BOM: Key market research findings
- Growing demand for enhanced communication drives market growth
- North America dominates the market geographically
- Key vendors – Autodesk, Arena Solutions, Aras, Dassault Systèmes, PTC, and Siemens
Technavio’s market research analysts predict the global BOM market to grow at a CAGR of over 8% between 2016 and 2020. The growth in the market is driven primarily by the demand for enhancing communication among business units. The adoption of collaborative product data management (cPDM) and BOM solutions helps to establish effective communication among business units by enabling data creation, sharing, integration, storing, retrieval, and management across the divisions despite their location. North America dominated the global bill of materials (BOM) market in 2015 by accounting for almost 38% of the overall market share, with the US accounting for a majority of the market’s revenue. The increase in demand for aerospace and defense products is expected to fuel growth in the BOM market in North America during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the BOM segments based on the end user.
“The incorporation of product lifecycle management (PLM) software into enterprise and manufacturing execution system (MES) software is an ongoing trend in the market. This integration enables better transparency across business units and helps save time. As a result, this trend is being increasingly adopted by several companies in the market,” says Amrita Choudhury, Lead Analyst, ICT, Technavio Research.
During 2015, the automotive segment accounted for more than 24% of the total market revenue. BOM solutions help the automotive manufacturers by providing various features such as cost breakdown analysis, customizable BOM, order tracking, risk assessment, and cost conversion. The shift from older manufacturing processes that use legacy BOM applications to completely integrated enterprise-level BOM provides better traceability and communication between various partners and external suppliers in different regions.
The key vendors in the market include Autodesk, Arena Solutions, Aras, Dassault Systèmes, PTC, and Siemens. The market appears fragmented and is characterized by the presence of several small, medium-sized and large vendors. Small vendors find it difficult to approach bigger companies who normally prefer large vendors while adopting bigger PLM (product lifecycle management) solutions. The high growth potential of this market is likely to invite more vendors to the material management software market space, which will, in turn, intensify the level of vendor competition during the forecast period.
A more detailed analysis is available in the Technavio report, Global BOM Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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