Global Construction Accounting Software Market- Market Overview:

The global construction accounting software market is expected to grow from USD 943.91 million in 2022 to USD 1342.33 million by 2030, at a CAGR of 4.5% during the Projection period 2023-2030. The growth of this market is mainly driven owing to the rising construction sector across the world.

The construction accounting software provides contractor firms with financial management tools to help manage their construction businesses. As the demand for construction accounting software grows, software vendors are adopting various business strategies in order to boost sales. Various industry players are partnering with construction design companies to enhance their market revenue and expand their service network by increasing their client network. There are many features to these programs, including project management, invoicing, and job costing, as well as interfaces with other financial and accounting software. A growing number of construction companies are using specialist software solutions to manage their financial operations more efficiently and effectively, which is helping to grow the construction accounting software market. Growing importance of lean management in reducing operating costs through the use of the software is driving lean construction, which consists of essential features to deliver a set of objectives aimed at maximizing the efficiency of resources through design, activation and maintenance, which can be very easily implemented. In order to simplify the implementation and monitoring of this process, technology integration will simplify the streamlined construction management process, which directly drives the global construction accounting software market. In addition to the growing construction industry and the penetration of ERP modules in the construction industry, the global construction accounting software market is also driven by a number of factors. Furthermore, construction accounting software market growth may be impeded by the availability of free construction accounting software for some applications.

Sample Request: - Global Construction Accounting Software Market

Market Dynamics:

Drivers:                          

• Penetration of cloud-based technology

Construction accounting is gaining more value from cloud-based technology because of accessibility and user techniques, which will produce long-term benefits. Keeping construction professionals aware of the technology and letting them adopt it is a long-term benefit. As a result of the growing demand for digitalization for construction projects, the adoption of cloud-based technology is in high demand. As a result, the Asia-Pacific construction management software market is expected to grow.

Restraints:         

• High cost

Depending on the circumstances, construction projects have varying costs of software, and there will be a setup charge which includes the costs of devices used for the interface, accessibility and inputting of the data at the initial stage of adoption. Additionally, there is a subscription charge the users are required to pay on a monthly or annual basis, which is hampering the market growth.

Opportunities:

• Rising digitalization in the construction sector

Among the major advantages that digitalization has for the construction industry and for global economic growth is that it will boost the adoption of software and applications for improving productivity in construction, which in turn will stimulate the global market for construction management software.

Challenges:

• Construction accounting software complexity

As a result of the development of different construction accounting software, software developers who are not familiar with on-field construction sites are likely to face numerous problems. A major reason for the difficulties faced by developers is that each project is different, so the development of new software leads to new debugging issues and accelerates the development time, resulting in a lot of complexity.

Segmentation Analysis:

The global construction accounting software market has been segmented based on deployment, software license, end-user, and region.

By Deployment

The deployment segment includes on-premise and cloud. The cloud segment led the largest share of the construction accounting software market with a market share of around 59.7% in 2022. Cloud computing is becoming increasingly popular in construction as the industry evolves. Construction companies consider cloud deployment the most preferred way to deploy construction estimating software. As a result of the use of data to streamline processes, cloud deployment ensures cost-efficiency while increasing productivity.

By Software License

The software license segment includes subscription license, perpetual license, and others. The subscription license segment led the largest share of the construction accounting software market with a market share of around 43.1% in 2022. Several factors contributed to the segment's growth, including a growing preference for subscription business models and a strong focus on customer retention, reducing subscriber churn, and complying with regulations. The advent of cloud computing, in particular, has made subscription-based license models more flexible. Consequently, several providers of construction accounting software are now offering their software via subscription with cloud service providers

By End-User

The end-user segment includes contractors, construction managers, architects & builders, and others. The architects & builders segment led the largest share of the construction accounting software market with a market share of around 30.8% in 2022. Construction accounting software is expected to be used more frequently during the Projection period as a result of the significant increase in construction projects, which will create lucrative opportunities for architects and builders. Using interior design software, architects and consultants can reduce paperwork and documentation while facilitating the design process, ensuring a well-organized work site and well-developed designs, and reducing their total interior design costs at the same time.

Global Construction Accounting Software Market - Sales Analysis.

The sale of construction accounting software expanded at a CAGR of 3.7% from 2016 to 2022.

Construction companies will be able to increase their profits as well as their working efficiency, by effectively managing their tools. This will improve the cost-efficiency of the construction project. These tools can be easily managed through software programs that offer Gantt chart functions to schedule the use of the equipment and tools.

Construction accounting software providers invest a significant amount in improving their security systems in order to prevent customer data loss and financial crises. In order to prevent the loss of crucial information and data, players are developing and integrating robust anti-cyberthreat solutions.

Therefore, by implementing advanced encryption patches and implementing a robust anti-piracy or anti-cyberthreat solution, the companies expect to attract more clients and increase revenue. During the Projectioned period, this factor is expected to boost the growth of the construction accounting software market.

Thus, owing to the aforementioned factors, the global construction accounting software market is expected to grow at a CAGR of 4.5% during the Projection period from 2023 to 2030.

By Regional Analysis:

The regions analyzed for the construction accounting software market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North American region dominated the construction accounting software market and held a 37.4% share of the market revenue in 2022.

• The North American region witnessed a major share. Considering the region's history of embracing advanced technology in its infancy, construction accounting software would also expand. Economic growth and significant infrastructure development are resulting in regional revenue generation for the construction industry. In addition, to the growing construction industry, construction associations such as the CMAA and Associated General Contractors of America contribute to it as well.
• Asia Pacific is anticipated to experience significant growth during the predicted period. In the Projection period, Asia Pacific will grow at a significant rate of CAGR because a number of governments are taking significant steps toward commercialization, infrastructure development, and smart city development. Additionally, significant investments in advanced technologies and rapid growth of the construction sector have fueled the demand for construction estimating software.

Global Construction Accounting Software Market - Country Analysis:

• Germany

Germany's construction accounting software market size was valued at USD 70.7 million in 2022 and is expected to reach USD 101.3 million by 2030, at a CAGR of 4.6% from 2023 to 2030.

A growing number of companies are incorporating new technologies into their workflows, resulting in greater digitization, and the European Commission is supporting the digitization of the construction sector with several initiatives. Construction in the country is increasing as commercial infrastructures such as malls, offices, and airports are in high demand in the country. In order for the construction accounting software market to grow, the country must have a growing construction industry since construction accounting software demand is directly related to the size of the construction industry.

• China

China’s construction accounting software market size was valued at USD 73.6 million in 2022 and is expected to reach USD 107.09 million by 2030, at a CAGR of 4.8% from 2023 to 2030.

The construction accounting software market is dominated by Chinese companies, and this market is likely to grow at the fastest pace in the Asia-Pacific region. One reason behind this trend is the growing number of commercial construction contractors working for the Chinese government.

• India

India's construction accounting software market size was valued at USD 56.6 million in 2022 and is expected to reach USD 81.7 million by 2030, at a CAGR of 4.7% from 2023 to 2030.

In India, as lean management is increasingly applied in the construction industry and technological advancements are accelerating, the construction accounting software market has grown at an exponential rate.

Key Industry Players Analysis:  

To increase their market position in the global construction accounting software market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.

• Viewpoint Inc.
• Acclivity Group LLC
• Foundation Software, LLC
• Intuit Inc.
• Corecon Technologies Inc.
• Freshbook
• Deltek Inc.
• Chetu Inc.

Latest Development:

• In June 2020, The North American Ingram Micro Cloud Marketplace now offers FreshBooks software, an accounting software company.
• In August 2020, A Trimble Company and a leader in construction management software, Viewpoint and the Construction Financial Management Association (CFMA) announced a partnership to provide contractors with in-depth visibility into important financial, project and industry benchmarks that will help them deliver projects on time and on a budget more reliably.

Report Metrics

Report Attribute	Details
Study Period	2022-2030
Base year	2022
CAGR (%)	4.5%
Market Size	943.91 million in 2022
Projection period	2023-2030
Projection unit	Value (USD)
Segments covered	By Deployment, By Software License, By End-User, and By Region.
Report Scope	Revenue Projection, competitive landscape, company ranking, growth factors, and trends
Companies covered	Viewpoint Inc., Acclivity Group LLC, Foundation Software, LLC, Intuit Inc., Corecon Technologies Inc., Freshbook, Deltek Inc., and Chetu Inc.
By Deployment	On-Premise Cloud
By Software License	Subscription License Perpetual License Others
By End-User	Contractors Construction Managers Architects & Builders Others
Regional scope	North America Europe Asia-Pacific South America Middle East and Africa

Scope of the Report

Global Construction Accounting Software Market by Deployment:

• On-Premise
• Cloud

Global Construction Accounting Software Market by Software License:

• Subscription License
• Perpetual License
• Others

Global Construction Accounting Software Market by End-User:

• Contractors
• Construction Managers
• Architects & Builders
• Others

Global Construction Accounting Software Market by Region:

• North America
  • USA
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Russia
• Asia-Pacific
  • Japan
  • China
  • India
  • Korea
  • Southeast Asia
• South America
  • Brazil
  • Peru
• Middle East and Africa
  • UAE
  • South Africa
  • Saudi Arabia