The global project portfolio management (PPM) market is expected to grow at a CAGR of around 13.5% from 2020 to 2027 and expected to reach the market value of around US$ 11.5 Bn by 2027.
Project portfolio management (PPM) differs significantly from project and program management. Project and program management are concerned with project execution and delivery-doing projects correctly. In contrast, project portfolio management (PPM) focuses on completing the right projects at the right time by selecting and managing projects as a portfolio of investments. It necessitates entirely new techniques and perspectives.
The global project portfolio management market is growing due to factors such as an increase in the need to maximize the value of project investments, an increase in the complexity of enterprise projects, and an increase in the demand for collaboration and monitoring tools. However, concerns about data privacy and security, as well as a steep learning curve for PPM software, are impeding market growth. Furthermore, the adoption of cloud-based PPM integrated applications and the reduction of project failure rates by embracing agile methods are expected to provide lucrative opportunities for the growth of the PPM market.
Reducing number of ultimate project failure through integration of agile methods fuel the growth of global project portfolio management (PPM) market
One of the key factors enhancing the future scope of the PPM market is the easier adoption of agile methodologies for projects in project portfolio management solutions. Project portfolio management tools, such as Microsoft Project, have begun to add extra time for feedback loops for projects from the planning phase itself, making it easier for project managers to plan an agile project. Agile methods divide the project into small increments that can be tested after each phase, and any changes or improvements can be addressed in the next phase rather than restarting the entire project, saving the organization valuable time and money.
COVID-19 impact on project portfolio management (PPM) market
To combat the rapidly spreading corona virus, governments in many countries imposed stringent rules and regulations, including workforce policies that reduced the number of employees on-site in order to ensure that social distancing and self-isolation measures were implemented and the virus's spread was limited. These initiatives made it impossible for business organizations and project managers to track current projects or even assign new projects and resources using traditional project management methodologies. As a result, these organizations adopted project portfolio management solutions, which provided them with specialized tools for project planning and execution.
The global project portfolio management (PPM) market involves offering, deployment, enterprise size, and end-user. Based on offering, the market is segmented as software and service. By deployment, the market is segregated as cloud and on-premise. Further, by enterprise size, the market is classified into large enterprise and small & medium enterprise. Based on end-user, the market is segmented as BFSI, government, engineering & construction, healthcare, IT & telecom, and others.
According to deployment, the cloud segment is expected to have the highest revenue share in the global project portfolio management (PPM) market. To maximize profits, most vendors in the project portfolio management market offer cloud-based solutions. Cloud systems make better use of technology and allow for the sharing of infrastructure among multiple users and offices, providing greater scalability and lowering the ongoing cost of implementation and continuous development. These advantages are expected to drive cloud PPM solution adoption across verticals.
According to end-user, the healthcare segment is expected to drive the global project portfolio management (PPM) market. The healthcare and life sciences industry is confronted with issues such as alarming demand due to pandemics such as COVID-19 and inconsistent data quality due to a variety of complex projects. Vendors provide this sector with a PPM solution to reduce equipment installation time, improve patient care and quality, reduce waiting time, reduce re-admission rates, and accelerate Electronic Medical Records (EMR) automation, thereby optimizing revenue cycles. By reducing communication gaps, the PPM solution increases visibility across the entire work department. For this reason, the vertical is showing a growing interest in implementing the PPM solution in order to meet market demands, provide uninterrupted patient care, and keep costs low.
North America dominates; Asia Pacific to register fastest growing CAGR for the project portfolio management (PPM) market
The project portfolio management (PPM) market is expected to be dominated by North America. According to Project Management Institute, Inc. statistics, government entities waste US$97 Mn for every US$1 Bn invested in projects and program. North America is the world's largest revenue contributor to the PPM market. The PPM market in the region is undergoing significant growth. The region's growing market share in the PPM market is supplemented by massive project spending (approximately USD 2 trillion) each year, accounting for one-fourth of all regions. Furthermore, the rise of technologies such as cloud computing and Bring Your Own Device (BYOD) has compelled end users to adopt far more sophisticated PPM solutions with evolving integration platforms.
The Administrative Office of the Courts' Information Services Division is looking to implement a project portfolio management (PPM) tool to appropriately track, report, monitor, measure, and govern their technology projects, program, and portfolios, according to a report released by the Judicial Council of California. The purpose of this Request for Information (RFI) is to gather information on qualified web-based applications, as well as suppliers of those applications, capable of providing a PPM tool to the Information Services Division (ISD).
On the other hand, Asia Pacific is expected to have the fastest growing CAGR in the project portfolio management (PPM) market in the coming years. Asia Pacific is expected to emerge as an opportunistic region for the project portfolio management (PPM) market, owing to its developing and rapidly expanding IT infrastructure. Technology acceptance and ongoing digitization are key factors that will most likely support PPM market growth in the APAC region. Furthermore, widespread adoption of cloud-based solutions is expected to drive SaaS PPM demand across the region. As a result, APAC is expected to show significant growth for the market during the forecast period.
The prominent players of the global project portfolio management (PPM) involve Oracle, Microsoft Corporation, Planview, Broadcom Corporation, SAP SE, Workfront, ServiceNow, and among others
Market By Offering
Market By Deployment
Market By Enterprise Size
Small & Medium Enterprise
Market By End-Use
Engineering & Construction
IT & Telecom
Project portfolio management (PPM) market is expected to reach a market value of around US$ 11.5 Bn by 2027.
The project portfolio management (PPM) market is expected to grow at a CAGR of around 13.5% from 2020 to 2027.
Based on deployment, cloud segment is the leading segment in the overall market.
Maximizing the value of project investments increase in complexity of enterprise projects is one of the prominent factors that drive the demand for project portfolio management (PPM) market.
Oracle, Microsoft Corporation, Planview, Broadcom Corporation, SAP SE, Workfront, ServiceNow, and among others.
North America is anticipated to grab the highest market share in the regional market
Asia Pacific is expected to be the fastest growing market in the forthcoming years