According to a report by Research and Markets cited in a recent issue of Design Engineering, the global product lifecycle management (PLM) market is playing a significant role in helping small and medium-sized enterprise (SME) manufacturers fuel the economy. (SME manufacturers are defined as those having revenues of $500 million or less.) With that SME boost, PLM provider revenues—for both on-premises and cloud-based solutions—are expected to grow from $48.26 billion in 2014 to $75.87 billion by 2022, a compound annual growth rate of 8.1 percent.
The report shows that cloud-based PLM offers SME manufacturers more options to configure solutions to their specific business and engineering requirements. The rapidly growing need for product development based on systems engineering, emergence of product complexity, continued growth of manufacturing in emerging economies, and expanding adoption of a more holistic end-to-end PLM solutions all contribute to the documented growth in the PLM market.
While innovation is vital to any product development process, it’s particularly important for SMEs as they look to compete against larger, more established organizations. SME manufacturers, even those with the smallest scale facilities, are using technology to bring new, competitive products to market faster than ever before. PLM is a driving force in this transformation.
“Smaller companies are increasingly using PLM,” says Joe Barkai, former product lifecycle strategies manufacturing insights VP for IDC, “not only because they are required to do so by their customers, but also because PLM systems are becoming more flexible, accessible, and easier to implement and use.”