Product Lifecycle Management (PLM) Continues to Expand

One of the most significant trends in the past few years has been a focus for manufacturers to include a Product Lifecycle Management (PLM) strategy within the framework of their overall Enterprise Resource Planning strategy. In the past, PLM solutions were typically associated with electronics, aerospace, defense and automotive industries, but today, a wide range of industrial manufacturers are looking to PLM to help them run their businesses. PLM solutions have expanded well beyond the traditional product authoring and testing applications-like CAD/CAM/CAE-to a much broader range that now includes production processes, new product introduction, content management, product support and expanded service offerings.

The worldwide market for PLM software and services is expected to grow 14.2 percent between 2006 and 2010. Nearly $7B last year, PLM is forecasted to generate $13.3B in 2010, according to the ARC Advisory Council. New Product Development & Introduction (NPDI) solutions will drive this growth as manufacturers seek innovation to drive top line growth. As PLM solutions continue to expand and encompass a much broader scope, new technologies like Digital Manufacturing will emerge. Digital Manufacturing is a technology that integrates manufacturing processes with product design through powerful simulation tools.

Discrete manufacturing industries remain the most fertile segment for PLM, representing nearly 90 percent of the 2005 market. Within discrete manufacturing, the electronics, aerospace, defense and automotive sectors continue to lead the charge in PLM, but general industrial manufacturers are beginning to take notice of the PLM success stories of the early adopters. Substantial growth over the next five years is forecast for PLM in discrete industrial markets.

As Asia continues to grow its manufacturing base-especially in China and India-adoption of PLM is expected to be rapid in the region. Currently at 20 percent of the PLM market, according to the ARC Advisory Council, the Asian PLM market is forecast to represent over 24 percent of the market by 2010. While Japan is currently the largest PLM market in Asia, China and India should surpass Japan over the next five years.

Traditionally, PLM solutions were targeted at large, complex manufacturing organizations. As with other software sectors, industry analysts believe that the small/medium business (SMB) market is rapidly emerging as a high-growth area. Solutions covering the entire design/build/support/maintain product lifecycle specifically tailored to meet the cost and size requirements of SMB manufacturers are beginning to emerge. Offering an affordable, yet comprehensive, PLM solution set that compares in functionality and scope to those currently be used by large manufacturing companies is the challenge put forth to all PLM providers.

QAD is laser-focused on manufacturing markets and has enjoyed a long and successful history in the SMB space. To those ends, QAD is committed to investigating the PLM offerings currently available to the industrial market today, and doing the research necessary to determine the best PLM strategy for our manufacturing customers.

For more information on QAD's industrial vertical and its developing PLM strategy, please contact Dave Parrish at djp@qad.com.