Total product-data-management software sales are expected to grow about 1% this year, from a base of about $1.7 billion. But the report says sales will grow at a compound annual rate of 12% to $2.7 billion by 2008.
Product-data-management software is used to manage design and manufacturing information about a company's products--everything from consumer goods to semiconductors to automobiles and aircraft. It's considered a key component of product-life-cycle management. Vendors include SAP, Dassault Systemes, and PTC, plus a number of smaller companies.
But businesses are cautious about starting projects this year, according to Daratech, because the software takes a long time to install and train staff on, and can provide slow returns on those investments.