PLM market demand in China


(Ben / reported Reuters) China's domestic authority of the investigator manufacturing information portal (e-works), general manager of Dr. Huang Pei November 1-2 in Beijing organized by the "e-works 2006 International Summit of digital product innovation," said"State policy in the market and the double, driven by manufacturing companies increasingly focus on independent product development, thus promoting the products and PLM solutions for the growth in demand, and need strong."

According to well-known analyst firm Daratech PLM data released in 2005, the global PLM software and services market totaled 10.49 billion U.S. dollars, up 13% over 2004.Daratech expects the global PLM software and services market in 2006 will reach 11.45 billion U.S. dollars, will be increased by 14% compared to 2005.

e-works survey shows that Chinese PLM market in 2005 totaled 230 million U.S. dollars (18.65 billion yuan), accounting for 2% of the global PLM market, compound growth rate of 18.1%.The data, including software vendors, implementation and maintenance revenue, sales channels and agents, but does not include other service income.And North America and Western Europe, the Chinese PLM market is still in early stages of development, with huge development potential.

With the strengthening of intellectual property rights in China, more and more enterprises begin the work of genuine software tools.Genuine software on Autodesk, SolidWorks, CAXA other CAD vendors to bring greater growth.The popularity of three-dimensional CAD and CAE applications used in enterprise, but also an important factor in the growth of Chinese PLM.In contrast, the growth of the domestic market, relatively stable CAPP.



Figure: China Manufacturing 2005 PLM market segmentation

In the Chinese market, UGS, Dassault, Autodesk, PTC and other international companies are still maintained a good momentum of growth, and its growth rate significantly higher than the global growth rate; With the increased demand for domestic CAE, MSC and PERAare to achieve steady growth.Domestic PLM vendors performed well in 2005, of which Exeter, CAXA, Shenzhou software, Alexander Hua Tian is growing rapidly.PLM at home and abroad and deepen cooperation between manufacturers, to a certain extent, led to the development of domestic PLM vendor.Overall market share from the point of view, volatility is not large, the overall pattern and the same in 2004.e-works that, because of technical barriers of information technology itself, this pattern can not in a short time a fundamental change.

China's manufacturing PLM market is still dominated the market of foreign manufacturers, PLM vendors in 2005 the market share of foreign high as 74.7%, 78% in 2004 decreased slightly.PLM software in the tools market, foreign software absolute advantage, especially high-end market, three-dimensional CAD, CAE market, the domestic software market is basically blank.Management PLM software for rapid progress in domestic manufacturers, but still mainly concentrated in the middle and low-end market.

The next five years, with an upgrade from the global market competition, our key creative depth of the new national strategy to start businesses (especially private enterprises) increased emphasis on research and development, PLM technology into completion, China's manufacturing industry will continue to PLM marketmaintain high growth momentum will continue to maintain double-digit compound annual growth rate of growth, and exceed international growth, which, in 2006 China Manufacturing PLM market is expected to growth 19% market share by 2010, more than 4 billion yuan RMBin the global PLM market will reach 3%.