In 2020, the top 10 Product LifeCycle Management and Engineering software vendors accounted for nearly 85.9% of the global Product LifeCycle Management and Engineering applications market which grew 3.4% to approach nearly $20.9 billion in PLM and Engineering license, maintenance and subscription revenues.
Last year Dassault Systemes led the pack with a 17.1% market share riding on a 7.2% jump in PLM and Engineering license, maintenance and subscription revenues. Autodesk was #2, followed by, Siemens PLM 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 $22.5 billion by 2025, compared with $20.9 billion in 2020 at a compound annual growth rate of 1.5%.
| Exhibit 2: Worldwide PLM and Engineering Software Market 2020-2025 Forecast, $M | |||
|---|---|---|---|
| Year | 2020 | 2025 | 2020-2025 CAGR, % |
| Total | 20948 | 22566 | 1.5% |
Source: Apps Run The World, December 2021
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 2020.
| Rank | Vendor | 2019 PLM & Engineering Apps Revenues, $M | 2020 PLM & Engineering Apps Revenues, $M | YoY Growth | 2020 PLM & Engineering Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | Dassault Systemes | Subscribe | Subscribe | 7.2% | Subscribe | In December 2021, Atos and Dassault Systemes partnered to offer the 3DEXPERIENCE SaaS platform in a sovereign environment for critical and sensitive industries, notably in the defense and healthcare sectors. This highly secure deployment enables collaborative cloud experiences while providing full control of data, processes, and intellectual property. The platform can be set up in any country, with respect to industry and local regulations. Dassault Systemes has over 300,000 customers of all sizes, in all industries, in more than 140 countries. |
| 2 | Autodesk | Subscribe | Subscribe | 18.5% | Subscribe | In December 2021, Autodesk acquired ProEst, a cloud-based estimating solution for the construction industry. Autodesk plans to integrate ProEst with it’s Autodesk Construction Cloud portfolio which encompasses Pype (acquired in summer of 2020), BIM 360, BuildingConnected and PlanGrid. |
| 3 | Siemens PLM Software | Subscribe | Subscribe | 34.1% | 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 | 9.6% | 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 | 11.0% | Subscribe | In August 2021, Ansys acquired Zemax, LLC, a high-performance optical imaging system simulation. The acquisition expands the scope of Ansys’ solution offering, giving users comprehensive, end-to-end solutions for simulating next-generation optical and photonics products. 96 of the top 100 industrial companies on the Fortune 500 list and over 40,000 customers worldwide using Ansys simulation software for product development and operations. |
| 6 | Cadence Design Systems | Subscribe | Subscribe | 15.7% | Subscribe | In August 2020 Cadence Design Systems introduced the Cadence XceliumTM Logic Simulator, enhanced with machine learning technology (ML), called Xcelium ML, to increase verification throughput. Using new machine learning technology and core computational software, Xcelium ML enables up to 5X faster verification closure on randomized regressions. |
| 7 | PTC | Subscribe | Subscribe | 15.4% | Subscribe | In January 2021, PTC completed its acquisition of Arena Solutions, the industry’s leading software as a service (SaaS) product lifecycle management (PLM) solution. The combination of Arena Solutions and Onshape, which PTC acquired in 2019, establishes PTC as the leading provider of pure SaaS solutions for the product development market and broadly extends PTC’s presence in the attractive mid-market, where SaaS solutions are becoming the standard. |
| 8 | Hexagon | Subscribe | Subscribe | -2.1% | Subscribe | In July 2021, Hexagon acquired cloud technology company Infor’s enterprise asset management (EAM) division in a cash and equity deal worth $2.7 billion. The deal also creates ties between Hexagon and Koch Industries – which owns Infor – through a memorandum of understanding, which will see expanded use of EAM in Koch businesses and cross-selling opportunities between customers. Infor’s EAM is software used by industrial companies to track assets, digitalize maintenance operations, and improve digital operations. |
| 9 | Bentley Systems | Subscribe | Subscribe | 14.0% | 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 | -1.7% | 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 | 13.6% | Subscribe | ||
| Other | Subscribe | Subscribe | -33.2% | Subscribe | ||
| Total | 20264 | 20948 | 3.4% | 100% |
Source: Apps Run The World, December 2021
Other PLM and Engineering software providers included in the report are: abas Business Software, ABB, Altair Engineering, Aptos, Arena Solutions, Aspen Technology, Bentley Systems, Corel Corporation, Gerber Technology, HCL Technologies Ltd., Honeywell International, Emerging Technologies, IDBS, IFS, Ignite Technologies, Intelex Technologies, Johnson Controls, KBC Advanced Technologies, Kingdee, Landmark, Microsoft, Oracle, Planon, RIB Software SE, Rockwell Automation, Roper Technologies, SAP, Schlumberger Software, Schrodinger, Shell Global Solutions International BV, Sopheon, Thinkstep, TopSolid, Trace One, Trimble, 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 2020-2025
- 2020 PLM and Engineering Applications Market By Industry (21 Verticals)
- 2020 PLM and Engineering Applications Market By PLM and Engineering Segments and Categories
- 2020 PLM and Engineering Applications Market By Country (USA + 45 countries)
- 2020 PLM and Engineering Applications Market By Region (Americas, EMEA, APAC)
- 2020 PLM and Engineering Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2020 PLM Applications Market By Customer Size (revenue, employee count, asset)
- 2020 PLM and Engineering Applications Market By Channel (Direct vs Direct)
- 2020 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, December 2021
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 2015-2020 product revenues.
Their 2020 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.
