Construction Management Software Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, Canada, China, UK, Germany - Size and Forecast 2023-2027

Construction Management Software Market Forecast 2023-2027 

The construction management software market is estimated to grow by USD 986.36 million at a CAGR of 10.14% between 2022 and 2027. The increasing requirements for large-scale project management are driven by factors such as the complexity of modern construction projects and the need for efficient coordination of resources and timelines. The reduction in design time is also contributing to market growth, as companies seek to streamline the design process and bring products to market more quickly. Additionally, the growth of the global construction market is fueling demand for project management services, as companies look to capitalize on opportunities in emerging markets and meet the demand for new infrastructure projects.

 What will the Size of the Construction Management Software Market be During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by end-user (builders and constructors, construction managers, and engineers and architects), Deployment (cloud-based and on-premise),  and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By End-user

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 568.14 million in 2017. 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 construction 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.

By Region

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North America is projected to contribute 32% to market growth by 2027. 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 construction 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.

Market Dynamics and Customer Landscape

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. 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.

Key Market Driver 

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.

This 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 during the forecast period.

Major Market Trend

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. 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.

Significant Market Challenge

Network and connectivity issues may impede the 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. 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.

Key Market Customer Landscape

The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Construction Management Software Market Companies?                                     

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 report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• ARES Holding Corp.
• Autodesk Inc.
• Bentley Systems Inc.
• Buildertrend Solutions Inc.
• Chetu Inc.
• Computer Methods International Corp.
• Constellation Software Inc.
• Hilti Corp.
• Hyland Software Inc.
• Kiewit Corp.
• Nemetschek SE
• Odoo SA
• Oracle Corp.
• Penta Technologies Inc.
• Procore Technologies Inc.
• Roper Technologies Inc.
• Sage Group Plc
• Systemates Inc.
• Trimble Inc.

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.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027. The market has been segmented by type, product, distribution channel, and region.

• End-user Outlook 
  • Builders and constructors
  • Construction managers
  • Engineers and architects
• Deployment Outlook 
  • Cloud-based
  • On-premise
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Marekt Analyst Overview

The market is witnessing significant growth driven by factors such as AI integration, automation of processes, and the increasing bargaining power of buyers and suppliers. The BFSI sector is also adopting these solutions, along with government initiatives and funding for infrastructural projects. Cloud-based tools for construction management offer cost-efficiency and real-time data access, benefiting construction professionals and project managers alike. IoT plays a crucial role in enhancing job scheduling and monitoring at job sites, leading to improved productivity and efficiency in project execution. Governments' initiatives and R&D investments are further boosting market expansion. With a focus on simplifying procedures and enhancing transparency, the market aims to address challenges such as low productivity and the threat of substitutes. The market's future lies in leveraging technological know-how to meet the evolving needs of smart cities and commercial buildings.

The market is witnessing rapid growth, driven by the adoption of AI and IoT for enhanced project management. The market is characterized by factors such as BFSI sector involvement, increasing government funding, and the need for simplified procedures. Cloud-based solutions are gaining prominence, offering benefits like cost estimation and efficient deployment. Skilled operators are essential for maximizing productivity, while support and maintenance services ensure smooth operations. Training & education play a crucial role in enhancing the capabilities of construction professionals and project managers. The market is experiencing significant growth, driven by factors such as AI integration, IoT adoption, and cloud-based solutions. This market caters to various sectors like BFSI, manufacturing, and retail, offering tools for project management, deployment, and maintenance.  Global population growth spurs residential building needs, leading to software-as-a-Service (SaaS) adoption. Initiatives from governments and private building spending drive market growth, making North America a tech hub for construction technology utilization. The market's future relies on addressing installation costs and simplifying procedures.

In the dynamic landscape of the commercial construction industry, BFSI (Banking, Financial Services, and Insurance), and Building projects, leveraging advanced technologies like Artificial Intelligence (AI) and the Internet of Things (IoT) has become imperative to stay competitive. As the industry evolves, factors such as the bargaining power of suppliers, integration & deployment of software solutions, and installation and maintenance costs play pivotal roles in shaping strategies for success. The Banking, Financial Services, and Insurance (BFSI) sector, a significant player in funding large-scale construction projects, closely monitors the global construction management software market. This market, driven by the demand for efficient deployment modes and cloud-based solutions, has witnessed substantial growth in recent years. Cloud construction management tools have emerged as game-changers, offering scalability, flexibility, and cost-effectiveness.

Commercial construction industries, particularly in North America, are embracing cloud-based solutions to streamline project management and enhance collaboration. With the rise of high-speed transportation, there's an increased need for efficient building types that can accommodate rapid urbanization and infrastructure development. Organizations operating in this space are under pressure to adapt to technological advancements and maintain a competitive edge amidst the changing landscape. The competitive intensity of competitors in the construction management software industry underscores the importance of innovation and differentiation. Cloud category solutions have revolutionized traditional construction management practices by providing real-time insights, optimizing workflows, and reducing reliance on manual processes. These advancements translate into significant savings in man-hours and overall project costs.

 

Construction Management Software Market Scope
Report Coverage	Details
Page number	164
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 10.14%
Market growth 2023-2027	USD 986.36 million
Market structure	Fragmented
YoY growth (%)	7.63
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	ARES Holding Corp., Autodesk Inc., Bentley Systems Inc., Buildertrend Solutions Inc., Chetu Inc., Computer Methods International Corp., Constellation Software Inc., Hilti Corp., Hyland Software Inc., Kiewit Corp., Nemetschek SE, Odoo SA, Oracle Corp., Penta Technologies Inc., Procore Technologies Inc., Roper Technologies Inc., Sage Group Plc, Systemates Inc., and Trimble Inc.
Market dynamics	Parent market 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, 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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