Pharma PLM Market
Number of pages: 100 | Report Format: PDF | Published date: May 26, 2023
Historical Years – 2021 | Base Year – 2022 | Forecasted Years – 2023-2031
|
Report Attribute |
Details |
|
CAGR |
6.8% |
|
Base Year for Estimation |
2022 |
|
Forecast Period |
2023 to 2031 |
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Historical Year |
2021 |
|
Segments Covered |
Type, Deployment, and Region |
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Regional Scope |
North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa |
According to the deep-dive market assessment study by Growth Plus Reports, the global pharma PLM market is expected to register a revenue CAGR of 6.8% during the forecast period of 2023 to 2031.
Pharma PLM Market Fundamentals
Pharma PLM stands for pharmaceutical product lifecycle management. It refers to the processes and technologies used in the pharmaceutical industry to manage the entire lifecycle of a pharmaceutical product, from its initial development to its eventual discontinuation. Pharma PLM encompasses various aspects, including product development, regulatory compliance, quality control, manufacturing, supply chain management, and post-market surveillance. The goal is to ensure that pharmaceutical products meet the necessary regulatory requirements, are of high quality, and are delivered to the market efficiently and safely.
Pharma PLM Market Dynamics
The pharmaceutical industry is subject to strict regulatory requirements and compliance standards. PLM solutions help companies streamline their processes, manage regulatory documentation, and ensure compliance with various regulations, such as Good Manufacturing Practices (GMP) and Good Clinical Practices (GCP). The pharma industry is highly competitive, and companies are continuously striving to improve operational efficiency and reduce time-to-market for new drugs. PLM solutions provide robust tools for managing product data, collaborations, and workflows, enabling efficient cross-functional collaboration and faster product development cycles. The development of new drugs has become more complex and involves extensive research, clinical trials, and data management. Pharma PLM solutions help in organizing and integrating large volumes of data, facilitating better decision-making, and ensuring data integrity throughout the product lifecycle. The shift towards personalized medicine requires pharmaceutical companies to develop drugs that target specific patient populations or genetic profiles. PLM systems play a crucial role in managing personalized medicine data, including genomic information, patient records, and treatment plans, to enable targeted drug development and patient-centric care. Emerging digital technologies such as artificial intelligence (AI), machine learning (ML), big data analytics, and the Internet of Things (IoT) are transforming the pharma industry. PLM solutions are incorporating these technologies to enable predictive analytics, real-time monitoring, and data-driven decision-making, leading to improved drug discovery, clinical trials, and supply chain management. The adoption of cloud computing in the pharma industry is rising due to its scalability, flexibility, and cost-effectiveness. Cloud-based PLM solutions offer secure and centralized data management, enhanced collaboration capabilities, and easy accessibility, facilitating global collaboration and accelerating product development. With growing environmental concerns and sustainability goals, pharmaceutical companies emphasize the entire product lifecycle, including sustainable sourcing, manufacturing, packaging, and disposal. PLM solutions are being utilized to manage sustainability-related data, track environmental impact, and optimize resource utilization throughout the product lifecycle. The pharma industry is increasingly engaging in collaborative partnerships and outsourcing activities to leverage external expertise, reduce costs, and accelerate innovation. PLM solutions support seamless collaboration with external partners, contract manufacturers, and suppliers, ensuring efficient data exchange, secure information sharing, and streamlined supply chain management.
The pharma industry deals with sensitive and confidential data, including intellectual property, clinical trial results, and patient information. Ensuring data security, privacy, and compliance with regulatory requirements such as the General Data Protection Regulation (GDPR) can be challenging. The potential risks of data breaches and unauthorized access pose significant concerns and may hinder the adoption of PLM solutions. Pharma companies often have a complex IT infrastructure with multiple systems and databases. Integrating PLM solutions with existing enterprise resource planning (ERP), laboratory information management systems (LIMS), and other applications can be complex and time-consuming. Lack of interoperability between systems and data silos can limit the effectiveness of PLM implementation. Implementing PLM solutions requires organizational change and a shift in processes and workflows. Resistance to change, both at the individual and organizational level, can impede the adoption of PLM systems. Employees may be hesitant to learn new tools and processes, leading to slower implementation and limited user acceptance. Implementing a comprehensive PLM system, including software licenses, customization, and integration, can involve significant upfront costs.
Additionally, ongoing maintenance, upgrades, and support expenses can add to the overall cost of ownership. For smaller pharmaceutical companies or those with limited budgets, the cost factor may restrain adopting PLM solutions. The pharmaceutical industry is subject to stringent regulations and compliance requirements, varying across different regions and countries. Adapting PLM systems to comply with diverse regulatory frameworks can be challenging. Pharma companies must ensure that their PLM solutions can manage compliance and regulatory documentation effectively. Despite the benefits that PLM solutions offer, some pharmaceutical companies may have limited awareness and understanding of the capabilities and potential advantages of these systems. Lack of education and awareness about PLM can lead to underinvestment or misaligned expectations, slowing down market growth. The pharmaceutical industry collaborates with contract manufacturers, research organizations, and other external partners. Ensuring interoperability and seamless data exchange between different systems and partners can be challenging. Establishing secure and standardized interfaces to enable efficient collaboration is essential but can be complex to implement.
Pharma PLM Market Ecosystem
The global pharma PLM market has been analyzed from three perspectives: type, deployment, and region.
Pharma PLM Market by Type
Based on type, the global pharma PLM market is segmented into portfolio management, design & engineering management, quality & compliance management, simulation & testing management, manufacturing operations management, and others.
Product life cycle management accounts for a significant revenue share in the global market. Product life cycle management software enables a corporation to handle information efficiently and cost-effectively throughout the lifespan of a product. It comprises processes such as product design, manufacturing, and disposal across various applications such as retail, IT & telecom, and automotive. Furthermore, the foundation of product lifecycle management is the pursuit of lean and collaborative product development methodologies such as business strategy, work process, and collection of software applications. As a result of continuous industrial digitalization, the spread of connected value chains, and the adoption of Industry 4.0, manufacturing units increasingly rely on product lifecycle management software to manage the designing, developing, and engineering processes.
Over the projected period, the simulation, testing, and change management segment is predicted to grow substantially. Organizations may utilize simulation and test management systems to improve product performance and drive and expand simulation adoption across the product lifecycle. The growing need to control and standardize processes, reduce implementation costs, and boost traceability and industrial automation are driving demand for simulation and testing management systems.
Pharma PLM Market by Deployment
Based on the deployment, the global pharma PLM market can be further segmented into cloud-based and on-premise.
On-premises segment accounts for a significant amount of revenue share of more than 58%. On-premises solutions assist organizations in gaining a thorough understanding of market trends, challenges, and developments, as well as in making effective and efficient marketing and manufacturing decisions through the integration of advanced technologies such as the Internet of Things (IoT) and big data. These technologies also enable businesses to lessen their reliance on internet infrastructure while protecting their data from online fraud and possible losses. Such advantages are expected to drive organizations, particularly big organizations, to choose on-premises implementation.
Cloud-based deployment has emerged as the advanced method for deploying PLM and is projected to show a noticeable growth during the projection period. Cloud-based product lifecycle management solutions assist businesses in eliminating significant deployment, upgrade, and customization difficulties. Scalability, flexibility, security, and data control are some of the primary aspects likely to drive the adoption of cloud-based deployment of product life cycle management software.
Pharma PLM Market by Region
Based on the region, the global pharma PLM market can be further segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
North America dominates the global market with the largest revenue share of more than 37%. The market growth in this region can be attributed to the presence of many pharmaceutical companies and market players. Additionally, the large adoption of advanced technology and the presence of well-developed healthcare infrastructure drive the growth of the global market. Moreover, organizations may utilize simulation and test management systems to improve product performance and drive and expand simulation adoption across the product lifecycle. The growing need to control and standardize processes, reduce implementation costs, and boost traceability and industrial automation are driving demand for simulation and testing management systems.
Competitive Landscape
The prominent players operating in the global pharma PLM market are:
Pharma PLM is a systematic approach to manage the entire lifecycle of a product, from its inception and design to its manufacturing, distribution, and eventual disposal or retirement.
Oracle Corporation, PTC Inc., Essig PLM, and Selerant Corporation are the some of the major market players in the global pharma PLM market.
Problems related to cyber security and lack of awareness is challenging a factor for smaller companies to enter the market and compete with larger players.
On-premise segment dominated the global pharma PLM market by deployment
Advancements in digital technologies and focus on lifecycle management and sustainability are driving factors of global pharma PLM market growth.
*Insights on financial performance are subject to the availability of information in the public domain