United States Project Portfolio Management Market

US Project Portfolio Management Market Analysis

The United States Project Portfolio Management Market is expected to register a CAGR of 6.5% during the forecast period.

• Implementing project portfolio management solutions offer several benefits to businesses. It caters to alignment between organization objectives and projects; makes decision-making easier around project conflicts; takes the personal bias out of project planning; emphasizes the importance of focusing on the long-term view; helps the project management office turn down projects which are not aligned with business priorities; supports to create governance and oversight into the management of projects.
• Project portfolio management is still a growing market with tremendous growth potential. The year 2021 witnessed increasing adoption of project portfolio management solutions compared to 2020. For instance, according to the PMO Outlook Report 2022, in 2021, 30% of respondents were using spreadsheets and other free tools, while in 2022, that decreased to 21%. This downward trend was mostly countered by adopting more project portfolio management solutions in 2021. The report indicated that the project portfolio management software adoption rate increased from 22% in 2020 to 28% in 2021. This shift is evident in highlighting the importance of the centralized data in organizations that are aimed to gain from real-time insights available in a strategic tool.
• The market for portfolio management solutions is in transition as users pressure established market players to offer dynamic business operations. To extend the product functionalities of PPM solutions, end-users can install optional content add-ins and configure integrations. For instance, Clarity, a PPM platform, offers integration options to work with data from multiple sources. Users have the flexibility to integrate the right set of add-ins and modules as per the business requirement.
• As industry 4.0 is a long-term evolutionary process, project portfolio management can guide the implementation of industry 4.0 projects to become an instrument of company strategy. In the industry, top management support, project sponsors, steering committee, and multiskilled teams are seen as primary success factors for industry 4.0 projects. Project professionals can collaborate through traditional or agile approaches to supplement their abilities and deliver the project's objectives. Project portfolio management is set to enable structural capability leading various industries towards industry 4.0 strategic goals as it contributes to successful project implementation.
• 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 an extremely short time, forcing companies, irrespective of their size, to adapt quickly to the self-isolation measures recommended by governments across the country. With the COVID-19 pandemic requiring more people to work remotely, the project portfolio management software has become an essential tool for the companies as it can help manage the remote working environment and deliver projects efficiently.

US Project Portfolio Management Market Trends

Cloud-based Project Portfolio Management Segment to Register Substantial Growth During the Forecast Period

• Cloud PPM is emerging at an accelerated pace, which is the combination of cloud and PPM and supports collaborative scheduling, planning, and faster and effective decision-making. The significant adoption of cloud analytics enhanced business effectiveness for SMEs are some of the determinants boosting the growth of this market.
• The rising requirement for large-scale project management is one of the major growth factors for the cloud-based PPM market. According to a PMI survey, around 87% of senior executives believed their organization understood project management's value. A survey by Wellingtone Limited as of 2020 indicates that 89% of respondents said that they have one or more PMOs, organizations have one or more PMOs, with 50% have more than one.
• Implementing cloud-based is expected to be much easier compared to traditional on-premise hosting. The company can purchase a month's subscription (or test it for free) for some of its workforce to test the software. For instance, Microsoft Corporation offers its Microsoft Project & Portfolio Management - Project Online Premium at USD 55/User/Month.
• Furthermore, the rising usage of Bring Your Own Device (BYOD) in the workforce has augmented the usage of personal devices such as laptops, smartphones, and tablets. This, in turn, has created a challenge for IT to provide novel applications and secure access to distinct platforms and mobile handsets utilized by the managers and the team members across various locations.
• In addition, several factors such as easy accessibility, enterprise mobility, and real-time cooperation of geographically distributed business units have fortified the growth of the BYOD trend. Therefore, it is considered one of the factors driving the adoption of cloud-based PPM solutions across diverse industries.

IT Industry is Expected to hold Largest Market Share During the Forecast Period

• The demand for project portfolio management in the IT industry increasing with the growing proximity of IT and the business leads to the cross-fertilization of valuable practices, the IT business adapting the PPM tools and approaches within IT to improve the work efficiency.
• Organizations of all sizes use project portfolio management to rationalize project selection and orchestration, optimize the allocation and utilization of essential resources and build highly efficient value and risk management models.
• Software development and IT infrastructure projects in today's PMO require high governance standards, yet most innovative, competitive IT projects often must be delivered using agile project management methods. A PMO with top-down IT project control using built-in governance and integrations with agile PPM tools lends consistent, collaborative, strategic power to business initiatives.
• Several companies have leveraged the IT PPM tool to help concentrate and shift complex project, financial, and ALM processes (through workflow support and vendor process content) to supplement their existing methodologies with considerable uptake of agile, iterative, and hybrid agile methods.
• Thus, IT PPM automation is used effectively as a part of the project, program, portfolio decision-making, and adaptive execution process for any IT PPM implementation to be helpful and successful.

US Project Portfolio Management Industry Overview

The United States Project Portfolio Management Market is moderately competitive and consists of several major players such as Oracle Corporation, ServiceNow Inc., Microsoft Corporation, Atlassian Corporation PLC, Asana Inc., SAP SE, Monday.com, etc. In terms of market share, few major players currently dominate the market. However, with innovations and technological advancements, many companies are increasing their market presence through organic and inorganic growth strategies and tapping new markets. Some of the recent developments in the market are:

• April 2022, Proggio received an investment of USD 7 million in series A funding led by a US-based 2.0 Ventures. Management and its existing investor Mangrove Capital Partners participated in the series A funding to help the company accelerate its expansion and operation in the United States.
• February 2022, Teleo Capital Management, a Boise , Idhao based private equity firm, acquired Western Principles, a canada based project portfolio management software consultancy. Western Principles work with public and private sector client for the implementation of Microsft's PPM solution and also implementes UMT360 strategic portfolio managment software.

US Project Portfolio Management Market Leaders

US Project Portfolio Management Market News

• June 2022: Microsoft extended its partnership to recognize OnePlan for project and portfolio management as Microsoft global partner of the year. OnePlan leverages Microsoft's platform for PPM services globally aligning their visions for future application.
• February 2022: pmo365, a startup providing porject portfolio management solution has been expanding globally. The company partenered with Baxter International Fairlife and the Restaurant Group. pmo365 is built on Mircosft's Power Platform on their client's pre=exsisting Microsoft tenancy. It provides client owned and cloud-native solution that offers extensive flexibility and integration capabilities.