The global construction management software market is expected to grow at a considerable rate of more than 15% during the forecast period of 2023-2028, mainly driven by a rise in IT spending by construction organizations. This software supports construction organizations and contractors in a wide range of activities, including project management, financials, people management, storing documents, activity management, machinery, reservations, etc.
Globally, management software for the construction industry is becoming a promising solution and attracting more capital from investors. As a result, a large number of start-ups have come up with innovative and niche solutions in the market. Moreover, the companies operating in the market are operating with a margin of 20% to 40%.
Increasing cost pressure, surge in IT spending to bolster the global market
Globally, builders, construction companies, and contractors face cost pressures to execute better and plan projects. Construction management software is an IT solution that increases productivity significantly. The strong performance of the construction technology ecosystem to propel the demand for the software in the coming period.
The construction industry spends the least money on IT solutions – this has been cited as one of the critical challenges in adopting the software. Digital penetration of the construction sector remains relatively low compared to other industries, including finance and telecom. Moreover, the rise of specialist workflow automation tools and the availability of mobile-first applications are expected to provide thrust to the market.
Growing investments and resumption of pending projects in Europe, the US, and the MEA to strengthen the market
The global construction industry observed remarkable resilience during 2020-21 due to the outbreak of COVID-19. It was estimated at US$ 10.7 trillion in 2020, and RationalStat expects this to reach a value of US$ 15.2 trillion, registering a growth of more than 42%. The usage of this software is totally dependent on the growth of the regional construction market.
Globally, North America and Europe dominate the global construction management software market with a share of more than 50% in 2021, followed by the Asia Pacific and the Middle East & Africa. Overdue infrastructural projects in the US, Europe, and the Middle East & Africa are set to offer significant growth in this market. Construction companies are moving towards electronic tendering, thus supporting the need for the software. Germany, Italy, and the UK are already leading the market due to the prevalence of electronic tendering for large projects. China and India are the most prolific market for construction software companies.
Market structure and Competitive Landscape
The global construction management software market has a lot of players across the world, including global as well as regional. The global market is highly fragmented, with leading companies accounting for a meager share. Some of the prominent players that contribute significantly to the global market include Procore Technologies, Inc., RIB Software SE (Schneider Electric), Bentley Systems, Inc., Contractor Foreman, BPA Solutions, Fortive, Trimble Inc. (Viewpoint), Oracle, Archdesk, Nexvia, Builderhead, Nemetschek Group, Capmo GmbH, RedTeam, among others.
In recent times, industry consolidation has been observed in the construction management software market. It has been observed that global players are on a spree to merge small and domestic companies.
Players involved in the global market adopt various strategies to increase the market share and gain a competitive edge over competitors. New product and software launches, mergers, and acquisitions are some of the strategies followed by the market players. Some of the key developments in the global market include,
- In May 2019, the San Diego-based software developer eSub Construction Software raised US$ 12 million in financing for its project management platform for contractors.
- In 2018, Fortive, a diversified industrial group, acquired Gordian, a construction software company, from Warburg Pincus and Education Growth Partners for approximately US$ 775 million in cash.
Key Market Segmentation
RationalStat has segmented the global construction management software market on the basis of type, end user, purpose, project value, and region.
- By Type
- Web Application
- Mobile Application
- Cloud or Server-based Application
- By End User
- General Contractor/Builders
- Commercial and Non-residential
- Other Public Spaces
- Solar Farms
- Marine, Landfills, and others
- By Purpose
- Construction Accounting and Job Costing Software
- Construction Bid Management Software
- Construction CRM
- Construction Document Management
- Construction ERP
- Construction Project Management
- Construction Field Management Software
- Others (Workflow management, safety, and quality management, etc.)
- By Project Value
- Up to US$ 500 Million
- US$ 500 Million to US$ 1,000 Million
- More than US$ 1,000 Million
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecasts, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, company documents, Institute of Electric Innovation (IEI), and Energy Information Administration (EIA).
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, and Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for global construction companies, construction EPC companies, construction material companies, builders, contractors, sub-contractors, suppliers, government organizations, educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption patterns, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for 360-degree analysis of the market, thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The global construction management software market is expected to grow at a CAGR of over 15% during the forecast period 2022-2028.
The leading region in the global construction management software market is North America in 2022.
The global construction management software market is estimated at US$ 8.5-9.0 billion in 2021.
- Startups are paving the way in the global construction management software market
- Increase in IT spending for software solutions in the construction industry to buoy the market
Major companies operating in the global construction management market include Procore Technologies, Inc., RIB Software SE (Schneider Electric), Bentley Systems, Inc., Oracle, BPA Solutions, Fortive, Trimble Inc. (Viewpoint) etc.