The market sector CIMdata calls “Mainstream PLM” had revenue of $14.03 billion in 2009, down from $15.96 in 2008. The size of the decline took the research and analysis firm by surprise.
PLM research firm CIMdata says the “Mainstream PLM” market was down 12% in 2009.
CIMdata defines Mainstream PLM as the market sectors that have been traditionally been most closely associated with PLM, including:
- Mechanical Computer-Aided Design (MCAD), both Multi-Discipline and Design-Focused
- Digital Manufacturing
- Simulation and Analysis
- Non-Bundled Numerical Control (NC)
- Comprehensive collaborative Product Definition management (cPDm)
- cPDm Systems Integrators, VARs, and Resellers
Based on CIMdata estimates in 2009, Mainstream PLM experienced a decline of approximately 12% from $15.96 billion in 2008, to $14.03 billion in 2009. This decline was larger than originally forecasted by the company.
CIMdata attributed part of the decline to changes in currency exchange rates—primarily the Euro versus the US Dollar. For calendar year 2009, the average
exchange rate for the Euro versus the US Dollar declined approximately 5%.
CIMdata says its estimates are based on a combination of primary and secondary data collection, long-time relationships with market participants, and market modeling based on many years of market knowledge and experience.
According to the report, companies restricted investments in PLM in the first half of 2009, primarily impacting new license sales. CIMdata estimates that
new license sales declined over 18%, maintenance revenues remained flat and services revenues declined approximately 10%. During the second half of 2009, companies began to release funding for PLM programs and sales and revenues started to increase.
CIMdata expects that PLM investments will return to growth during 2010. Investments in all sectors experienced declines in 2009, the company says. Comprehensive cPDm dropped to $2.7 billion, a 10.9% decrease. Investments with cPDm Systems Integrators/VARs/Resellers decreased 10.6% to $3.87 billion. Digital Manufacturing investments declined 12.7% to $445 million. Multi-Discipline MCAD dropped 12.4% to $2.57 billion, while investments in Design-Focused MCAD declined 20% to $1.83 billion. The Simulation and Analysis sector of the Mainstream PLM market experienced a more modest decline of 6.4% to reach $2.13 billion in 2009 while Non-Bundled NC had a 19.1% decline to $475 million.
The distribution of these investments as components of the full Mainstream PLM market is illustrated in the accompanying chart. §