Project Portfolio Management Market

Global Project Portfolio Management Market:

The global project portfolio management market size reached US$ 6.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 13.6 Billion by 2032, exhibiting a growth rate (CAGR) of 9.13% during 2024-2032. The increasing focus on data-driven decision-making, the rising number of M&As that often result in an enlarged project portfolio, and the growing focus on maximizing the ROI are some of the major factors propelling the market.

Project Portfolio Management Market Analysis:

• Major Market Driver: The growing emphasis on collecting valuable project-related data, which facilitates better, more informed decision-making worldwide, is significantly catalyzing the market's growth.
• Key Market Trends: The increasing reliance on external vendors and contractors for project completion is augmenting the market. Additionally, the rising number of mergers and acquisitions (M&As) that often result in an enlarged project portfolio is also driving the need for PPM solutions.
• Competitive Landscape: Some of the leading companies operating in the global market include Broadcom Inc., Celoxis Technologies Pvt. Ltd., HP Development Company, Innotas, Keyedln Solutions LLC, Microsoft Corporation, Oracle Corporation, Planisware, Planview Inc., SAP SE, and Workfront Inc., among others.
• Geographical Trends: According to the report, North America accounted for the largest market share. The increasing demand for automation across various workplaces represents one of the primary factors driving the demand for PPM in the region. Additionally, the rise in the IT budget of various companies is also offering lucrative growth opportunities to the market in North America.
• Challenges and Opportunities: Challenges hindering the market include balancing resource allocation, managing diverse project lifecycles, and ensuring alignment with strategic goals. Opportunities lie in leveraging advanced analytics for real-time decision-making, enhancing collaboration across teams, and adapting to dynamic market conditions to maximize portfolio value.
   

Project Portfolio Management Market Trends:

Increasing Work-from-Home Culture

A significant rise in the adoption of work-from-home (WFH) models is driving the need for enhanced remote project monitoring and management capabilities. For instance, as per the survey conducted by Owl Labs, globally, 16% of the total employees are working remotely, whereas 62% have opted for working hybrid. Only 22% of all the employees work full-time from the office. Similarly, according to a data report, as of August 2023, approximately 12.2% of U.S. workers were fully remote. More than 4.7 million U.S. workers are remote at least half of the time. 65% of workers want to be remote all the time, while 32% prefer a hybrid work schedule. This shift from on-site site working to work from home and a hybrid mode of working is prompting PPM solutions to prioritize features such as cloud-based accessibility, real-time reporting, and virtual team coordination, thereby fostering greater agility and efficiency in managing distributed project portfolios. Furthermore, virtual cooperation is becoming more and more common. For instance, the Harvard Business Review stated that 79% of the 1,700 knowledge workers surveyed said they regularly or usually work in distributed teams. Such a significant rise in hybrid work settings is propelling the project portfolio management market size.

Rising Product Offerings

Various key market players are expanding their portfolios to include specialized PPM tools for specific sectors, such as healthcare, IT, and construction, offering tailored features like resource management, agile project tracking, and portfolio optimization. For instance, in May 2022, Onepoint Projects GmbH launched a new version of its ONEPOINT Projects, a web-based project and portfolio management (PPM) solution. This new version integrates support for the Scaled Agile Framework in a new optional module. Similarly, in March 2022, ServiceNow announced its Now Platform San Diego release. With an upgraded, more modern visual design and new robotic process automation (RPA) capabilities that deliver on the promise of hyper-automation, the latest version of the Now Platform is designed to help organizations address the most pressing challenges facing every industry in every region and transform businesses for a new economy. As a result, the trend towards diversified PPM offerings aims to address unique project management challenges and improve overall operational efficiency across diverse domains.

Growing Emphasis on Security and Compliance

With the rising cybersecurity concerns, there is a focus on integrating robust security measures and ensuring compliance with data protection regulations. PPM solutions integrate robust cybersecurity features, including encryption, access controls, and secure data storage to protect against cyber threats and unauthorized access. Additionally, the escalating cases of cyberattacks are also propelling the project portfolio management market share. According to a report published by Forbes, in 2023 alone, more than 353 million people were impacted by data breaches. Moreover, 2023 saw a 72% increase in data breaches since 2021, which held the previous record. In the same year, 94% of organizations reported email security incidents. Furthermore, compliance with data protection regulations is critical for PPM providers to build trust with clients, mitigate risks associated with data breaches, and maintain operational integrity. Also, with regulations, such as the General Data Protection Regulation (GDPR) and California’s Consumer Privacy Act (CCPA), organizations must have robust project portfolio management in place. For instance, in January 2023, violations of GDPR costed companies, including Meta, TikTok, and X (formerly Twitter), over US$ 3 Billion.

Project Portfolio Management Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on component, solution type, deployment type, organization size, and vertical.

Breakup by Component:

• Software
• Services
   

Software dominates the market

The report has provided a detailed breakup and analysis of the market based on the component. This includes software and services. According to the report, software represented the largest segment.

PPM software plays a critical role in optimizing the allocation of resources, scheduling tasks, and facilitating decision-making processes. PPM software offers a centralized platform where stakeholders can easily access vital project data, track performance metrics, and evaluate progress. It often comes equipped with features for resource allocation, risk assessment, and cost-benefit analysis, making it easier to compare various projects and decide which ones align with the strategic objectives of the organization.

Breakup by Solution Type:

• Information Technology Solutions
• New Product Development Solutions
• Others
   

Information technology solutions hold the largest share in the market

The report has provided a detailed breakup and analysis of the market based on the solution type. This includes information technology solutions, new product development solutions, and others. According to the report, information technology solutions represented the largest market segmentation.

Information technology (IT) solutions in PPM primarily focus on managing an array of technology projects that are critical for operations and strategic goals of an organization. These solutions help align IT projects with business objectives by prioritizing tasks based on factors, such as cost, timeline, and expected outcomes. IT PPM tools can help manage software development, system upgrades, or cybersecurity initiatives. They often feature real-time dashboards and analytics to monitor key performance indicators such as resource utilization, budget adherence, and project timelines.

Breakup by Deployment Type:

• On-premises
• Cloud-based
   

On-premises dominates the market

The report has provided a detailed breakup and analysis of the market based on the deployment type. This includes on-premises and cloud-based. According to the report, on-premises represented the largest market segmentation.

On-premises deployment of PPM involves installing and running the PPM software on the servers and infrastructure of an organization. This deployment type offers a high level of control over the system, as the organization is responsible for all aspects of maintenance, updates, and security. This can be beneficial for organizations that have stringent compliance requirements or sensitive data that they prefer not to move to a third-party server.

Breakup by Organization Size:

• Large Enterprises
• Small and Medium Enterprises
   

Large enterprises hold the largest share in the market

The report has provided a detailed breakup and analysis of the market based on the organization size. This includes large enterprises and small and medium enterprises. According to the report, large enterprises represented the largest market segmentation.

In large enterprises, PPM becomes an essential tool for aligning multiple projects with the company's strategic objectives. Given the scale and complexity of operations, large organizations often have numerous projects running simultaneously across various departments. The stakes are high, both in terms of financial investment and human resources. In this setting, PPM solutions offer advanced features like real-time dashboards, complex risk-assessment modules, and extensive reporting capabilities. These features help senior management and project managers make informed decisions, optimizing resource allocation and maximizing ROI. Large enterprises often have the budget and IT infrastructure to deploy either on-premises or cloud-based PPM solutions, depending on their specific requirements. This represents project portfolio management market growth drivers.

Breakup by Vertical:

• Energy and Utilities
• Government and Defense
• IT and Telecom
• Banking, Financial and Insurance Services
• Manufacturing
• Healthcare and Life Science
• Consumer Goods and Retail
• Others
   

BFSI dominates the market

The report has provided a detailed breakup and analysis of the market based on the vertical. This includes energy and utilities, government and defense, IT and telecom, banking, financial and insurance services, manufacturing, healthcare and life science, consumer goods and retail, and others. According to the report, BFSI represented the largest market segmentation.

The banking, financial services, and insurance (BFSI) sector involves many projects ranging from risk management initiatives to digital transformation efforts. PPM tools help financial institutions prioritize and manage projects that align with both regulatory requirements and business objectives. These solutions often feature robust security measures and compliance tracking functionalities to ensure that all projects meet the stringent guidelines set forth by financial regulators. Moreover, in response to the increasing cyber threat landscape, BFSI organizations are increasingly relying on PPM solutions for handling a vast amount of sensitive customer information, including financial records, personal identification details, and transaction data. For instance, according to a survey conducted by Fortinet, in India, 82% of respondents have experienced at least a 2x increase in security incidents, and 72% reported more than triple the number of breaches. The top security incidents include phishing, denial of service, data/identity theft, ransomware, and data loss. Only 49% of organizations in Asia have dedicated security personnel, leaving them more vulnerable to security incidents and breaches. As a result, the deployment of PPM solutions in the BFSI sector is increasing, which is creating a positive outlook for the project portfolio management industry.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

The increasing demand for automation across various workplaces represents one of the primary factors driving the demand for PPM in North America. Moreover, the rising adoption of cloud computing in organizations is favoring the growth of the market in the region. Besides this, the growing IT budgets in this region are also one of the significant key driving factors of the market's growth in North America. According to the market overview, the budget of IT companies soared in 2022. The IT budgets grew by 26% (31% in North America vs. 21% in Europe) on average. Additionally, the government authorities of North America are increasingly investing in robust cybersecurity and portfolio management solutions to prevent the chances of cyberattacks, which is offering lucrative growth opportunities to the PPM market. For instance, in the fiscal year 2023, the government of the United States proposed a US$ 10.89 Billion budget for cyber security, representing an increase from the previous fiscal year.

Competitive Landscape:

The leading companies are integrating artificial intelligence (AI), machine learning (ML), cloud computing, blockchain, internet of things (IoT), and sensors in PPM. These advancements can help analyze historical project data to predict future outcomes, such as the likelihood of project success or potential delays. They can aid in resource allocation by predicting the best-fit resources for various project tasks based on past performance and skill sets. These technological solutions offer transparency and security, particularly in complex projects where multiple stakeholders are involved and can be used for secure and unchangeable logging of project milestones or financial transactions. Moreover, key players are developing mobile applications for PPM tools that have made it easier for team members to update project statuses, view dashboards, or communicate with each other on the go.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Broadcom Inc.
• Celoxis Technologies Pvt. Ltd.
• HP Development Company
• Innotas
• Keyedln Solutions LLC
• Microsoft Corporation
• Oracle Corporation
• Planisware
• Planview Inc.
• SAP SE
• Workfront Inc.
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Global Project Portfolio Management Market News:

• April 2024: Tempo Software announced the integration of its portfolio management (PPM) tools into a flexible and modular platform. The platform also features Capacity Insights for Jira, which harnesses AI for efficient team planning at a scale.
• April 2024: ProdigyBuild introduced its novel software development and project management tool. Tailored for software development teams, it offers an unparalleled level of automation and intelligence to project management.

Project Portfolio Management Market Report Scope:

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the project portfolio management market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global project portfolio management market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the project portfolio management industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.