Project portfolio management is a method that enterprises are using to analyze the feasibility of a project, the probability of increasing project, the planned outcomes, and the accessibility of funds. PPM allows an organization to carry out tasks by gathering useful knowledge according to a series of requirements. Project portfolio management does not involve managing the project but enables them to choose which project to conduct and how to finance it. It makes the transaction from reactive to proactive. In addition, it also helps in engaging with the stakeholders with the cleared vision and communications. The project profile management (PPM) software provides real-time information and analytics. Projects are regularly analyzed with the help of PPM to make sure the project stays on track. PPM also makes it easier to identify adequate support and team.
The global project portfolio management market size was valued USD 4.09 billion in 2019 and projected to reach USD 10.67 billion by 2027, growing at a CAGR of 12.73% during the forecast period of 2020-2027 due to the mounting uncertainty of projects and the need for efficient and timely management. In addition, the rise in research and development activities across the globe is also projected to drive the global market. Furthermore, the surging adoption of cloud-based services is estimated to fuel the growth of the project portfolio management market at a considerable rate. Moreover, as the Agile project management strategies begin to gain steam, project managers may need to consider creative ways to combine various methods and have a cohesive vision of leadership, which is predicted to boost the market across the region. Additionally, the growth in the BYOD, coupled with the increasing focus on attaining faster ROI, is anticipated to drive the global market.
However, concern regarding the confidentiality of data is estimated to hinder the growth of the project portfolio management market at a significant rate across the globe. In addition, the amalgamation of the modern project portfolio management systems with legacy systems and discover the right solution which aligns with the business needs of the organization is projected to create obstacles in the growth of the global market.
The rising urbanization is likely to boost the global project portfolio management market at a significant rate. Urbanization applies to the increasing number of citizens residing in urban areas as compared to the rural areas. It results primarily in the functional increase in metropolitan areas. Urbanization’s involvement in development arises from the two causes: the gap among the rural and urban productivity rates and more steady productivity transition in the cities. By 2045, the population of urban city residents is expected to grow by 1.5 times to 6 billion and add 2 billion more urban residents. Furthermore, more than 80% of global city-generated GDP and urbanization is projected to contribute towards the sustainable expansion by raising productivity, enabling technological development to emerge, and new ideas, which are estimated to the global market.
The rising advancement in technology is anticipated to drive the project portfolio management market at a considerable rate. Over the past couple of decades, the advancement in technology has seen tremendous growth. In one of the surveys, it is estimated that about 14 % of major organizations used AI in 2019, up from 3% in 2018, which is further predicted to grow to 23% by the end of 2020. The growing trend of upgradation of technology helps the employees to increase the productivity and monitoring of real-time projects. In addition, the occurring of innovative developments in the sectors of the Internet of Things, artificial intelligence, and machine learning, almost all company has moved via a tectonic shift from the healthcare industry to the education industry. In 2022, Internet data traffic is estimated to be three times higher than in 2017, and the proportion of registered IoT devices is anticipated to grow from 13% in 2018 to 28% in 2025 as AI needs the data to learn, which makes it feasible to implement project portfolio management solutions and predicted to propel the global market.
Recently, the COVID-19 epidemic has severely impacted the healthcare system of industrialized and emerging economies. The outbreak has created uncertainty across several industries. The complexities in handling the projects have been rising at a significant rate due to the covid-19 across the globe, which is projected to boost the project portfolio management market as PPM helps to increase the business efficiency and productivity across the sectors, including healthcare, telecom, BFSI, etc. However, new market vendors face harsh competition from well-established international vendors as they find it difficult with technological advancements, quality, and reliability issues.
Based on the component, the global project portfolio management market is bifurcated into solution and service. The solution segment is estimated to grow at a significant growth over the forecasted period of 2020-2027. This ensures all activities have the right energy to perform a project effectively within the specified time-limit and budget. In addition, the project portfolio management solution provides the companies and executives with the capacity to see the overall picture, trying to ensure that quality solutions, standards, and guidelines are used over the life cycle of a project.
Based on the deployment mode, the global project portfolio management market is classified into on-premise and cloud. The cloud segment is expected to dominate the global market due to the surge in the necessity for BYOD (bring your own device) across sectors.
Additionally, it reduces the outlay affiliated with the opportunity to build web project software. Furthermore, cloud platforms facilitate higher use of technologies and require cloud distribution across the numerous departments and users, growing recurring installation costs, providing a higher degree of optimization, and continuous growth, which is expected to fuel the project portfolio management market.
Based on the organization size, the global project portfolio management market segmented into large enterprises and small and medium-sized enterprises. The large enterprises’ segment is anticipated to hold the largest share by 2027 across the globe owing to the tremendous resource accessibility and flexibility, allowing for the introduction of project portfolio management solutions by major organizations. The use of a project portfolio management approach is significantly higher in large enterprises as compared to small and medium-sized enterprises. In addition, small and medium-sized enterprises are predicted to have a significant growth rate due to the rising growth in the SME’s of foreign investment.
Based on the industry vertical, the global Project Portfolio Management market segmented into Healthcare, Telecommunication, Banking Financial Services and Insurance (BFSI), Oil & Gas, Government & Public Sectors, Manufacturing, Retail & Consumer Goods, and Others. The healthcare segment is projected to dominate the project portfolio management market over the forecasted period of 2020-2027. The healthcare sector faces several challenges, including poor data quality, due to several complexities of the projects. Therefore, vendors offer project portfolio management solutions in the healthcare sector to minimize the costs and improve patient quality of care, reducing the machinery’s implementation time.
However, the banking financial services and insurance segment is expected to have a significant growth rate due to propelling complexity in the banking operations.
By geography, the global project portfolio management market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America is anticipated to dominate the global market owing to the rapid upgradation in technology across the nation. In addition, the region’s financial position allows it to make enormous investments in advanced technology and instruments for efficient and effective project functions.
However, the Asia Pacific is estimated to have a significant growth rate across the globe due to the rising adoption of wireless technologies, including laptops, mobile phones, etc. Additionally, India and China, Australia, and New Zealand (ANZ) are predicted to occur as undeniable leaders in the APAC project portfolio management market.
Companies such as Microsoft, Planview, Broadcom, Oracle, SAP SE, Planisware, Hexagon, Celoxis, KeyedIn, Projects Workfront, ServiceNow, Upland Software, Micro Focus, Sciforma, Clarizen, Sopheon, Changepoint, Cerri, One2Team, and ONEPOINT Projects are the key players in the global Project Portfolio Management market.
By Deployment Mode
By Organization Size
By Industry Vertical