The global construction project management services market is experiencing significant growth and is expected to grow considerably in the next few years. A construction project management service is especially meant to manage all the activities that are pertaining to construction of any kind, be it roads, rails, communication infrastructure, airports, and energy plants. It offers consulting services such as research, planning, budgeting, scheduling, and contracting for all the construction-related activities.
Furthermore, higher investments by the government and private entities in developing infrastructure around the world is one of the major factors driving the demand for the construction project management services market. In addition, construction project management services offer complete project management or partial project management, which helps in managing the costs incurred by the client. These services let any small or big interested party outsource their non-core activities to an expert in this field, which in turn improves the efficiency of the project. Moreover, the construction project management services market is highly competitive, and recent developments in the IT sector pertaining to project management have made it easier to manage complex projects.
Market Scope and Structure Analysis
The construction project management services industry includes all those companies that provide research, planning, supervising, and budgeting services to construction projects. This includes all aspects of projects, including estimating, scheduling, designing, engineering, and contracting. In addition, this industry makes use of IT infrastructure to manage all of its projects efficiently.
COVID-19 Impact Analysis
- The COVID-19 pandemic ceased various types services pertaining to the construction project management services industry attributed to the lockdown in countries worldwide. This hampered the growth of construction project management services market in the years and the similar trend may continue in the first half of 2022
- The major demand for construction project management services was previously noticed from developed and developing countries, including the U.S., Germany, Italy, the UK, India and China, which are negatively affected by the spread of the coronavirus, thereby declining the demand in construction sector; thereby subduing the demand of construction project management services.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on their cash reserves. Construction project management service industry can afford a lockdown only for a few months, after which the players have to modify their investment plans. For instance, various players in the market halted their operations and services for several weeks to reduce the expenses. On the contrary, few players adopted employee lay-offs to sustain themselves during the COVID-19 health crisis.
- Construction project management service industry is expected to focus on protecting their workforce and operations to respond to immediate crises and finding new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distancing, as well as ensuring the vaccination of every employee in the company can assist in promoting the health & safety of the workforce.
Top Impacting Factors
An increase in expenditure on state infrastructure development projects by governments around the world is playing a major role in driving the demand for construction project management services. In addition, factors such as the gradual increase in the disposable income of people around the globe, the high demand for redevelopment projects, and good-looking homes are expected to lead to the growth of the construction project management services market. Moreover, governments around the world have increased emphasis on supporting domestic manufacturing and construction industries, which is fueling the demand for construction project management services. Due to rise in demand for consumer products, manufacturers are keen on taking the services of construction project managers for their manufacturing plants. This is expected to boost to the construction project management market. However, the ever-increase in cost of building materials is causing the rise in the cost of each project, thereby hindering the growth of the market. Contrarily, technological developments in project management services software can help in timely completion and lower the cost of the project. This can create lucrative opportunities for the growth of the construction project management services market during the forecast period.
- Governments of countries such as India and the U.S. are increasing their emphasis on infrastructure development for the public at large, which eventually becomes an opportunity for the construction management service industry. For instance, in the budget of 2022, the Indian government allocated approximately $55 billion for its affordable housing scheme. And, the U.S. recently passed a $1.2 trillion bipartisan infrastructure bill that approves the largest transportation spending package in the U.S. history.
- The construction activity in the non-residential building sector is witnessing exponential growth. The Dodge Momentum Index, a global non-residential building construction tracker, gained 11% in September 2021 to 164.9 from August 2021, which was 148.0. This clearly shows the growth potential in the years to come and is a great opportunity for the construction management service industry to grow.
Key Benefits of the Report
- This study presents the analytical depiction of the construction project management service industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities, along with detailed analysis of the construction project management service market share.
- The current market is quantitatively analyzed to highlight the construction project management services market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed construction project management service market analysis based on competitive intensity and how the competition will take shape in coming years.
Construction Project Management Services Market Report Highlights
By Application Type
By Consultancy Type
By End User