Church Management Software Market

Market Overview

The global church management software market size was valued at USD 245 million in 2022 and is projected to reach USD 393 million by 2031, registering a CAGR of 5.4% during the forecast period (2023-2031).

Church management software is specialized software developed to assist religious organizations, churches, and missions manage administrative, communication, and engagement duties more efficiently. Its features and functionality help churches streamline their day-to-day operations and increase their overall performance.

The global church management software market share is predicted to grow in the next years as more religious organizations see the advantages of implementing technology to improve their operations and better serve their communities. However, some traditional churches may hesitate to adopt technology, impeding the general use of church administration software.

Highlights

• Cloud services hold the major share in the market based on type.
• Mobile terminal owns the highest market share based on application.
• Large size topped the user size segment in the market.
• The monthly subscription is the most used pricing model.
• North America is the dominating region.

Market Dynamics

Market Drivers

Increasing Digital Transformation

A rapidly expanding church with many locations and a sizable congregation wishes to increase administrative efficiency and streamline communication with its members. They plan to use church administration software to centralize member data, automate event registration, and keep track of their finances. Smartphone adoption is a crucial factor fueling the growth of the church management software industry. The growing use of cell phones among church members and administrators has various advantages, including better access to and use of church administration software platforms.

According to the most recent Ericsson data, the number of mobile connections connected with smartphones has surpassed 6.7 billion, accounting for over 84 percent of all mobile phones worldwide today. In the United States, nearly 96% of adults between the ages of 18 and 29 and 92% of those between the ages of 30 and 49 own a smartphone. Given that most churchgoers own smartphones, deploying mobile-responsive church administration software becomes a strategic decision to better engage with the congregation while streamlining administrative work. As a result, leading to church management software growth.

Market Restraints

Resistant to Change

Some staff employees, particularly older volunteers accustomed to conventional ways, may resist adopting new technology. They may be hesitant to learn new software because they are concerned that it will complicate their present workflows or take more time and effort. According to a study published in the Journal of Information Systems and Technology Management, a reluctance to change is one of the most common impediments to successful software adoption in various businesses, including religious organizations. According to the study, employee resistance to change can be attributed to causes such as fear of the unknown, perceived loss of control, and ambiguity about the benefits of new technologies.

Market Opportunities

Increasing Adoption of Cloud-Based Solutions

Cloud-based church administration software solutions are becoming more popular as the cloud computing trend grows. Cloud-based software has various advantages, including simple access, real-time data updates, and low cost. Cloud solutions are gaining popularity among churches because they enable seamless cooperation among employees and members regardless of physical location. According to a Gartner survey, 80% of enterprises will transition away from on-premises data centers and toward colocation, hosting, and the cloud by 2025, which includes cloud-based church management software options. As churches sought remote collaboration tools, the COVID-19 pandemic boosted the use of cloud-based alternatives.

During the pandemic, 58% of churches boosted their usage of internet-giving platforms and church management software, according to a Lifeway Research survey. The growing popularity of cloud-based solutions presents a significant opportunity for church management software providers to provide scalable, cost-effective, and easily accessible solutions to religious organizations looking to streamline their operations and engage with congregations more effectively.

Regional Analysis

North America Dominates the Global Market

The global church management software market research is analyzed in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America holds a sizeable global market share and is expected to boost at a CAGR of 6.6% during the forecast period. North America will likely lead the market during the forecast period, owing to well-established players offering church management software in the United States and Canada. This will likely enhance the market in North America. The growing use of mobile technology in the United States has resulted in the development of church management smartphone apps, which enable members to stay connected with their religious community and access vital information while on the road. As religious organizations sought digital tools to allow virtual services, online donations, and remote member involvement, the COVID-19 pandemic boosted the adoption of church management software in North America. According to a ChurchTechToday survey, approximately 62% of churches in North America offer online giving options to their members, which is made feasible by church management software.

Europe is predicted to rise at a substantial CAGR of 7.1% throughout the forecast period. The church management software market in Europe is expected to increase due to the growing number of churches, which is expected to provide enormous potential prospects in the region for the church management software market. Church management software becomes crucial for attaining these goals as European churches seek more efficient ways to run their operations and engage with their members. Churches in Europe implemented church administration software, allowing them to consolidate member data, such as contact information, attendance records, and contributions, in a single secure database. This reduced their administrative responsibilities and gave church workers and leaders quick access to crucial information.

Asia-Pacific will hold a significant global market share shortly due to rising awareness of church management software among church associations and agencies. China is expected to make the greatest contribution to market development. The presence of developing countries such as India, China, Japan, and others has contributed to the market's expansion. Furthermore, Japan has emerged as a key player in the field. According to the report, the country is likely to grow significantly. The rapid development in the concerned field may be linked to the development of the regional market. During the forecast period, South Korea is expected to increase significantly. This is expected to drive the Asia Pacific church management software market.

LAMEA is growing steadily. As churches in the region look for cutting-edge solutions to manage their administrative responsibilities and improve member involvement, Latin America offers intriguing potential for developers of church management software. Despite the Middle East and Africa region's lower adoption rates for church management software, it still has unrealized potential. There may be chances for software suppliers to address the unique needs of churches in this region and encourage the use of church management software as technology develops and awareness rises.

Segmental Analysis

The global church management software market is segmented based on type, application, user size, pricing model, and region.

For better understanding, type is further segmented into Cloud, On-Premise.

Cloud services hold the major share of the market.

Cloud

Software that runs in the cloud is housed on distant servers and accessed online. Churches don't have to spend money on or manage their hardware or software infrastructure using this deployment option. Instead, customers can sign up for a cloud service and use web browsers or mobile apps to access the program. 

On-premises

On-premises software is set up and runs locally on the computers and servers owned by the church. Although this deployment strategy offers churches complete control over the software and data, it also necessitates managing the infrastructure and carrying out routine maintenance and updates. On-premises systems have some benefits, including:

The segment can be bifurcated by application into Desktop, Mobile terminals.

Mobile terminal owns the highest market share.

Mobile terminals

Applications for mobile terminals are created for usage with portable electronics like tablets and smartphones. These programs provide a more mobile and adaptable solution, allowing volunteers and church staff to manage various church events while on the go. Apps for mobile terminals frequently have a user-friendly interface and include necessary functionality like online donations, event administration, and attendance tracking.

Desktop

Software installed and used on desktop or laptop computers is a desktop application. This software provides comprehensive features and functionalities for handling numerous church-related chores and processes. From their office workstations, church workers and administrators may use the software to manage member data, measure attendance, plan events, manage donations, generate reports, and more.

The market can be sub-segmented based on user size into Small, Medium, and Large.

Large sizes have topped the market.

Large

Large churches typically have a sizable membership and several campuses or locations. They need reliable church administration software that can handle many data, give cutting-edge analytics, support intricate financial management, and provide extensive communication options for different ministries and organizations inside the church.

Medium

A moderate number of people belong to medium-sized churches with a more complicated administrative structure. They need software that can manage bigger member databases, organize events, have communication features, and do financial reporting. To meet their expanding needs, medium-sized churches must-have features like flexibility and scalability.

There are different pricing models available in the market. Those are monthly subscriptions, annual subscriptions, and one-time licenses.

The monthly subscription is the most used pricing model.

Monthly subscription

Churches pay a monthly membership fee to access and utilize the software under the monthly subscription model. This arrangement enables churches to use the software without incurring high upfront costs. It provides flexibility if they wish to switch to different software.

Annual subscription

Churches pay a recurrent cost, similar to the monthly subscription model, but annually. This arrangement frequently delivers cost savings over monthly subscriptions and is appropriate for churches that expect to use the program for an extended time. 

Recent Developments

• June 2023- The latest report in the landmark American Beliefs Study: Religious Preferences and Practices was issued by ACS Technologies, a pioneer in church administration software, market expertise, and data analysis. American Beliefs Study: Beliefs About God and Jesus in American Communities, the most recent study, is intended to help churches and community leaders to successfully respond to the ever-changing patterns of personal belief systems in the American landscape.
• June 2023- Aware3 introduced a new feature known as Engagement Insights. Customers are provided with actionable data and insights regarding how their members interact with their mobile app, website, text messages, and registration forms. Customers can measure their ministry's impact and optimize their outreach strategies using this function.
• November 2022- ACS Technologies® Expands Business Offering to Include Consulting for Capital Campaign Fundraising for Churches.