This IDC study analyzes the performance of the core product life-cycle management (PLM) applications market in 2011 and provides forecasts for 2012–2016. Continuing on from 2010, the core PLM applications market's YoY growth rate in 2011 exceeded that of the Japan software market. In 2011, the Japan market continued to face slumping domestic demand and the high valuation of the yen. Strategic shifts to overseas markets by manufacturers ramped up. In addition to production bases, there was also acceleration in the migration of design/development and procurement sites, resulting to renewed recognition of the importance of core PLM applications. On the other hand, as supply chain vulnerability became an issue (due to the Great Eastern Japan Earthquake and other disasters such as the floods in Thailand), there was an increase in interest in consolidated PLM products and solutions that shorten product development time, optimize production processes, and optimize product releases wanted by customers.
"If enterprise resource planning (ERP) systems are mission-critical systems for enterprises that focus on cash flow, then PLM systems are mission-critical systems for manufacturing enterprises that focus on product flow. In order to promote product information sharing between product development, production, sales, marketing, and maintenance departments and restore competitiveness in the global market, enterprises in the Japan manufacturing industry need to strengthen coordination between PLM, ERP, and business analytics," says Tomoko Akagi, group manager, Software & Security, IDC Japan.