Project Portfolio Management - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Project Portfolio Management - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Global Project Portfolio Management Market size is estimated at USD 5.79 billion in 2024, and is expected to reach USD 7.01 billion by 2029, growing at a CAGR of 3.9% during the forecast period (2024-2029).

Project portfolio management is the centralized management of an organization's project portfolios. However, even if they are not linked to each other or have no connection at all, the projects shall be administered centrally through a portfolio, which confers considerable advantages in monitoring and managing rival resources.

Key Highlights

• In order to maximize organizational performance, project portfolio management will assess possible projects on the basis of their likelihood of success and associated risks before assigning funds, staff, or time limits. In order to ensure that the current initiatives are closely linked with the overall strategy and objectives of the company, high-level controls and monitoring shall also be included.
• The change in work culture and the move toward remote teams drive the growth of the PPM Market. The constant changes in startups and large enterprises allow employees to work from home or a hybrid model, which enhances productivity, raises employee morale, lowers stress levels for most workers, and saves operating expenses. As the practice grows in popularity, many have called it the future of work, and yet, businesses often take remote workers for granted, even those participating in hybrid models. Thus, implementing project portfolio management solutions provides various benefits to businesses.
• The cloud-based project portfolio management market comprises the sale of cloud PPM solutions that manage an organization's range of projects and processes, which are chosen and managed to deliver better returns on investment in project investments. The portfolio shall meet the organization's objectives and allow project management to take care of overall risk. The need for PPM is driven by a growing demand for cloud-based solutions and services.
• Furthermore, organizations spend a lot of time and money creating the right talent pool. Hence, when all the resources' skills and competencies are tapped to their maximum potential, it enhances overall efficiency and profitability. Improved resource utilization is a growing concern in project-focused businesses, resulting in an increased focus on optimization through metrics, government, and management.
• The trend toward remote work has been continuously growing for the past decades. However, the effect of COVID-19 has significantly accelerated this trend in a brief time, thereby forcing companies, irrespective of their size, to adapt speedily to the self-isolation measures governments worldwide were recommending. After the COVID-19 pandemic, project portfolio management software has become a vital tool for companies as it can help manage the remote working environment and deliver projects efficiently.

Project Portfolio Management Market Trends

Recent Changes in Work Culture and Move Toward Remote Teams Driving the Market

• There is a growing acceptance of change in the future of work and work culture, and the idea of an office is gradually fading. Although the concept of constant change is generally supported by entrepreneurs and new companies, large enterprises around the world are also faced with this reality.
• The COVID-19 pandemic has had a profound and rapid impact on workplace culture. People have come to realize that they can do most of their work remotely.
• Companies like Twitter, Facebook, Square, Shopify, and others announced a permanent work-from-home policy. Hybrid models are offered by a lot of other companies. The mode of communication is changing in the workplace. The focus on primarily digital approaches, including Slack, e-mail, and shared project management tools like workdays, has been intensified.
• Multiple responsibilities within an organization are affected by the new drive for accountability in different sectors, and it is usually necessary to cooperate and communicate between teams and offices on a geographical basis.
• With limited resources, holding managers accountable for their efficient use is crucial. Stakeholders are also demanding greater transparency to understand the value delivered by major projects and ongoing services. Business units, once satisfied with project plans and budgets, now expect updates and metrics that demonstrate actual performance.

North America to Account for a Significant Share

• Compared to the rest of the regional markets, North America holds a significant revenue share. In view of the region's budgetary situation, technology and resources for the effective implementation of projects may be provided. In addition, the market's growth in this region is expected to be driven substantially by a strong presence of some well-established project portfolio management solution providers such as Microsoft Corporation, Oracle Corporation, and Workfront.
• As a result of the significant progress in infrastructure and the emergence of new companies, North America is expected to retain its dominance throughout the forecast period of the study. The implementation of business intelligence and analytics solutions and strategies, which play a key role in driving the market’s growth, are carried out by various industrial companies active in the region.
• Companies are developing project portfolio management tools. In order to identify data synchronization patterns in critical end users such as BFSI or government initiatives, integration techniques and tools are currently being used most effectively.
• In addition, to increase the success rate of their projects in the region, companies with digital infrastructures are using PPM solutions to initiate collective decision-making. In the United States, various end-use sectors such as healthcare, manufacturing, BFSI, and construction are adopting project portfolio management services to manage overall business operations and eliminate extra costs efficiently.

Project Portfolio Management Industry Overview

The global project portfolio management market is fragmented, with several major players vying for more market share. The shift in the work environment has also led to an increase in competition among the players.

• In March 2024, HP Inc. launched a portfolio of AI PCs1 leveraging the power of AI to enhance productivity, creativity, and user experiences in hybrid work settings. Workers continue to struggle with disconnection and digital fatigue in an ever-evolving hybrid work environment. Most employees believe that AI will open up new opportunities for enjoying their jobs and making them easier, but they need the right tools and technology to do so.
• In December 2023, Planisware collaborated with OnePagerare to allow the two of their products to be directly integrated for the first time. In response to the requests of customers from both companies, this very anticipated collaboration is a major step forward. By transforming complex data into visual representations that are easily understandable, OnePager's mission is to simplify project and portfolio management. This partnership brings together their unique strengths in offering a seamless experience.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support