WHILE the global economic downturn in 2009 impacted revenues for PLM suppliers, revenues for the first two quar ters of 2010 reflect a strong rebound in new licenses and overall PLM business.
Demand for increased efficiency and productivity; a continuing need for collaboration across a global manufac turing lifecycle; PLM solutions pene trating new markets such as power and energy; architecture and construction; shipbuilding, and consumer goods; the rapidly growing need for product re- invention and innovation; the emer gence of mechatronics and product complexity; the continued growth of manufacturing in emerging economies; and expanding adoption of a more holistic end-to-end PLM solution set are all contributing to growth in the world wide PLM market, according to a new ARC Advisory Group study.
The primary influence on the global PLM market for this reporting period (base year 2009) has clearly been the global economy and the direct effect of downturns in certain industrial verticals such as automotive and other discrete manufacturing sectors.
PLM solution providers have been most directly impacted by reductions in new software licenses and engineering seats. Business in this sector has experi enced a general reduction in the range of around 8 to10 percent. For most of the PLM providers, this downturn in busi ness has been offset by services business in the areas of maintenance, implemen tation and consulting, with reoccurring maintenance providing the bulk of sustaining revenue.
The market leaders in PLM, as well as many of the smaller suppliers, have responded to the broadening adoption of PLM technologies into new markets with strategies and solutions to penetrate these industrial vertical markets.