Project Portfolio Management (PPM) Market

Project Portfolio Management (PPM) Market Insights and Forecast - 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 9.90% from 2020 to 2027. Project portfolio management software provides tools to project managers and business executives to help manage and schedule projects with high level of efficiency, while increasing productivity and reducing costs.

Post COVID-19 pandemic, cloud-based PPM solutions demand is expected to increase during the forecast period as it offers greater level of scalability, reduction in the cost of implementation and continual availability.

The centralized control of an organization's projects is handled by project portfolio management tools. Portfolio management also includes the project intake process. This involves the recognition, authorization, assignment, and incorporation of future projects by project managers. It also involves high-level management and project tracking to ensure that ongoing projects are closely connected to the overall business priorities and strategies. Project portfolio management software are employed by project managers for resource time tracking, inventory tracking, report generation, resource management, along with standard portfolio management.

Factors such as growth in 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 data privacy and data security and steep learning curve for PPM software hamper the market growth. Furthermore, reducing project failure rate by embracing agile methods and growth in adoption of cloud-based PPM integrated applications are anticipated to provide lucrative opportunity for the growth of the PPM market.

By deployment type, the on-premise segment dominated the overall PPM market size in 2019, and is expected to maintain its dominance during the forecast period. This is attributed to its standard and easy to use features that employees can learn quickly. However, cloud-based PPM solutions are expected to exhibit highest growth rate during the forecast period, owing to direct IT control, remote accessibility, efficient resource utilization, and cost-effectiveness.

By industry vertical, the BFSI segment dominated the global project portfolio management market share in 2019, owing to its transparency control and advance financial assessment features. However, the healthcare sector is expected to grow at the fastest pace in the future, owing to the fact that project portfolio management in healthcare facilities improve decision-making capabilities and operational efficiencies.

Furthermore, increase in trend of using personal devices like laptop computers and tablets in the workplace is expected to boost employee efficiency; thereby, making real-time project tracking difficult through traditional project management processes. Therefore, the adoption of PPM solutions is expected to increase. Moreover, multi-region organizations or MNCs are driving the demand for project portfolio management tools to help them make better decisions and avoid uncertainties. The PPM market is expected to expand due to the widespread use of PPM solutions in data analytics to provide convenient services to customers at low costs in the BFSI, IT, and telecom sectors.

Impact of COVID-19 on Project Portfolio Management (PPM) Market:

To combat the rapidly spreading coronavirus, governments in many countries enforced stringent rules and regulations, including workforce policies that reduced the number of employees on-site to ensure that social distancing and self-isolation measures were adopted and the spread of the virus was limited. For instance, Tata Consultancy Services (TCS) has announced that 75% of its employees will operate from home on a permanent basis. Initiatives like these made it impossible for business organizations and project managers to track current projects or even assign new projects and resources using conventional project management methodologies. Therefore, these organizations adopted project portfolio management solutions, which provided them with specialized tools to strategize and execute projects.

The report focuses on growth prospects, restraints, and global project portfolio management market trends. Moreover, the study includes Porter’s five forces analysis of the PPM industry 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 growth of the market.

Segment review

The global project portfolio management market is segmented on the basis of component, deployment, technique, industry vertical, and region. Based on component, it is bifurcated into solution and service.

According to deployment, the market is classified into cloud and on-premise segments. Further, based on organization size, the market is divided into large enterprise and small & medium enterprise. By industry vertical, it is classified into BFSI, IT & telecom, retail, healthcare, manufacturing, government & defense, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEAs.

The key players operating in the global project portfolio management market analysis include Oracle Corporation; Microsoft Corporation; Planview, Inc.; Broadcom Inc.; Workfront; ServiceNow, Inc.; Upland Software, Inc.; Micro Focus; Planisware; and Sciforma.

Top impacting factors

Rise in 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 data privacy and data security and steep learning curve for PPM software hamper the 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 project portfolio management market growth.

Reducing project failure rate by embracing agile methods

Easier adoption of agile methodologies for projects in project portfolio management solutions is one of the key factors that enhances the future scope for the PPM market. Project portfolio management tools like Microsoft project have started to add additional time for feedback loops for projects from the planning phase itself, making it easier for project managers to plan a project in accordance with agile methods. Agile methods allow the project to be made into small increments that can be tested after every phase, and any changes or improvements can be dealt with in the next phase rather than starting over the whole project, saving precious time and money for the organization.

Growth in adoption of cloud-based PPM integrated applications

Integration of cloud and project portfolio management tools are promising major practical business applications such as remote access and monitoring, real-time data analytics, and automated scheduling. Furthermore, advancements in the field of cloud and cloud-based applications and the growing dependence of modern business and business operations on cloud technology have paved a way for the project portfolio management solutions market to grow at a steady pace during the project portfolio management market forecast period.

Key Benefits For Stakeholders

• This study includes the analytical depiction of the global PPM market forecast and trends to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and project portfolio management market opportunity.
• The current market size is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the PPM industry.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.

 Project Portfolio Management (PPM) Market Report Highlights