Top 10 Product LifeCycle Management & Engineering Software Vendors and Market Forecast 2015-2020

Worldwide PLM & Engineering Applications Market to reach $18.2 billion by 2020, compared with $17.4 billion in 2015 at a compound annual growth rate of 0.8%.

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In 2015, the top 10 Product LifeCycle Management & Engineering software vendors accounted for nearly 68% of the global Product LifeCycle Management & Engineering applications market which grew 1% to approach nearly $17.4 billion in license, maintenance and subscription revenues.

Last year Dassault Systemes led the pack with 15% market share and $2.7 billion in Product LifeCycle Management & Engineering product revenues, riding on a 22% jump in license, maintenance and subscription revenues. Synopsys was No. 2 achieving 12% share, Autodesk was the third at 10% and PTC and Mentor Graphics were fourth and fifth place with 6% and 5%, respectively.

Top 10 PLM & Engineering Software Vendors & 2015 PLM & Engineering Applications Market Shares
Top 10 PLM & Engineering Software Vendors & 2015 PLM & Engineering Applications Market Shares

Through our forecast period, the Product LifeCycle Management & Engineering applications market is expected to reach $18.2 billion by 2020, compared with $17.4 billion in 2015 at a compound annual growth rate of 0.8%.

Exhibit 2: Worldwide PLM & Engineering Software Market 2015-2020 Forecast, $M
Year 2015 2020 2015-2020 CAGR, %
Total 17362 18203 0.8%

Source: Apps Run The World, June 2016

PLM & Engineering Market Definitions And Forecast Assumptions

Product Lifecycle Management applications enable key stakeholders including designers, engineers and OEMs to gain and optimize visibility into the entire product life cycle from idea generation to collaboration and from product data management to iterative development efforts. PLM applications are considered a derivative market with revenue contribution to functional areas such as Project and Portfolio Management, Enterprise Resource Planning and Manufacturing.

Consolidation wave propels Dassault to new heights, while other incumbents are in search of new business models through subscription pricing.

Top 10 PLM & Engineering Software Vendors

Here are the rankings of the top 10 PLM & Engineering software vendors and their market shares in 2015.

Rank Vendor 2014 PLM & Engineering Apps Revenues, $M 2015 PLM & Engineering Apps Revenues, $M YoY Growth 2015 PLM & Engineering Market Share, % Recent Developments
1 Dassault Systemes Subscribe Subscribe 22% 15% PLM business continues to grow, Cloud migration is a work in progress.
2 Synopsys Subscribe Subscribe 8% 12% Synopsys remains a global leader in EDA software and semiconductor IP for chip makers. The company is also growing its leadership in software quality and security solutions.
3 Autodesk Subscribe Subscribe -0.3% 10% Engineering and PLM offerings in transition to a subscription model and the Cloud.
4 PTC Subscribe Subscribe -4% 6% Acquired Kepware for its IoT communications platform in 2016.
5 Mentor Graphics Subscribe Subscribe -5% 5% Continued share repurchases from activist investor Carl Icahn in 2016 in order to stay independent.
6 Ansys Inc. Subscribe Subscribe 1% 5% Unveiled ANSYS 17.0 in 2016, its most feature-rich release in its 45-year history of selling engineering simulaton apps.
7 Siemens PLM Software Subscribe Subscribe 5% 5% Acquired CD-adapco for engineering simulation apps in 2016.
8 Cadence Design Systems Subscribe Subscribe 0% 4% Projects 8% in 2016 sales, same as 2015.
9 SAP Subscribe Subscribe 23% 3% SAP is parlaying its expertise in manufacturing apps to a new generation of product lifecycle management apps that leverage its HANA platform to extend into new markets like the Internet of Things.
10 Oracle Subscribe Subscribe 3% 3% Oracle is transforming its PLM offerings – formerly from Agile – into Product Value Chain Cloud, Innovation Management Cloud and Product Development Cloud.
Subtotal Subscribe Subscribe 6% 68%
Other Subscribe Subscribe -8% 32%
Total Subscribe Subscribe 1% 100%

Source: Apps Run The World, June 2016

Exhibit 4 shows the enterprise applications market by functional area. The highest growth functional markets revolve around smaller segments like eCommerce, Enterprise Performance Management, Sales Performance Management and Treasury and Risk, where first movers remain less established than those that for decades have been entrenched in functional areas like ERP, CRM and PLM.

Exhibit 4: Worldwide Enterprise Applications Market Forecast 2015-2020, By Functional Market, $M

Exhibit 4 Worldwide Enterprise Applications Market Forecast 2015-2020, By Functional Market, $M
Exhibit 4 Worldwide Enterprise Applications Market Forecast 2015-2020, By Functional Market, $M

PLM & Engineering Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database

On the buyer side, customers are investing in Product LifeCycle Management & Engineering applications based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.

Since 2010, our global team of researchers have been studying the patterns of the latest PLM software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.

Updated continuously, our database features extensive win/loss analysis. Each year our research team identifies tens of thousands of these customer wins and losses from public and proprietary sources.

The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.

DON’T MISS OUR CUSTOMER DATABASE

Vendor Customer Win Industry No. of employees Revenue, $M Old Product New Product Wins in
Dassault Systemes Faraday Future Automotive 750 240 Legacy System Dassault Target Zero Defect, Smart Safe & Connected 1Q16
Dassault Systemes Elixir Aircraft Aviation & Aerospace 30 5 Legacy System Dassault Enovia PLM 2Q15
Dassault Systemes Forum Energy Technologies Oil & Energy 2500 885 Legacy System Dassault Enovia PLM 2Q16
Dassault Systemes WestRock Packaging and Containers 41400 13790 Legacy System Dassault CATIA, ENOVIA 2Q16
Dassault Systemes Hispano-Suiza Aviation & Aerospace 1350 540 Legacy System Dassault Co-Design to Target 2Q15
Dassault Systemes Netsource Information Technology and Services 80 20 Dassault Enovia 2013x Dassault Enovia PLM 3Q15
Synopsys iCatch Technology Information Technology and Services 230 35 Legacy System Synopsys IP Solutions 4Q15
Synopsys Axell Computer Hardware 30 10 Legacy System Synopsys Design Compiler 4Q15
Synopsys Baikal Electronics Semiconductors 80 10 Legacy System Synopsys DesignWare Analog IP Solutions 1Q15
Autodesk Dental Manufacturing Unit Manufacturing 200 20 Legacy System Autodesk Fusion Lifecycle 2Q16
Autodesk TaylorMade Sporting Goods 53731 14490 Legacy System Autodesk Fusion Lifecycle 4Q15
Autodesk Club W Wine and Spirits 120 20 Legacy System Autodesk Fusion Lifecycle 3Q15
Autodesk Swivl Internet 80 10 Legacy System Autodesk Fusion Lifecycle 3Q15
Autodesk Excellims Corporation Biotechnology 55 6 Legacy System Autodesk Fusion Lifecycle 2Q15
PTC Hasbro Inc Consumer Goods 5200 4200 Legacy System PTC Windchill FlexPLM 2Q15
PTC Colony Brands Consumer Goods 1250 850 Legacy System PTC Windchill FlexPLM, PTC PLM Cloud 2Q16
PTC Percall Développement SAS Information Technology and Services 220 35 Legacy System PTC Windchill FlexPLM 1Q15
PTC ArrowP Inc Packaging and Containers 25 3 Legacy System PTC Windchill FlexPLM 1Q16
PTC Aerojet Rocketdyne Defense & Space 5070 1700 Legacy System PTC Windchill FlexPLM 1Q15
Mentor Graphics Sentral Group Manufacturing 100 29 Legacy System HyperLynx SI 2Q16
Mentor Graphics General Motors Automotive 216000 152356 Legacy System HyperLynx SI 1Q15
Mentor Graphics San’an IC Semiconductors 1000 100 Legacy System HyperLynx SI 1Q16
Mentor Graphics Terminus Technology IT industry 150 15 Legacy System HyperLynx SI 1Q15
Ansys Inc. Solarflare Computer Networking 212 263 Legacy System ANSYS Enterprise Cloud 1Q16
Ansys Inc. General Electric Manufacturing 305000 117400 Legacy System ANSYS Enterprise Cloud 1Q16
Ansys Inc. D-Wave Systems Computer Hardware 200 20 Legacy System ANSYS Enterprise Cloud 1Q16
Ansys Inc. ClariPhy Semiconductors 150 22 Legacy System ANSYS Enterprise Cloud 1Q16
Ansys Inc. Red Bull Racing Sports 605 2854 Legacy System ANSYS Enterprise Cloud 1Q16
Ansys Inc. ORECA Sports 200 50 Legacy System ANSYS Enterprise Cloud 1Q16
Ansys Inc. NuScale Power Oil & Energy 600 38 Legacy System ANSYS Enterprise Cloud 1Q16
Siemens PLM Software Jet Aviation Aviation & Aerospace 4500 1200 Legacy System Siemens Teamcenter 3Q16
Siemens PLM Software Gestamp Automotive 33000 6200 Legacy System Siemens Teamcenter 2Q16
Siemens PLM Software China Nuclear Power Engineering Co., Ltd Utilities x x Legacy System Siemens Teamcenter 2Q15
Siemens PLM Software Blohm+Voss Consumer Electronics 1600 700 Legacy System Siemens Teamcenter 4Q15
Siemens PLM Software Dongbu Daewoo Electronics Construction 250000 10500 Legacy System Siemens Teamcenter 4Q14
Cadence Design Systems Cypress Semiconductor Semiconductors 6279 1820 Legacy System Cadence EDA in the Cloud 2Q16
Cadence Design Systems Tezzaron Semiconductor Semiconductors 160 26 Legacy System Cadence EDA in the Cloud 2Q16
Cadence Design Systems Toshiba Corporation Consumer Electronics 200000 66560 Legacy System Cadence EDA in the Cloud 2Q16
Cadence Design Systems HiSilicon Technologies Co., Ltd Semiconductors 1100 550 Legacy System Cadence EDA in the Cloud 1Q16
SAP Rockwell Automation Inc Industrial Automation 22500 6050 Legacy System SAP PLM 3Q15
SAP HCL-Axon Management Consulting 6000 3500 Legacy System SAP PLM 1Q15
SAP Danone Consumer Products 102400 20900 Legacy System SAP PLM 1Q15
SAP Blue Cross Blue Shield Insurance 8100 2420 Legacy System SAP PLM 1Q15
SAP Applied Medical Medical Devices 2200 900 Legacy System SAP PLM 1Q15
Oracle Smiths Medical Medical Devices 7500 2900 Legacy System Oracle Agile PLM 1Q15
Oracle ARRIS Group, Inc. Telecommunications 8520 5300 Legacy System Oracle Agile PLM 1Q15
Oracle Freescale Semiconductor Semiconductors 42000 6100 Legacy System Oracle Agile PLM 1Q15
Oracle Apple Inc Consumer Electronics 110000 233115 Arena PLM Oracle Agile PLM 3Q15
Oracle Medtronic Medical Devices 98000 28000 EMC Documentum Oracle Agile PLM 1Q15
Oracle Vicon Industries Security and Investigations 148 45 Legacy System Oracle Agile PLM 4Q14

Source: Apps Run The World, August 2016

Further Readings

An expanded version of this report covers the top 50+ Product LifeCycle Management and Engineering Software Vendors, offering in-depth analysis of the market dynamics, vendors’ Strengths, Customers, Opportunities, Risks and Ecosystems as well as their ability to gain Shares (SCORES) within their respective space.

We also offer win-loss analysis of the quarterly wins of these top vendors and whether incumbents and upstarts pose any real threat to their standing amid shifting market requirements and user preferences.

More Enterprise Applications Research Findings

Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors (Apps Top 500) and the world’s 500 largest Cloud Applications Vendors (Cloud Top 500) ranked by their 2014-2015 product revenues.

Their 2015 results are being broken down, sorted and ranked across 16 functional areas(from Analytics to Treasury and Risk Management) and by 21 vertical industries (from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.

Research Methodology

Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market.

We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.

Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world.

The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.

The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.

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