The innovation management market size is expected to grow from USD 1.0 billion in 2021 to USD 1.7 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 10.2% during the forecast period. Innovation management solutions are rapidly gaining acceptance worldwide by large enterprises and SMEs due to various benefits, including the rise in digitization and emerging trend of workplace transformation, reduced costs, efficient collaborations, and reduced time to market new products.
Innovation management services are expected to hold a higher market share
With the increasing adoption of innovation management solutions across major verticals, the demand for supporting services is also growing. Services play a crucial role in helping enterprises take complete advantage of innovation management solutions. Innovation management services are mainly segmented into consulting; system integration; and training, support, and maintenance. The system integration services provided by innovation management solution providers offer cohesive services to end users comprising large enterprises and SMEs. These services efficiently implement and integrate innovation management solutions with existing IT infrastructure systems. They further cater to the integration of essential software to assemble scattered systems of devices that remain effectually linked to IT infrastructures.
Product development function is gaining traction by end users
Earlier, companies were more focused on product innovation and product enhancement. R&D activities are carried out by enterprises to develop new products, solutions, processes, and services to better customer experience. The R&D teams of enterprises play a major role in the formulation and development of quality products. Thus, product R&D activities are very useful to develop innovative and enhanced products for end users’ satisfaction. The increased demand for new and innovative products across the globe from consumers has led to the development of new products by enterprises.
To increase employee productivity and maintain a competitive edge in the market, SMEs are adopting innovation management solutions across the globe
Enterprises with less than 1,000 employees are considered under the SMEs segment. Maximum productivity and reduced costs are crucial factors for these enterprises, as they have limited budgets to keep track of crowdsourced ideas. Hence, these enterprises take advantage of the freely available public cloud storage or limited on-premises innovation management solution. SMEs have a lower volume of enterprise data generated as compared to large enterprises. This saves the overall cost related to the installation of innovation management solutions.
The rising focus on business continuity plans is likely to gain traction during the pandemic
The cloud deployment mode enables flexibility and scalability, along with ease of management. Cloud-based deployment refers to the hosted-type deployment of innovation management solutions. There has been an upward trend in the deployment of the innovation management solution via cloud or dedicated data center infrastructure. The advantages of hosted deployment include reduced physical infrastructure, lower maintenance costs, 24?7 accessibility, and effective analysis of electronic business content. A dedicated data center is also provided by innovation management solution providers, which boosts in-house integrations and reduces the additional overhead of third-party integration.
Innovation management solutions and services are being adopted by organizations across most verticals as these solutions and services help enterprises generate new business models and create new products, services, and technologies across different verticals through the generation of new ideas.
The IT and telecommunications vertical plays a very important role in the growth of the innovation management market. The vertical is growing rapidly and is considered one of the important verticals in the innovation management market. The growing need for creative, customized, and innovative ideas is expected to drive the growth of the IT and telecommunications vertical, as new, customized, and innovative ideas have led the companies in this vertical from all regions to engage themselves in activities inside or outside the vertical.
North America to dominate the innovation management market in 2021
North America has been an extremely open and competitive market in terms of the adoption of innovation management solutions across verticals, such as healthcare, IT, aerospace, and manufacturing. It is the topmost region in adopting innovation management solutions. It has been extremely responsive toward adopting the latest technological advancements, such as integration technologies with AI, cloud, and mobile technologies within traditional innovation management solutions. The major growth driver for this region is the rigorous government standards and regulations framed for various industries. The failure to comply may result in fines and other serious penalties. Another major driving factor is the demand for improved operational efficiency that helps organizations archive legacy data and keep only recent and required data in the secondary storage.
In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews were conducted with the key people. The breakup of the profiles of the primary participants is as follows:
- By Company Type: Tier I: 39%, Tier II: 26%, and Tier III: 35%
- By Designation: C-Level: 27%, D-Level: 39%, and Others:34%
- By Region: North America: 39%, Europe: 25%, APAC: 19%, Row: 17%
The report profiles the following key vendors:
Accenture (Ireland), SAP (Germany), Sopheon (US), Planview (US), Qmarkets (Israel), Brightidea (US), HYPE (Germany), Planbox (Canada), IdeaScale (US), innosabi (Germany), VIIMA (Germany), Exago (Portugal), KPMG (Netherlands), InnovationCast (Portugal), EY (Canada), Nosco (Denmark), Salesforce (US), InnoCentive (US), Medallia (US), Deloitte (UK), BCG (US), Inno360 (US), Idea Drop (UK), ITONICS (Germany), Rever (US), Induct (Norway), Sideways 6 (UK), Yambla (US), Ideawake (US), LoopedIn (UK), and Miro (US).
The global innovation management market has been segmented by function, component (solutions and services), deployment mode, organization size, vertical, and region. The function segment of the innovation management market is subsegmented into product development and business processes. Based on component, the market is segmented into solutions and services. The services include consulting; system integration; and training, support, and maintenance. The deployment mode segment is bifurcated into cloud and on-premises. Based on enterprise size, the market is classified into SMEs and large enterprises. Verticals considered in the study include aerospace and defense, government, banking, financial services, and insurance (BFSI), retail and eCommerce, healthcare and pharmaceuticals, manufacturing, IT and telecommunications, transportation and logistics, and others (energy and utilities, manufacturing, media and entertainment, and education). By region, the market is studied across North America, Europe, APAC, MEA, and Latin America.
Key Benefits of Buying the Report
The report will help the market leaders/new entrants in the innovation management market with information on the closest approximations of the revenue numbers for the overall innovation management market and the subsegments. The report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and to plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.