Project Management Systems (Global Market)

2023: Global Project Management Software Sales Growth by 13.3% to $6.5 Billion

In 2023, Project and Portfolio Management (RRM) software sales globally reached $6.5 billion. This is 13.3% more compared to 2022, when the volume of the industry was estimated at $5.76 billion. Such data are provided in the IDC study, the results of which TAdviser got acquainted with in early November 2024.

It is noted that the COVID-19 pandemic had a significant impact on the market in question. It led to disruptions in enterprises and industries around the world, as a result of which many projects were postponed or completely canceled. This created confusion and confusion, prompting organisations to review the priorities of their initiatives and reallocate resources accordingly. Against the background of the growing popularity of remote work, the project groups switched to virtual cooperation and communication. In such a situation, organizations were forced to use special tools and technologies to manage the project portfolio, which facilitate remote work and ensure effective coordination between team members.

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Freepik

Analysts also note that the ongoing digitalization and the growing introduction of automation are stimulating the demand for analytical and monitoring solutions in the business sphere. This further contributes to the increase in sales of RPM solutions. In addition, increasing public and private investments in research and development in various fields, thanks to which the number of projects being implemented, have a positive impact on the industry.

In terms of application of RRM solutions, analysts distinguish several key segments: IT and telecommunications, BFSI (banking, financial services and insurance), healthcare, manufacturing, retail, government, etc. In 2023, the IT and telecommunications sector took the largest share - approximately 25%. It is noted that this segment is characterized by complex and dynamic projects, including software development, infrastructure deployment, system integration and digital transformation initiatives. RRM platforms help IT organizations effectively manage these initiatives by providing transparency, efficient resource allocation, and progress tracking.

Geographically, North America led the global RRM market with a share of more than 35% in 2023. The dominance of the region is explained by the developed IT infrastructure and the presence of a large number of startups that implement a variety of projects. Companies are actively implementing specialized solutions for business analytics and process management. Among the significant players in the global RRM industry are named:

• Oracle;
• Microsoft;
• SAP;
• Adobe;
• HPE;
• Hexagon AB;
• Planview.

Increasing automation and digitalization in industries such as healthcare, public administration, BFSI, telecommunications, engineering and construction have dramatically increased demand for monitoring and analytics systems that help improve business productivity and efficiency. This contributes to a more active implementation of PPM funds, analysts say.

Project portfolio management involves making strategic decisions, which can be complex and require a thorough analysis of a variety of factors. Specialized tools enable IT organizations to optimally allocate resources based on priorities. This ensures that tasks are completed efficiently, performance is improved, and risk is minimized.^[1]

2012

The global Project Management and Portfolio Systems (PPM) market reached $1.65 billion in 2012, up 11% from $1.48 billion in 2011, according to Gartner Gartner^[2] May 2013.

Laurie Wurster, Research Director of Gartner, noted that the PPM systems market has been growing for the third year in a row despite global economic difficulties, lower IT budgets and other problems affecting the ICT market as a whole.

In 2012, the global PPM systems market showed high activity of vendors in terms of establishing partnerships, as well as acquisitions, strengthening offers and developing delivery models, primarily SaaS, in addition, many releases of new products took place.

As for the strongest suppliers, in 2012, the top five vendors accounted for almost 50% of the PPM systems market in monetary terms, Oracle took the first place with revenue of $381 million, the vendor strengthened its position by buying the developer Instantis in November 2012. In second place is Microsoft, whose revenue in the PPM market grew by 10% to $252 million, in third place is CA Technologies, whose revenue grew by 7% to $157 million. Closing the top five are Planview and HP.

Top 5 vendors in the global PPM market by revenue, $ million

Gartner, 2013

Gartner notes that permutations in the first three vendors are possible only if one of them acquires a significant asset. The organic growth of players, which could lead to a change in market share, may take 6 to 10 years. The greatest business dynamics is noted in the group of PPM systems vendors with annual income from $30 million to $60 million. A clear strategy, participation in partner programs and the dissemination of influence outside North America and Western Europe are key success factors for them.

At the same time, the markets of North America and Western Europe are the main consumers of project management systems: they account for 90% of the turnover of all global PPM vendors. Although the market growth in 2012 was 10% and 6.3%, respectively, the revenue base here is quite large. Double-digit growth rate demonstrates Eastern European market

See also

IT Project Management

Project and Process Management Issues

Notes