While many believe that the long term horizon forecast for PLM is very rosy, the short-term global economic downturn is keeping PLM sales in check, and that will probably remain the situation through the end of 2009. That is the prediction made by the Arc Advisory Group, a research and advisory firm for manufacturing, energy, and supply chain solutions.
Long-term, PLM growth is being driven by factors like:
- A desire for greater productivity
- Need for global collaboration throughout product lifecycles
- Demand for product innovation
- Manufacturing growth in emerging economies
In the first two quarters of 2008, the PLM market turned in some of its best returns ever. But in the third quarter the market stalled, and by the fourth quarter, the PLM market was slammed by the global downturn.
In 2009, the PLM market has not yet recovered, and the prospects throughout the rest of 2009 look to be relatively flat. In some regions, like EMEA, there is actually negative growth. In the area of software, PLM sales are expected to grow roughly 5.5 percent, and in services, the growth will be a bit higher, at about 7.5 percent. In PLM sales, services make up about 60 percent of revenues.
