Construction Accounting Software Market is expected to reach US$ 1,217.42 million by 2028

The construction accounting software market is expected reach at US$ 1,217.42 million by 2028; registering at a CAGR of 6.3% from 2022 to 2028, according to a new research study conducted by The Insight Partners.

Increasing Awareness of Implementing Technologies in Construction Industry to Create Growth Opportunities for Market Players During Forecast Period

The construction industry has begun to undergo technological transformation. Companies are implementing technologies to reduce costs and improve safety, efficiency, and quality of construction activities. The US is experiencing a rise in the number of construction projects that are inclined toward adopting software-based solutions. As construction companies increasingly emphasize accounting decisions to determine the ROI and future of respective businesses, the demand for construction accounting software is rising. Analyzing the financials using accounting software before starting a business allows emerging entrepreneurs to carry out unique business ideas and rapidly and efficiently reflect their vision. A business plan software analysis also enables new business owners to understand the fundraising strategies and expansion policies. Additionally, the software-based accounting plans help the end user foresee potential problems and obstacles. The awareness regarding the benefits of accounting software in construction projects is strongly growing among entrepreneurs across various countries, such as the US, China, the UK, and India. Thus, many companies are offering construction accounting software due to the rising awareness among new entrepreneurs, which is expected to offer lucrative business opportunities for construction accounting software market growth in the coming years.

Construction Accounting Software Market – by Region, 2021 and 2028 (%)

Source: The Insight Partners Analysis

North America held the largest market share in the construction accounting software market, allowing significant growth opportunities for the players planning to capitalize for the long haul. The rising penetration of ERP modules in the construction industry and the booming construction industry are anticipated to propel the demand for construction accounting software over the forecast period. Europe ranked second in the construction accounting software market. European countries such as Germany, France, Russia, the UK, and Italy are technologically advanced and urbanized. The growing demand for commercial infrastructures such as malls, offices, and airports in the region supports the growth of the construction industry. Also, with the growing focus of construction companies on adopting new technologies for streamlining the workflow, digitization across the construction industry is growing, contributing to the construction accounting software market growth.

The construction accounting software market is segmented based on offering, deployment, application, and geography. Based on offering, the construction accounting software market is segmented into solution and services. Based on deployment, the construction accounting software market is bifurcated into on premise and cloud. Based on application, the construction accounting software market is segmented into small and mid-sized construction companies and large construction companies. Based on geography, the construction accounting software market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, North America accounted for a significant share of the construction accounting software market.

Impact of COVID-19 Pandemic on Construction Accounting Software Market

The COVID-19 outbreak dramatically impacted the economy during its peak in 2020 in its initial days. The crisis hampered business activities in the construction industry. Before the COVID-19 outbreak, the construction accounting software market was experiencing substantial growth. As lockdown prevailed in the majority of countries, construction projects were temporarily halted, forcing contractors to change the way they work overnight. The outbreak created significant disruptions in the construction sector. The sharp decline in international trade negatively impacted the growth of the global economy. The construction sector was affected by the production shutdowns, restrictions on the supply chain, procurement management, labor scarcity, and border lockdowns to combat and contain the outbreak. The production slowdown in the construction industry directly affected the adoption of various ad-hoc technologies and solutions, such as construction accounting software, as construction companies reduced their spending on adopting several technology solutions to deal with the pandemic scenario. One of the most significant struggles contractors faced was the delay of projects. Initially caused by inspections coming to a halt during quarantine, contractors still face delays today. Many contractors were also unable to source basic materials such as sand, cement, and bricks due to travel restrictions and labor shortages. With ease in restrictions and the reopening of construction sites in 2021, the construction industry has shown significant growth. The global construction industry is increasingly enhancing its bandwidth, compatibility, and efficiency through technology and investments in various sectors. Construction firms are already implementing several solutions from cloud-based software to improve workflow. Thus, such growth prospects in 2021 and 2022 are anticipated to drive the demand for construction accounting software market.

The key players operating in the construction accounting software market include Acclivity Group LLC; Chetu Inc.; Corecon Technologies Inc.; Deltek Inc.; Foundation Software, LLC; Freshbook; Intuit Inc.; Sage Group; Viewpoint Inc.; and Xero Limited.

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