Market Overview

The product lifecycle management (PLM) market in Japan grew by 6.3% year over year based on shipment values, reaching 76.125 billion yen in fiscal year 2024.

Since PLM systems manage product information throughout the entire manufacturing process, from planning and design to manufacturing and maintenance, they have become the primary platform for distributing product data. This allows user manufacturers to leverage historical product and client information for product development, design, and manufacturing. Consequently, manufacturers can provide products to customers more efficiently and release value-added products to the market. Recent digital transformation initiatives have brought these benefits into the spotlight, prompting user manufacturers to deploy and utilize PLM. 

Additionally, the Corporate Goods Price Index (*1) has been rising since around 2021, boosting Japan’s nominal GDP (*2). As the manufacturing industry shows favorable performance, its capital and software investments are rising, demonstrating manufacturers' robust intentions to invest in PLM systems.
*1) Source: Corporate Goods Price Index (CGPI) by the Bank of Japan.
*2) Source: National Accounts of Japan (GDP Statistics), Cabinet Office.

PLM vendors have also contributed to these PLM deployments. They encouraged user manufacturers to invest in and operate PLM systems by emphasizing the importance of integrated data management and by sharing PLM case studies.

Noteworthy Topics

AI and Generative AI Implementations Expected to Further Boost Work Efficiency

Since PLM manages and utilizes data, it is highly compatible with generative AI, which excels at data analysis and summarization. The features of judging the shapes of 3D models and drawings as well as linking them to related documents have become highly accurate and efficient by relying on AI that specializes in these tasks.

As discussions on how to use generative AI in PLM have already progressed among vendors, AI is now being implemented as specific features. This has encouraged user companies to consider practical applications. As case studies of these generative AI features become more widespread and generate interest, the number of user companies and licenses is expected to grow. Based on user needs, generative AI features, such as information searching, are expected to improve. Consequently, the effects will first manifest in shorter and more efficient work hours, and then in increased data sharing.

Future Outlook

Calculated based on shipment values from PLM system manufacturers, the PLM market in Japan is projected to increase by 6.5% in FY2025, reaching 81.080 billion yen.

After experiencing FY2024, during which a transition from weaker yen to stronger yen occurred, Japanese manufacturing is expected to face economic uncertainty. Since the PLM market fluctuates based on manufacturers' performance and investment attitudes, a lack of investment enthusiasm due to increased U.S. tariffs could hinder expansion.

Meanwhile, digital transformation initiatives are expected to persist. These initiatives encourage companies to integrate product information for management and use, thereby increasing PLM deployment at user sites. Additionally, PLM systems are expected to increase in value and price through additional features powered by generative AI. Vendors remain supportive of deployment and maintenance. Therefore, the PLM market is forecast to grow.

Research Outline