construction accounting software Market

The construction accounting software market is expected to grow from US$ 943.91 million in 2022 to US$ 1,217.42 million by 2028; it is expected to grow at a CAGR of 6.3% from 2022 to 2028.

The construction accounting software market players use dedicated servers and data centers to store customer data and the company's crucial information and plan samples. Several companies across industries face a significant threat from cyber attackers, and in the recent past, numerous cyber-attacks have been recorded. The data loss affects the reputation of accounting software providers, ultimately resulting in financial loss. To eliminate the risk of customer data loss and financial crisis, construction accounting software developing companies invest significant amounts in enhancing their security systems. The players are also developing and integrating robust anti-cyberthreat solutions to prevent the loss of crucial information and data. Thus, by strengthening the security level with advanced encryption patches and using a robust anti-piracy or anti-cyberthreat solution, the companies are expected to attract increased clientele and propel financial growth. This factor is anticipated to boost the construction accounting software market growth in the coming years.

APAC is expected to register the highest CAGR in the construction accounting software market from 2022 to 2028. The growing population in India and China is raising the demand for commercial and residential infrastructure. Currently, China is witnessing various construction projects. For instance, in Q1 of 2022, a project for constructing a 56 km metro railway line in Foshan, Guangdong, started, which is expected to be completed in 2026. Similarly, the construction project of a 28 km metro rail line between Chuansha Road Station to Dongjing Road Station in Shanghai commenced in Q1 2022 and is expected to be completed in 2027. Thus, all such construction projects are expected to support the growth of the construction industry in the region, thereby fueling the construction accounting software market growth in the region. The economic growth within the MEA is attracting investors' attention to countries such as Saudi Arabia and the UAE, which is anticipated to create opportunities for construction projects. In addition, the increase in construction projects, such as commercial and residential infrastructure, is raising the penetration of construction accounting software in the MEA. In SAM, Brazil holds a significant market share. In the context of the construction industry, the government invested ~US$ 167 million in 762 infrastructure projects to improve the conditions of Brazilian tourist cities in 2021. Moreover, publicly funded infrastructure projects such as the "My House, My Life" program will further boost the construction industry's growth. Such government initiatives will help stimulate the development of the construction industry in the region. Moreover, the region promotes economic growth via increased public spending and a rise in infrastructural growth to assist private sector development; this is further expected to contribute to the construction industry's business growth. Thus, the more construction projects, the higher the penetration of construction accounting software will be.

The COVID-19 crisis drastically affected two huge markets in APAC-India and China. Lockdowns and temporary shutdowns of construction sites across major countries in Asia Pacific and huge disruption of the supply chain of various materials and goods greatly impacted the construction industry. This caused serious delays in the construction of roads, schools, hospitals, ports, airports, and other critical pieces of infrastructure financed by public-private partnerships in Asia Pacific. All these factors negatively affected the adoption of construction accounting software in Asia Pacific.

However, in 2021, governments across Asia Pacific started investing heavily in infrastructure. According to the National Development and Reform Commission (NDRC), China has resumed construction on under 90% of key projects. All major railway projects have resumed operation, with 97% of major highway and waterway projects and 87% of airport projects also resuming construction in 2021. Such recovery in the construction industry will further boost the construction accounting software market growth in Asia Pacific.

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 market is segmented into small and mid-sized construction companies and large construction companies.

Based on geography, the construction accounting software market is segmented into North America (the US, Canada, and Mexico), Europe (Germany, the UK, France, Italy, Russia, and the Rest of Europe), Asia Pacific (Australia, Japan, South Korea, India, China, and the Rest of APAC), the MEA (Saudi Arabia, the UAE, South Africa, and the Rest of MEA), and SAM (Brazil, Argentina, and the Rest of SAM).

The overall construction accounting software market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the construction accounting software market. The process also obtains an overview and forecast for the market with respect to all the segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights. Participants in this process include industry experts, such as VPs, business development managers, market intelligence managers, national sales managers, external consultants, valuation experts, research analysts, and key opinion leaders specializing in the construction accounting software market.