This IDC study provides a 2014-2018 forecast and analysis for the worldwide project and portfolio management (PPM) market, which grew 7.2% to $3.9 billion in 2013 (compared with growth of 5.4% to $3.7 billion last year). This growth was significant in an emerging 2013 market. Decision making in brittle financial environments demands effective prioritization, and we saw some revenue growth from major and key innovative smaller PPM vendors in 2013, with a few exceptions. Microsoft's release of Microsoft Project Online for Office 365 as a follow-on to its 2013 launch, as well as new product releases and a SaaS focus for other key providers, helped set the stage for growth. More generally, the increasing role and complexity of sourcing for projects, programs, and portfolios in the enterprise and the need to align with business needs, corporate governance, and a plethora of regulatory requirements have combined to retain growth for PPM as the economy shifts. IDC has seen increased alignment of PPM with ERP, the evolution and rapid uptake of SaaS PPM, and increased coordination with application life-cycle management (ALM). Agile and service management vendors have been leveraging PPM through alliances, integration, and/or acquisitions. This continued to have an impact in 2013 and will play a role in market growth through 2015. IDC's forecasts show continuing growth in the PPM segment during our five-year forecast period, with this forecast period seeing an ever so slightly higher CAGR of 7.8% (up slightly from 7.7%) and reaching $5.7 billion by 2018.
"Global 2000 organizations continue to struggle with the complexity of project, program, and product delivery while seeking to manage economic and political volatility as operational and business needs change and swirl dynamically. Agile management of human, financial, and other resources is key. In response, demand will remain ongoing for PPM tools throughout our forecast period across the PPM segments ranging from IT PPM, service resource planning, and new product development through to capital projects such as engineering and construction," says Melinda Ballou, program director for Application Life-Cycle Management and Executive Strategies at IDC. "Smaller vendors will play a key role in product and market innovation, and differentiated PPM solutions will come into play in that context as further consolidation and product evolution occurs."