Project Portfolio Management Market Size, Share & Trends Analysis Report By Offering (Software, Service), By Deployment (Cloud, On-premise), By Enterprise Size, By End Use, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global project portfolio management market size was valued at USD 4.2 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 13.4% from 2020 to 2027. The growing adoption of cloud-based services for the remote monitoring of assignments is an essential factor that is expected to contribute significantly to market expansion. Surge in activities such as automation and digitalization across industries including healthcare, government, BFSI, telecom, and engineering and construction has stimulated the need for monitoring and analytical solutions to increase productivity and business efficiency. This is significantly encouraging the implementation of project portfolio management (PPM) solutions.

The growing complexities in projects and the need for timely and efficient management are expected to drive the market growth over the forecast period. Furthermore, the need to gain a 360-degree view of project operations and resource management is driving the demand for PPM solutions. The software helps in collaborative scheduling, planning, and faster and efficient decision-making. Additionally, a surge in the trend of bring your own device (BYOD) coupled with the growing focus of organizations on attaining faster Return on Investment (ROI) are the key factors driving the market growth.

The project portfolio management software assists businesses to improve productivity, increase the pace of innovation, and adapt to the rapidly shifting economic scenario and competitive dynamics. Additionally, the PPM software offers capabilities such as time tracking, data analytics, and cost management. Increasing penetration of connected devices in emerging economies such as Brazil, China, and India is expected to keep the industry’s growth prospects upbeat. Increasing investments in research and development activities have encouraged the development of innovative solutions such as mobile application-based project portfolio management solutions, enabling access to an extensive consumer base. All these factors are propelling the growth of the PPM market.

Project portfolio management is a useful solution as it improves the organization’s adaptability toward change and makes it easy to introduce new projects. Additionally, review and monitoring techniques are introduced to track projects for anomalies and delays and invoke necessary steps to streamline them and subsequently achieve higher returns. Furthermore, with the help of PPM solutions, the companies can emphasize more on achieving targets by focusing on strategies instead of the project operations itself. Additionally, it provides techniques such as scoring techniques, heuristic model, visual, or mapping techniques for assessment of different projects.

Growing competition worldwide is pushing companies to lessen the project cost, which in turn is boosting the use of project portfolio management. However, security and privacy issues especially in case of cloud deployment are the major challenges faced by companies while executing PPM solutions. Furthermore, complexity and cost issues involved with project portfolio management solutions are also among the major hurdles to its widespread adoption. These factors are anticipated to adversely impact the adoption of PPM solutions.

Project Portfolio Management Market Trends

Rising digitization and the growing popularity of automation have propelled the demand for analytical & monitoring solutions in multi-regional businesses, supporting the market growth. The Project Portfolio Management (PPM) market is poised to grow considerably in the forecast period due to the rising need for project management software & services to effectively manage and reduce project complexities. Furthermore, rising public & private investments in R&D activities have boosted innovative solutions development, including mobile application-based project portfolio management solutions allowing firms to reach an extensive consumer base.

The increasing usage of PPM solutions in data management services and the growing trend of Bring Your Own Device (BYOD) among multiple business sectors are some vital factors driving the project portfolio management market growth. PPM solutions assists firms in budget alignment, reduces project delivery downtime, and enables efficient resource utilization. Due to these benefits, PPM solutions are adopted in various sector such as BFSI, engineering & construction, IT & telecom, and government. Integration of AI technologies in PPM software for multiple tasks automation enables the project managers to focus on other essential duties and achieve the project's strategic goals. Various companies are digitizing their operations with increasing internet penetration for expansion of their business network as well as client base, enhancing industry statistics.

The rising integration of cloud-based solutions due to its various benefits, such as improved productivity & collaboration, easy accessibility, and low maintenance, is creating a positive market outlook across the globe. Moreover, different business firms highly emphasize elevating project cost efficiency without compromising functionality, creating robust market opportunities for cloud-based solutions. Various market players are investing in their R&Ds to develop cloud-based project portfolio management solutions. For instance, in May 2022, DigitalOcean Holdings, Inc. launched serverless cloud-based project management solutions enabling scalable, cost-effective, and fast compute solutions for startups and small businesses.

Changing business needs and significant industry rivalry force companies to modify their business operations to meet evolving market demands. For this, companies from various sectors prefer project portfolio management services to increase the productivity of their business operations and acquire a higher market share. Industry participants are adopting diverse business strategies to enhance their service offerings in the market and attract potential business clients. For instance, in December 2021, Planisware Inc., a project portfolio management provider, partnered with EOS Software to incorporate EOS Integrated Technology Portfolio Management (ITPM) solution in Planisware Inc.'s business operations.

Security risks associated with cloud-based platforms are key market factors restricting the market growth. Increasing unauthorized access activities for data breaching & data-stealing results in significant data & financial losses to the organizations. These activities have challenged enterprises in managing privacy & digital security, such as risk management, compliance issues, and rigid technical infrastructure. Market players are enhancing their in-house software development process and implementing various security protocols to improve the security of their project portfolio management software & services. Industry participants are launching security updates frequently for their existing customers to improve their project portfolio management software & services capabilities to defend against evolving digital threats.

Offering Insights

The service segment comprises integration and deployment, support and maintenance, and training and consulting services. The service segment is anticipated to witness rapid growth over the forecast period. The surging demand can be attributed to the innovative services offered by the market players such as process assessment, process improvement, and reporting and analysis. Developments in project portfolio management services such as on-the-job communication facility, assignment governing policies, and program facilitation services help organizations in comparing macro-environmental factors that lead to increased productivity and ROI.

The support and maintenance service segment are expected to exhibit the fastest growth during the forecast period. The growing trend of the implementation of project portfolio management solutions across Small and Medium Enterprises (SMEs) has favorably impacted the need for support and maintenance services. These services facilitate project scoping, planning, and change administration practices that make business operations in SMEs more efficient. Furthermore, the growing trend of organizations adopting cloud-based operation services has promoted the growth of this segment.

Deployment Insights

The on-premise segment dominated the project portfolio management market in 2019 as it has been a classical approach that has existed since the beginning of the computer age. On-premise solution offers total control over the software as all sensitive data is stored internally and there is no risk of exposing it to a third-party. On-premise deployment further enables more options for customizations. However, the companies are increasingly shifting toward the usage of cloud-based solutions as on-premise solutions have higher operational costs. The other factor is the high maintenance requirements as it becomes the organization's responsibility to upgrade and scale the solution when required.

The cloud segment is expected to witness phenomenal growth over the forecast period. Cloud-based solutions offer cost efficiency and flexibility, due to which the user preference for the adoption of these solutions is higher. Cloud systems offer a greater level of scalability, reduced cost of implementation, and continual development. The deployment of cloud-based solution stimulates the ease of service delivery due to its virtual presence that makes organizations access data across connected devices at any point in time. Moreover, cloud-based PPM solutions facilitate higher control over operations across multiple business channels. These benefits are expected to drive the adoption of cloud PPM solutions across verticals.

Enterprise Size Insights

The small and medium enterprise segment is expected to expand at the highest CAGR over the forecast period. The growth in foreign investments toward SMEs is expected to drive the growth of the segment. The growing SMEs in emerging economies and increasing penetration of information technology services is further contributing to the segment growth. These solutions offer effective monitoring and control of business functions and help in business optimization and decision making for SMEs.

The large enterprise segment is expected to dominate the market over the forecast period. This can be attributed to the availability of high capital and affordability, allowing large organizations to adopt PPM solutions. Large enterprises are investing heavily in participating in today’s competitive industry and are continually undertaking several projects to add innovative product lines or replace and improve existing processes/products. Thus, in a bid to gain a competitive edge, a large enterprise segment is expected to drive the adoption of project portfolio management solutions over the forecast period.

End-Use Insights

Project portfolio management solutions facilitate the BFSI industry in managing customer transaction data due to its complex multi-regional operation. Technological proliferation in the BFSI industry, such as mobile banking and e-banking, have encouraged the implementation of project portfolio management solutions. Furthermore, the usage of other services by banks such as debit, credit, and centralized fund managing system has led to the usage of these solutions for database monitoring. These solutions facilitate in monitoring transactional data, customer information, and subsequently help in providing high transparency.

The healthcare segment is expected to witness significant growth over the forecast period. The healthcare industry faces many issues, such as the unreliable quality of data owing to various complicated projects. Hence, vendors are offering PPM solutions to this sector for reducing the costs and improving patient care and quality, reducing the equipment installation time, decreasing readmission rates, accelerating automation of electronic medical records (EMR), and minimizing waiting time to optimize revenue cycles. Owing to these factors, the healthcare segment is witnessing a surge in the adoption of PPM solutions for meeting market demand, delivering uninterrupted patient care, and sustaining costs.

Regional Insights

North America dominated the project portfolio management market, with the largest revenue share of 43.5% in 2020. The region is expected to continue its dominance over the projected timeline owing to the considerable infrastructure advancements and propagation of startup companies. Different industrial companies operating in the region are implementing business intelligence & analytics solutions, and analytics-based strategies are playing a vital role in driving the market growth. Moreover, companies with digital infrastructure are using PPM solutions to initiate collaborative decision making to enhance their project success rate in the region.

In the U.S., various end-use sectors such as healthcare, manufacturing, BFSI, and construction are adopting project portfolio magnet services to efficiently manage the overall business operations and eliminate the extra costs. This has created a favorable environment for market expansion in the U.S. Industry players operating in the region are adopting business strategies such as mergers & acquisitions to enhance their service offerings and client base. For instance, in December 2021, Tempo Software acquired ALM Works for an undisclosed amount to assist its clients in making better decisions for their projects in Massachusetts.

Considerable technological advancements, shifting companies focus on digitizing their operations, and emerging startups are creating a positive market outlook in France. Cloud-based services are becoming popular in the region owing to their cost-effective, scalable, and flexible architecture. Market players are establishing a strategic partnership to introduce cloud-based project management solutions to increase their net sales. For instance, in May 2021, Capgemini collaborated with Orange to form a new company, Bleu, for cloud services in France. This company will provide holistic project portfolio management and cloud services to companies with strong adherence to French state sovereignty requirements in France.

Key Companies & Market Share Insights

The market is characterized by the presence of several big players that hold a significant market share. The market is highly competitive in nature. Major players are emphasizing on either acquiring or forming collaborations with small players to share business intelligence and expertise. For instance, in March 2018, Planisware acquired software publisher NQI to expand its cloud solutions portfolio and increase its customer base in the market. With NQI’s Orchestra PPM solution, Planisware is now capable to cover a wider range of needs. Orchestra PPM’s business model aims at cloud delivery and its adoption. Planisware’s Orchestra team is aiming on its product advancement efforts by improving UI/UX, hybrid PPM use cases, and work management. Some of the prominent players in the project portfolio management market include:

• Broadcom

• Celoxis Technologies Pvt. Ltd.

• Changepoint Corporation

• HP Development Company, L.P.

• ServiceNow

• Planview, Inc.

• Planisware

• Microsoft

• Oracle

• Workfront, Inc.

Project Portfolio Management Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global project portfolio management market report based on offering, deployment, enterprise size, end use, and region.

• Offering Outlook (Revenue, USD Million, 2016 - 2027)

  • Software

  • Service

    • Integration & Deployment

    • Support & Maintenance

    • Training & Consulting

• Deployment Outlook (Revenue, USD Million, 2016 - 2027)

  • Cloud

  • On-premise

• Enterprise Size Outlook (Revenue, USD Million, 2016 - 2027)

  • Large Enterprise

  • Small & Medium Enterprise

• End-Use Outlook (Revenue, USD Million, 2016 - 2027)

  • BFSI

  • Government

  • Engineering & Construction

  • Healthcare

  • IT & Telecom

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • MEA