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The construction management software market size is estimated to grow by USD 6.83 billion at a CAGR of 10.5% between 2023 and 2028. The increasing requirements for large-scale project management are driven by the complexity of modern construction projects and the need for efficient coordination of resources and timelines. Companies are seeking to streamline the design process, reducing design time and accelerating product market entry. Additionally, the growth of the market is fueling demand for project management services, as businesses aim to capitalize on opportunities in emerging markets and address the demand for new infrastructure projects. This trend highlights the importance of advanced project management tools and services in enhancing efficiency and meeting the evolving needs of the industry. As a result, the market for project management solutions is experiencing significant growth.
The market is experiencing rapid growth due to the increasing adoption of digitization and cloud technologies in the construction industry. These firms are turning to advanced ERP systems and specialized software like Buildstar Technology and BuildTools to streamline their operations, improve productivity, and enhance decision-making. These software solutions offer features for budget management, communication, and project management, reducing reliance on manual processes and Excel spreadsheets. The competitive intensity among software providers is driving innovation, leading to the development of Construction Intelligence Cloud Analytics and other cutting-edge tools tailored for the BFSI and commercial industries. The Online Project Management Software market signifies a significant digital transformation in the construction industry. This sector encompasses a wide array of solutions designed to streamline project planning, execution, and monitoring. Key features include real-time collaboration, automated workflows, and comprehensive reporting. These tools enable construction firms to optimize resources, enhance productivity, and reduce costs. The Online Project Management Software market is driven by the increasing adoption of digital technologies in construction and the growing need for efficient project delivery. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The reduction in design time is notably driving the market growth. One of the major challenges faced by the construction industry is the inability to complete projects on time and within budget. This issue can be attributed to inefficient project planning and scheduling, lack of contractor experience, improper site management and supervision, and delays in the delivery of building materials. To address these challenges, many construction firms are turning to construction management software, such as Buildstar Technology and BuildTools, which not only helps eliminate these problems but also saves time and improves productivity by reducing rework and reliance on paperwork.
Moreover, the software enables cloud adoption and digitization of processes, streamlining construction productivity and enhancing decision-making. It replaces outdated methods like managing projects with Excel spreadsheets and offers efficient ERP (Enterprise Resource Planning) integration. Additionally, this software automatically updates data and design changes in the project. For example, in India, the BENTLEY SYSTEMS LEAP Bridge Enterprise solution was used to design prestressed concrete box girder bridges, including the South Kasheli Bridge in Maharashtra, one of the largest projects completed using this solution. The adoption of this software by end-users can reduce design time and save operational costs, driving the market growth and trends during the forecast period.
Growing advancements in construction management software are a primary trend driving the market growth. companies are trying to integrate this software with all types of estimation and accounting software for managing the entire construction business. Software companies are aiding this integration with the help of professional software teams that have experts. This integration is designed particularly for sub-contractors to enhance their productivity and increase profits. The integrated software enables end-users to purchase orders, change orders, as well as pull and populate employees. It can handle material costs, cost codes, and contacts.
Further, this integrated software enhances the communication between the accounting staff and the employees (of the construction company) who are in the field significantly. Apart from integration, companies are launching advanced construction management software. This AI-enabled suite of solutions allows teams to control project changes, manage material supplier and subcontractor tasks, enhance communications and collaboration, streamline bidding processes, and improve document management. Thus, the launch of new construction management software will drive the market in focus during the forecast period.
Network and connectivity issues may impede market growth. Accessing data from SaaS-based and cloud-based systems requires high bandwidth for faster data retrieval. Accessing terabytes of data from cloud-based storage systems requires efficient IT systems that are free from networking blockages. Cloud-based solutions are deployed to gain faster data access and run operations smoothly in enterprises. Any connectivity issues in the information and communication technology (ICT) infrastructure can reduce business performance, and enterprises may shift to on-premises solutions.
Moreover, cloud-based solutions involve enterprise data transfer from the enterprise's local area network (LAN) to a wide area network (WAN) on the cloud. This has led to an increase in the need for higher bandwidths. The time taken to store and retrieve data could vary from seconds to hours, depending on the location of the data stored and the bandwidth allocated. Unlimited bandwidths will increase the costs associated with data transfer. Enterprises, therefore, need to decide on their bandwidth requirements after carefully assessing their data volumes and business needs.
The market research report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market 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.
Trimble Inc. - The company offers construction management software. Its key offerings include construction management software with budget and cost management, document control, and field management.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 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 share growth by the builders and constructors segment will be significant during the forecast period. This software standardizes the construction process by enabling simplified and streamlined management of labor, site events, data capture, as well as information and material costs. With the deployment of this software, contractors will increase the profitability and efficiency of their projects. Contractors and sub-contractors need an efficient management solution to deliver high-quality work. A busy contractor can leverage the features of this software to enhance the project and the overall performance of the team.
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The builders and constructors segment showed a gradual increase in market share from USD 3.62 billion in 2018. Mike Montgomery, a general contractor in Boston, is using the construction project management software provided by Owner InSite. The features of the software are pre-construction and its planning, budgeting, and permit clearances. The biggest benefit as per the contractor was the quick and professional support offered by Owner Insite. The Sage Group Plc (Sage Group) also provides a fully integrated solution for builders and contractors, namely the Sage 100 Contractor. It manages all the phases of construction and also provides service management.
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North America is estimated to contribute 32% 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 has some of the most advanced and developing economies in the world, such as the US and Canada, which increases the rate of infrastructure development. In countries such as Mexico, construction management software solutions are adopted in major projects like the construction of the Mexico City New International Airport. The US has always been a lucrative market for companies as it is an early adopter of advanced technologies across different industry verticals. The strong existence and penetration of the top companies, such as BENTLEY SYSTEMS and Trimble, speed up the overall market growth in the region.
Segment Overview
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is expanding due to the adoption of cloud-based construction management tools and automation in the construction management software industry. Construction professionals and project managers benefit from these tools, which enhance cost estimation, cost-efficiency, and job scheduling on job sites. Commercial buildings, residential buildings, and infrastructural building projects leverage cloud construction management for real-time data, simplifying procedures, and improving project needs. Competitive intensity of competitors and the bargaining power of buyers and suppliers are influenced by integration & deployment of IoT (Internet of Things) and SaaS (Software-as-a-Service) models. The Construction Estimation Software Market refers to the industry that provides software solutions for estimating the cost of construction projects. These tools enable contractors, builders, and project managers to calculate the total cost of a construction project, including labor, materials, and equipment.
Further, initiatives from governments and government funding boost smart cities, high-speed transportation, and private building spending. However, challenges like low productivity, installation and maintenance costs, and the need for skilled operators persist. The North American economy, tech hub developments, and R&D investments drive advancements in this sector. Training & education, support & maintenance, and managed services are vital for maximizing the potential of construction management software in home building, healthcare, and manufacturing sectors. The Project Portfolio Management (PPM) software market refers to the industry that provides solutions for managing multiple projects within an organization.
Moreover, the market offers a range of offerings including project management platforms and project management tools that enhance technology utilization and technological know-how. The commercial construction sector, part of the broader commercial construction industries, benefits significantly from these tools. Software-as-a-Service (SaaS) and cloud category solutions are popular deployment mode, streamlining software installation and software services. The bargaining power of suppliers influences costs, while professional services ensure effective implementation. Key top impacting factors include the rising global population and increasing man-hours dedicated to construction. This market evolution addresses the growing demand for efficient project management in diverse building type.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.5% |
Market Growth 2024-2028 |
USD 6.83 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.13 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 32% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Autodesk Inc., Bentley Systems Inc., Buildertrend, CMiC, Contractor Foreman, Hexagon AB, Hilti AG, Kiewit Corp., Nemetschek SE, Newforma Inc., Odoo SA, Oracle Corp., Owner Insite LLC, Penta Technologies Inc., Procore Technologies Inc., Roper Technologies Inc., Sage Group plc, Trimble Inc., and Constellation Software Inc. |
Market dynamics |
Parent market growth analysis, market trends and analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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