Project Portfolio Management Market Outlook by Component (Solutions, Services), Organization Size (Large Enterprises, SMEs), Deployment Mode (Cloud, On-Premises), Industry Vertical (Healthcare, Manufacturing, Government & Defense, IT & Telecom, BFSI, Retail) – Forecast to 2030

Market Overview

The global project portfolio management market size was valued at $4,634.4 million in 2021, and it is expected to reach $8,161.8 million by 2030, advancing at a CAGR of 6.5% during 2021–2030. The market is driven by gaining a 360-degree view into project operations and resource management, increasing complexity of enterprise projects, and rising need for collaboration and monitoring tools.

The digital revolution has had a significant impact on every element of modern businesses. The blurring of boundaries between the IT functions and areas previously regarded as more important to a company, such as strategies and operations, is perhaps one of the most significant transformations. This shift has forced corporate leaders to break out of their boundaries, compelling them to widen their own skills, capabilities, and understanding, as well as their teams. Hence, as a result of the new digital reality, PPM has evolved, like other areas.

In Europe, the taxing complexity of businesses is encouraging the use of project portfolio management solutions with intelligent evaluation and prioritization capabilities. The solutions have seen an increase in demand for on-demand analytics as a result of the rising mobility firms in the U.K. The visibility of their reporting and resource maximizing capabilities are also credited for the surging demand for PPM solutions. Moreover, due to the enterprise operations mapping capabilities and improved delivery management, Germany is one of the leading exporting nations and is likely to boost the demand for project management solutions.

Increasing Usage of PPM Solutions in the Healthcare Industry

The demand for PPM solutions in the healthcare vertical is growing at the highest CAGR, of more than 7.3%, during the forecast period, in the project portfolio management market. This can be ascribed to the rapid digitization and the surge in the requirement for efficient handling of patient data and medical history. The solution saves paperwork and offers information to healthcare businesses, allowing them to respond quickly to emergency circumstances. Moreover, healthcare organizations may guarantee that the valuable resources they need get on time to succeed by combining PPM with an earned value measurement system. Also, projects that provide less benefit are rescheduled or scaled back accordingly with the help of this solution.

BFSI Sector Dominates the Market

The BFSI category held the largest market share, of around 28%, in 2021. One of the primary factors driving the growth of the project portfolio management market in this category is the increase in complexities in banking operations. Financial services and institutions are undergoing various transformations at a quick pace, including big data management, digital business enablement, and legacy overhaul, all of which are resulting in complex project portfolios. This element has a considerable positive impact on the global adoption of advanced project operations and resource management solutions.

Growing BYOD Trend Among Enterprises

Bring-your-own-device (BYOD) is a key market trend that is gaining popularity among businesses across the world. It aids in the simplification of operations, resulting in reduced company expenses, lower operating costs, and fewer job delays. By allowing users to bring their own devices, they can minimize the danger of malware attacks and data loss. When used in conjunction with BYOD, project portfolio management software offers numerous benefits, including increased process agility, improved worker efficiency, and real-time monitoring.

The demand for BYOD-integrated project and portfolio management systems has increased, as project complexity has amplified. These systems allow companies to manage their data with ease, and also give businesses complete control over the information stored on employee-owned devices.

Increase in Complexity of Enterprise Projects

An increase in the complexity of enterprise projects is driving the project portfolio management market. In the software sector, as customers’ needs and expectations grow, projects get more complex and time-consuming over time. As a result, project managers and top-level management introduce PPM solutions to their employees, in order to assist them in completing projects on time. PPM helps project managers establish flexible project schedules by promoting the fundamental principles of project management by offering a clear priority direction. It provides project managers with tools to learn about the ROI of various projects and to schedule and assign tasks based on their priorities and requirements.

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Cloud PPM Is Getting Adopted Rapidly

The cloud category is growing at a higher pace, advancing at a CAGR of around 6.7%, in the forecast period. This can be mainly due to the major practical business applications, such as remote access and monitoring, real-time data analytics, and automated scheduling, which could be realized by combining cloud PPM systems. Furthermore, advances in the field of cloud and cloud-based applications, as well as an increase in modern businesses and companies’ operations' reliance on cloud technology, have paved the way for the market to continue growing at a stable rate in the coming years.

APAC Market To Witness Fastest Growth

The APAC project portfolio management market is expected to grow at the highest CAGR, of 6.9%, during 2021–2030. This can be primarily due to the increasing foreign investments in the region that promote economic development, thereby favoring the growth of small and medium enterprises (SMEs). APAC has the infrastructure of well-established information technology businesses that leads to the creation of innovative project portfolio management solutions, which fuel the regional market growth.

Moreover, China is the global exporter of electronics that promotes the demand for PPM solutions, owing to the surging need for resource management capabilities. Also, the widespread telecom sector in China is expected to boost the demand for these solutions, owing to their features, such as data monitoring and business analytics capabilities.

Market Players Involved in Several Market Strategies to Gain Competitive Edge

The market is fragmented, with the presence of several major players. In recent years, they have been involved in various market strategies, such as client wins, acquisitions, product launches, and product innovations, in order to stay ahead of their competitors. For instance:

• In November 2021, Planview standardized its project portfolio management practices for Shiji, a multi-national technology company that provides software, solutions, and services for enterprise companies in the hospitality, food service, retail, and entertainment industries.
• In June 2020, Oracle's PPM Cloud solution included project control, project costing, and project management APIs, as well as an application composer for the project foundation and project resource management modules.

Key Players in Project Portfolio Management Are:

• Oracle Corporation
• Planview Inc.
• Broadcom Inc.
• SAP SE
• Microsoft Corporation
• Workfront Inc.
• Hexagon AB
• ServiceNow
• Upland Software Inc.
• Micro Focus International plc

Market Size Breakdown by Segment

The report offers comprehensive market segmentation analysis along with market estimation for the period 2017–2030.

Based on Component

• Solutions
• Services

Based on Organization Size

• Large enterprises
• Small and mid-size enterprises (SMEs)

Based on Deployment Mode

• Cloud
• On Premises

Based on Industry Vertical

• Healthcare
• Manufacturing
• Government & Defense
• IT & Telecom
• BFSI
• Retail

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Spain
  • Italy
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa