The global project management software market size was valued at USD 6 billion in 2021. It is expected to reach USD 15.06 billion by 2030, growing at a CAGR of 10.77% during the forecast period (2022–2030). Project management software is used for planning, scheduling, allocating resources, and managing change. It may be used as a management system that gives project managers, stakeholders, and users control over expenses, budgeting, quality control, and documentation. More than 30% of revenues in the entire business process management industry presently come from the project management software sector.
Using a set of integrated tools like task management, budget management, collaboration tools, and document management that is entirely customizable based on enterprise business needs, project management software consists of functions like planning, collaborating, monitoring, and delivering a project. The market is anticipated to grow significantly in the upcoming years as businesses use automated project management software to carry out fundamental project management duties and functions automatically.
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Increased Sophistication and Awareness Among End-users
Project managers have always employed project management software solutions, but things are different now. Businesses worldwide are adopting the concept and educating every employee in their organization to manage projects in a better way. Due to the growing sophistication of these technologies, project management techniques are now available that are incredibly adaptable to any department and may assist make completing work much more manageable and straightforward.
Additionally, there has been a rise in end-user awareness due to the comprehensive capabilities of today's automated information systems, which can deliver the most accurate and timely critical information necessary to the decision-makers in the enterprise to overcome the difficulties involved and support the achievement of organizational goals.
Capability to Incorporate and Interconnect Disparate Systems
Another significant element that is anticipated to impact market expansion is the capacity of centralized project management systems to connect and integrate numerous dissimilar systems. The leading cause of many businesses' problems managing their projects and associated information is a lack of centralization. In the middle of juggling people, tasks, and goals, centralized management solutions let users discover the information they need in a single location and guarantee the success of every project for project managers. This has been the primary justification for getting most end-user industry companies to switch to centralized project management systems, leading to increased demand over the past few years.
Other advantages, including operational effectiveness and data security, have motivated businesses to transition from their conventional dispersed information systems to an integrated data management platform. These technologies also enable qualified employees of the company to update data that is essential to the company. These factors have fueled the demand for project management software solutions and centralized data management technologies.
Huge Preliminary Investment
Slow market penetration results from these systems' high installation and maintenance costs, which deter businesses from investing in project management software systems. Robust, reliable, and effective software is linked to more extraordinary project management software system expenses. Due to the increased security, these systems are also quite expensive. The pressure is on the end-user of those systems, which must pay maintenance costs for the software lifetime due to the need for periodic upgrades to address safety concerns.
Project management software adoption demands a robust, mutually beneficial synergy between end users, technology suppliers, and innovators. Unfortunately, these costly, intricate solutions require expert setup, coding, and software upkeep. Adopting these systems in diverse end-user sectors is further complicated by the interoperability expenses, which are an additional hurdle. Software systems must be tailored to address the requirement for ongoing updates, which typically results in higher installation costs.
The global project management software market is segmented by deployment, end-user, and region.
Based on deployment, the global project management software market is bifurcated into Cloud and On-premise.
The On-premise segment commands the largest market share and is expected to grow at a CAGR of 7.84% during the forecast period. Small and medium-sized businesses frequently choose on-premise project management software implementation, for their activities are carried out locally, in-network, or both. It's expected that on-premise implementation would continue to be favored, especially among smaller businesses in traditional sectors. But an organization's ability to share and access centralized data with distant workers and partners is constrained by the on-premise implementation.
Implementation costs have increased significantly due to their necessity for large, costly server arrays and enough physical storage. This has dramatically hampered small and medium-sized businesses' adoption of these technologies. The on-premise solutions are more flexible and configurable than cloud-based systems and are stuffed with features. The user interface and experience, however, can be old-fashioned. Compared to cloud-based systems, fewer breaches have been documented for on-premises systems.
Due to the increased acceptance of cloud-based software and solutions across sectors, Cloud deployment is seeing the fastest growth rate throughout the anticipated period. Due to the cost-efficiency of the implementation, large enterprises and a select few small and medium-sized businesses (SMEs) exhibit the highest adoption rates. The cloud deployment option enables simple operability among several sites without worrying about installing software or maintaining supporting hardware. Several big, small, and medium-sized businesses are moving to Google cloud. Such patterns and occurrences are anticipated to increase demand across sectors for cloud-based project management software.
Based on end-user, the global project management software market is classified into Oil & Gas, IT & Telecom, Healthcare, Government, and Others.
The Others segment holds the largest market share and is expected to grow at a CAGR of 10.46% during the forecast period. Manufacturing, BFSI, and the construction sector are the other end-users. There is pressure on some construction businesses to maintain solid profits and timely project delivery in the face of escalating competition, a severe lack of skilled labor, and low productivity. IFS is advancing efforts to assist construction organizations in effectively managing projects through data-driven, integrated processes, and systems by becoming one of the first full-suite ERP suppliers to be listed on the Procore Marketplace. The adoption of agile methods by these firms is the primary driver of the digital transformation of banking. Agile is still a relatively new concept in the banking industry.
The skill and superior understanding of project management are required for managing projects in the IT & Telecom sector. While wave rolling the planned projects, assessing new constraints and needs, and reducing time and costs, project managers must monitor and oversee job execution. Many new operators and mobile virtual network providers have begun competing with established operators in the past ten years. Competition between established and new operators pushes objective and business plan adjustments, driving the need to find competitive advantages while accelerating time to market. For this reason, all telecom operators must adopt new technology, enable new services and products, and move toward next-generation networks and data centers. Due to the growth in business size and the cost advantages SaaS-based solutions provide, large IT organizations are likely to significantly contribute to the SaaS-based models.
Compared to other industries, the Healthcare sector is subject to stricter restrictions, such as the HIPPA patient privacy rules. Sensitive information must now be protected more than ever, and institutions have responded by introducing additional authorization levels. Hospital, local, and national governments frequently need to approve projects, making them more complicated and need project management. In addition to physicians and nurses, the healthcare facility comprises several departments, including those for medical, administration, payroll, and pharmacy.
North America is Predominant Over Others
Region-wise, the global project management software market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
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North America holds the largest market share and is anticipated to grow at a CAGR of 11.02% during the forecast period. The principal reason for this is the rising trend in business use of project management software. It is anticipated that the region's adoption of PMS would be stimulated by the growing need among enterprises to track and manage their projects effectively. Throughout the projection period, it is predicted that the market will continue to be driven by the deployment of PMS solutions for task management for the efficient completion of tasks and flexible work planning. The market expansion is also driven by enterprises' growing emphasis on encouraging employee cooperation and enhancing team productivity.
Europe holds the second-largest market share and is estimated to account for USD 4.16 million by 2030, growing at a CAGR of 11.21%. The automotive sector is among the most well-known sectors in the European continent, among many others. With the help of digital transformation tools and intelligent factories, businesses can offer customers more personalization and choice without slowing down their time to market or profitability. Several sectors in the European region are utilizing cloud services to increase productivity and save expenses. With the introduction of 5G technology, the area is spending more money to upgrade and put in place cutting-edge telecom infrastructure.
Due to rising investments in implementing digital transformation solutions and technologies across sectors, Asia-Pacific is anticipated to provide several development chances for the market under study. Furthermore, the expansion efforts of international automakers in the region are expected to support market expansion. Solution providers are partnering and developing to deliver cutting-edge solutions to several enterprises throughout the region's industries. Such activities are anticipated to increase its market presence in the area.