Project Management Software Market (By Component; By Solution; By Services; By Enterprise Size; By Deployment; By End-use)- Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The global project management software market was valued at USD 6.62 billion in 2022 and it is predicted to surpass around USD 28.53 billion by 2032 with a CAGR of 15.73% from 2023 to 2032. The project management software market in the United States was accounted for USD 1.4 billion in 2022.

Key Pointers

• North America held the major share of 42% of the target market in 2022. 
• Asia Pacific is anticipated register growth as the fastest-developing regional market at a CAGR of 19.74%. 
• The solution segment accounted for the largest market share of 68% in 2022. 
• The services segment is anticipated to grow at a CAGR of 16.53% during the forecast period. 
• The activity scheduling segment accounted for the largest market share of 28% in 2022
• The resource management segment is anticipated to grow at a CAGR of 16.53% during the forecast period
• The support & maintenance scheduling segment accounted for the largest market share of 77% in 2022
• The integration & deployment segment is anticipated to grow at a CAGR of 14.05% during the forecast period
• The large enterprise segment accounted for the largest market share of 65% in 2022. 
• The SMEs segment is expected to grow at the highest CAGR of 17.36% during the forecast period. 
• The cloud-based segment accounted for a market share of 57% in 2022. 
• The on-premise segment is anticipated to grow at a CAGR of 14.43% during the forecast period
• The IT and telecom segment accounted for the largest market share of 20% in 2022.
• The manufacturing segment is anticipated to grow at a CAGR of 16.83% during the forecast period.

Report Scope of the Project Management Software Market

The rising need for business software among organizations to reduce disparities and chaos is expected to drive market growth. Project management software establishes and ensures efficient workflow within organizations. It is a digital system that helps organizations plan projects, schedule operations, and track the performance of resources. Project management software enables teams to collaborate and share virtual platforms to view ongoing project updates, follow-ups, upcoming and ongoing projects, deadlines, etc. Thus, the demand for project management software is growing significantly.

Some major applications of project management software are planning, scheduling, resource allocation, document management, issue tracking, and task management. An organization may deal with multiple projects and tasks at a particular time, leading them to struggle with various priorities such as defining tasks, assigning resources, and achieving goals. Project management software assists organizations in resource management and helps them check the company’s workflow, pending tasks, and project updates. As projects progress, the project management software helps users in creating notes, track status, and communicate among multiple teams. Further, it also sends reminders to the team about incomplete tasks and upcoming deadlines. Thus, project management software reduces disparities and challenges, enhancing the overall efficiency of the organizational process.

Project management software is emerging as an effective tool across various end-use industries such as BFSI, IT & telecommunications, and engineering & construction industries that are looking to strengthen their internal communication, processes, and resource utilization. Furthermore, project management software is becoming extremely beneficial for businesses following hybrid and remote work strategies. Teams working remotely often experience excess data sharing, lack of communication, and mismanagement of shared files. Project management solutions enable streamlined communication, offer document management, and keep track of critical organizational data in one platform. Thus, the changing organizational structure and hybrid work-life scenario are expected to drive the market demand.

Some of the factors challenging the market growth are data privacy and security concerns. The project software management consists of critical information, organizational data, employee records, and resource details. These datasets can hamper the security and subsequently, the market position of organizations. Furthermore, the rising use of advanced technologies such as AI, ML, and blockchain technologies coupled with rising investments by key players in dealing with rising cyber security challenges is expected to minimize the impact of the following challenges.

Key organizations in the market are making strategic decisions, including partnerships, mergers and acquisitions, and new product launches, to provide customers with superior project management software offerings. For instance, in February 2023, Monday.com announced a strategic partnership with Appfire, an enterprise collaboration app provider. As part of the collaboration, Appfire with help monday.com customers find apps that can organize their unique business needs on a single platform, including workflows, processes, and projects.

Component Insights

The solution segment accounted for the largest market share of 68% in 2022. The project management solution offers tools and techniques to manage organizational projects and tasks, including scheduling, planning, resource management, task management, and document management. It allows organizations, stakeholders, and users to control costs by managing budget, quality, and resources and keeping track of their performance. Thus, it ensures the timely delivery of projects while mitigating risks and challenges.

The services segment is anticipated to grow at a CAGR of 16.53% during the forecast period. Project management software includes integration, deployment, support, and maintenance services. With organizations' rising utilization of project management software, the need for software deployment and integration services is also surging. Further, the support and maintenance services are designed to assist customers in dealing with errors and obstacles while performing different tasks.

Solution Insights

The activity scheduling segment accounted for the largest market share of 28% in 2022. Project management software helps companies design project plans, courses of action, budgets, schedule delivery, and project deadlines effectively. Furthermore, it also offers an easy track of project performance, and real-time project updates, and defines comparison between defined and achieved plans. Thus, the demand for project management software is rising further in the following segment.

The resource management segment is anticipated to grow at a CAGR of 16.53% during the forecast period. Project management software helps manage resources by providing real-time insights into resource performance, underperforming areas, and key performance indicators. Further, it assists organizations in allocating resources, undergoing capacity planning, and analyzing the time spent by resources on each process. Thus, the following benefits are expected to drive the segment’s growth in the market.

Services Insights

The support & maintenance scheduling segment accounted for the largest market share of 77% in 2022. The support & maintenance services across on-premise, cloud, and hybrid project management software help customers deal with challenges, difficulties, and errors occurred during the action. Thus, the following segment is expected to witness higher growth opportunities in the market.

The integration & deployment segment is anticipated to grow at a CAGR of 14.05% during the forecast period. The following segment includes the integration & deployment of project management software across various cloud, on-premise, and hybrid infrastructures. The growing demand for project software across various end-use industries such as IT & Telecom, BFSI, and engineering & construction is expected to support the growth of the following segment.

Enterprise Size Insights

The large enterprise segment accounted for the largest market share of 65% in 2022. Project management software helps large organizations deal with multiple projects and tasks simultaneously, which requires utilization and management of resources, planning and scheduling tasks, task management, etc. Furthermore, project management software ensures smooth and effective communication within large organizations where teams are spread across multiple geographic locations and departments are the primary factors driving the market growth of the project management software industry solutions among large enterprises.

The SMEs segment is expected to grow at the highest CAGR of 17.36% during the forecast period. Project management software helps small and medium enterprises effectively plan, schedule, and utilize resources using the advanced features and tools offered by this software. Further, the project management software reduces the time and cost of manually tracking and maintaining operational processes by replacing them with a single technology-enabled digital platform. Thus, the following factors are expected to drive the project software management industry demand in the SME segment during the forecast period.

Deployment Insights

The cloud-based segment accounted for a market share of 57% in 2022. Cloud-based project management software consists primarily of subscription-based software models. It allows businesses to use project management software in a cloud-based infrastructure. This cloud-based project management software allows companies to use and extend their software licenses based on their demand. Thus, the following factors are expected to support the growth of the segment during the forecast period.

The on-premise segment is anticipated to grow at a CAGR of 14.43% during the forecast period. On-premises project management software offers an in-house hosted solution where the business can run and maintain tasks and operations within the boundaries of the organizational premise. It gives customers complete control over software use and management and ensures higher data privacy and security. Thus, the following factors are expected to support the segment growth in the project management software industry over the forecast period.

End-use Insights

The IT and telecom segment accounted for the largest market share of 20% in 2022. IT and Telecom are among the key industries gaining fast momentum and constantly driving the demand for project management software. IT and Telecom are among the key industries that deal with large teams, operational data, and cross-functional project development activities. The project management software helps IT and telecom industries establish smooth connections among teams, effectively evaluate project updates, and allocate resources per the requirements by monitoring real-time projects in one platform. Therefore, the demand for the project management software industry is expected to grow in the following segment.

The manufacturing segment is anticipated to grow at a CAGR of 16.83% during the forecast period. Project management software in manufacturing industries is becoming an effective tool to ensure effective planning, scheduling, task management, documenting management, and budgeting activities. It eliminates the traditional model of manually recording and maintaining worksheets, which helps reduce errors, time, and cost in running smooth manufacturing operations. Thus, the demand for project management software in manufacturing is expected to witness a lucrative growth opportunity.

Regional Insights

North America held the major share of 42% of the target market in 2022. In North America, the project management software industry is expected to witness positive traction owing to the rising demand for business software among major end-use industries such as IT and Telecom, BFSI, and healthcare, which is expected to drive market growth in the region. Further, the key players in the region include Microsoft Corporation; Oracle Corporation; LiquidPlanner. Inc; and Smartsheet, inc. are taking various strategic decisions to expand and enhance their regional project management software offering. These are the following factors to drive market growth in the North American region.

Asia Pacific is anticipated register growth as the fastest-developing regional market at a CAGR of 19.74%. The rapid adoption of advanced technologies such as AI, ML, and IoT in various end-use industries such as IT and Telecom, manufacturing, healthcare, transportation, logistics, etc. coupled with the growing government initiatives towards digitization such as the digital India program is expected to strengthen the adoption of project management software in the Asia Pacific region. Further, project management software supports SMEs and individual business organizations in the region by offering them cost-effective and reliable tools for managing everyday business operations. Thus, the following factors are expected to drive the demand for project management software solutions in the Asia Pacific region.  

Project Management Software Market Segmentations:

By Component 

• Solution
• Services

By Solution 

• Activity Scheduling
• Project Portfolio Management
• Resource Management
• Issue Tracking
• Document Management
• Others

By Services 

• Integration & Deployment
• Support & Maintenance

By Enterprise Size 

• Large Enterprise
• Small & Medium Enterprises (SMEs)

By Deployment 

• On-premise
• Cloud

By End-use 

• Manufacturing
• BFSI
• IT & Telecom
• Healthcare
• Engineering & Construction
• Government
• Others

By Regional 

• North America
  • The U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • U.A.E
  • Saudi Arabia
  • South Africa