CIMdata Press Releases
CIMdata Releases its Annual PLM Market Analysis Report: Comprehensive Information and Analysis of the PLM Market
ANN ARBOR , Michigan , 9 August, 2005— Consulting and research firm CIMdata announces the availability of its annual PLM Market Analysis Report. This Report provides extensive details and in-depth data and analyses of the PLM market building on information released by CIMdata in March of 2005. The Report provides the most complete analysis of the 2004 Product Lifecycle Management (PLM) market available, with special emphasis on the collaborative Product Definition management (cPDm) segment of that market. The PLM Market Analysis Report provides a perspective on PLM across a variety of industry and geographic sectors, identifies market trends, reviews investments in PLM-related software and services during 2004, and forecasts PLM investments for 2005 through 2009. The PLM Market Analysis Report comes in two modules: ‘Module I’ presents an overview of the PLM market, overall market statistics, and an analysis of PLM suppliers in 2004. ‘Module II’ discusses PLM market development and results across industry and geography sectors.
According to Ken Amann, CIMdata Director of Research, “CIMdata has been tracking the PLM market since the mid-1980’s and has an extensive and historical understanding of the issues, trends, evolution, technology suppliers, service providers, and users of PLM. This Report leverages that knowledge and history to provide the most comprehensive view of PLM and cPDm available.” He added that the PLM Market Analysis Report is “the only report of its kind that provides detailed information about the PLM service suppliers and the growing importance of their contribution to the PLM Market.”
The PLM Market Analysis Report is sold as a stand-alone report, or as part of a CIMdata PLM Market Service subscription. The Report includes more than 130 figures and tables that provide a broad understanding and deep insight to the PLM market and investment trends and opportunities. The Report also provides information on what PLM is, why companies are investing in these solutions and the emerging areas for which companies are demanding new PLM solutions. Leading PLM solutions suppliers are identified by a variety of factors and domains. This Report is essential for obtaining the knowledge of PLM and the PLM market that both user companies and PLM solution suppliers need to develop PLM strategies and define their PLM programs.
Further details and pricing information about the Report are available at http://www.cimdata.com/publications/reports.html.
CIMdata defines PLM 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, and spanning from product concept to end of life – integrating people, processes, business systems, and information. PLM forms the product information backbone for a company and its extended enterprise.
“CIMdata partitions the PLM market into two primary segments: cPDm and Tools. Tools include the primary design authoring tools such as mechanical and electronic computer-aided design (MCAD and ECAD), computer-aided software engineering (CASE), and technical publishing. cPDm is focused on collaboration, visualization, management, and sharing of product related information.” explained Mr. Amann.
Regarding the PLM market performance, Mr. Amann said, “The 2004 overall PLM market grew by 8% over 2003 to approximately $16.7 billion. Approximately 68% or $11.4 billion was invested in Tools while 32% or $5.3 billion was invested in cPDm. Both PLM segments grew in 2004, with cPDm investments increasing more rapidly with a growth of approximately 15% over 2003.” Figure 1 below shows the overall PLM market size. The forecasts are based on data available through the first quarter of 2005.
Figure 1—Overall PLM Investment History and Forecast (estimated for 2005 to 2009)
CIMdata’s analysis indicates that investments in cPDm software including perpetual license sales, right-to-use fees, subscriptions, recurring fees, and maintenance, increased from $1.9 billion in 2003 to $2.2 billion in 2004 and comprised 41% of the total cPDm market. This represented continuing solid license growth that began during 2003. cPDm services investments grew to $3.1 billion, up from $2.6 billion in 2003 and represented 59% of the 2004 cPDm market. Commenting on CIMdata’s estimates for the 2005 cPDm market, Mr. Amann said, “We project this market to grow at a rate of 13% to $6 billion.” He added that with the general improvement in global economic activity and the release of new investment funds by companies may improve the forecasted growth. Figure 2 highlights the cPDm estimated market growth through 2009.
Figure 2—cPDm Investment History and Forecast (estimated
for 2005 to 2009)
Note: Software includes: one-time payments (paid licenses) plus recurring fees
such as right to use, subscriptions, and maintenance
Looking toward 2009, the PLM market as a whole is estimated to grow at a CAGR of 8% to approximately $25 billion. cPDm is forecast to be the fastest-growing segment of the PLM market with a 15+% CAGR to exceed $10.5 billion in 2009. The Tools segment is forecast to grow at a slower 4+% CAGR over the next five years, reaching approximately $13.8 billion during 2009. A wide range of companies that provide many different types of products and services serve the PLM market. These suppliers are segmented into three major categories: 1) comprehensive technology suppliers; 2) system integrators/resellers/VARs (non-technology developers), and 3) focused application providers. For the $5.3 billion cPDm portion of the PLM market in 2004, comprehensive suppliers comprised 42%, focused application suppliers held 19%, and the independent system integrators, resellers, and VARs had 39%.
Ed Miller , CIMdata President, explained that in this broad market, a small number of PLM suppliers are generally considered to be the industry leaders, “these are the PLM Mindshare Leaders who have achieved this recognition based on the size and scope of their PLM implementations at customer sites; and their technology and thought leadership in the PLM market.”
According to Mr. Miller, the PLM mindshare leaders during 2004 were Agile, IBM+DS (the combined IBM and Dassault Systèmes program), MatrixOne, PTC, SAP and UGS. Of the PLM mindshare leaders, the two with the largest direct revenues in 2004 were IBM+DS and UGS. When considering direct PLM revenues only, IBM+DS was the leader, followed in order by UGS, PTC, SAP, MatrixOne, and Agile. (Figure 3).
Figure 3—PLM Mindshare Leaders’ Revenues – 2004
(Revenue information represents CIMdata’s estimates)
Note: For 2004 Matrix1+Synchro estimate includes a full year (calendar
2004) of revenues from Synchronicity which was acquired by MatrixOne in
August 2004.
Note: The blue arrow indicates the equivalent measure for Dassault Systèmes if they had been treated as a separate entity in the analysis.
Please note that IBM+DS overall revenue estimate includes IBM’s Dassault-related revenues plus IBM’s non-Dassault-related PLM revenues and Dassault Systèmes direct revenues not derived through IBM. The 2004 revenues for MatrixOne include all revenues for both MatrixOne and Synchronicity during 2004 even though the Synchronicity acquisition was not completed until August of 2004. It is also important to note that Agile, MatrixOne, and SAP do not develop Tools, which provide a substantial portion of the PLM revenues for IBM+DS, PTC and UGS.
Direct revenues are only one measure of a supplier’s impact on the PLM market. Many suppliers provide technologies not only through their own field sales and support organizations, but also through system integrators, resellers, and other partners. The combined core (a vendor’s direct software and services revenue) and partner revenues are the measure of the visibility and impact of these suppliers on the industry; this represents their overall “market presence.” Market presence also provides some insight as to how many other solution providers support a given supplier’s technology and products.
When considering overall PLM market presence, Dassault Systèmes was the leader in 2004, followed by UGS, PTC, SAP, MatrixOne, and Agile (Figure 4). For Figure 4, please note that Dassault Systèmes provides the technology. IBM’s PLM revenues are included as part of DS’ partner revenues.
Figure 4—PLM Mindshare Leaders’ Presence – 2004
(Market presence information represents CIMdata’s estimates)
Note: For 2004 Matrix1+Synchro estimate includes a full year (calendar
2004) of revenues from Synchronicity which was acquired by MatrixOne in
August 2004.
When looking at the market presence in the cPDm segment of the overall PLM market during 2004, a somewhat different picture emerges, again illustrating the impact of partners in establishing a market “footprint” for major suppliers. The following figure presents the cPDm mindshare leaders’ market presence for 2004. As can be seen in the figure for cPDm, UGS was the market presence leader, followed by Dassault, SAP, MatrixOne, PTC, and Agile. Partner revenues have a major impact on the relative positions and overall market impact in the cPDm market.
Figure 5—PLM Mindshare Leaders’ Presence – 2004
(Market presence information represents CIMdata’s estimates)
Note: For 2004 Matrix1+Synchro estimate includes a full year (calendar 2004) of revenues from Synchronicity which was acquired by MatrixOne in August 2004.
Mr. Amann concluded that, “2004 was a strong year for the PLM industry. User companies released investment funds for PLM, particularly during the second half of the year, and this fueled the industry’s growth. Sustained growth in license and subscription sales, along with strong adoption by mid-size companies will drive continued growth into the future. We anticipate increased growth in 2005, and increased competition among suppliers as each focuses their attention on sectors of the industry that offer the most opportunity.”