Worldwide Project and Portfolio Management Software Market Shares, 2023: Strategic Planning, Adaptive Collaboration, and Evolving GenAI Drive Growth

This IDC study provides 2023 market share for the worldwide project and portfolio management software market, which grew 13.3% to $6.5 billion in 2023 in current currency (compared with growth of 8.0% on updated numbers to $5.8 billion in 2022). We expect the market to grow at a five-year CAGR of 13.2% (in current currency) to reach $12.1 billion in 2028. We also see rapidly evolving AI, GenAI, and ML opportunities and cloud leverage, which will continue throughout the 2023-2028 forecast period, given requirements for strategic portfolio management and collaborative work management, as well as resource and staffing concerns across dispersed teams with constrained resources. Decision-making in volatile financial environments demands effective prioritization, and we saw some revenue growth from major and key innovative smaller PPM vendors in 2023. The increasing role and complexity of sourcing for projects, programs, and portfolios and the need to align with business needs, corporate governance, and regulatory requirements combined to drive growth even in a volatile global economy."Global 2000 organizations continue to struggle with the complexity of project, program, and product delivery and resource constraints while seeking to manage economic and political volatility as operational and business needs change dynamically with competitive, technology and geopolitical disruptions. The emergence of GenAI and other AI and ML capabilities is already dramatically impacting the space moving into 2H24, bringing significant benefits and analytics opportunities and also risks (with a need for governance, judicious adoption, and proactive usage and engagement). All of the 19 vendors evaluated in our recent four-document IDC MarketScape series - which provided separate analysis for strategic portfolio management (SPM), value stream management (VSM)/Agile PPM, collaborative work management (CWM), and cloud PPM - announced and/or shipped GenAI capabilities in 2023 moving into 1H24," said Melinda Ballou, research director, IDC's Agile ALM, Quality, and Portfolio Strategies service. "We are seeing a transition to experience-orchestrated business models enabled by automation and GenAI to scale and help contextualize business intelligence, for business prioritization and execution. We have also observed acquisitions and close partnerships to augment capabilities and IPOs in the SPM, PPM, and CWM areas during the past 18 months through 1H24 as a result. Agile management of human, financial, and other resources is key. In response, demand will remain ongoing for PPM tools across the PPM segments ranging from SPM, IT PPM, CWM, VSM, professional service automation, and new product development to capital projects and engineering and construction. Smaller vendors will play a core role in product and market innovation, including CWM, PSA, and agile, value-centric planning. Differentiated PPM solutions will come into play in that context as further consolidation and product evolution occur. With high growth already seen in 1H23, we therefore expect for this relatively mature market to have double-digit growth over forecast period to reach projected revenue of $12.1 billion by 2028."