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  • 35+ Essential Project Management Statistics: 2019 Analysis of Trends, Data and Market Share

35+ Essential Project Management Statistics: 2019 Analysis of Trends, Data and Market Share

Category: B2B News

Project management software constantly evolves with the emerging technologies and approaches to planning, budgeting, resourcing, data mining, time tracking and delivering projects. For example, look at how organizations have ceased choosing either agile or Waterfall project management methodologies and instead take the best of both worlds for a hybrid approach, a development that not many would have foreseen just a few years ago. Actual business needs demanded that project managers take a different route, and the results of extensive project management software research among developers yielded what we see now being implemented by project management practitioners.

These are just a few examples. Here we present the most pressing project management software trends to keep you abreast of industry best practices without having to expend your own precious time and resources. Take a look at how the industry and the practice have been shaping up these past few years and into the next few ones with this collation of project management software data and statistics.

project management statistics

1. State of the Industry Statistics

Looking at the state of the project management software industry, what would strike most analysts is how it has taken off slowly relative to other business tools. This, despite the proven efficacy of these applications in solving project management problems when implemented the right way. While many project managers in the past were justified to see project management tools as way too complicated with steep learning curves, recent strides have largely addressed this, with most project management software dashboards now getting as intuitive and easier to use as other software categories. The figures below suggest how you could put project management software to good use in your own business.

  • Organizations that use proven PM practices waste 28x less money than their counterparts. (CIO)
  • Only 58% of organizations fully understand the value of project management. (PMI – PDF download)
  • Only 22% of organizations use a project management software. (Wellingtone 2018 – PDF download)
  • The project management software market is expected to register a CAGR of 10.17% for the period 2019 – 2024. (Mordor Intelligence)
  • The project management software market size is projected to reach USD 6.68 billion by 2026 (Transparency Market Research)
  • The project management software market share is led by Jira at 39.35%, Microsoft Project at 18.66% and Smartsheet at 9.26%. (Datanyze)
  • The percentage of organizations using spreadsheets to manage projects dropped from 74% in 2017 to 67% in 2018. (VersionOne)
  • More respondents are somewhat or very dissatisfied with the current level of PPM maturity in their organization: 56% in 2018, up from 50% in 2017 and 45% in 2016. (Wellingtone 2018 – PDF download)
  • 9.9% of every dollar is wasted due to poor project performance—that’s $99 million for every $1 billion invested. (PMI, “Pulse of the Profession 2018”- PDF download)
  • 73% of businesses believe that reliability, ease of use, and ease of integration are the top three requirements to look for when investing in digital PM software, yet they believe that the solutions out there today do not have these 3 factors. (Hive)
  • 44% of project managers use no software. (PWC – PDF download)

2. Project Planning Statistics

Most projects live and die at the design and planning stage. Just the inability to make the most of project management big data could have you start with the wrong sourcing partners, undermining the success of your project early on. You could be using one methodology in one department, while the other departments use their own. These information silos will cost your business in the short and long run unless you begin to gather your teams and work your way to a standard methodology throughout the organization. A choice of dedicated software can also go a long way in this direction. There are project management solutions for developers and project management apps for small business, so get one that is designed for your case scenario.

  • 55% do not have access to real-time project KPIs. (Wellingtone 2018 – PDF download)
  • 60% of project managers report that they always apply a defined project methodology. (Wellingtone 2018 – PDF download)
  • Only 23% of cost reporting is generated from project management software. (PWC – PDF download)
  • 53% cite portfolio management capability as key to project success. (PWC – PDF download)

10 Primary Causes of Project Failure in 2017

Change in organization's priorities

%

Change in project objectives

%

Inaccurate requirements gathering

%

Inadequate vision or goal for the project

%

Poor communication

%

Poorly defined opportunities and risks

%

Inaccurate cost estimates

%

Inadequate sponsor support

%

Resource dependency

%

Inaccurate time estimate

%

Source: PMI

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3. Project Budget Statistics

One of the most prominent project failures, that of KMart’s colossal USD 1.2 billion IT modernization project, is a stark reminder for every business to keep a tight watch and control of project budgets. Take heed of how the best project management performers do it, something that you could also do with the help of the leading budget management tools out there.

  • 60% of projects are mostly or always completed on budget in 2018, up from 50% in 2016. (PMI, “Pulse of the Profession 2018” – PDF download)
  • 27% of projects go over budget. (Harvard Business Review)
  • 17% of IT projects turn into “black swan” with a cost overrun of 200% and schedule overrun of 70%. (Harvard Business Review)
  • Failed IT projects cost the United States USD 50–USD 150 billion in lost revenue and productivity. (Gallup)

4. Project Performance Statistics

Key factors to the best performing projects include well-trained professionals, the widespread adoption of PMOs, and doing your homework over project risk management. If your business finds it hard to implement effective training courses for your project managers, consider getting the help of outside professionals. If doing it in-house appeals more to you, consider investing in the most capable learning management systems instead.

  • 77% of high-performing projects use project management software. (PWC – PDF download)
  • 36% of projects mostly or always deliver their full benefits. (Wellingtone 2018 – PDF download)
  • When asked which activities their PMOs are mostly active with, 27% point to mentoring project managers. (Wellingtone 2018 – PDF download)
  • 62% always or mostly engage in risk management (Wellingtone 2018 – PDF download)
  • 40% of projects are mostly or always completed on time. (Wellingtone 2018 – PDF download)
  • Only 23% of organizations use standardized project management practices across the entire organization. (PMI – PDF download)
  • 50% spend 1 or more days annually collating project reports. (Wellingtone 2018 – PDF download)
  • 80% of organizations have 1 or more PMOs; 25% of these are less than 2 years old. (Wellingtone 2018 – PDF download)

Project Management Performance in 2018

Projects that met original goals

%

Project completed within budget

%

Project completed on time

%

Project experiencing scope creep

%

Projects deemed failures

%

Source: PMI

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5. Project Failure Statistics

If project reworks, out-of-sync project teams and executives, and haphazard business objectives are taking their toll on your business projects, it’s time to rethink and overhaul your overall implementation of project management across your organization. Perhaps your project managers and executives hold conflicting KPIs from the start, or not using the right time-tracking software to manage how workers handle their time and individual tasks.

  • 80% of respondents in a Geneca survey said that they spend half their time on rework. (Geneca)
  • An incredible 70% of organizations have suffered at least one project failure in the last 12 months. (KPMG – PDF download)
  • 50% of the reasons for project failure are attributed to bad estimates/missed deadlines, scope changes and insufficient resources. (PWC – PDF download)
  • 41% say inadequate sponsor support is the primary cause of project failure. (PMI, “Pulse of the Profession 2018”- PDF download)
  • 50% of respondents indicated that their project failed to consistently achieve what they set out to achieve. (KPMG – PDF download)
  • To the question which project management challenges showed the most significant increase, lack of funding came on top, at 71%. (Wellingtone 2018 – PDF download)

The future belongs to AI, machine learning and the Internet of Things. If you are not watching the latest project management statistics and trends, then don’t be surprised to see a startup or an old competition jumps ahead of your business in the pecking order of customers. Artificial intelligence in encroaching on every facet of businesses, and there are no signs that it will stop soon. Businesses are accumulating big data left and right, and only the best artificial intelligence software could make any sense of them, for example.

  • 87% of workers report that they expect AI to change their jobs in the next 3 years. (Atlassian)
  • 76% of workers say that some to half of their jobs could be performed by a robot, algorithm, AI device or other technology. (Atlassian)
  • Timekeeping tools will become more advanced to tackle the $7.4 billion lost every day due to ineffective documentation. (SelectHub)
  • Collaborative workspaces will increase in project management suites to address 60% of projects currently made up of dispersed teams. (SelectHub)
  • The gig economy will continue to rise; currently, more than 68% of organizations report using outsourced or contract project managers. (PMI, “Pulse of the Profession 2018”- PDF download)
  • Organizations will place more emphasis on soft skills, 51% of them reporting that soft skills are gaining more importance today. (PMI, “Pulse of the Profession 2018”- PDF download)
  • Organizations will increasingly rely on hybrid project management methodologies like Agile and Waterfall, the use of which has made them achieve goals 73% more often. (PMI, “Pulse of the Profession 2018”- PDF download)

Software Tools Typically Used to Manage Project Resources in 2017

MS Excel

Any available software tools

Enterprise Project Management software

Others

Resource Management software

MS Powerpoint

Source: Wellingtone.co.uk

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Future-proof your business with these industry insights

With your own business to mind and projects to attend to, use these pieces of critical project management software statistics to polish your project processes or, if you have been seeing drastic results from them, to commit sweeping changes completely. Project teams that use their own methodologies and go about with their own objectives hurt your ROI, and if your resources are limited, you might as well say goodbye to your business soon.

Knowing how to make project management software more efficient and getting it used by your key personnel should help you arrest some of the negative practices of your workers in the past. Many project management tools are specially designed to work with distributed groups, making it easy to share information and collaborate on tasks. You can even replace email communication with project management software to keep everyone in the loop. Moreover, many vendors allow you to test-drive their platform so you know whether it agrees with your own working patterns. Once you have decided on a specific solution, you can follow these 10 steps on how to successfully implement project management software.

By Nestor Gilbert

Senior writer for FinancesOnline. If he is not writing about the booming SaaS and B2B industry, with special focus on developments in CRM and business intelligence software spaces, he is editing manuscripts for aspiring and veteran authors. He has compiled years of experience editing book titles and writing for popular marketing and technical publications.

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