Market Trends of India PLM Industry
This section covers the major market trends shaping the India PLM Market according to our research experts:
Research and Development Activities From SMBs to Develop Smart Products to Drive the Market
- In the recent past, the IT industry has emerged as a significant contributor to the industry revenue and employment opportunity provider in the country. Though software development services have initially driven the Indian IT industry, the trend is changing. The country is becoming an R&D hub of multinational IT companies. Several India-based multinational IT giants also have set up their R&D and innovation centers. The Government views R&D as essential for implementing new initiatives such as Digital India, Make in India, and Startup India and has launched new schemes in R&D such as IMPRINT, etc.
- According to IBEF, India has ~6.33 crore micro, small and medium enterprises. Registered SMBs grew 18.5% YoY to 25.13 lakh units in 2020, from 21.21 lakh units in 2019. As of 2020, registered SMBs were dominated by micro-enterprises at 22.06 lakh units, over 18.70 lakh in 2019, while small enterprise units went up from 2.41 lakh to 2.95 lakh. Midsized businesses marginally increased from 9,403 units to 10,981 units in the same period.
- SMBs and MSMEs currently employ >130 million people and contribute ~6.11% to India's manufacturing GDP, 24.63% of the GDP from service activities, and 33.4% of manufacturing output.
- A survey conducted in 2020 shows that around 37 percent of Indian enterprises had their digital infrastructure in the cloud. It was estimated that by 2022, more than 60 percent of the infrastructure would be in the cloud, which would be at the expense of third-party co-location and on-premise or captive availability.
- The Micro, Small, and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. It contributes significantly to the economic and social development of the country by fostering entrepreneurship and generating large employment opportunities at comparatively lower capital costs, next only to agriculture. MSMEs are complementary to large industries as ancillary units, and this sector contributes significantly to the inclusive industrial development of the country.
Understand The Key Trends Shaping This Market
Download PDF
South India to be the Prominent Region for the Market
- South Indian region includes states and union territories, including Tamil Nadu, Karnataka, Telangana, Kerala, Andhra Pradesh, Lakshadweep, and Puducherry, and is a prominent region for the PLM market owing to the robust and diversified manufacturing industry that spans almost all major end-user industries of the PLM market, including automotive and ancillary, engineering and industrial machinery, pharmaceuticals, IT, and ITeS, Aerospace and Defense, among others. The region also hosts several growing modern technology businesses, such as electric vehicle manufacturing.
- Tamil Nadu has a diversified manufacturing sector and features among the leaders in several industries like automobiles and auto components, engineering, pharmaceuticals, garments, textile products, leather products, chemicals, plastics, etc. It ranks first among the states in terms of the number of factories and industrial workers.
- Chennai-Sriperumbudur-Oragadam and Hosur in Tamil Nadu, Sri City in Andhra Pradesh, and Bengaluru-Bidadi in Karnataka are major automobile clusters in the country. Hyundai Motor, Yamaha Motors, Schwing Stetter, Daimler Commercial Vehicles, BMW, Renault Nissan, Bharat Benz, Eicher, Ford, Ashok Leyland, Isuzu, Royal Enfield, Komatsu, and TAFE have their manufacturing facilities in Tamil Nadu and Andhra Pradesh auto cluster. Similarly, Mahindra Reva Electric, Toyota Kirloskar, Continental, TVS Motors, Ashok Leyland, and other companies set up their production sites in Karnataka and Hosur (Tamil Nadu).
- Hyderabad-Medak in Telangana and Bengaluru in Karnataka is one of India's most significant pharmaceutical clusters. Hyderabad contributes nearly 40% of the total Indian bulk drug production and around 50% of the bulk drug exports. Genome Valley in Hyderabad is India's first planned and systematically developed cluster dedicated to life sciences. Moreover, Pharma City is being designed in Hyderabad. Furthermore, Karnataka houses more than 35 clinical research organizations and 12 Adverse Drug Reaction Reporting Centers. The state contributes around 12% of India's pharmaceutical exports and nearly 10% of India's pharmaceutical revenues.
