The infrastructure bills that were proposed by the president and passed by the current Congress have caused a stir as companies gear up to bid and build the roads, airports, bridges, ports, and other necessary structures around the country. Some of these projects will be the largest a given company has ever attempted and many are turning to technology, specifically construction management applications, to help with the build and improve their profits.
In 2020, the construction industry was severely impacted by the outbreak of COVID-19 across various countries, which, in turn, adversely impacted the demand for construction materials. However, with the resumption of construction activities, after nationwide lockdowns in Q3 2020, the construction management software market is expected to witness upward growth during the forecast period.
The result is that the construction management software market share is set to grow by $1.13 billion from 2021 to 2026, progressing at a CAGR of 8.51% as shown in the latest market report by Technavio. Technavio categorizes the construction management software market as a part of the global application software market. Their research covers external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the construction management software market. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Among the findings:
- Major Driver – The increasing requirements for large-scale project management is one of the key drivers supporting the construction management software market growth. Currently, organizations are focusing on cultivating and managing the resources necessary for efficient product outputs, which increases the requirements for large-scale construction project management solutions. The primary purpose of the construction management software is to automate processes to ensure maximum outputs by managing resources and maintaining a regular follow-up.
- Major Challenges – Open-source platforms are the factors hindering the construction management software market growth. With the increasing need for digitalization in the current market, the demand for open-source software has increased in the market. Open-source vendors provide a wide range of business analytics tools and applications, feature-rich software freely available via the internet. Several small and emerging enterprises use them as the purchasing and licensing costs of commercial software are high.
Key Construction Management Trends
The integration of estimating and accounting software is one of the key construction management software market trends. This type of integration is designed particularly for sub-contractors to enhance their productivity and increase profits. The integrated construction management software enables vendors to issue purchase orders and change orders, pull and populate employee information, and handle material costs, cost codes, and contacts. This integrated software significantly enhances the communication between the accounting staff and employees who are in the field.
With the increasing need for digitalization, the demand for open-source software has increased. Buildtools, and LetsBuild are a couple of the common open-source construction management software available in the market. Such easy availability of open-source platforms will limit the market growth of commercial applications during the forecast period.
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