The construction management software market is estimated to be valued at US$ 1.77 Bn in 2023 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Construction management software includes applications and tools that help in project management of construction projects. It offers features for scheduling, cost management, project collaboration and communication, resource allocation, labor management and inventory. The software finds use cases for builders, general contractors, sub-contractors for residential, commercial and heavy civil construction projects.
Market Dynamics:
The growth of the market is attributed mainly to rapid growth of urbanization and infrastructure development activities around the world. As per the United Nations, currently 55% of the world’s population lives in urban areas which is projected to increase to 68% by 2050. This is translating into huge demand for housing and commercial infrastructure development. Further, governments across counties are investing heavily in development of roads, bridges, railways, ports, airports and other industrial infrastructure to drive economic growth. For instance, the Indian government’s National Infrastructure Pipeline projects envisions investing US$ 1.4 trillion over 2019-2025 timeframe on infrastructure development. Such large scale infrastructure projects require sophisticated project and construction management which is driving adoption of management software. Another key driver is increasing popularity of cloud-based software owing to advantages such as real-time collaboration, data access from anywhere and automatic updates.
SWOT Analysis
Strength: Construction management software provides end-to-end visibility of construction projects and aids in efficient management. It allows seamless collaboration between project stakeholders. Real-time data updates help track project progress and identify issues on time.
Weakness: High upfront costs of purchasing and installing construction management software restricts its adoption. Requirement of trained professionals to operate the software increases the overall costs.
Opportunity: Growing construction industry globally coupled with increasing construction of commercial and residential projects present an opportunity for software vendors. Adoption of cloud-based solutions providing flexibility and mobility is expected to gain traction.
Threats: Availability of open source and low-cost alternatives pose pricing pressure on established vendors. Data security concerns may limit complete dependence on cloud-based solutions.
Key Takeaways:
The Global Construction Management Software Market Growth is expected to witness high growth, exhibiting CAGR of 8.2% over the forecast period, due to increasing complexities in modern construction projects. Large scale projects involving multiple stakeholders require seamless collaboration and real-time updates which is fueling the demand for software solutions.
Regional analysis – North America dominated the construction management software market in 2023, owing to high technology adoption and presence of established vendors. However, Asia Pacific is expected to exhibit the fastest growth due to rising construction spending driven by rapid urbanization and infrastructure development in countries such as China and India.
Key players operating in the construction management software market are BENTLEY SYSTEMS, INCORPORATED, PlanGrid, Inc., Procore Technologies, Inc., Sage Group plc, Trimble Navigation Limited, Viewpoint, Inc., Oracle, BrickControl.com, BuildStar Technologies, Inc., Buildtools Inc, CATCloud., e-Builder Inc., eSUB Inc., Jonas Construction Software Inc, Systemates, Inc., Autodesk Inc., Buildertrend, CMiC., ConstructConnect, and Odoo S.A. The market is concentrated in nature with top players accounting for major share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it