What was the growth rate of PTC's revenue in Q1 2022, by region (Europe and APAC)
 about 14%, consistent across both elements. This was in line with our plan and the mid-teens near-term growth expectation we set at the recent Investor Day.
While this level of growth remains accretive to company growth, we continue to expect an acceleration of growth into the 20s as we get into the back half of the year. The biggest driver of growth in Q1 was from expansions, especially in Europe and APAC. We believe market conditions in IoT are improving, and we like the way the pipeline for our new DPM offering is developing through both PTC and Rockwell channels. For AR, we continue to see a tremendous level of interest, but the market remains nascent.
Perhaps most importantly, the formation of the digital thread business unit at the start of FY '22 has driven important initiatives to increase our focus on cross-selling of IoT and AR into the core CAD and PLM customer base. FSG had a great Q1 with 6% ARR growth. The expansion deal we recently announced with the U.S. Air Force, both increases and extends this key relationship for up to five more years.
Contracts like this demonstrate the value that our customers are realizing from Servigistics and other FSG products such as retail PLM and ALM. You may remember, I noted at our Investor Day that having FSG grow in the mid-single digits rather than flat would be a helpful upside growth driver. So I'm pleased to see FSG post another strong quarter. Let me run through a couple of quick customer anecdotes to give you a sense for our digital thread customers and how they rely on us.
On Slide 7, MAN Energy Solutions is the world's top provider of large-bore engines in turbomachinery for the maritime and energy industries. The company manufactures complex parts in nearly every engine they make must meet unique customer requirements. Before implementing Creo, they relied on manual outdated processes that slowed design and production. With Creo, they've been able to transition from 2D to a full 3D model-based approach.
Creo's broad range of tool path automation capabilities enable them to save time in the programming of the tool pass used to machine the large complex engine parts, greatly increasing efficiency in transitioning from design to production. Turning to Slide 8. You may have noticed we announced a deal with -- we announced that the German company, Scheffler, has expanded its relationship with PTC, and I'd like to share a bit of the back story. Scheffler has been a longtime Creo customer and has successfully deployed Windchill within engineering.
But back in 2017, one of our PLM competitors announced a large PLM deal with Scheffler that appeared to cap PTC's expansion opportunity. But that system didn't ultimately stick as Scheffler has now decided to consolidate on PTC systems with Windchill being the backbone and is broadly deploying our solutions in their standard out-of-the-box fashion so that Scheffler can participate in the full power of our digital thread portfolio. I'm very excited about this collaboration and the further expansion that Scheffler is exploring with our IoT and AR offerings. On Slide 9, you'll see how IMA Group, our global business that delivers packaging machines, services, and solutions to a wide variety of industries, was looking for a way to expand their control room offering to help their customers improve overall equipment effectiveness and reduce downtime.
As longtime users of PTC's Creo and Windchill, IMA decided that ThingWorx was the ideal IoT solution for their initiative and that Kepware could provide connectivity not only to their machines, but to the other vendors' machines deployed alongside them. IMA has successfully launched new revenue streams by enabling 24/7 monitoring of customer production lines and improved OEE by up to 16%. The Vuforia integrated with ThingWorx is the platform of choice for the U.S. Air Force training initiatives.
Slide 10 highlights the work that PTC partner, Vectrona has done with the U.S. Air Force. With finite training resources and limited capacity, the U.S. Air Force set out to incorporate augmented
 about 14%, consistent across both elements. This was in line with our plan and the mid-teens near-term growth expectation we set at the recent Investor Day.
While this level of growth remains accretive to company growth, we continue to expect an acceleration of growth into the 20s as we get into the back half of the year. The biggest driver of growth in Q1 was from expansions, especially in Europe and APAC. We believe market conditions in IoT are improving, and we like the way the pipeline for our new DPM offering is developing through both PTC and Rockwell channels. For AR, we continue to see a tremendous level of interest, but the market remains nascent.
Perhaps most importantly, the formation of the digital thread business unit at the start of FY '22 has driven important initiatives to increase our focus on cross-selling of IoT and AR into the core CAD and PLM customer base. FSG had a great Q1 with 6% ARR growth. The expansion deal we recently announced with the U.S. Air Force, both increases and extends this key relationship for up to five more years.
Contracts like this demonstrate the value that our customers are realizing from Servigistics and other FSG products such as retail PLM and ALM. You may remember, I noted at our Investor Day that having FSG grow in the mid-single digits rather than flat would be a helpful upside growth driver. So I'm pleased to see FSG post another strong quarter. Let me run through a couple of quick customer anecdotes to give you a sense for our digital thread customers and how they rely on us.
On Slide 7, MAN Energy Solutions is the world's top provider of large-bore engines in turbomachinery for the maritime and energy industries. The company manufactures complex parts in nearly every engine they make must meet unique customer requirements. Before implementing Creo, they relied on manual outdated processes that slowed design and production. With Creo, they've been able to transition from 2D to a full 3D model-based approach.
 Creo's broad range of tool path automation capabilities enable them to save time in the programming of the tool pass used to machine the large complex engine parts, greatly increasing efficiency in transitioning from design to production. Turning to Slide 8. You may have noticed we announced a deal with -- we announced that the German company, Scheffler, has expanded its relationship with PTC, and I'd like to share a bit of the back story. Scheffler has been a longtime Creo customer and has successfully deployed Windchill within engineering.
But back in 2017, one of our PLM competitors announced a large PLM deal with Scheffler that appeared to cap PTC's expansion opportunity. But that system didn't ultimately stick as Scheffler has now decided to consolidate on PTC systems with Windchill being the backbone and is broadly deploying our solutions in their standard out-of-the-box fashion so that Scheffler can participate in the full power of our digital thread portfolio. I'm very excited about this collaboration and the further expansion that Scheffler is exploring with our IoT and AR offerings. On Slide 9, you'll see how IMA Group, our global business that delivers packaging machines, services, and solutions to a wide variety of industries, was looking for a way to expand their control room offering to help their customers improve overall equipment effectiveness and reduce downtime.
As longtime users of PTC's Creo and Windchill, IMA decided that ThingWorx was the ideal IoT solution for their initiative and that Kepware could provide connectivity not only to their machines, but to the other vendors' machines deployed alongside them. IMA has successfully launched new revenue streams by enabling 24/7 monitoring of customer production lines and improved OEE by up to 16%. The Vuforia integrated with ThingWorx is the platform of choice for the U.S. Air Force training initiatives.
Slide 10 highlights the work that PTC partner, Vectrona has done with the U.S. Air Force. With finite training resources and limited capacity, the U.S. Air Force set out to incorporate augmented