Transparency Market Research’s new report, titled “Product Lifecycle Management (PLM) Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 – 2022,” offers some findings in the global product lifecycle market. The big finding from the report is the PLM market is forecast to grow from US$40.26 billion in 2014 to US$75.87 billion in 2022, registering an 8.1% CAGR (compound annual growth rate) over that span. (The CAGR is the mean annual growth rate of an investment over a specified period of time longer than one year.)
To no one’s surprise the report divides the PLM market by on-premise and cloud-based services, with the latter developing at a faster pace of 17.7% from 2015 to 2022.
The report proposes that concerns related to security and accessibility initially led to on-premise solutions occupying major share of the PLM market; however, the growing market awareness that cloud has not only caught up with — but even surpassed — on-premise security capabilities is now driving increased demand for cloud-based PLM software.
Manufacturing executives are acutely aware that theft of critical information, especially IP, can have a crippling financial impact on a company, resulting in lost revenue to compliance exposure and brand damage.
I know from firsthand experience how painful it is for companies to keep up with updates and upgrades, especially with regards to security. Miss one security update and you’ve got a breach of security risk.
Geographically, the report states that North America accounts for 33% of global market share; however, the Middle East and Africa, which are projected to witness a 14.7% CAGR from 2015 to 2022, will become the most rapidly developing regional segment.
The report concludes, “cloud-based PLM solutions are increasingly being deployed by enterprises across the globe. The cloud-based implementation models lower the costs by avoiding the need for infrastructure investments along with the increase in scalability, and accessibility to information, processes, and functions. The (small and medium businesses) SBEs are more likely to adopt cloud-based PLM solutions during the coming years due to its low cost.”
How does Arena support the three PLM market drivers (affordability, security, and integrations) highlighted in this report? Here’s how:
Affordability: In a recent Business Software report, Arena ranked as one of the ‘Most Affordable PLM Solutions’ on the market. Arena PLM offers everything you need at a fraction of the cost compared to other PLM systems. An additional financial benefit to manufacturers is the cost savings associated with eliminating the enormous up-front expense and the ongoing support for on-premise solutions.
Security: Arena’s dedicated team handles service organization control reports (SOC) and removes the need for OEMs to personally manage security upgrades, updates, and security patches. Cloud service provides a fully enabled disaster recovery site with certified protocols in place at a level of security which, when divided by a strong user base, becomes quite affordable when contrasted to the manufacturer bearing that cost individually.
Integration: Arena PLM integrates with a broad range of design, planning and accounting solution providers to ensure consistency across your enterprise. Avoid errors caused by manual data entry and streamline propagation design changes as you bring your product to market.
Conclusion: More companies realize the general benefits of a cloud solution for cost savings by removing IT expenses, simplifying implementation, increasing security, and providing a faster path to ROI. For manufacturers, these general cloud benefits are further enhanced by the specific value provided by a cloud PLM solution to streamline process efficiencies. This is done by increasing collaboration, enabling economic scalability, and reducing engineering change orders, product errors, and shipping delays. The advantages of cloud over Excel spreadsheets and on-premise solutions are many, but the fear of change paralyzes many manufacturers from letting go of their IT; yet the gap between business drivers and on-premise capabilities has become so wide that it’s hard to ignore the potential pitfalls of on-premise investments. Cloud allows IT executives to think and act more strategically and focus on their core competencies. The opportunity cost of tying resources to IT management is different for every manufacturer, but cloud allows organizations to better utilize their most important asset – their people.
Click here to learn why Arena is positioned to meet the demands of trends in the PLM space.