Market Research Report
Global Construction Management Software Market - 2022-2029
|Global Construction Management Software Market - 2022-2029|
Published: May 7, 2022
Content info: 195 Pages
Delivery time: 2 business days
The construction management software market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX % during the forecast period (2022-2029).
Construction management software supports companies in processes like budget management, communication, decision-making and job scheduling. Many companies looking to make construction operations processes easier through automation are opting for the software. The software helps increase productivity and efficiency, reduce costly delays and improve safety, financial transparency and accountability. The construction industry is heavily expanding globally and construction project management software provides an effective centralized platform to handle every piece of data in one place. All users can collaborate fluently and smoothly.
Construction management software streamlines various tasks and minimizes human error and missing data issues. The solution also enables teams to do things accurately, so tasks are performed faster and stakeholders can dedicate their efforts towards high-value and profit-generating activities.
Companies looking to increase construction productivity and profitability boost the global construction management software market.
Companies looking to increase construction productivity and profitability
With around US$ 10 trillion spent on construction-related goods and services each year, the construction sector is the largest in the world economy. For years, companies have been employing applications and technologies to help with various stages of projects, including design, pre-construction and operations. However, the demand for building project management software, particularly modern and durable solutions, is growing.
Today's projects are far more complicated and organizations are under increasing pressure to increase construction productivity and profitability. The appropriate technology (including software) can assist construction firms to do all that and the industry players realize it. Research by USG and the U.S. Chamber of Commerce Commercial Construction Index found that 78% of contractors think advanced tech can increase labor productivity and 75% think it can improve project schedule management.
While implementing construction management software requires a financial investment, the time and money savings that the user will gain are more than worth it. Recent research found that construction professionals spend 35% of their time on non-productive activities, including conflict resolution, looking for project information and dealing with mistakes and rework. Construction management software streamlines various tasks and reduces human error and missing data issues. The solution also empowers teams to do things quickly and accurately, so tasks are completed faster and stakeholders can devote their efforts toward high-value and profit-generating activities.
Lack of technical expertise and awareness
Lack of technical expertise is one of the major factors that hinder the market growth. Digitization is never easy, especially when the fields are entirely dependent on old-school methods of work scheduling, progress tracking, planning and overall task management. Investing in construction management software will come with a lot of learning curves.
The employees and employers will take effort and time to work on the software and use its various components smoothly. Additionally, a lack of awareness about the benefits of construction management software is anticipated to hamper the market. The software comes with a high price tag which might be a solid reason the companies are afraid of such an implementation in the business.
COVID-19 Impact Analysis
The pandemic has halted the growth of construction management software globally due to the sudden halt in construction sectors. According to the data, 40% of construction firms had to lay off staff due to the COVID-19 outbreak. e Center for Construction Research and Training reported on the economic impacts on the U.S. construction industry that almost one million construction workers became unemployed from March to April 2020.
The unemployment rate in construction has grown from 6.8% in October 2020 to 9.4% in January 2021. Moreover, the impact of the Coronavirus on India's construction industry is costing an estimated US $4,04,000 million (Rs 30,000 crore). Thie pandemic will reduce investment in the construction industry by 13 to 30%, probably affecting gross value added. However, the COVID-19 pandemic accelerated digitization in the construction industry and the importance of having a construction management platform became clear and its potential to drive more prominent profitability.
The construction management software market is segmented into cloud-based and on-premises by deployment.
Companies looking for a centralized platform are boosting the sales of cloud-based construction management software
The most modern construction management software is cloud-based. Companies that use them benefit from having a single source of truth, automatic software updates and the capability to access data from any location. The advanced features are critical in today's fast-paced construction environment, as team members are frequently dispersed across multiple sites. Currently, some workers are working from the office, while others work from home. A cloud-based solution ensures that everyone working on the project has access to the required information and tools, regardless of their location. Cloud-based solutions act as a single source because everything is centralized on one platform, allowing teams to collaborate on the same data.
The companies are launching new cloud-based software, which is expected to boost the market. For instance, in 2020, Hyphen Solutions, a cloud-based construction management software, announced the launch of three new products, Hyphen CRM, Hyphen Wallet and SupplyPro GM, at the NAHB International Builders' Show 2020. Hyphen Solutions has a modern platform for discovering supply chain bottlenecks and improving communication between home builders and suppliers by launching three new software solutions at IBS, the industry's largest exhibition.
Expanding construction activity in North America is boosting the market sales
The region holds one of the significant market shares in construction management software. Construction is an essential contributor to the U.S. economy. The industry has over 733,000 employers with over 7 million employees and generates nearly US$ 1.4 trillion worth of structures per year. Construction employs over 1.4 million people in Canada and makes about US$ 141 billion to the economy annually, accounting for 7.5% of Canada's gross domestic product.
The construction companies are choosing software to optimize their operations in the region. For instance, in 2021, Procore Technologies, Inc. announced that LandSouth Construction, a builder of innovative multifamily in the U.S, has chosen Procore as its construction management platform. Procore's single platform is replacing over five current software packages, streamlining LandSouth customer access to increase consistency and lower financial risks.
The companies are looking to expand their business to strengthen their construction activities. For instance, in 2018, Trimble entered into a definitive agreement to acquire a Viewpoint. The all-cash transaction is valued at US$ 1.2 billion. Viewpoint will extend Trimble's ability to provide complete and integrated project and business workflows across the construction lifecycle.
The construction management software market is moderately competitive with the presence of global companies. The construction management software market has been gaining competitiveness with expanding construction industry. In addition, key players contributing to the market's growth are Viewpoint Inc, Hyphen Solutions, PlanGrid, Inc., Procore Technologies, Inc., Oracle, Trimble Navigation Limited, Sage Group plc, BuildStar Technologies, Inc., Jonas Construction Software Inc, Autodesk Inc. and others. The players are adopting different strategies to dominate the market, such as launching new types of services, expansions and collaborations, contributing to the global growth of the construction management software market.
Procore Technologies, Inc
Overview: Procore is a construction management software provider. Procore's platform operates over 1 million projects and more than US$ 1 trillion in construction volume. Procore's platform connects the vital project to the owner, general contractor and specialty contractor. Procore's App Marketplace has several partner solutions that integrate seamlessly with Procore's platform, giving construction professionals the option to connect with what works best for them.
Product Portfolio: The company offers various features in construction management software such as project management, financial management, resource management and pre-construction.
Key Development: In 2021, Associated Builders and Contractors and Procore Technologies, Inc. announced a partnership that provides ABC chapters and members exclusive discounted pricing on their new products and services purchases. The partnership will expand access to the Procore platform and services to all ABC members.
Visualize the construction management software market segmentation by deployment, application, end-user and region, highlighting the key commercial assets and players.
Identify commercial opportunities in construction management software by analyzing trends and co-development deals.
Excel data sheet with thousands of data points of construction management software market-level 4/5 segmentation.
PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
Product mapping in excel for the key product of all major market players
The global construction management software market report would provide an approximate 61 market data table, 55 figures and 195 pages
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