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Project Portfolio Management (PPM) Market Size, Share & COVID-19 Impact Analysis, By Component (Software and Services), By Deployment (On-premise, Cloud-based, and Hosted), By Enterprise Size (Large Enterprises and Small and Medium Enterprises (SMEs)), By Application (Project and Portfolio Governance, Portfolio Dashboards and Analytics, Visibility and Reporting, Resource Management, Financial Planning and Management, and Others), By Vertical (IT and Telecommunications, BFSI, Government, Engineering & Construction, Healthcare, and Others) and Regional Forecast, 2022-2029

Region : Global | Format: PDF | Report ID: FBI104257

 

KEY MARKET INSIGHTS

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The global Project Portfolio Management (PPM) market size was valued at USD 4.09 billion in 2021. The market is projected to grow from USD 4.29 billion in 2022 to USD 7.01 billion by 2029, exhibiting a CAGR of 7.3% during the forecast period. Based on our analysis, the global PPM market exhibited an average growth of 3.6% in 2020 as compared to 2019.


This software centrally manages multiple projects under one umbrella in an organization. The software helps manage and coordinate all aspects of a project. The system gives vital data through interactive dashboards to guarantee that the number of projects picked and finished fulfills company goals. As a result, this software is gaining popularity across all industries as it assists firms in meeting their strategic business goals.



  • According to a survey by the Project Management Institute in February 2018, firms waste around USD 1 million in revenue every 20 seconds due to poor project management practices and inefficient implementation of business strategies.


These solutions are in high demand due to the growing need to acquire a 360-degree perspective of the full project lifecycle. The use of cloud-based services for remote monitoring of project operations is expected to drive market expansion.


Digitization, remote working, and automation propel global market growth in government, engineering, construction, healthcare, BFSI, and IT & telecommunications. As a dynamic and hypercompetitive business environment, small vendors use these solutions to make faster and better decisions. SaaS PPM can be connected with existing business process management systems to provide additional functionality in a single solution. As a result, the solutions make substantial contributions to its adoption. Furthermore, the combined coordination of the software with application lifecycle management systems is expected to drive market growth.


COVID-19 IMPACT


Increased Market Readiness to Purchase Cloud-based Solutions to Boost the Market


The COVID-19 pandemic has significantly impacted all enterprises' operating activities. Offline business operations and initiatives are increasingly moving to a remote working environment. Project managers had begun re-evaluating their current project and portfolio management systems. As a result, the pandemic hindered the market’s progress.


According to a Mercer pulse poll performed in March 2020, only 22% of global organizations were ready for remote working before the COVID-19 pandemic. According to the report, 37% of employers introduced mandatory work from home (WFH) policies until March 2020, and 17% are required to work remotely for specific departments.


The market players are rethinking their long-term strategy. Companies are adjusting the composition of product portfolios, R&D initiatives, mergers and acquisitions, and other growth strategies in response to a range of problems that started in 2020, including supply chain disruption and demand swings, among other pressing issues. For instance,



  • In January 2021, Planview acquired Clarizen and Changepoint. With this purchase, Planview users will have access to the tools and resources required to plan and execute most critical initiatives effectively.

  • In September 2020, Bubble Ltd. announced that it was selected as a G-Cloud 12 supplier by the U.K. Government’s Crown Commercial Service Digital Marketplace for PPM services to the public sector.


Moreover, the increased market readiness to purchase cloud-based software, particularly fundamental project management platforms, could lead to even faster cloud adoption of the core portfolio management solutions and services than projected, resulting in stronger cloud and overall revenue growth in the coming years.


Furthermore, companies continue to extend innovation activities to assist long-term projects in potential strategic areas. For instance,



  • In March 2022, Planisware debuted several new products and features, including PM Go!, a lightweight project management and collaboration platform for "occasional" project managers.


Thus, the COVID-19 pandemic is laying the groundwork for future market growth.


LATEST TRENDS


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Increasing Adoption of Agile Practices in Businesses to Stimulate Market Growth


As project complexity increased, companies began to reassess their overall project management practices. In today's fast-paced environment, traditional waterfall projects do not always provide the best response to cost, equipment, activity, and resource management. Therefore, companies transform their business by transforming their organizational processes into an agile business model.


The agile business model has become one of the most common approaches to the systems as it provides highly cross-functional and collaborative project management.


The Scaled Agile Framework (SAFe) concept is gaining popularity throughout the industry. The framework provides a set of workflow templates designed to guide businesses in expanding agile and lean business practices. This method helps organizations of all sizes to maintain their capabilities in the most volatile business environments. Therefore, many organizations are changing their approach to agile projects and portfolio management frameworks.


Agile practices can be closely adapted to the ever-changing business needs of the dynamic digital market. Therefore, increasing agile practices are driving the market growth.


In addition, applying an agile approach allows companies to determine the value of a particular project and their ROI. The project manager can see the performance of the project in real-time and make changes as needed.


According to a study conducted by key market players, installing a modern solution based on agile principles saves an average of 37% on project lead time.


As a result, the global market is expected to grow during the forecast period.


DRIVING FACTORS


Rising Demand for Cloud-based Solutions to Fuel Market Growth


Cloud computing has evolved enormously in recent years, with many businesses shifting from client/server to cloud computing. Cloud-based tool integration promises important practical business applications such as remote access and monitoring, real-time data analytics, and automatic scheduling.


Furthermore, improvements in the cloud and cloud-based applications, as well as the rising reliance of contemporary business and company operations on cloud technology, have paved the way for the market to expand constantly throughout the projection period.


The key drivers driving the Project Portfolio Management system adoption include the demand for business optimization, the widespread use of portable computing devices, and the growing acceptance of cloud-based solutions. Organizations are looking for systems and services that provide real-time project updates to complete projects efficiently. The rise of cloud-based solutions is increasing the demand for remote portfolio management systems.


The subscription-based purchase model is increasing the demand for cloud solutions among small and medium-sized businesses as they cannot afford to adopt pricey solutions. Furthermore, cloud-based systems are becoming increasingly popular among large businesses due to their adaptable, scalable, and cost-effective architecture. Another important aspect driving the system adoption is the capacity of cloud-based systems to integrate corporate operations with business strategy.



  • In September 2020, Bubble Ltd. stated that the U.K. Government's Crown Commercial Service Digital Marketplace has recognized it as a G-Cloud 12 supplier for PPM solutions and services to the public sector.


Hence, the benefits of cloud-based project management solutions are likely to surge the demand for these tools in organizations.


RESTRAINING FACTORS


Lack of Data Confidentiality to Inhibit Market Growth


Data is widely regarded as the most valuable organizational asset, and it must be safeguarded against cyber threats. Organizations that adopt new advanced digital technologies expose their corporate data to risk.


No matter how well-prepared a business is to deal with cybercrime, these attacks will always be a problem. Every technology that promises to enhance corporate processes creates more entry points for hackers and cybercriminals into IT systems. This factor acts as a primary barrier to organizations adopting cloud Project Portfolio Management systems. Small and medium-sized businesses can readily use low-cost public cloud services. These services, however, are more vulnerable to cyberattacks and security concerns, whereas small businesses cannot afford a private cloud due to budget limits.


Furthermore, the availability of project management tools on mobile devices makes them more vulnerable to hacks and data leakage.


As a result, firms in highly regulated industries are hesitant to implement current solutions due to budget limits or data security concerns.


Thus, the aforementioned factors are hampering the Project Portfolio Management (PPM) market growth.


SEGMENTATION


By Component Analysis


Acceptance of Project Portfolio Management (PPM) Solutions by IT Vendors to Surge Software Demand


Based on component, the market is bifurcated into software and services.


Among these, the software segment can hold the largest market share due to IT vendors' high acceptance of these solutions. This software is experiencing enormous demand in all industries. Demand for cloud-based software continues to grow due to additional features with flexible pricing packages.


The services segment is further subdivided into integration and deployment, training and consulting, and support & maintenance. The growing demand for portfolio program customization is a major driver of integration and delivery services. Program mobilization, agile conversion, and recovery will increase the demand for delivery services. Training and consulting services have the potential to grow as they need to understand the proper use of advanced portfolio management systems. Support & maintenance services are another important contribution to these solutions and services.


By Deployment Analysis


Flexibility and Scalability Features of SaaS Model to Drive Cloud-based Project Portfolio Management (PPM) System Demand


Based on deployment, the market is segmented into on-premise, cloud-based, and hosted.


The cloud-based segment is likely to show the highest CAGR in the forecast period, owing to the rising recognition of Software as a Service (SaaS) PPM system. Cloud-based software is projected to witness increasing demand due to its flexible pricing models, maintenance packages, easy upgradability, and easy accessibility. Cloud-based solutions are also in high demand due to their scalability, flexibility, and low cost. With a hosted deployment strategy, SaaS is simple and quick to install.


The hosted service model is becoming increasingly popular due to benefits such as increased uptime, reliability, technical support, and cost savings. As a result, the hosted segment is expected to develop significantly over the projection period.


In-house apps can simply be connected with on-premise software. Moreover, the on-premise deployment's safe and comprehensive data control capabilities are projected to promote adoption during the forecast period.


By Enterprise Size Analysis


Large Businesses to Hold Major Market Share Owing to Need for Managing Large, Distinct, and Complex Workflows


Based on enterprise size, the global market is segmented into large enterprises and Small and Medium Enterprises (SMEs).


This software adoption is higher in large businesses than in small and medium enterprises. The increased popularity of Project Management Offices (PMOs) among large corporations is a major factor driving the adoption of this software. Large corporations are enticed to embrace advanced PPM solutions by the prospect of completing several projects to maintain commercial competency. Large enterprises are also enticed to implement a centralized portfolio management platform by complex workflows, a large number of resources, and increased rivalry. As a result, the market is projected to be driven by the growing requirement to manage business portfolios to achieve high growth.


Small and medium enterprises are being enticed to use modern business agility solutions due to technology acceptance driven by digitization. Furthermore, the cloud-based PM systems’ flexible and economical subscription packages enable SMEs to adopt this software.


By Application Analysis


Dynamically Changing Business Portfolios to Escalate Tools’ Demand for Portfolio Dashboards and Analytics


Based on application, the market is classified into project and portfolio governance, portfolio dashboards and analytics, visibility and reporting, resource management, financial planning and management, and others.


Organizations are gradually adopting a new set of tools for effective project management. The demand for Project Portfolio Management is being fueled by the increased need to regularly monitor the success of active programs or projects against set criteria.


The portfolio dashboards and analytics segment is expected to grow at the highest CAGR during the forecast period. Portfolio management tools allow project activities to be prioritized in accordance with the changing business needs and objectives. Today's fast-paced corporate infrastructure requires a system for managing a dynamic business portfolio. Effective portfolio management is critical for maintaining corporate agility in a rapidly changing environment.


Resource management and demand management are the primary drivers driving the overall market growth. Businesses can reach their daily targets and commercial goals by efficiently utilizing resources throughout their active work hours. The most important part of business success is choosing the correct project.


As a result, market growth is projected to be aided by the demand for operations and resource management apps.


By Vertical Analysis


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IT and Telecommunication to Hold Significant Market Share Owing to Increasing Demand for Project Management Offices (PMOs)


Based on vertical, the market is classified into IT and telecommunication, BFSI, government, engineering & construction, healthcare, and others.


Growing outsourcing activities and multiregional operations complicate banking operations, thereby driving the adoption throughout the banking industry.


Project Management Offices (PMOs) are becoming a must for IT and telecommunications firms to maintain their business competency. Increasing corporate rivalry, changing company needs, and expanding business networks motivate IT suppliers to implement advanced project and portfolio management systems. The growing requirement to coordinate resources and projects as business goals change is driving the widespread product adoption in the IT and telecommunication industry.


The healthcare industry is taking a rigorous approach to PPM to plan, organize, and execute healthcare portfolios systematically. As the solutions advance, the healthcare industry will see a boom in demand for PPM systems.


REGIONAL INSIGHTS


North America Project Portfolio Management (PPM) Market Size, 2021 (USD Billion)

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Geographically, the market is divided into five key regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.


North America is anticipated to lead the Project Portfolio Management market share. High penetration of advanced technologies, such as cloud, artificial intelligence (AI), and others, is boosting the growth of the software in North America. Cloud-based solutions offer robust processing and easy access to the Project Portfolio Management for organizations, thereby fueling the market.


Similarly, SMEs' growing adoption of cloud solutions would propel the market growth. Prominent players in the industry, such as Oracle Corporation, Microsoft Corporation, Adobe (Workfront), Hewlett Packard Enterprise Development LP, Broadcom Inc., ATLASSIAN, Planview, Inc., and others, are focusing on acquisitions and product launches, which is likely to propel the market growth in the region. For instance,



  • November 2020 - ServiceNow acquired AI startup, Element AI, to provide more automation and intelligence to the workflow platform of the large cloud computing vendor.

  • April 2020 - Planview, Inc. collaborated with Cherwell Software, LLC to promote its PPM platform. The improved Cherwell's IT service management solution can assist firms in providing their clients appropriate products and services.


Asia Pacific is predicted to grow at the highest CAGR of 10.3% during the forecast period. The Asia Pacific market is highly fragmented, owing to the increasing number of players, whose major focus is to expand their geographical presence. Acceptance of technology and growing digitization are two significant aspects that would most likely favor the market expansion in APAC. Cloud-based solution usage is expected to drive SaaS PPM demand across the region. As a result, the market in Asia Pacific is expected to increase significantly during the forecast period by offering customized services to clients across developing nations worldwide.


Promising opportunities for business process digitization are likely to fuel significant industry expansion across Europe. Leading corporations seek to build and grow their regional commercial networks. This expanding network of suppliers is validating the market's strong expansion. The demand for this solution is likely to rise across the region as mobile devices and cloud-based solutions become more widely adopted.


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Several Middle Eastern organizations have already implemented advanced business models to ensure long-term business success. The region's Project Portfolio Management (PPM) market growth is likely to be accelerated by the transformation of business models to achieve optimal business goals.


KEY INDUSTRY PLAYERS


Key Players Emphasize on Advanced Project Portfolio Management (PPM) to Strengthen their Positions


The global market comprises a vibrant start-up ecosystem. The market is expected to have 100+ start-ups developing and innovating PPM solutions and services for consumers. Such a fragmented market is likely to create intense competition by forcing existing companies to upgrade and adopt new developments in offerings continuously. Hence, increasing competition is likely to increase market size, creating more opportunities for market players. For instance,



  • In February 2022, Oracle unveiled a new solution called workflow manager, which would assist field service teams in providing consistent and effective support.

  • In July 2020, SAP partnered with Siemens to deliver Siemens' Teamcenter software as the primary base for product data management. Siemens will provide SAP Intelligent Asset Management solutions and Project Management and SAP Portfolio apps, which will increase client business value across the service and product lifecycle.


List of Key Companies Profiled:



  • Oracle Corporation (U.S.)

  • Microsoft Corporation (U.S.)

  • SAP SE (Germany)

  • Adobe (Workfront) (U.S.)

  • Hewlett Packard Enterprise Development LP (U.S.)

  • Broadcom Inc. (U.S.)

  • ServiceNow (U.S.)

  • HEXAGON AB (Sweden)

  • ATLASSIAN (U.S.)

  • Planview, Inc. (U.S.)


KEY INDUSTRY DEVELOPMENTS:



  • November 2020 – Codleo Consulting launched a proprietary cloud-based project management application for SMEs called ProjecLeo. The app is equipped with powerful project planning and scheduling features with collaboration tools for teams.

  • June 2020 – Microsoft Corporation offers project management software on a month-to-month basis. The availability of software tailored to the preferences of customers is projected to boost productivity and business across the globe.

  • April 2020 – Planview, Inc. collaborated with Cherwell Software, LLC to promote its PPM platform. The improved Cherwell's IT service management solution can assist firms in providing their clients the appropriate products and services.

  • March 2020 SAP SE added new templates to its project management tool, Ruum, to assist individuals and enterprises in planning and preparing for COVID-19.

  • November 2019 Broadcom and Infosys strengthened their partnership, delivering industry-first solutions for SAP S/4HANA customers in the areas of business process automation, AIOPS, and testing.


REPORT COVERAGE


An Infographic Representation of Project Portfolio Management (PPM) Market

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The market research report includes prominent areas across the globe to get a better knowledge of the industry. Furthermore, it provides insights into the most recent industry and market trends, as well as an analysis of technologies that are being adopted quickly on a global scale. It also emphasizes some of the growth-stimulating restrictions and elements, allowing the reader to obtain a thorough understanding of the industry.


REPORT SCOPE & SEGMENTATION






























































  ATTRIBUTE



  DETAILS



Study Period



2018-2029



Base Year



2021



Estimated Year



2022



Forecast Period



2022-2029



Historical Period



2018-2020



Unit



Value (USD Billion)



Segmentation



By Component, Deployment, Enterprise Size, Application, Vertical, and Region



By Component




  • Software

  • Services

    • Integration and Deployment

    • Training and Consulting

    • Support and Maintenance





By Deployment




  • On-premise

  • Cloud-based

  • Hosted



By Enterprise Size




  • Large Enterprises

  • Small and Medium Enterprises (SMEs)



By Application




  • Project and Portfolio Governance

  • Portfolio Dashboards and Analytics

  • Visibility and Reporting

  • Resource Management

  • Financial Planning and Management

  • Others (Time and Risk Management)



By Vertical




  • IT and Telecommunications

  • BFSI

  • Government

  • Engineering & Construction

  • Healthcare

  • Others (Manufacturing and others)



By Region




  • North America (By Component, By Deployment, By Enterprise Size, By Application, By Vertical, and By Country)

    • U.S. (By Vertical)

    • Canada (By Vertical)

    • Mexico (By Vertical)



  • South America (By Component, By Deployment, By Enterprise Size, By Application, By Vertical, and By Country)

    • Brazil (By Vertical)

    • Argentina (By Vertical)

    • Rest of South America



  • Europe (By Component, By Deployment, By Enterprise Size, By Application, By Vertical, and By Country)

    • U.K. (By Vertical)

    • Germany (By Vertical)

    • France (By Vertical)

    • Italy (By Vertical)

    • Spain (By Vertical)

    • Russia (By Vertical)

    • Benelux (By Vertical)

    • Nordics (By Vertical)

    • Rest of Europe



  • Middle East & Africa (By Component, By Deployment, By Enterprise Size, By Application, By Vertical, and By Country)

    • Turkey (By Vertical)

    • Israel (By Vertical)

    • GCC (By Vertical)

    • South Africa (By Vertical)

    • North Africa (By Vertical)

    • Rest of Middle East & Africa



  • Asia Pacific (By Component, By Deployment, By Enterprise Size, By Application, By Vertical, and By Country)

    • China (By Vertical)

    • Japan (By Vertical)

    • India (By Vertical)

    • South Korea (By Vertical)

    • ASEAN (By Vertical)

    • Oceania (By Vertical)

    • Rest of Asia Pacific





Frequently Asked Questions

The market is projected to reach USD 7.01 billion by 2029.

In 2021, the market stood at USD 4.09 billion.

The market is projected to grow at a CAGR of 7.3% in the forecast period (2022-2029).

By deployment, the cloud-based segment is likely to lead the market.

Rising demand for cloud-based PPM solutions to fuel the market growth

Oracle Corporation, Microsoft Corporation, SAP SE, Adobe (Workfront), Hewlett Packard Enterprise Development LP, Broadcom Inc., ServiceNow, HEXAGON AB, ATLASSIAN, and Planview, Inc. are the top players in the market.

North America is expected to hold the highest market share.

By application, the portfolio dashboards and analytics segment is expected to grow with the highest CAGR.

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