Project Portfolio Management (PPM) Market Size, Share & Industry Analysis, By Component (Software and Services), By Deployment (On-Premise, Cloud-based, and Hosted), By Enterprise Type (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, 2024-2032

The global project portfolio management (PPM) market size was valued at USD 4.74 billion in 2023 and is projected to grow from USD 5.04 billion in 2024 to USD 9.23 billion by 2032, exhibiting a CAGR of 7.9% during the forecast (2024-2032). North America accounted for a market value of USD 2.37 billion in 2023. This software centrally manages multiple projects under one umbrella in an organization. It 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 fulfils company goals. As a result, the demand for project portfolio management is rising across all industries as it helps firms in meeting their strategic business goals.

• According to a survey by the Project Management Institute’s pulse survey, inefficient project management processes cause nearly 12% wastage of organizational resources.

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. In 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.

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.

Project Portfolio Management Market Trends

Increasing Adoption of Agile Practices in Businesses to Stimulate Market Expansion

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.

In most enterprises, two or more project management prototypes are implemented. Agile, Scaled Agile, or Waterfall methods are some of them. Depending on the kind of programs or projects users manage, there would be times when an Agile management model works best. As adaptive and Agile elements are integrated into portfolio management, the delivery model evolves and works more efficiently.

Hence, 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 market growth.

In addition, applying an agile approach allows companies to determine the value of a particular project and its ROI. It also allows the project manager to overview the performance of the project in real time and make modifications as required.

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.

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Project Portfolio Management Market Growth 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 cloud-based PPM offers various features and benefits, such as mobile accessibility, actual-time analytics and reporting, incorporation with enterprise environment, scalability for changing workloads, AI-powered project understandings, and many others.

Cloud-driven PPM also enhanced security measures. The necessity to protect the safety of precarious project information stored in the cloud, robust encryption, multiple-factor authentication, and compliance with business requirements are all applied. This results in trust in enterprises that are using cloud-based PPM solutions, predominantly in industries that have robust requirements for data safeguarding.

The subscription-based software model has been driving the demand for cloud solutions among SMEs as they cannot afford to adopt expensive 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.

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 Demand for Project Portfolio Management Systems

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

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-based PPM systems. Small and medium enterprises can readily use low-cost public cloud services. However, these services are more vulnerable to security concerns and cyberattacks, 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 market growth.

Project Portfolio Management Market Segmentation Analysis

By Component Analysis

Acceptance of 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 holds 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.

By Deployment Analysis

Flexibility and Scalability Features of SaaS Model to Drive Cloud-based Project Portfolio Management 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 over the forecast period due to the rising recognition of Software as a Service (SaaS) PPM software. Cloud-based software is projected to witness increasing demand due to its flexible pricing models, maintenance packages, easy upgradability, and easy accessibility. In addition, cloud-based solutions are also popular owing to their low cost, flexibility, and scalability. SaaS is simple and quick to install, with a hosted deployment strategy.

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 Type Analysis

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

Based on enterprise type, the 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 through 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 flexible and economical subscription packages of cloud-based PM systems 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 anticipated to expand at the highest CAGR between 2024 and 2032. 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 adoption of products 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

The global market scope is classified across five regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

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North America is anticipated to lead the project portfolio management market share. The high penetration of advanced technologies, such as cloud computing, artificial intelligence (AI), and others, is driving the growth of software in North America. Cloud-based solutions offer robust processing and easy access to project portfolio management for organizations, thereby fueling the market.

Similarly, SMEs' growing adoption of cloud solutions would propel the market growth. Major 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 product launches and acquisitions, which are likely to propel the market growth in the region. For instance,

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Asia Pacific is predicted to grow at the highest CAGR of 10.6% during the forecast period. The Asia Pacific market is highly fragmented due to the increasing number of players whose key focus is to increase 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 boost the SaaS PPM demand in 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.

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

List of Key Companies in Project Portfolio Management Market

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

There is a vibrant ecosystem for start-ups in the global market. The market is supposed to have 100+ new companies creating and improving PPM software and services for customers. Due to the fact that existing businesses will be compelled to upgrade and adopt new offerings continuously, such a fragmented market is likely to result in intense competition. Therefore, rising competition is probably going to increase market size, setting out additional opportunities for market players. For instance,

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

• March 2023 - Cora Systems announced a collaboration agreement with Aer Soléir to make use of the Cora platform as its PPM solution (project portfolio management). Aer Soléir is a renewable energy company based in Dublin that focuses on constructing, developing, and functioning a numerous gigawatt pipeline of renewable energy plans across European countries.


• March 2023 – SAP unveiled an update on the compatibility range for project management and enterprise portfolio. The SAP S/4HANA 2023 released the modernization of certain compatibility range elements for Portfolio and Project Management (PPM) and Project System (PS).


• March 2023 – OnePlan, a key provider of strategic portfolio management software, announced the launch of its new agile portfolio management solution, which supports Jira's capabilities. This new solution is intended to assist businesses in gaining portfolio visibility and control, aligning work with strategic objectives, and making data-driven decisions.


• February 2023 – Synami announced the launch of PPM Core, a cloud-driven platform for combined projects and PPM, expanding Synami’s aim to combine teams for project achievement. PPM Core links all the project members and info in a way that enables seamless teamwork across teams, projects, and companies.


• January 2023 - Projectmates, a SaaS-based project management software provider for business construction, was acquired by Hexagon AB. As a result, Projectmates worked as a part of Hexagon's Geosystems division and served different sectors and groups of clients with more than 100,000 ongoing projects in North America.

REPORT COVERAGE

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The 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.

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