Product-Data Software Market Set For Slow GrowthProduct-Data Software Market Set For Slow Growth

Spending on product-data-management software will remain slow this year but accelerate in 2005 and beyond, according to a new report from market-research firm Daratech.

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.