In 2021, the top 10 Product LifeCycle Management and Engineering software vendors accounted for nearly 85.8% of the global Product LifeCycle Management and Engineering applications market which grew 9.1% to approach nearly $22.7 billion in PLM and Engineering license, maintenance and subscription revenues.
Last year Dassault Systemes led the pack with a 17% market share riding on an 8.3% jump in PLM and Engineering license, maintenance and subscription revenues. Autodesk was #2, followed by, Siemens Digital Industries Software, Synopsys and Ansys Inc.
We ask the simple question: Who’s buying PLM applications from whom and why? And we provide the answers – supported by decades of research – to our clients around the world. (Sample from our Apps Database)
Through our forecast period, the PLM and Engineering applications market size is expected to reach $24.9 billion by 2026, compared with $22.7 billion in 2021 at a compound annual growth rate of 1.8%.
| Exhibit 2: Worldwide PLM and Engineering Software Market 2021-2026 Forecast, $M | |||
|---|---|---|---|
| Year | 2021 | 2026 | 2021-2026 CAGR, % |
| Total | 22750 | 24856 | 1.8% |
Source: Apps Run The World, September 2022
Top 10 PLM and Engineering Software Vendors
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.
Here are the rankings of the top 10 PLM and Engineering software vendors and their market shares in 2021.
| Rank | Vendor | 2020 PLM & Engineering Apps Revenues, $M | 2021 PLM & Engineering Apps Revenues, $M | YoY Growth | 2021 PLM & Engineering Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | Dassault Systemes | Subscribe | Subscribe | 8.3% | Subscribe | Dassault Systemes has over 300,000 customers of all sizes, in all industries, in more than 140 countries. Recent customer wins include National Institute for Aviation Research; Deutsche Lichtmiete Lighting Company; Czech Aircraft Group, Texelis (French manufacturer of axles and powertrains for heavy-duty vehicles), La Philharmonie de Paris orchestra, USC wind-farms (Europe). |
| 2 | Autodesk | Subscribe | Subscribe | 14.4% | Subscribe | In March 2022, Autodesk acquired The Wild, a Portland based startup that helps more than 700 customers across architecture, engineering, construction, and other industries work and collaborate in virtual and augmented reality. This acquisition enables Autodesk to meet increasing needs for augmented reality (AR) and virtual reality (VR) technology advancements within the AEC industry and further support AEC customers throughout the project delivery lifecycle. |
| 3 | Siemens Digital Industries Software | Subscribe | Subscribe | 5.6% | Subscribe | In January 2021, the legal merger of Mentor Graphics with Siemens was completed – merging into the Siemens Industry Software Inc legal entity. Mentor Graphics’ name was changed to Siemens EDA, a division of Siemens Digital Industries Software. |
| 4 | Synopsys | Subscribe | Subscribe | 11.0% | Subscribe | To enrich its silicon lifecycle management solution with real-time, in-field optimization technologies, in November 2021 Synopsys acquired Concertio Inc, a provider of AI-powered performance optimization software. The acquisition is another step in the continued enhancement of the Synopsys SiliconMAX Silicon Lifecycle Management (SLM) Platform. |
| 5 | Ansys Inc. | Subscribe | Subscribe | 12.5% | Subscribe | Ansys’ acquisitions in 2021 further strengthened its product offering. Adding Phoenix Integration, a leader in the emerging area of model-based systems engineering, is enabling Ansys customers to create and automate multi-tool workflows to optimize product designs. The company also acquired Zemax, the leader in high-performance optical imaging system simulation, to complement its optical simulation suite. |
| 6 | Cadence Design Systems | Subscribe | Subscribe | 10.3% | Subscribe | In July 2022, Cadence completes acquisition of Future Facilities a leading provider of electronics cooling analysis and energy performance optimization solutions for data center design and operations using physics-based 3D digital twins. The addition of Future Facilities’ technologies and expertise supports the Cadence Intelligent System Design strategy and enables companies to make informed business decisions about data center design, operations and lifecycle management that reduce their carbon footprint. |
| 7 | PTC | Subscribe | Subscribe | 21.4% | Subscribe | In May 2022, PTC has completed acquisition of Intland Software. The acquisition will significantly broaden and deepen PTC’s Application Lifecycle Management (ALM) footprint across safety-critical and regulated industries, including automotive, life sciences, consumer electronics, and aerospace and defense. PTC plans to offer the Intland Codebeamer next-generation ALM suite standalone and in conjunction with both its Windchill and Arena PLM offerings, and to continue to enhance and support its current ALM solution. |
| 8 | Hexagon | Subscribe | Subscribe | 5.7% | Subscribe | In 2022, Hexagong Innovatia Accelerator, the Canadian-headquartered knowledge management system provider of critical operational content to frontline workers. The acquisition of Innovatia Accelerator by Hexagon is timely and will further support Hexagon PPM’s business as well as product strategy to support customers to digitally transform their activities for maintenance, turnarounds, process safety management and safe work processes (Innovatia Accelerator like some of the other Hexagon acquisitions will sit within the Hexagon PPM division). In February 2022, Hexagon acquired ETQ, an Arizona-based SaaS quality management system (QMS) focused on automation of data collection across manufacturers, suppliers and customer reports. With more than 170 acquisitions in the past 21 years, Hexagon is a dominant player in industrial data capture, analysis, visualisation and automation markets. |
| 9 | Bentley Systems | Subscribe | Subscribe | 17.9% | Subscribe | In November 2021, Bentley Systems acquired Power Line Systems (PLS) for approximately $700 million. Power Line Systems develops, sells, and supports software for the design of overhead electric power transmission, distribution, and communication lines and their structures. With PLS acquisition, Bentley expects to substantially complete its portfolio for the lifecycle integration of grid infrastructure across electrical transmission, substation, and distribution assets, and communications towers. |
| 10 | AVEVA Group | Subscribe | Subscribe | -7.3% | Subscribe | In 2021, AVEVA completed its $5 billion acquisition of operational data platform developer OSIsoft in a move that gives AVEVA and its partners the capabilities to help industrial customers accelerate their digital transformation efforts. AVEVA’s products are used by more than 20,000 companies in manufacturing, chemical, oil and gas, pharmaceutical, consumer packaged goods, utility, and water and wastewater treatment industries. |
| Subtotal | Subscribe | Subscribe | 10.3% | Subscribe | ||
| Other | Subscribe | Subscribe | 2.7% | Subscribe | ||
| Total | 20848 | 22750 | 9.1% | 100% |
Source: Apps Run The World, September 2022
Other PLM and Engineering software providers included in the report are: abas, ABB, Adobe, Altair Engineering, Aptos, Arena Solutions, Aspen Technology, Centric Software, Corel Corporation, HCL Technologies Ltd., Honeywell International, IDBS, IFS, Ignite Technologies, Intelex Technologies, IQVIA, Johnson Controls, Kingdee, Landmark, Microsoft, Nemetschek Group, Oracle, PerkinElmer Informatics, Planon, RIB Software SE, Rockwell Automation, Roper Technologies, SAP, Schlumberger Software, Schrodinger, Shell Global Solutions International BV, Sopheon, TopSolid, Trace One, Trimble, VertiGIS, and many others.
Custom data cuts related to the PLM and Engineering Applications market are available:
- Top 50+ PLM and Engineering Applications Vendors and Market Forecast 2021-2026
- 2021 PLM and Engineering Applications Market By Industry (21 Verticals)
- 2021 PLM and Engineering Applications Market By PLM and Engineering Segments and Categories
- 2021 PLM and Engineering Applications Market By Country (USA + 45 countries)
- 2021 PLM and Engineering Applications Market By Region (Americas, EMEA, APAC)
- 2021 PLM and Engineering Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2021 PLM Applications Market By Customer Size (revenue, employee count, asset)
- 2021 PLM and Engineering Applications Market By Channel (Direct vs Direct)
- 2021 PLM and Engineering Applications Market By Product
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.
PLM and Engineering Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in Product LifeCycle Management and Engineering systems 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.
Source: Apps Run The World, September 2022
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 2015-2021 product revenues.
Their 2021 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.
