Product Lifecycle Management (PLM) software is a critical technology for large manufacturers. It unifies various product information between the design and shipping processes to enable manufacturers to optimize operations. PLM software has been rapidly changing, with increased integration of Artificial Intelligence (AI) and emerging Software-as-a-Service (SaaS) deployment models. To educate large manufacturers on the potential options available to them, ABI Research recently studied 11 PLM software suppliers. This resource samples that study, identifying the top three PLM solution providers that lead in our innovation and implementation criteria.
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Product Lifecycle Management (PLM) software is a critical technology for large manufacturers. It unifies various product information between the design and shipping processes to enable manufacturers to optimize operations. PLM software has been rapidly changing, with increased integration of Artificial Intelligence (AI) and emerging Software-as-a-Service (SaaS) deployment models.
To educate large manufacturers on the potential options available to them, ABI Research recently studied 11 PLM software suppliers. This resource samples that study, identifying the top three PLM solution providers that lead in our innovation and implementation criteria.
PLM Software Innovations Manufacturers Should Prioritize
ABI Research determined a PLM software supplier’s innovation capabilities by evaluating the following criteria:
Deployment Offerings: PLM deployment strategies vary widely, including traditional on-premises setups where data reside locally and updates are managed internally. More recent approaches involve hybrid (combining on-premises with cloud) and Software-as-a-Service (SaaS) models, enabling enhanced collaboration and real-time updates across teams. Achieving a favorable rating in this category requires offering comprehensive benefits for hybrid and SaaS deployments alongside traditional on-premises solutions.
Tailored Solutions: How well does the PLM system accommodate tailored architectures suited to specific manufacturing industries, whether discrete or process-oriented? This factor evaluates the adaptability of the Out-of-the-Box (OOTB) PLM solutions to address the unique requirements of large-scale manufacturers across different sectors.
Use of New Technologies: Novel technologies like generative AI and Virtual Reality (VR)/Augmented Reality (AR) to facilitate product development and data tracking.
Compliance Adherence: To what extent do PLM solutions assist companies in meeting industry regulations and sustainability targets? Higher scores are awarded to solutions that consistently update regulations and robustly track sustainability metrics.
External Software Integration: This criterion assesses the depth of integration between PLM solutions and other enterprise software applications. A broader partner ecosystem enhances the appeal of PLM software, allowing seamless integration with complementary tools like Manufacturing Execution Systems (MESs) and Enterprise Resource Planning (ERP) platforms, thus minimizing disruptions for manufacturers and facilitating data flow into the PLM system.
Top Three Innovators of Video Telematics Systems
Siemens, PTC, and Dassault Systèmes are the top three innovators in our most recent PLM software supplier competitive assessment.
#1: Siemens
Siemens secures the top spot as the leading innovator in this assessment. Offering PLM deployment flexibility across various models and tailored solutions for diverse manufacturing sectors, Teamcenter X establishes a robust digital thread, excelling in regulatory adherence and sustainability tracking. Siemens' pioneering use of cutting-edge technologies such as AI (Teamcenter Assistant) and AR/VR (Teamcenter Visualization) distinguishes it as the standout PLM software innovator in the field.
#2: PTC
PTC closely trails Siemens, coming in second for PLM software innovation, closely trailing Siemens. With comprehensive cloud-based solutions like Arena and Windchill, PTC demonstrates strong performance in compliance regulation and PLM deployment options. Indeed, PTC excels in providing tailored PLM solutions for highly regulated industries such as Aerospace and Defense (A&D) and medical devices. However, the company’s innovation score is slightly impacted by the lack of forward-looking AI options, an area where competitors like Siemens and Dassault excel.
#3: Dassault Systèmes
Dassault Systèmes clinches the third spot in PLM software innovation. ENOVIA on 3DEXPERIENCE provides manufacturers with a comprehensive digital thread by integrating in-house enterprise applications like CATIA, SIMULIA, and DELMIA, alongside partnerships with external providers. However, Dassault’s innovation score is affected by the absence of AR/VR functionality and preset-tailored solutions for industry-specific manufacturers.
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PLM Software Implementation Factors
This section informs manufacturers of the criteria that make a PLC software supplier a good technology implementer.
Tangible Impact: Analyzing real-world case studies to evaluate the tangible business outcomes resulting from adopting PLM software, including improvements in operational efficiency, error reduction, and acceleration of New Product Introductions (NPIs).
Industry Penetration: Assessing the breadth of industries served by the PLM solution, encompassing established users in discrete manufacturing, as well as emerging sectors like chemical and pharmaceutical manufacturing. High scores are given to solutions offering customizable dashboards and a growing client base among process manufacturers.
Software Scalability: Examining the flexibility of PLM solutions to accommodate manufacturers of varying sizes, allowing for both upward and downward scaling as business needs evolve. Solutions that offer adjustable user seats and the ability to activate or deactivate features as required receive favorable ratings.
User Experience: Considering the ease of use for both PLM providers and end users, including the effectiveness of setup assistance, installation guidance, and training materials. Additionally, assessing how quickly users can adapt to the platform's interface and its impact on overall work productivity.
Market Share: This criterion measures the current market share of PLM software in terms of revenue generated, reflecting the solution's overall adoption and acceptance within the industry.
Top Three Implementors of PLM Software
Our analysts place PTC, Siemens, and Dassault Systèmes as the top three implementers of PLC software.
#1: PTC
PTC takes the lead in implementation rankings, showcasing tangible benefits for manufacturers across diverse industries and offering scalable solutions with role-based user seats for flexible PLM usage. Strong emphasis on user experience, including comprehensive tutorial guides, contributes significantly to PTC's high PLM implementation score.
Large manufacturers have used PTC’s Windchill and Arena platforms to reduce New Product Introduction (NPI) cycle times by months, reduce costs, and improve product quality through optimized design choices. PTC’s 16.9% market share places the company in third place in the PLM software market.
#2: Siemens
Siemens closely follows PTC in second place, leveraging an extensive partner ecosystem and seamless integration of enterprise applications via the Xcelerator platform. The company’s Teamcenter platform accelerates NPI rollouts for large manufacturers via a SaaS deployment and the use of the cloud. These solutions have resulted in manufacturers achieving a 20% to 25% reduction in reworked designs, with Computer-Aided Design (CAD) files automatically synchronizing to all users. Siemens also comes out on top for overall PLM software market share, beating out Dassault by 2%. However, the absence of a cloud-native solution like PTC's Arena negatively impacts Siemens' implementation ranking.
#3: Dassault Systèmes
Dassault Systèmes secures third place in implementation rankings, providing a scalable PLM software solution with industry-specific configurations for process manufacturers. ENOVIA on 3DEXPERIENCE demonstrates robust industry penetration, particularly in the automotive and Aerospace and Defense (A&D) sectors, and extends services to process manufacturers in the chemical, pharmaceutical, and life sciences industries. Offering subscription-based purchasing and role-based seats allows for flexible scalability in PLM solutions. However, challenges in user experience present a drawback for implementation.
On the downside, challenges with user experience, particularly the steep learning curve associated with ENOVIA on 3DEXPERIENCE, affect Dassault’s overall PLM implementation score.
Get the Complete Ranking
Download ABI Research's PLM for Large Manufacturers competitive ranking to gain a comprehensive overview of the PLM software marketplace by analyzing these companies and eight others.
