Global construction management software market is estimated to witness high growth, owing to rising infrastructure projects & growing demand for upgrading aging infrastructure
Global Construction Management Software Market is estimated to be valued at USD 15.73 billion in 2024, exhibiting a CAGR of 10.1% over the forecast period 2024-2031. Furthermore, growing demand for real-time visibility and integrated communication can drive the market growth.
Market Dynamics:
Rising infrastructure projects due to rapid urbanization can drive the construction management software market growth. Governments across major economies are increasingly investing in infrastructure development such as roads, bridges, railways, hospitals, and others to support economic growth. For instance, in 2022, the U.S. government announced an infrastructure investment plan of USD 1.2 trillion over 8 years to modernize infrastructure. Construction management software helps project managers to efficiently plan, execute and monitor large infrastructure projects on time and within budget.
Growing demand for upgrading aging infrastructure can also drive the market growth. Many developed countries in Europe and North America have old infrastructure that is near the end of its useful life and requires replacement or renovation. Construction management solutions enable modernizing infrastructure in a cost-effective manner with features such as remote monitoring, collaborative communication and automated document management.
Market Drivers
Increasing Demand for Improved Project Management and Tracking
The construction industry deals with massive projects that require efficient management of resources, schedules, budgets and documentation. Construction management software provides powerful tools to streamline project management activities like scheduling, cost estimation, resource allocation, documentation and communication. These help construction firms to improve project visibility, reduce delays and keep projects within budget and schedule. Growing complexity of construction projects can boost demand for such software to efficiently manage projects.
Need for Improved Collaboration and Information Sharing
Modern construction projects involve collaboration between various stakeholders like owners, architects, engineers, contractors and sub-contractors. Effective collaboration and sharing of critical project information is important for seamless execution. Construction management software facilitates collaboration through features like centralized data repositories, real-time document management and communication tools. These improves information flow, collaboration and decision making across project teams. This is crucial due to growing trends like outsourcing, multi-party projects and global operations in the industry. The need for better collaboration boosts adoption of such collaborative software.
Market Restraints
High Upfront Implementation and Migration Costs
Construction management software require significant upfront investments to purchase licenses, implement the new system and integrate it with existing project management tools and processes. Migrating from legacy systems to new software also incurs additional migration costs. These steep implementation costs especially for complex enterprise solutions can act as barrier for smaller construction firms. The high total cost of ownership may limit spending on such software by price sensitive customers.
Resistance to Change from Traditional Tools
Many construction firms rely on conventional tools like spreadsheets, paperwork and file sharing solutions. Migrating processes and staff skills to new software requires changes in traditional working methods. This results in initial reluctance and resistance to change from employees accustomed to legacy tools. Effective training and support is needed during implementation to overcome such organizational challenges and change management issues.
Market Opportunities
Scope for Adoption of Cloud-Based SaaS Models
Traditionally, construction management software were sold as on-premise licensed versions requiring infrastructure setup and maintenance. However, cloud-based SaaS offerings provide an alternative delivery model with benefits like lower upfront costs, easy implementation, scalability, remote access and automatic updates. As cloud computing gains more acceptance, it provides significant opportunities for construction software vendors to offer their solutions via the affordable and flexible SaaS model and target smaller customers.
Demand from Global Infrastructure Projects
Mega-projects in transportation, energy, buildings and other infrastructure domains can boost demand for construction management capabilities globally. Regions like Asia Pacific, Middle East and Latin America are expected to boost spending on infrastructure to support economic growth. This fuels opportunities for software vendors to target global contractors and owners undertaking such large-scale international projects. Comprehensive solutions addressing multi-location, language and currency needs can tap booming infrastructure spending worldwide.
Link- https://www.coherentmarketinsights.com/market-insight/construction-management-software-market-4566
Key Developments:
- In November 2023, Sage, a leading provider of accounting, financial, HR, and payroll technology for small and mid-sized businesses (SMBs), introduced Sage Construction Management in Canada. This expansion of its construction cloud suite includes cloud pre-construction and project management capabilities, enhancing its existing construction portfolio.
- In May 2023, Planera launched a digital platform to aid construction companies in visually scheduling and planning infrastructure and commercial projects. Its solution integrates project completion timelines, float management, project filtering, resource usage graphs, and an online whiteboard tool for collaborative project team work.
- In March 2023, Bentley Systems and WSB partnered to promote the use of infrastructure digital twins in civil infrastructure projects. WSB, a design and consulting firm, introduced a digital construction management solution based on Bentley's SYNCHRO. This aims to address challenges in adopting model-based digital workflows and support firms in creating digital twins for their clients' infrastructure assets.
Key Market Players:
Key companies covered as a part of this study include Autodesk, Inc., BIMobject AB, Bentley Systems, Incorporated, BuilderMT, LLC., Comprotex Software Inc., Constellation Software Inc., ECI Software Solutions Inc., Fieldwire, Heavy Construction Systems Specialists, Jonas Construction Software Inc., Oracle Corporation, PlanGrid, Inc., Procore Technologies Inc., RIB Software SE, Roper Technologies, Inc., Sage Group Plc., Trimble Inc., Trimble Inc. (after acquiring B2W Software), Zoox, Inc., WELL
