August 25, 2003
CIMdata Cities 8% Growth in PLM Market Sector
Please note that contributed articles, blog entries, and comments posted on are the views and opinion of the author and do not necessarily represent the views and opinions of the management and staff of Internet Business Systems and its subsidiary web-sites.

Each MCAD Weekly Review delivers to its readers news concerning the latest developments in the MCAD industry, MCAD product and company news, featured downloads, customer wins, and coming events, along with a selection of other articles that we feel you might find interesting. Brought to you by If we miss a story or subject that you feel deserves to be included, or you just want to suggest a future topic, please contact us! Questions? Feedback? Click here. Thank you!


CIMdata Cities 8% Growth in PLM Market Sector

Last week, market research and consulting firm CIMdata released its latest market figures for the product lifecycle management (PLM) sector. The CIMdata PLM Market Analysis Report offers an analysis of the 2002 Product Lifecycle Management (PLM) market and forecasts the market for 2003 through 2007.

According to the report, the overall PLM market was up slightly compared to 2001 at approximately $13.5 billion. Of that amount, approximately 67% was spent on authoring and analysis tools, while 33% was spent on collaborative Product Definition management, or cPDm. "cPDm focuses on collaboration, management, and sharing of product related information, while authoring and analysis tools focus on mechanical and electronic and computer-aided design (MCAD & ECAD), computer-aided software engineering (CASE), and technical publishing," explains Ken Amann, CIMdata Director of Research.

While the tools segment remained flat in 2002 at $9.3 billion, cPDm grew by 8% to reach $4.2 billion. "Driving this growth were services associated with PLM solutions," says Amann. New license software revenues declined approximately 7% while services grew 16%.

"Services continue to be the growth area for the PLM market. In fact, growth of the services sector has outpaced new license software sales for several years as companies strive to take full advantage of PLM solutions," says Amann. This growth reflects the recognition in industry that the greatest benefits of PLM are realized when the solutions are carefully implemented as an integral part of a company's operational process and business strategy, according to Amann.

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 from 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. It is composed of multiple elements including: foundation technologies and standards (e.g., XML, visualization, collaboration, and enterprise application integration), information authoring tools (e.g., MCAD, ECAD and technical publishing), core functions (e.g., data
vaults, document and content management, workflow and program management), functional applications (e.g., configuration management), and business solutions built on the other elements and augmented with appropriate best practices methodologies for use.

The scope of PLM implementations continues to grow with many major companies beginning to integrate their partners and suppliers into a comprehensive solution. As PLM is deployed across the extended enterprise, integration with the business systems and processes of a company's partners require additional services. Business process re-engineering and cultural change management services are an important component of the overall services associated with defining and deploying a PLM strategy. The maximum benefit of PLM is achieved when business processes are re-designed to leverage collaboration and information sharing across the extended enterprise.

Service provided by comprehensive technology providers as well as system integrators include valuable technical assistance with computing infrastructure, networking, communications, customization, and applications integration. "These areas are absolutely necessary for installing and running the PLM software in conjunction with other business systems and applications. User companies may not have the time, resources, or expertise to adequately handle these responsibilities," explains Amann. "Beyond technical assistance, service providers also perform increasing levels of process evaluation, and organization consulting which is highly effective in leveraging PLM to achieve a company's
particular business objectives."

"Good service providers base their work on sets of best practices established through years of experience with similar companies, usually in the same industry," says Amman. This is a significant value to companies struggling to find the best ways to improve their business operations. "Applying best practices and methods enabled with PLM technologies and solutions unleashes the full potential of a company's people, and partners to deliver innovation of a business and its products" said Amann.

To learn more, visit

See also:

Agile Acquires Eigner -- a positive step for the PLM industry - The PLM industry took another step along the path of consolidation as Agile Software Corporation announced its acquisition of Eigner, Inc. earlier this month. This acquisition brings together two significant players in the PLM industry.

Ed Miller's State of PLM Address - Download Ed Miller's State of PLM Address from CIMdata's US PLM Conference 2003 [Free, 991 KB PDF]

Top Stories
  • Product and Company News
    • Special Notices
      • Customer Wins
        • [

          Recommended Reading

          (Note: $$ - denotes premium content. Article is available via a trial subscription or for a nominal fee.)

          The 7E7 could set new efficiency standards, thanks to lightweight materials, smarter sensors, and a streamlined design process. But can it pull Boeing out of a market nosedive and revitalize struggling airlines?

          MIT Technology Review , September 2003

          1 | 2  Next Page »

          You can find the full MCADCafe event calendar here.

          To read more news, click here.

          -- , Contributing Editor.

          Review Article Be the first to review this article

          IMTS 2018 Register Now>>

          Featured Video
          Mid-Level Mechanical Engineer for Kiewit at lenexa, Kansas
          Mechanical Engineer for Allen & Shariff Corporation at Pittsburgh, Pennsylvania
          Upcoming Events
          Inside 3D Printing Seoul 2018 at Korea International Exhibition Center (KINTEX), Hall 5 408 Hallyuworld-ro, Ilsanseo-gu, Goyang-si, Gyeonggi-do Goyang Korea (South) - Jun 27 - 29, 2018
          AMTEX 2018 at Pragati Maidan New Delhi India - Jul 6 - 9, 2018
          34th Annual Coordinate Metrology Society Conference 2018 at Grand Sierra Resort, 2500 East Second Street Meeting & Covention Center Reno NV - Jul 23 - 27, 2018
          Kenesto: 30 day trial

          Internet Business Systems © 2018 Internet Business Systems, Inc.
          25 North 14th Steet, Suite 710, San Jose, CA 95112
          +1 (408) 882-6554 — Contact Us, or visit our other sites:
          AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
            Privacy PolicyAdvertise