Source: Photo by RODNAE Productions
Amid today’s period of high inflation, the project management software market continues to thrive worldwide and none faster than in India and the Pacific. In a report by Future Market Insights, it was revealed that the global market is anticipated to increase from 5.9 billion in 2022 to $20.4 billion by 2032 at an annual growth rate of 13.1%.
Effective project management is known to mitigate the effects of inflation across industries, given that it fosters operational efficiency, thus raising demand for the software all over the world. With this, the project management market accounts for almost 35% of the sales of the entire business process management market.
North America occupies the heftiest slice of the market with a share of 28.5%. This comes as no surprise since the American and Canadian software markets are more mature compared to many of the markets in other countries, especially those in developing economies.
However, when it comes to growth, far more opportunities are opening up in South Asia and the Pacific. The region is projected to grow from 2022 to 2032 at an annual rate of 17.5%, higher than any other world region. As far as countries are concerned, India bears the highest growth potential, with its sales revenue expected to increase by a staggering 20.6% during the forecast period. The country has gone on to become one of the top five nations driving demand in the global market, joined by the United States, Germany, the United Kingdom, and Japan.
So, why do South Asia and the Pacific region bear the fastest growth?
Bustling Urban Development in India
India is a large country with a diverse culture and numerous areas of interest. This is reflected by the 141 airports that the country has, of which 137 are managed by the Airports Authority of India. The South Asian nation aims to add 80 more in the next five years and has granted approval for building 21 greenfield airports all over the country. Airports are often placed in developed areas or those with planned developments, thus more infrastructure projects will take place soon.
If we look at the numbers, India’s infrastructure output grew by 12.7% year-over-year in June. And it would likely increase even further thereafter, given the government’s airport initiative.
Project management platforms fit into all this since these are relied upon by developers and construction companies for work organization, task management, performance tracking, inventory management, and cost management. Construction companies can properly schedule projects, allocate manpower, and document deployed vehicles, materials, and equipment.
Meanwhile, developers leverage the project management software in India to map out their budgets, manage the promotional activities of properties, and for managing the tasks of designers and engineers to hand out project specifications to construction companies.
South Asian Project Management Initiative
Even though project management software is of the essence when dealing with urban development, some South Asian companies forego of these platforms due to budget and technical constraints. The Asian Development Bank (ADB) is ensuring that this won’t occur anymore.
The bank has an ongoing initiative to improve project implementation and portfolio performance in the region. Development projects are to receive capacity-building means for project management, procurement management, and financial management. Project management software platforms encapsulate and streamline these functions, thus making them probable components of ADB’s plan.
Currently, there are 178,905 companies using project collaboration software in India. This is a small number considering the country’s huge population and large number of businesses (1.48 million). ADB’s initiative and other similar projects can vastly increase the number of business users.
Higher Demand for Project Management in Construction
During the Future Market Insights report’s forecast period, project management investments in the building and construction sector have been found to have an estimated annual growth rate of 16.3%. This reflects the high demand for project management globally, especially in South Asia.
Nations in Southeast Asia can also find themselves in a similar scenario to that of India since their collective economies are slated for growth this year and next year. ADB anticipates 5.2% growth in 2022 and 5.3% in 2023 amid today’s global economic crisis. Project management is a part of this growth in view of the rapid urbanization and digital transformations taking place in the region.
Moreover, the demand for project management platforms will be driven by built-in budget management features, which keep users from overspending and accumulating cost overruns. Construction and development projects are surrounded by a wide array of transactions, from managing suppliers to project fund allocations, and having a top-tier system helps a lot in this regard.
Fueling the demand further is the competition among software providers, many of which are offering or developing modules and features that enhance the operations of construction companies and developers. As of October 2022, the platforms with the largest project management market share are Jira (43.3%), Microsoft Project (11.44%), Airtable (6.8%), Smartsheet (5.28%), Kanban (4.46%), Asana (3.08%), Notion Software (2.41%), and Hive (2.31%).
Meanwhile, recent project management software statistics show that G Suite (65.66%), Slack (14.12%), Microsoft Project (2.7%), Jira (2.38%), and Quip (1.47%) own the largest market share among project collaboration software providers.
South Asia and the Pacific are clearly key markets for the project management software industry. After all, the limited software penetration and rapid infrastructure development in these regions have opened the door of opportunity to providers. Enterprise software vendors that fail to capitalize on the aforesaid markets could find themselves with a smaller market share at the turn of the decade.
Why is FinancesOnline free?
Leave a comment!