This IDC study provides a top-down sizing of the product life-cycle management (PLM) applications market in 2007 and a 2008-2012 forecast. Spending for PLM applications will increase as manufacturers in industrialized countries rely on automation software to improve their competitiveness through better management of innovation and globalized business partner networks. Another market driver will be manufacturing and services companies that are setting up operations in lower-wage countries.

Michael Fauscette, Group vice president of IDC's Software Business Solutions, explains: "IDC is confident that the PLM market will continue to grow at a solid pace as competition among global manufacturers and services providers drives the need for innovation, faster time to market, higher quality, and better cost and quality control. IDC believes that the small and medium-sized manufacturing businesses will increase demand for PLM. However, the current recession, which is expected to run until 2010, is likely to dampen the global momentum for PLM adoption."