Project Portfolio Management (PPM) Market Expected to Reach $9.16 Billion by 2027

According to a recent report published by Allied Market Research, titled, "Project Portfolio Management (PPM) Market by Component, Deployment, Organization Size, and Industry Vertical: Opportunity Analysis and Industry Forecast, 2020–2027,"the global project portfolio management (PPM) market size was valued at $4,336.20 million in 2019, and is projected to reach $9,161.95 million by 2027, growing at a CAGR of 9.9% from 2020 to 2027.

Project portfolio management tools ensure that the best projects are completed at the right time to maximize the business investments. This is particularly important in an organization with multiple internal projects. Project ideas can come from everywhere, at any time, and it is not uncommon for a company to have a long list of potential projects. However, time, money, and resources are seldom available to complete them all at the same time. Portfolio management is important for deciding which projects would have the greatest positive impact on the organization and prioritizing projects accordingly, which in turn boosting the demand for PPM industry.

Factors such as growing need for maximizing the value of project investments, increase in complexity of enterprise projects, and rise in need for collaboration and monitoring tools drive the growth of the global project portfolio management market. However, concerns regarding to data privacy and data security and steep learning curve for PPM software hamper the PPM market growth. Furthermore, reducing project failure rate by embracing agile methods and growth in adoption of cloud-based PPM integrated applications are anticipated to fuel the growth of the project portfolio management market.

Based on deployment model, the on-premise segment dominated the overall PPM market size in 2019, and is expected to maintain the dominance during the forecast period, owing to their versatility and ease of use. However, cloud-based project portfolio management solutions are expected to grow at the fastest rate during the forecast period, owing to direct control, remote accessibility, faster data processing using advanced predictive analytics, efficient resource management, and cost-effectiveness.

Based on industry vertical, the BFSI segment dominated the global project portfolio management market share in 2019, owing to increasing challenges in the BFSI sector post pandemic, such as offsite management and remote collaboration, which is why project portfolio management is becoming more common in the industry. However, the healthcare sector is expected to grow at the fastest rate in the near future, as project portfolio management for hospitals need to improv their decision-making capabilities and improve operational efficiencies due to the COVID-19 pandemic.  

During the COVID-19 pandemic, businesses were encouraged to use their scarce resources to the fullest and optimize their output due to lack of staff and resources, as well as high demand for different products. This resulted in surge in demand for PPM solutions globally.

Moreover, several businesses have started to equip their project managers and PMOs with PPM solutions to be able to manage projects and resources remotely. Additionally, companies have been able to compensate for reduced availability of on-site staff during the COVID-19 pandemic by taking help from collaborative tools and platforms that project portfolio management solutions come equipped with. To aid these remote collaboration aids, PPM solutions providers, such as Sciforma, increased their support for third-party tools like google drive for file sharing and storage, hangouts and meet for video calling and meetings, and others in their Sciforma PPM tool during the pandemic to ease remote working models for their customers.

Key Findings Of The Study

• By component, the software segment led the project portfolio management market in terms of revenue in 2019. 
• Region wise, North America generated the highest revenue in 2019.
• By organization size, the small and medium enterprises segment is expected to exhibit highest growth rate during the forecast period.
• Depending on industry vertical, the healthcare segment is anticipated to exhibit substantial growth during the project portfolio management market forecast period.

The global project portfolio management market analysis includes some of the key market players such as Oracle Corporation; Microsoft Corporation; Planview, Inc.; Broadcom Inc.; Workfront; ServiceNow, Inc.; Upland Software, Inc., Micro Focus; Planisware; and Sciforma.