Innovation and expansion—takeaways from CIMdata’s PLM market report
October 27, 2016For many departments in manufacturing companies, the annual reports from advisory firm CIMdata are indispensable resources to guide product development and lifecycle management efforts. The latest CIMdata PLM market report shows growth on the horizon for product lifecycle management (PLM), which the group defines as “a strategic business approach that applies a consistent set of business solutions in support of the collaborative creation, management, dissemination, and use of product definition information across the extended enterprise.”
While global PLM revenues grew to $38.7 billion over in 2015, the market is expected to continue to grow in 2016 by 6.1%. Of note is the growth being seen in industries that have not been traditional “major PLM investors” like automotive, high-tech & electronics, and aerospace & defense. The verticals personifying this expansion include:
- Financial and investment services
- Food and beverage
- Retail and apparel
Perhaps most useful for manufacturers is the industry review and trends section, which outlines the issues affecting the PLM market. This year’s research uncovered the following:
- Materials innovations – With increased customization capabilities due to advanced manufacturing technologies such as 3D printing (aka additive manufacturing), more private enterprises are launching substantial research & development (R&D) budgets to materials-focused initiatives. On the public sector side, agencies are encouraging collaborations across industry, academic, and government labs.
- New workflows for product development – Experts are saying we’re on the verge of a revolution in product design in manufacturing. Optimization techniques will account for performance requirements and constraints, and the design itself will include materials engineering. Plus, PLM software will be opened up to include a wider group of users who will not need to understand the scientific basis of the techniques.
- A growing need for profitability management – To fully understand and be guided by the financial impact of potential programs, manufacturers need a predictive, repeatable process that is not reactive. Spreadsheets and ERP collect data after products are created and launched, which is too late. A reported 80% of a product’s cost is determined by the time a design is sent to the detailed design stage. It’s essential that PLM software solutions access real-time market and financial data to improve profit-driven analysis throughout product development.
To learn more about advanced PLM software, read the CIMdata commentary “Infor PLM Accelerate: Flexible, Scalable PLM for Discrete Manufacturing Enterprises.”