adoption of cloud-based (PLM) solutions by these enterprises to streamline their product development processes and improve collaboration.
Large enterprises are also expected to contribute to the growth of the market, as they continue to invest in cloud-based (PLM) solutions to improve efficiency and innovation. The Cloud Based Product Lifecycle Management (PLM) Market is expected to grow at a CAGR of 8.18% from 2023 to 2032, reaching a market size of 50.0 billion USD by 2032.
Cloud Based Product Lifecycle Management (PLM) Market Applications Insights
The Cloud Based Product Lifecycle Management (PLM) Market is segmented by Applications into aerospace & defense, RD management, medical device, electronics design, automotive and consumer products.
Among these segments, aerospace & defense is expected to hold the largest market share in 2023, owing to the increasing adoption of cloud-based (PLM) solutions by aerospace and defense companies to improve product development processes, reduce costs, and enhance collaboration. The RD management segment is expected to grow at the highest CAGR during the forecast period, driven by the growing need for efficient and effective research processes.
Medical device, electronics design, automotive, and consumer products segments are also expected to witness significant growth in the coming years due to the increasing adoption of cloud-based (PLM) solutions in these industries.
The Cloud Based Product Lifecycle Management (PLM) Market revenue for Aerospace and Defense segment is expected to reach USD 10.3 billion by 2024, while the Electronics Design segment is expected to reach USD 4.5 billion by 2024.
Cloud Based Product Lifecycle Management (PLM) Market Regional Insights
The Cloud Based Product Lifecycle Management (PLM) Market is segmented into North America, Europe, APAC, South America, and MEA. North America holds the largest market share, followed by Europe and APAC. The growth in the North American market is attributed to the increasing adoption of cloud-based (PLM) solutions by manufacturing and engineering companies.
Europe is expected to witness significant growth due to the growing demand for (PLM) solutions from various industries, including automotive, aerospace, and healthcare. The APAC market is expected to grow at the highest rate during the forecast period due to the increasing adoption of cloud-based (PLM) solutions by small and medium-sized enterprises (SMEs) in the region. South America and MEA are expected to witness moderate growth due to the increasing awareness of the benefits of cloud-based (PLM) solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Cloud Based Product Lifecycle Management (PLM) Market Key Players and Competitive Insights
Leading players in the cloud based product lifecycle management (PLM) market are focusing on continuous product innovation and new technologies developments. These actions are mainly being implemented to cater to the changing market requirements and to gain a competitive advantage in the overall industry.
Companies are also looking into research and development and market expansion at global level to stay ahead of the competition. The overall cloud based product lifecycle management (PLM) market is anticipated to achieve significant growth in the future years mainly on account of increasing applications of cloud based solutions.
PTC is a leading cloud based product lifecycle management (PLM) Market provider, with lots of solutions that extends the entire lifecycle process. The company’s solutions are widely used across several industries including manufacturing, aerospace and automotive production to mention a few. The company is innovative with strong focuses on their objectives.
SAP is also a leader in the cloud based product lifecycle management (PLM) Market Provision, with vast solutions that facilitate the entire lifecycle process. SAP’s solutions are widely applied across a diverse range of industries including manufacturing, retail and healthcare. The company has an impressive global presence.
Key Companies in the Cloud Based Product Lifecycle Management (PLM) Market Include:
Cloud Based Product Lifecycle Management (PLM) Market Developments
The Cloud Based Product Lifecycle Management (PLM) Market is projected to reach a value of USD 50.0 billion by 2032, expanding at a CAGR of 8.18% from 2024 to 2032. This growth is attributed to the increasing adoption of cloud-based solutions by organizations to streamline their product development processes and enhance collaboration among teams.
The market is witnessing significant investments in research and development, leading to the emergence of innovative (PLM) solutions that offer advanced capabilities such as artificial intelligence (AI) and machine learning (ML). The increasing focus on digital transformation and the growing adoption of cloud computing services are also driving the demand for cloud-based (PLM) solutions.
Cloud Based Product Lifecycle Management (PLM) Market Segmentation Insights
Cloud Based Product Lifecycle Management (PLM) Market Deployment Model Outlook
Cloud Based Product Lifecycle Management (PLM) Market Outlook
Cloud Based Product Lifecycle Management (PLM) Market Function Outlook
Cloud Based Product Lifecycle Management (PLM) Market Size of Enterprise Outlook
Cloud Based Product Lifecycle Management (PLM) Market Applications Outlook
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Aerospace & Defense
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RD Management
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Medical Device
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Electronics Design
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Automotive
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Consumer Products
Cloud Based Product Lifecycle Management (PLM) Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
22.79 (USD Billion) |
| Market Size 2023 |
24.65 (USD Billion) |
| Market Size 2032 |
50.0 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
8.18% (2024-2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2019-2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Aras Corp., Oracle, NetSuite, Visure Solutions, Arena (PLM), Infor, Dassault Systemes, Autodesk, Arena Solutions, OpenBOM, Delmia, SAP, Product Lifecycle Management, PTC, Siemens (PLM) Software |
| Segments Covered |
Deployment Model, Industry, Function, Size of Enterprise, Applications, Region |
| Key Market Opportunities |
Increased Adoption in Manufacturing Improved Collaboration and Communication Data Analytics and Insights Scalability And Flexibility Enhanced Product Quality and Innovation |
| Key Market Dynamics |
Growing Adoption Technological Advancements Increasing Data Volumes Heightened Security Concerns Mergers and Acquisitions |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Cloud Based Product Lifecycle Management (PLM) Market is expected to reach USD 50.0 billion by 2032, growing at a CAGR of 8.18% from 2024 to 2032.
North America held the largest market share in the market, accounting for over 35% of the market in 2023.
Key growth drivers include the increasing adoption of cloud-based solutions, the rising need for efficient product lifecycle management, and the growing demand for (PLM) solutions in emerging economies.
Major applications of Cloud Based Product Lifecycle Management (PLM) include product design and development, manufacturing planning and execution, and product support and maintenance.
Key competitors in the Cloud Based Product Lifecycle Management (PLM) Market include Dassault Systmes, Siemens (PLM) Software, PTC, SAP, and Oracle.
The Cloud Based Product Lifecycle Management (PLM) Market is expected to reach USD 32.0 billion by 2025, growing at a CAGR of 8.18% from 2023 to 2025.
The Cloud Based Product Lifecycle Management (PLM) Market is expected to reach USD 40.0 billion by 2028, growing at a CAGR of 8.18% from 2024 to 2028.
The Cloud Based Product Lifecycle Management (PLM) Market is expected to reach USD 45.0 billion by 2030, growing at a CAGR of 8.18% from 2024 to 2032.
The Asia Pacific region is expected to account for over 30% of the Cloud Based Product Lifecycle Management (PLM) Market by 2032.
Key trends in the Cloud Based Product Lifecycle Management (PLM) Market include the adoption of artificial intelligence and machine learning, the growing popularity of SaaS-based solutions, and the increasing demand for cloud-based (PLM) solutions in small and medium-sized businesses.
