The global project portfolio management market size is estimated to reach ~USD 17 Billion by the end of 2035 by growing at a CAGR of ~9.70% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of project portfolio management was ~USD 6 Billion. The growth of the market can be attributed to the increasing adoption of cloud-based project portfolio management solutions, and the growing acceptance of agile project management. It is estimated that projects under Agile methodologies are estimated to be 65% successful, while projects under waterfall methodologies are only 47% successful. Agile project management is a methodology that emphasizes the importance of collaboration and continuous improvement. It is a more efficient way of managing projects that allows teams to adjust and respond quickly to changes in the project environment. This has led to more organizations embracing agile project management and driving the growth of the project portfolio management market.
In addition to these, factors that are believed to fuel the market growth of project portfolio management include the increased need for organizations to improve resource utilization and the need to complete projects on time and within budget. Additionally, the need to achieve better visibility into projects and the need to reduce project costs are also believed to be key drivers of the market growth. Moreover, shift toward remote teams is propelling the need for project portfolio management solutions. According to a recent study, approximately 37 million Americans are expected to work remotely by the year 2025. As of 2022, 27% of U.S. employees work remotely. With individuals now working remotely, it is difficult to keep track of project progress and ensure that resources are allocated efficiently. Project portfolio management solutions provide a central platform for teams to access project information and collaborate, allowing for better organization and communication.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~9.70% |
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Base Year Market Size (2022) |
~ USD 6 Billion |
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Forecast Year Market Size (2035) |
~ USD 17 Billion |
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Regional Scope |
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Growth Drivers
Rising Spending in IT Sector - Companies are investing in cutting edge technology such as cloud computing and artificial intelligence to automate processes and optimize operations. This increased spending has created a demand for better project portfolio management tools to help organizations manage their projects more efficiently and effectively. Approximately 4.30 trillion U.S. dollars are expected to be spent on IT in 2022, followed by 4.54 trillion U.S. dollars in 2023. As of 2021, the United States spent more than one trillion dollars on information technology (IT).
Increasing Popularity of Bring Your Own Device (BYOD)- The BYOD concept enables employees to use their own devices, such as laptops, tablets, and smartphones, which are often more up-to-date and easier to use than company-issued devices. This allows businesses to save money while still providing employees with the tools they need to do their jobs efficiently and effectively. In the current business climate, 85% of companies allow at least some of their employees to bring their own devices to work, and it is expected that number to rise in the future. This has resulted in an increase in demand for project portfolio management solutions that are optimized for BYOD.
Rising Automation Across Various Industries - It is estimated that 30% of businesses have fully automated at least one key aspect of their business. In the survey, 14% of respondents reported implementing intelligent automation solutions at scale; 24% implemented and 38% piloted automation solutions. Automation helps companies streamline their processes, reduce manual labor, and improve their efficiency. As a result, the demand for project portfolio management solutions is increasing as organizations are looking to automate their project-related activities.
Surge in The Number of Connected IoT Devices - IoT devices are becoming increasingly prevalent in modern businesses. As more and more devices are connected, the need for project portfolio management software grows. This software helps manage and coordinate projects, allowing for more efficient and effective use of resources. It has been estimated that in total, there are approximately 14 billion connected IoT devices around the world.
Rapid Deployment of Cloud-Based Services - Approximately 80% of organizations have already implemented or are in the process of implementing a multi-cloud strategy. It is estimated that 66% of enterprise infrastructure is based on cloud computing. Cloud-based services allow for faster deployment of software applications and services, which reduces the time and cost of project management. Additionally, cloud-based services enable businesses to access new technologies quickly and easily, giving them the ability to quickly scale up or down as needed.
Challenges
The global project portfolio management market is segmented and analyzed for demand and supply by offering into software and service. Out of these, the services segment is estimated to gain the largest market share of about ~37% in the year 2035. The growth of the services segment can be attributed to the increasing demand for integrated and advanced IT and digital solutions from organizations to manage their business operations. For instance, 88% of the companies have already adopted a business strategy that puts digital first in their business model. A total of 90% of businesses are engaged in digital initiatives, and 86% of senior business leaders think that digitalization should be a priority for their organizations. This demand is driven by the need for improved efficiency, cost optimization, and better decision-making capabilities. Companies are also using services to increase their digital capabilities and stay ahead of the competition. The rising demand for cloud services and the increasing adoption of digital technologies, such as Artificial Intelligence (AI) and the Internet of Things (IoT), are also driving the growth of the services segment.
The global project portfolio management market is segmented and analyzed for demand and supply by deployment into cloud and on-premise Out of these, the cloud segment is estimated to gain the significant market share of about ~28% in the year 2035. The growth of the segment can be attributed to the increasing adoption of cloud-based solutions among enterprises owing to its flexibility, scalability and cost-effectiveness. Approximately 95% of enterprises today use cloud services, and 68% of enterprise infrastructure is deployed in the cloud. It is also estimated that spending on cloud adoption is projected to rise to USD 479 billion by 2023. Furthermore, the increasing demand for mobility and real-time analytics is driving the need for cloud-based solutions. The advantages of cloud-based project portfolio management solutions such as enhanced scalability, strong data security, and reduced costs associated with deployment and maintenance are some of the primary factors driving the adoption of these solutions. Additionally, the increasing number of collaborations between organizations and the emergence of advanced analytics-based solutions are also some of the other factors that are contributing to the growth of the segment.
Our in-depth analysis of the global project portfolio management market includes the following segments:
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By Offering |
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By Deployment |
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By Enterprise Size |
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By End Use |
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The market share of project portfolio management in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~39% by the end of 2035. The growth of the market can be attributed majorly to the increased demand for integrated solutions for project portfolio management, the need for improved collaboration and communication between teams, and the need for better visibility into project progress and performance. Moreover, the growing IT budgets in region along with substantial investments in advanced technology and resources for successful project execution is projected to drive market growth in North America. For instance, in the US, about half of the companies (51%) plan to increase their IT budgets by the year 2023. A total of USD 59 million has been allocated by the federal government for the fiscal year 2022 to support civilian government IT needs. Additionally, the increasing adoption of cloud-based PPM solutions, the emergence of agile and lean methodologies, and the increasing focus on value creation are contributing to the growth of the market in region.
The Asia Pacific project portfolio management market is estimated to be the second largest, registering a share of about ~27% by the end of 2035. Rapid digitalization in the region, the rising need for better project management, and growing investments in IT infrastructure are some of the major factors driving the growth of the market in this region. Additionally, an increasing focus on improving the overall quality of services and the need for cost-effective project management solutions are also contributing to the growth of the market in the region. Organizations are increasingly looking for ways to optimize their resources and reduce wastage. Project portfolio management solutions provide a cost-effective way to manage multiple projects and ensure resource allocation efficiently. Additionally, the growing number of projects in the region, the demand for software-based project management solutions, and the need to optimize IT budgets and resources are all contributing factors in the regional market growth. Furthermore, the availability of skilled resources and increasing adoption of cloud-based technology are other major factors that are expected to drive the market growth in Asia Pacific region.
Further, the project portfolio management market in Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the increasing adoption of digital technologies, such as cloud computing, big data analytics, and artificial intelligence. The adoption of these technologies allows businesses to manage their project portfolios more efficiently and accurately. It also makes it easier to access and analyze data, which helps inform decision-making. In addition, the rapid adoption of information technology in European governments is also driving regional market growth. Digital transformation initiatives in the region have enabled government agencies to process large amounts of data, automate workflows and manage projects more efficiently. This has resulted in an increase in the use of project portfolio management techniques to streamline government operations and ensure effective resource allocation.
EOS Software partnered with Planisware Inc., a project portfolio management provider, to integrate EOS's ITPM solution into the firm's business operations. This collaboration enables Planisware to benefit from the EOS Software's ITPM solution, which automates processes such as project scheduling, resource allocation, and budgeting, and provides real-time analytics to better manage projects and portfolios.
ServiceNow has released its Now Platform San Diego release. It delivers on the promise of hyper-automation through a modernized visual design and new robotic process automation (RPA) features. The new release will enable customers to easily build, deploy, and manage RPA bots and workflows. This will help organizations to reduce manual labor, boost process efficiency, and drive deeper insights from their data.
Author Credits: Abhishek Verma, Hetal Singh
Ans: The growing demand for efficient and cost-effective project portfolios and the need to ensure timely completion and delivery of projects, as well as the growing demand for project portfolio analytics are the major factors driving the market growth.
Ans: The market size of project portfolio management is anticipated to attain a CAGR of ~9.70% over the forecast period, i.e., 2023 – 2035.
Ans: Lack of skilled personnel, the complexity of project portfolio management software, and the lack of integration between different departments are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North America region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Planisware Inc., EOS Software, ServiceNow, Broadcom, Celoxis Technologies Pvt. Ltd., Changepoint Corporation, HP Development Company, L.P., Oracle, Workfront, Inc., SAP and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by offering, deployment, enterprise size, end user and by region.
Ans: The service segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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