The global construction accounting software market was valued at US$ 647.22million in 2019 and is projected to reach US$ 1033.46million by 2027; it is expected to grow at a CAGR of 6.1% from 2020 to 2027.
Appropriate accounting software is a vital component for operating all construction companies successfully. Companies of all sizes are continuously dealing with numerous subcontractors, contractors, and temporary construction teams, which further complicate procurement, payroll, and several other accounting functions. Pertaining to this fact, reliable software is required for guaranteeing everything from purchase orders, to inventory and equipment tracking. Construction accounting software offers users with several financial management tools for construction activities and large projects. These solutions provide features such as payroll, job costing, general ledger, audit reporting, and accounts payable and receivable (AP/AR), among others. Certain construction accounting software solutions are developed and focused for specific financial information, while others offer accounting insights into the organization as a whole. Construction accounting solutions are almost equivalent to basic accounting software; however, they are particularly tailored to the construction sector. Through deploying construction accounting software, builders and contractors are capable to enhance project performance by offering all the relevant information to the project managers.
The blooming construction industry and rising penetration of ERP modules in construction industry are some of the key driving factors for global construction accounting software market. However, availability of free construction accounting software may hinder the growth of the market in some applications. Despite some limitations, a large untapped market amongst small construction firms is anticipated to drive the future growth of construction accounting software market.
The global construction accounting software market is segmented on the bases of component, deployment, and application. Based on component, market is further segmented into solution and services. Based on deployment, the market is segmented into cloud and on-premise. Similarly, based on application, the market is segmented into SMEs and large enterprises.
According to the latest situation report from the World Health Organization (WHO), the US, Spain, Italy, France, Germany, the UK, Russia, Turkey, Brazil, Iran, and China are among the worst affected countries due to COVID-19 outbreak. The outbreak first began in Wuhan (China) during December 2019, and since then, it has spread at a fast pace across the world. The COVID-19 crisis is affecting the industries worldwide, and the global economy is anticipated to take the worst hit in the year 2020 and likely in 2021. The outbreak has created significant disruptions in the construction sector. The sharp decline in the international trade is negatively impacting the growth of the global economy. The production shutdowns, restrictions on supply chain, procurement management, labor scarcity, and border lockdowns to combat and contain the outbreak have adversely affected the construction sector. The production slowdown in the construction industry is directly affecting the adoption of various ad-hoc technologies and solutions such as construction accounting software, as the construction companies have reduced their spending on adopting several technology solutions to deal with the current scenario. The impact of COVID-19 outbreak on the global construction accounting software market growth in various countries/regions is described in the below sections.
Overall size of the construction accounting software market has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining overview and forecast for the construction accounting software market with respects to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data as well as to gain more analytical insights into the topic. The participants typically involved in this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultant such as valuation experts, research analysts and key opinion leaders specializing in the construction accounting software market. Acclivity Group LLC; Chetu Inc; CMiC; Foundation software Inc.; FreshBooks; Intuit Inc.; Jonas construction software; Sage Group PLC; Viewpoint, Inc.; and Xero Limited are among the major players operating in the global construction accounting software market.