In 2016, the top 10 Product LifeCycle Management & Engineering software vendors accounted for nearly 65% of the global Product LifeCycle Management & Engineering applications market which grew 2.5% to approach nearly $17.8 billion in license, maintenance and subscription revenues.
Last year Dassault Systemes led the pack with a 14% market share and $2.5 billion in Product LifeCycle Management & Engineering in license, maintenance and subscription revenues. In 2016, Synopsys was No. 2, followed by Autodesk, Mentor Graphics and Ansys in that order. In 2015, the top five were Dassault, Synopsys, Autodesk, PTC and Mentor Graphics.
Through our forecast period, the Product LifeCycle Management & Engineering applications market is expected to reach $18.4 billion by 2021, compared with $17.8 billion in 2016 at a compound annual growth rate of 0.7%.
| Exhibit 2: Worldwide PLM & Engineering Software Market 2015-2020 Forecast, $M | |||
|---|---|---|---|
| Year | 2016 | 2021 | 2016-2021 CAGR, % |
| Total | 17795 | 18385 | 0.7% |
Source: Apps Run The World, December 2017
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 2016.
| Rank | Vendor | 2015 PLM & Engineering Apps Revenues, $M | 2016 PLM & Engineering Apps Revenues, $M | 2016 PLM & Engineering Apps YoY Growth, % | 2016 PLM & Engineering Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | Dassault Systemes | Subscribe | Subscribe | Subscribe | Subscribe | Acquired Exa software in September 2017 for designers to evaluate highly dynamic fluid flow throughout the design process. |
| 2 | Synopsys | Subscribe | Subscribe | Subscribe | Subscribe | Continued its expansion with a series of acquisitions to shore up its manufacturing and design applications. |
| 3 | Autodesk | Subscribe | Subscribe | Subscribe | Subscribe | In the midst of a turnaround, Autodesk eyes subscription growth. |
| 4 | Mentor Graphics | Subscribe | Subscribe | Subscribe | Subscribe | Siemens PLM acquired Mentor Graphics in 2017. |
| 5 | Ansys Inc. | Subscribe | Subscribe | Subscribe | Subscribe | Acquired 3DSIM for simulation software for metal additive manufacturing. |
| 6 | PTC | Subscribe | Subscribe | Subscribe | Subscribe | Investing heavily in IoT by launching Navigate, a ThingWorx-based IoT solution for PLM. |
| 7 | Siemens PLM Software | Subscribe | Subscribe | Subscribe | Subscribe | Siemens PLM acquired Mentor Graphics in 2017. |
| 8 | Cadence Design Systems | Subscribe | Subscribe | Subscribe | Subscribe | Cadence shows no sign of a slowdown in its EDA software business thanks to holistic, integrated design flow for chip makers like TSMC. |
| 9 | SAP | Subscribe | Subscribe | Subscribe | Subscribe | PLM features are now integrated into SAP S/4 HANA, allowing for greater throughput from new product introduction to ERP production. |
| 10 | Oracle | Subscribe | Subscribe | Subscribe | Subscribe | Latest Oracle release extends new PLM and SCM capabilities into SCM Suite in the Cloud. |
| Subtotal | Subscribe | Subscribe | Subscribe | Subscribe | ||
| Other | Subscribe | Subscribe | Subscribe | Subscribe | ||
| Total | 17362 | 17796 | 2.5% | 100.0% |
Source: Apps Run The World, December 2017
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 2016-2021, 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.
| 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 2015-2016 product revenues.
Their 2016 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.
