PLM Market Outperforms NASDAQ

17 November 2004

The product lifecycle management (PLM) market has outperformed NASDAQ over the last year, according to market research and technology assessment firm Daratech, Inc. The market capitalization of five publicly traded PLM companies—Autodesk, Dassault Systemes, PTC, RAND and Tecnomatix—demonstrates that investors value companies that deliver quantifiable benefits to their customers.

Why is this significant? It shows that companies in the product lifecycle management market are, on a whole, performing well due to increased interest from the manufacturing sector, and investors are paying attention.

While only a sample of the publicly traded PLM companies, this view is nonetheless representative of the high-flying, the steady, and the underperforming. When establishing this view in 2001, these five companies were projected to lead in their respective areas: RAND was the fastest growing value-added reseller serving the PLM market while Autodesk, Dassault Systemes, PTC and Tecnomatix supplied mission-critical solutions (often through RAND) to their customers. Even though a lot has happened to these companies in the four years since establishing this index, Daratech's "PLM 5" turned out to be surprisingly representative of the changes the industry as a whole has gone through during the period. [See Daratech's upcoming December Industry Update for further analysis—Ed]

Daratech projects end-user spending on PLM will top $8.65 billion in 2004, up 5% over last year, and is expected to grow approximately 8% annually through 2008. Segments within PLM are anticipated to grow much more quickly in 2004, with Digital Product Simulation growth to top 12% and Digital Manufacturing Process Management to also top 10% annual growth.

NASDAQ is the largest U.S. electronic stock market with approximately 3,300 companies traded, across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. The NASDAQ index represented above covers the price movements of all stocks traded on the Nasdaq Stock Market.

About Daratech

Daratech, Inc. is a leading provider of information technology market research and technology assessment, advisory and strategic consulting services, and executive-level conferences for manufacturing, engineering, construction and plant operations. Established in 1979, Daratech specializes in PLM, CAD/CAM, digital product simulation (CAE), PDM/EDM, AECO PLM (architecture, engineering, construction, operations, plant lifecycle management), document/enterprise content management, GIS and related areas.

http://www.daratech.com