Project portfolio management (PPM) depends on various tools and solutions to manage project-related tasks and analyze associated returns. It provides real-time project updates and effectively manages the organization's workload. It also closely monitors and assesses changes, eliminates inefficiency, and maximizes returns.
PPM also facilitates monitoring business priorities, improves decision-making, and increases accountability. It aids in forecasting risks and returns to maintain the portfolio's equilibrium and focus on productivity growth. It also facilitates the alignment of an organization's portfolio with its business strategy, objectives, and goals.
The rising demand for digital transformation initiatives is anticipated to fuel the growth of the PPM market. In order to improve their operational efficiency, customer experience, and competitive edge, organizations are increasingly recognizing the imperative of digital transformation, which has become indispensable for enterprises in every industry. The effective management and execution of digital transformation projects is dependent on PPM.
PPM solutions enable organizations to evaluate digital transformation projects' potential impact, risks, and benefits and allocate resources to the most important initiatives. PPM solutions help organizations maximize resource allocation by identifying gaps, managing capacity, and aligning resources with high-impact projects. This improves the success of efforts to implement digital transformation by ensuring efficient resource utilization and supporting crucial projects. Thus, the rising demand for digital transformation among businesses is anticipated to stimulate market expansion.
The portfolio management solutions market is transitioning as users pressure established market participants to provide dynamic business operations. End-users can install optional content add-ins and configure integrations in PPM solutions to extend the product's functionality. For example, the PPM platform Clarity provides various integration options for working with data from multiple sources. Users can integrate the appropriate add-ins and modules based on business needs.
Furthermore, in February 2021, Pinnacle Management Systems, Inc., a program and project management consulting and training services provider, and Deltek, an enterprise software and information solutions provider, announced their strategic solutions partnership. Pinnacle provides integration, training, implementation, and support for the entire Deltek Project and Portfolio Management (PPM) suite of products. This partner program will allow Pinnacle to significantly strengthen its relationship with Deltek and enhance the value it provides to customers who use Deltek solutions. Such partnerships between market leaders generate opportunities for market expansion.
North America is the most significant global project portfolio management market shareholder and is anticipated to exhibit a CAGR of 3.51% during the forecast period. North America is anticipated to have a sizeable revenue share compared to other regional markets. Due to the region's financial standing, substantial investments in cutting-edge technology and resources for efficient project execution are possible. Numerous companies working on project portfolio management tools have contributed to North America's highly developed market. The most effective use of techniques and tools for bulk data integration is to identify data synchronization patterns among crucial end users, such as BFSI or government initiatives. Moreover, the increasing IT budgets in this region are also one of the most important market growth drivers. According to the research, the number of businesses anticipating budget increases will skyrocket in 2022, and budget growth expectations are significantly greater than in previous years. 53% of all businesses are located in North America.
Europe is estimated to exhibit a CAGR of 4.3% over the forecast period. In Europe, the demand for project portfolio management is rising due to the expanding use of projects to organize work in numerous organizations, necessitating the effective management of multiple projects. Therefore, many industries, including manufacturing, IT, telecom, and healthcare, have shown increased interest in project portfolio management tools that automate and facilitate the process. Europe's expanding healthcare infrastructure, e-hospitals, and e-ordering all contributed to an exponential rise in the demand for PPM tools. The healthcare IT sector in Europe experienced substantial growth due to recent technological advancements.
In addition, the rise in digitalization is regarded as a crucial factor for market expansion. Due to the global prevalence of chronic diseases, the adoption of healthcare IT systems to improve chronic disease management (CDM) has increased in recent years. Continuous improvements to network infrastructure and expanding network coverage generate additional growth opportunities for industry participants.
The key global project portfolio management market players are Oracle Corporation, ServiceNow Inc., Atlassian Corporation PLC, Microsoft Corporation, Asana Inc., SAP SE, Monday.com, Planview Inc. (Changepoint), Workday Inc., Smartsheet Inc., Upland Software Inc., and others.