Research Methodology on Cloud Based PLM Market
Research Background
Product lifecycle management (PLM) is an information management process used to manage the entire production lifecycle of a product. Cloud based PLM provides an automated platform for organizations to manage the changes taking place in the product design, development, and production processes. For instance, it enables design teams to securely share mechanical design data, CAD data, schematics, product structure, and other 3D design data.
The global cloud-based product lifecycle management market is anticipated to register a healthy CAGR between 2023 and 2030. The United Nations also estimates that the global population reached 7.9 billion as of 2022, which is expected to further drive market growth, in terms of the increasing need for enhanced product life cycle management solutions in various industries.
Scope of the Study
The study aims to analyze the overall cloud based product life cycle management market and provide insights into various technological innovations, as well as the opportunities present therein. The research study will cover the market segmentation of the global cloud based product life cycle management market based on components, deployment type, organization size, end-user, and region.
Research Objective
The research objective is to understand the overall cloud based PLM market in terms of the trends and developments shaping the market globally. The research study also seeks to present a comprehensive insight into the various investments, and vendor’s strategic initiatives, such as mergers and acquisitions (M&A). Additionally, the study aims to provide key insights into the current and emerging dynamics of the global cloud based PLM market.
Research Methodology
The research methodology involves the collection and analysis of data from the primary and secondary sources on the cloud based PLM market. The secondary sources include directories and databases available online including but not limited to press releases, factsheets, and other published materials. Furthermore, primary data from recognized industry experts, customers, and others were gathered through focus groups and interviews.
A mix-based approach was used to analyze the primary and secondary data by comparing them. The bottom-up approach was used to build an understanding of the competitive landscape. Factor analysis was also used to examine the various factors linked to increasing investments in the market. This ground-up approach assists in providing a better overall view of the market.
In addition, data triangulation was used to validate, compare, and contrast the primary research results with the secondary research. The data-triangulation process helps to organize quantitative market data collected through secondary research and demonstrates consistency over multiple sources of qualitative information obtained through primary research.
Information Procurement Process
Information procurement was divided into two primary processes - primary and secondary research. The primary research was conducted through a series of interviews and questionnaires of key players and customers. The secondary research was conducted through Google Scholar, online databases, research papers, company websites, and other available resources.
Primary Research
The primary research was conducted with the help of focus groups, surveys, and group interviews. The primary participants for this research were key players in the market, customer-facing personnel in the industry, and other stakeholders.
Secondary Research
The secondary research included company databases, previous literature reviews, periodicals, press releases, databases, reports, and surveys. The secondary sources were used to get an overall understanding of the market size and scope, as well as the competitive landscape, and to analyze the historical data and existing market trends. The basis of secondary research was:
• Online & Offline Databases: Global Market Insights, Factiva, Moody’s, Reuters, LexisNexis, Bureau of Labor Statistics, Economic Research Institute, and other global databases
• Relevant Magazines and newspapers: New York Times, Business Insider, Los Angeles Times, Wall Street Journal, Bloomberg, and other relevant magazines and newspapers
• Company & Industry Websites: The Company and industry websites of the major market players were analyzed to analyse the products and strategies that they are currently offering
• Government/ regulatory websites: The U.S. Small Business Administration and other government websites were consulted for accessing the details of the trends and market dynamics.
• White Papers: Various sources of reliable industry white papers were looked up to understand the current market updates and trends
Data Triangulation
Data triangulation was carried out to ensure that the market size and forecasts for the total market were accurate and reliable. This process included analyzing data from various sources to arrive at a consolidated market size and forecasts for the total cloud based PLM market.
The data triangulation process is broadly divided into two parts – Demand Side and Supply Side. The demand side includes demand for cloud based PLM in different end-user industries and regions, while the supply side is composed of various technological advancements and product developments. The demand-side data was collected through surveys and focus group discussions with industry experts and customers. Following this, the supply-side data was gathered from interviews with technology vendors and manufacturers.
Factor Analysis
For a better understanding and comprehensive evaluation of the market trends and conditions, several factors governing the market dynamics were analysed for a detailed assessment. This process is broadly divided into five parts – market drivers, restraints, opportunities, PESTEL analysis, and Porter’s five analysis.
Market drivers involve the various factors that influence the growth of the market. The market drivers that make a significant contribution towards the growth of the market include:
• Increasing demand for cloud based PLM globally
• Increased efficiency due to cloud based PLM
• Growing demand for improved product quality
Market restraints include the various aspects that hinder the growth of the market. The primary market restraints that should be taken into consideration while evaluating the market are:
• High initial costs associated with cloud based PLM
• Difficulty in setting up due to complexities of cloud technologies
Market opportunities include the various aspects that may serve as a potential source of growth for the market. The primary factors to look out for while evaluating the market are:
• Adoption of cloud based PLM solutions in manufacturing industries
• Increasing demand for cloud based PLM in the automotive industry
PESTEL Analysis
PESTEL analysis is used to evaluate the macro environment factors that may impact the growth of the market. The key factors that should be taken into consideration while performing the PESTEL analysis are political, economic, social-cultural, environmental, legal, and technological.
Political: Political factors influencing the market that should be considered are the government regulations in the region, government subsidies, and the incentives available.
Economic: Economic factors include the region's economic growth and development, exchange rate fluctuations, inflation rate, and any other macroeconomic variables.
Social & Cultural: The social & cultural factors include the region’s population growth, trends and activities, consumer preferences, and other social & cultural aspects.
Environmental: The environmental factors include the region’s climate, natural resources, pollution, and any other environmental aspects that could affect the market.
Legal: The legal factors include the laws & regulations related to the industry, such as environmental protection laws, health & safety regulations, and other legal aspects.
Technological: The technological aspects include the technological advancements in the region, technological trends, and investments in technology.
Porter’s Five Force Analysis
Porter’s five forces analysis is a strategic analysis tool that helps to evaluate the strength of the different elements that impact the market. The five factors to consider are competitive rivalry, supplier power, buyer power, threat of new entrants, and threat of substitute products.
• Competitive Rivalry: This factor evaluates the level of competition in the market, and the barriers to entry.
• Supplier Power: This factor identifies the supplier’s power to increase or lower prices, and how this affects the competition in the market.
• Buyer Power: This factor analyzes the buyer's power to set prices and the buyer’s ability to switch suppliers.
• Threat of New Entrants: This factor evaluates the potential of new competitors entering the market and the barriers to entry.
• Threat of Substitute Products: This factor evaluates the alternatives or substitutes to the industry and the impact on the competitive environment.
Time-Series Analysis
Time-series analysis is an important tool used to identify and assess market trends and conditions over a specific period of time. This method helps to predict the future growth and outlook of the market. The historical data compiled from secondary sources was used to analyze the historical trends and conditions that influenced the current state of the market and to forecast the future rate of growth of the market for 2023 to 2030.
The time-series analysis is divided into three phases – pre-assessment, forecasting, and post-assessment. The pre-assessment phase involves analyzing the current market conditions and trends. The forecasting phase involves forecasting the future market conditions and trends. The post-assessment phase involves evaluating the accuracy of the forecast and assessing the underlying factors influencing the market during the forecast period 2023 to 2030.
