Construction Management Software Market

Construction Management Software Market Research, 2031

The global construction management software market size was valued at $9.3 billion in 2021, and is projected to reach $23.9 billion by 2031, growing at a CAGR of 10.2% from 2022 to 2031.

The construction management software market was positively affected by the COVID-19 pandemic and showcased a positive growth rate during the period, owing to a growing demand for remote management and monitoring tools during the period of lockdowns, which in turn contributed towards the growth of the construction management software market during the period.

Construction management software is a project management platform that helps companies with processes like budget management, communication, decision-making, and job scheduling, to name a few. Its goal is to make construction business processes a lot easier through automation. It is a project management tool designed specifically for construction professionals. This kind of software offers a range of benefits to members of the construction industry, streamlining processes that used to be done manually, which include communication, decision-making, and job scheduling, among others. These are but some of the benefits that organizations can get from using construction management software.

Growing number of construction projects and need to improve construction productivity are boosting the growth of the global construction management software industry. In addition, rising number of supportive initiates from governments positively impacts the growth of the market. However, high installation and maintenance costs and lack of skilled operators are hampering the market growth. On the contrary, implementation of IoT and AI is expected to offer remunerative opportunities for expansion of the market during the forecast period.

The construction management software market forecast is segmented into Offering, Deployment Mode, Building Type, End-user and Application.

Segment review

The global construction management software market is segmented based on offering, deployment mode, building type, end user, application and region. By offering, the market is bifurcated into solution and service. By service type, the market is bifurcated into professional services, managed services. By professional services, the market is further divided into training & education, integration & deployment, and support & maintenance. By deployment model, the market is segmented into on-premises and cloud based. By building type, it is categorized into commercial buildings and residential buildings. By industry vertical, the market is divided into BFSI, healthcare, government, manufacturing, retail, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the construction management software market analysis are Autodesk, Inc, Construct Connect, Buildertrend, Bentley Systems, Inc., Oracle corporation, BrickControl.com, CMiC, BuildTools, e-Builder, Inc., Buildstar Technology, Odoo SA, Jonas Construction Software, Inc., Pland Grid, Inc., Sage group plc, Viewpoint, Inc., TRIMBLE, INC., and Systemates, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the construction management software industry.

In terms of deployment model, on premises segment holds the largest share of the construction management software industry, owing to significant investment to purchase and implement interconnected hardware, servers, and software to manage the system. However, the cloud segment is expected to grow at the highest rate during the forecast period, owing to surge in use of cloud-based building information modeling solutions among small and mid-sized businesses.

Region wise, the construction management software market was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to an increase in awareness and government mandates toward the use of construction management software. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to rapid use of digitalization in the construction industry during the COVID-19 pandemic & ongoing technological advancements and the emergence of new business models.

The report focuses on growth prospects, restraints, and trends of the global construction management software market analysis. The study provides Porter’s five forces analysis to understand impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the global construction management software market share.

COVID-19 impact analysis

The COVID-19 pandemic has enabled challenges, such as low productivity, affected margins, and a drop in R&D investments; therefore, construction firms are being forced to adopt construction management software faster, and the home building and commercial construction industries are expected to flourish during the forecast period. For instance, in December 2021, Buildern announced the launch of its full residential construction management software for small and medium businesses, which was developed to provide a faultless experience for both the house building and commercial construction industries. It recently made its formal debut on the market, such trends accelerated construction management software during the period of the pandemic. This in turn caused the demand for construction management solutions to raise during the period, as businesses depended upon construction management solutions for faster industrial development.

Top impacting factors

Growing number of construction projects

The increasing global population and the introduction of initiatives like smart cities and high-speed transportation have increased the need for the construction of buildings, malls, and workplaces. Therefore, key players are implementing construction software to run these projects smoothly and effectively. In addition, the epidemic has caused the construction industry to adopt a fresh viewpoint by removing elements like decision-making overlap, duplication of effort, poor communication, etc., the construction management software lowers the number of man-hours needed to finish a project. Moreover, construction management software addresses every challenge that a construction company can have during the chaotic COVID-19 epidemic. In the Middle East and the majority of the growing nations in the Asia-Pacific region, including India and China, the building sector has experienced fast expansion. For instance, China has received an overall score of 0.67 on GlobalData’s February 2022 Construction Project Momentum Index, which provides an assessment of the health of the construction project pipeline at all stages of development from announcement through to completion. These upcoming projects are expected to drive the adoption of construction management software among end users, which will boost the construction management software market growth.

Need to improve construction productivity

The outbreak of COVID-19 prompted a considerable proportion of routine activities and businesses to shift their operations online, however by considering the current fragile market state, working on a building site is quite difficult. Due to the collaborative nature of the construction industry, construction projects require manufacturing and quality control and understanding amongst the numerous stakeholders engaged in a project. Moreover, A construction project often involves a variety of components, including vendors, engineers, architects, contractors, and the workforce. For many years, tables, graphs, and drawings were used to record the information exchange between these elements. Additionally, construction professionals also like automated equipment because it can provide outcomes faster, save money, and minimize manual work. For instance, Highrise is the first Internet-ready, specialized construction ERP, also known as an ERP for construction and contracting businesses. An ERP is a software system that integrates all of the enterprise's functional divisions. Highrise has integrated services for purchasing, store and inventory control, project estimation, planning, project management, budgeting, and labor contract management. Additionally, the need for automated systems has increased in the building sector. These systems are expected to decrease human error and offer precision in digital representations of construction models, leading to cost savings and increased productivity. Such factors are influencing the growth of the global construction management software market.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the construction management software market analysis from 2021 to 2031 to identify the prevailing construction management software market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the construction management software market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global construction management software market trends, key players, market segments, application areas, and market growth strategies.

 Construction Management Software Market Report Highlights