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The online project management software market size is estimated to grow by USD 4.34 billion at a CAGR of 12.21% between 2022 and 2027. The growth of the market depends on several factors, including increasing requirements for large-scale project management, increasing need for visibility and transparency, and increasing integration of social media with project management software.
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The increasing integration of social media with project software is notably driving market growth. Social networks are gradually becoming more common among companies and constitute a large part of digital marketing projects. Integrating social media into management software provides social workflow opportunities for employees even outside the corporate firewall.
A social workflow can be a set of service-oriented application interfaces (APIs) or a standalone feature with integrated applications that work with other messaging or business applications. Enterprise application makers are likely to look to web-based project software solutions to protect social data and simplify business-critical decisions. Such new applications will drive the market growth and trends during the forecast period.
The rise in remote working is an emerging trend in the market. Remote working has gained a significant boost since the outbreak of the pandemic in 2020. Remote work is also likely to continue in the near future. This led to interesting challenges for project managers.
According to Gartner's 2020 survey, 74 % of companies plan to permanently switch to remote work after COVID-19. That's why software can be a great asset in such circumstances. The software is easy to deploy globally for a hybrid or remote workforce, allowing them to stay on top of their tasks and projects. Additionally, it can also capture all the important information that project managers can easily monitor, control, and use to make informed decisions in real-time, regardless of the time and place of changes. Consequently, the demand for this software is expected to increase during the forecast period.
High implementation and operating costs are major challenges impeding market growth. Cloud-based project software generally comes with subscription fees, and the subscription fee can increase depending on the user's needs. Some of these features include custom features, increased storage capacity, remote access, and advanced support.
Cloud-based portfolio software is usually high priced and the price depends on the number of users. Although the initial cost of cloud-based applications is low compared to on-premises applications, in the long run, it becomes expensive. This is because suppliers place orders annually or quarterly to grow their customer base. These additional services add up to the amount requested by the supplier. Therefore, high implementation and operational costs will hinder market growth during the forecast period.
The market share growth by the enterprises' segment will be significant during the forecast period. Enterprises include IT, manufacturing, construction, marketing/public relations and advertising, management consultancies, BFSI, and others.
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The enterprise segment was valued at USD 2.54 billion in 2017 and continued to grow until 2021. Firstly, the increasing need for a solution that overcomes critical challenges in the manufacturing sector, such as inefficient cost, schedule, and quality control, are the major reasons for the rising demand for this software from the manufacturing sector. Secondly, in the construction sector, it is difficult to track the progress of the project manually. Enterprises need to ensure that all functions, such as budget estimation, task schedule, subcontractors, and worker selection, are completed on time to avoid conflicts with the project deadlines. Software aids in the overall planning, coordination, and control of a project from beginning to completion. The other sectors that use this software for efficiency include healthcare, telecommunication, aviation, and energy among others. Therefore, from the above-mentioned factors, it is expected that demand for this software in the enterprise segment will increase during the forecast period leading to market growth.
Based on deployment, the on-premises segment holds the largest market share. In 2022, the on-premise sector is emerging as the dominant force in the market. This category of software is installed and operates within an organization's premises, as opposed to being hosted remotely in a cloud or server farm. On-premise segment comprises databases and modules that collaborate to cater specifically to the unique needs of large enterprises in automating their company-wide business processes. It offers a diverse range of tools and functionalities to effectively oversee both simple and intricate enterprise-level projects. The adoption of on-premise segment is projected to sustain a consistent growth trajectory in the foreseeable future, especially among large corporations. Consequently, these dynamics will propel this segment and, by extension, the entire market during the forecast period.
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North America is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America generates the majority of the revenue in the market in the region as most of the management providers are based in the region, especially in the US. The country is also the headquarters of many global companies that have already adopted software. Moreover, the growing demand for cost-effective and user-friendly online project management solutions among companies has encouraged key players to introduce industry-specific project software and services in all countries in the region, especially the US.
Furthermore, North America has always been a lucrative market for vendors as the region is an early adopter of advanced technologies across all industries. The industrial sector in the region is technologically mature, owing to the early adoption of technologies. The strong existence and penetration of the top vendors increase the overall market growth in the region. Moreover, ongoing technological advances, new participants, and highly educated customers are leading to growth in the number of software users as well as revenue for enterprises.
The market trends and analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ProjectManager- The company offers task management, collaboration and project management softwares.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth, propelled by digitalization and automation trends. This software streamlines pieces of work and enhances resource engagement, allowing organizations to organize tasks efficiently within a timeline. Automated project software offers numerous advantages, including real-time monitoring, feedback mechanisms, and status updates.
Cloud-based solutions dominate the market, facilitating easy installation processes and enabling remote accessibility. Mobility, enhanced storage capacity, and centralization of project data are key features driving adoption. Integration capabilities ensure seamless collaboration across teams, mitigating project risks. This market caters to small and medium enterprises seeking optimization of business process management.
Customized offerings are increasingly prevalent, addressing the specific needs of diverse industries. In the upcoming period, the emphasis will remain on enhancing functionalities, addressing project risks, and further optimizing business processes through solutions.
The market growth analysis report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Online Project Management Software Market Scope |
|
Market Report Coverage |
Details |
Page number |
156 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.21% |
Market growth 2023-2027 |
USD 4.34 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
10.02 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 40% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Apptio Inc, Atlassian Corp. Plc, Basecamp LLC, Citrix Systems Inc., Clarizen Inc., LiquidPlanner Inc., Mavenlink Inc., Microsoft Corp., monday.com Ltd., Planbox Inc, Premiere Global Services Inc., ProjectManager.com Inc., Redbooth, Scoro Software, TeamGantt, Teamwork Crew Ltd., Workfront Inc., Wrike Inc., Zoho Corp. Pvt. Ltd., and ActiveCollab LLC |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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