The global quality and lifecycle management software market was valued at $24.4 billion in 2022 and is expected to grow significantly, reaching $49.7 billion by 2032, representing a CAGR of 7.5% from 2023 to 2032. This market growth is driven by several key factors, including the adoption of technology by medium-sized businesses, the rise in connected devices and smart factories, and the increasing use of digital transformation technologies. However, challenges such as lack of interoperability, integration complexities, and inadequate quality control are inhibiting growth. Despite these barriers, the integration of Product Lifecycle Management (PLM) solutions with IoT platforms offers significant opportunities for market expansion.
Market Drivers and Opportunities
The adoption of quality lifecycle management software (QLM) systems in manufacturing has become essential for managing products and associated data through all stages of their lifecycle. This software primarily benefits design and engineering teams working with computer-aided design (CAD) data, providing a single source of truth for stakeholders and enabling early-stage feedback during product development. The growing demand for quality and compliance management solutions, especially in light of COVID-19, has further fueled market demand. Additionally, the increasing use of deep learning for predictive analysis to prevent future crises has added momentum to the market’s growth.
COVID-19 Impact
- The quality and lifecycle management software market experienced stable growth during the COVID-19 pandemic. There was a rise in demand for quality and compliance management systems as businesses adapted to new challenges.
- Investments in deep learning technologies became increasingly popular during the pandemic, as organizations sought to predict future business performance and take corrective actions early in case of potential crises.
Market Segmentation and Growth Outlook
By Solution
- The quality management segment led the market in 2022, accounting for nearly 20% of global market revenue. This segment is expected to maintain its dominance during the forecast period due to high demand for quality services.
- The lifecycle analytics management segment is projected to grow at the highest CAGR of 10.9% from 2023 to 2032. This growth is driven by the need to improve product quality, ensure traceability, manage component lifecycles, and foster collaboration across teams.
By Enterprise Size
- Large enterprises accounted for the largest market share in 2022, contributing to around 60% of global revenue. QLM software supports these organizations by managing vast amounts of data and resources, which is essential for building strong networks and brand identities.
- The SME segment is expected to experience the highest CAGR of 8.7% from 2023 to 2032. This growth is attributed to advancements in cloud-based technology, which caters to the needs of smaller organizations and helps reduce deployment costs.
By Industry Vertical
- The aerospace and defense industry held the largest share in 2022, contributing more than 25% of the global market revenue. QLM software helps this sector identify suspicious activities and prevent fraud.
- The retail and consumer goods segment is anticipated to experience the highest CAGR of 12.4% from 2023 to 2032, driven by increasing adoption of QLM software to manage product data and enhance supplier collaboration.
By Region
- North America dominated the market in 2022, accounting for nearly 40% of global market revenue, thanks to the region’s advanced technological infrastructure and high adoption of new technologies.
- The Asia-Pacific region is projected to grow at the fastest CAGR of 10.1% from 2023 to 2032. This growth is fueled by opportunities in automotive production and sales, particularly in countries like India, China, and ASEAN countries, as well as a growing automotive components sector.
The global quality and lifecycle management software market is poised for significant growth, driven by increased adoption across industries, technological advancements, and rising demand for robust product lifecycle management. As businesses continue to embrace digital transformation, solutions like PLM and IoT integration will be pivotal in shaping the future of quality and lifecycle management. Organizations in industries such as aerospace, defense, and retail can benefit greatly from adopting QLM software to improve efficiency, enhance compliance, and drive operational excellence.
