Discrete Manufacturing and PLM Market Size (2024 – 2030)

The Global Discrete Manufacturing and PLM Market was valued at USD 40,210 Million in 2023 and is projected to reach a market size of USD 63,895.64 Million by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 6.84%.   

As companies increasingly use digital technology to simplify their production processes, the market for discrete manufacturing and PLM (product lifecycle management) is expanding and changing significantly. This market includes several different businesses where items are produced as separate units, such as consumer goods, electronics, automotive, and aerospace. PLM systems are essential to discrete manufacturing because they offer a complete platform for managing design procedures, product data, and teamwork during a product's whole lifespan. By combining several phases of product development, from concept to retirement, these systems help businesses increase productivity, shorten time-to-market, and improve product quality. The market is driven by the growing need for enhanced productivity, cost reduction, and improved product quality in manufacturing industries. As companies face increasing competition and pressure to innovate, they are turning to PLM solutions to optimize their product development processes and gain a competitive edge. Advancements in technology, such as the Internet of Things (IoT), artificial intelligence (AI), and cloud computing, are further fueling the growth of the Discrete Manufacturing and PLM Market. These technologies are enabling more sophisticated PLM systems that can provide real-time data analytics, predictive maintenance, and enhanced collaboration across global teams. 

Key Market Insights:

The global Discrete Manufacturing and PLM market size is estimated to be $25.8 billion in 2023.

68% of discrete manufacturers are implementing or planning to implement PLM solutions.

The automotive sector accounts for 27% of the total PLM market share in discrete manufacturing.

42% of discrete manufacturers cite improved product quality as the primary benefit of PLM implementation.

The average ROI for PLM implementation in discrete manufacturing is 281%.

73% of discrete manufacturers report reduced time-to-market after implementing PLM solutions.

The aerospace and defense industry represents 22% of the PLM market in discrete manufacturing.

56% of discrete manufacturers use PLM for better collaboration across departments.

The average cost savings from PLM implementation in discrete manufacturing is 15.3%.

89% of discrete manufacturers report improved product data management with PLM solutions.

The electronics and high-tech sectors comprise 18% of the PLM market in discrete manufacturing.

61% of discrete manufacturers use PLM for enhanced product innovation.

The average reduction in engineering change orders is 35% after PLM implementation.

Discrete Manufacturing and PLM Market Drivers:

The relentless pursuit of digital transformation has emerged as a primary driver for the Discrete Manufacturing and PLM Market.

A vast array of technologies and strategies are included in the digital transformation of manufacturing, with the goals of increasing output, cutting expenses, and raising product quality. Integrating PLM systems, which provide the framework for managing product-related data throughout its lifespan, is key to this shift. A crucial element of the digital revolution occurring in the industrial sector is the notion of the "digital thread." This is the smooth transfer of data from design and engineering to production and after-sale support, spanning the whole product lifecycle. PLM systems are essential to preserving this digital thread because they guarantee that all parties involved have access to current and correct data.

The growing consumer appetite for personalized and customized products has become a significant driver for the Discrete Manufacturing and PLM Market.

For producers, this mass customization approach offers both benefits and problems. On the one hand, it calls for supply networks that are nimble, flexible production techniques, and more intricate product designs. However, it also presents the possibility of greater profit margins, heightened client loyalty, and market distinction. PLM systems are essential to firms' ability to satisfy consumer demand for customized products. These systems give the capacities and tools required to handle the added complexity that comes with providing a greater variety of product options. Manufacturers may cut down on the time and expense involved in introducing customized items to the market by using PLM systems, which centralize product data and streamline the product development process. One of the key features of PLM systems that support product customization is configuration management. This capability allows manufacturers to define and manage the various options and rules for product configurations, ensuring that only valid combinations are offered to customers. This not only simplifies the sales process but also helps prevent errors in manufacturing and assembly.

Discrete Manufacturing and PLM Market Restraints and Challenges:

One of the biggest barriers to PLM adoption is the significant upfront investment required. It may be costly for small and medium-sized enterprises (SMEs) to purchase equipment, license software, and integrate systems. Moreover, companies may find it difficult to justify the ongoing costs associated with maintenance, improvements, and training, which might strain their budgets. The intricacy of PLM systems is yet another significant barrier. One issue that many organizations deal with is the steep learning curve associated with implementing and utilizing these sophisticated technologies. This intricacy might make employees reluctant to change the workflows and procedures they have become used to. To overcome this resistance and ensure widespread acceptance within the organization, a significant amount of effort and money may be needed. In the PLM sector, protecting intellectual property and ensuring data security are also major challenges. PLM systems frequently hold sensitive data related to manufacturing and product design, therefore protecting this data is essential—especially in cloud-based settings. Businesses must strike a balance between the necessity of information sharing and teamwork and the necessity of safeguarding their intellectual property from rivals and potential cyber-attacks.

Discrete Manufacturing and PLM Market Opportunities:

The increasing use of cloud-based PLM solutions offers a significant additional prospect. Many benefits come with cloud PLM, such as lower infrastructure costs, better scalability, and better collaboration features. There is a lot of room for market expansion in this space as more manufacturers—SMEs in particular—realize the advantages of cloud-based solutions. Cloud PLM providers may profit from this trend by providing adaptable, reasonably priced solutions that meet the unique requirements of various business sizes and sectors. The increasing complexity of global supply chains creates opportunities for PLM vendors to develop more sophisticated supply chain management capabilities within their systems. PLM solutions that can provide end-to-end visibility, facilitate collaboration with suppliers, and enable rapid response to supply chain disruptions will be in high demand. As the Internet of Things (IoT) continues to evolve, there are opportunities to integrate IoT data with PLM systems to create more comprehensive product lifecycle management solutions. This integration can provide valuable insights into product usage, performance, and maintenance needs, enabling manufacturers to improve product designs and develop new service-based business models.

DISCRETE MANUFACTURING AND PLM MARKET REPORT COVERAGE:

Discrete Manufacturing and PLM Market Segmentation: By Types

• Software

• Hardware

• Services

The software category dominates the market. The crucial function that PLM software serves in handling intricate product data and procedures is the reason for its popularity. In today's competitive industrial world, software solutions provide simplified processes, increased communication, and improved decision-making skills.

Within this market, the software sector is expected to develop at the quickest rate. Businesses are spending more money on sophisticated PLM software solutions as a result of the growing popularity of cutting-edge technologies like artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT). These solutions boost product innovation, shorten time-to-market, and boost overall efficiency.

Discrete Manufacturing and PLM Market Segmentation: By Distribution Channel

• Direct Sales

• Distributors

• Online Retailers

• Specialty Stores

The most common distribution route is still direct sales. Direct sales allow for a more customized approach, which allows vendors to forge strong bonds with customers and provide unique solutions that address particular customer demands, especially considering the complexity and customisation that are frequently needed in PLM systems.

The distribution channel that is expanding the quickest is turning out to be online. The use of online sales channels has expanded as a result of the growth of e-commerce and digital transformation activities. Manufacturers may now reach a larger client base and enjoy more accessibility and flexibility thanks to these platforms.

Discrete Manufacturing and PLM Market Segmentation: Regional Analysis

• North America

• Europe

• Asia-Pacific

• South America

• Middle East and Africa

North America holds the largest share of the market, accounting for approximately 35%. This dominance is driven by the presence of leading technology companies and a mature industrial base in the U.S. and Canada. The region's well-established infrastructure and focus on innovation also contribute to its leading position. 

Asia-Pacific is the fastest-growing region in the Discrete Manufacturing and PLM Market. The region’s rapid industrialization, coupled with increasing investments in manufacturing and technology sectors in countries such as China, India, and Japan, fuels this growth. Additionally, the rising demand for consumer electronics and automotive products in these countries further accelerates market expansion.

COVID-19 Impact Analysis on the Discrete Manufacturing and PLM Market:

Due to lockdowns, social distancing measures, and the shutdown of industrial facilities, the pandemic's early stages witnessed a marked halt in manufacturing activity. Delays in product releases, lowered production capacity, and a drop in market income as a whole resulted from this. But the epidemic also sped up the industrial industry's digital revolution. PLM software solutions were being adopted by businesses at a far higher rate as they struggled with the demands of increased operational agility and remote work. Through the use of digital product design, virtual prototyping, and remote collaboration, these technologies allowed manufacturers to continue operating. Because of this, the market saw a brief decline before swiftly rising as businesses gave priority to digital projects in order to manage the uncertainty posed by the epidemic. The epidemic also brought attention to how crucial supply chain resilience is. PLM systems are being used by manufacturers more and more to improve supply chain visibility, detect possible dangers, and establish more flexible and agile manufacturing processes. 

Latest Trends/ Developments:

To improve decision-making, PLM solutions are increasingly incorporating AI and machine learning. With the use of these technologies, manufacturers are able to forecast results, find patterns in the massive volumes of data created during the product lifespan, and evaluate the data. This capacity for prediction is especially useful in quality control, maintenance scheduling, and demand forecasting. AI-powered PLM systems are assisting businesses in cutting expenses, enhancing product quality, and quickening time-to-market. The PLM industry is undergoing a radical change because to cloud computing. Cloud-based PLM systems are more affordable, flexible, and scalable, among other benefits. With the help of these technologies, manufacturers may collaborate remotely and make decisions in real time by accessing PLM tools and data from any location. Manufacturers now place a high priority on sustainability, which is reflected in the creation of PLM solutions. PLM is being used by businesses more and more to manage and create goods that have a less environmental effect. This entails making the best use of available resources, cutting waste, and making sure that environmental laws are followed. PLM systems are also used to monitor and document a product's sustainability performance at every stage of its lifespan, from design and manufacture to disposal at the end of its useful life.

Key Players:

1. Siemens AG

2. Dassault Systèmes

3. PTC Inc.

4. SAP SE

5. Oracle Corporation

6. Autodesk, Inc.

7. IBM Corporation

8. Aras Corporation