PLM Technology: Today's Regrouping Could Boost Tomorrow's Spending

Compiled By Deborah Austin Product life-cycle management (PLM) technology growth -- flattened by weak capital-expenditure conditions -- should rebound with double-digit expansion rates in the next few years, suggests a new report from market analysis/positioning services firm Aberdeen Group, Boston. The worldwide PLM market will grow from $3.38 billion in 2001 to $3.88 billion in 2003 and $5.12 billion by 2005, forecasts the report, "Worldwide PLM Spending: Forecast and Analysis 2001-2005." Growth will be fueled by several factors, says Aberdeen, including:

  • Continued adoption of PLM as a business philosophy;
  • Midmarket usage as solutions become more "packaged" and less expensive;
  • Rapid adoption within midrange Tier-2 and Tier-3 markets, as manufacturing business models shift toward outsourcing and virtual manufacturing/engineering -- and OEMs push subassemblies to Tier 2.
During a down economy, manufacturers often can divert resources from customer demand to operational improvements -- rethinking, rebuilding and retooling -- says Aberdeen research director/report author Jack Maynard. This will help the PLM market and ready manufacturers for coming upturns.
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