CIMdata Releases 2007 PLM Market Analysis28 Oct, 2007
Annual study indicates continued growth for product lifecycle management initiatives throughout the next five years.
The overall product lifecycle management (PLM) market grew 10.7% to reach $20.1 billion in 2006, and PLM investments are forecasted to increase at a compound annual growth rate (CAGR) of approximately 8.5% to exceed an estimated $30 billion by 2011, according to CIMdata's 2007 PLM Market Analysis Report. The report presents an analysis of the 2006 PLM market with special emphasis on the collaborative product definition management (cPDm) segment of that market.
Also included in the study is an analysis of the multidiscipline MCAD segment of the market, which provides CIMdata's perspective on PLM across a variety of industry and geographic sectors and identifies market trends, reviews investments in PLM-related software and services during 2006, and forecasts PLM investments for 2007 through 2011. Forecasts are based on data available through the first quarter of 2007.
CIMdata partitions the PLM market into two primary segments: cPDm and tools. The tools segment is focused on fundamental intellectual property (IP) creation, and cPDm is focused on IP management, including collaboration, visualization, vaulting, and sharing of product-related information.
According to the study, companies worldwide spent $13.2 billion in 2006 on PLM tools, including MCAD, computed-aided manufacturing (CAM), electronic design automation (EDA), engineering simulation and analysis, technical publishing, and other technologies. Growth in this sector was driven primarily by investments in EDA and midrange MCAD. Areas such as high-end MCAD and simulation and analysis experienced relatively lower growth, the study states. The tools portion of the PLM market is forecasted to grow at a CAGR of 5.3% over the next five years to reach $17.1 billion by 2011.
The cPDm portion of the PLM market met the forecast for growth and reached $6.9 billion in 2006, representing an increase of approximately 13.6% over 2005. The cPDm segment is expected to continue its strong growth to $7.8 billion in 2007 and reach $13 billion by 2011 for a CAGR of 13.6%. cPDm is focused on collaboration, management, and sharing of product-related information. The segment covers technologies and approaches such as PDM, collaboration and visualization, data exchange, portfolio management, compliance management, strategic sourcing, enterprise application integration, workflow, functional applications such as configuration management, and solutions for specific industries or businesses.