The construction accounting software market in Europe is expected to grow from US$ 196.00 million in 2019 to US$ 269.70 million by 2027; it is estimated to grow at a CAGR of 4.6% from 2020 to 2027.
The expansion of construction industry is bolstering the growth of Europe construction accounting software market. The construction industry's growth is maximum in the UK and Germany. The majority of the construction is inclined toward the technology sector, followed by the healthcare sector. The UK stands at the forefront and dominates the construction ecosystem; however, France reflects tremendous growth in coming years. The availability of easy funding and the demand for advanced technology results in the rise in the number of construction projects in these countries, thus impacting the construction accounting software market. In Europe, Germany accounts for the majority share in terms of constructions and also leading the construction accounting software market in Europe. Germany has witnessed substantial growth in the number of construction projects recently due to the development of urban areas and road construction. The continuous rise in the number of construction projects in the country generates significant demand for software-based accounting services. Growing adoption of ERP modules in construction industry is among the other factors expected to positively influence the demand for construction accounting software market in Europe.
In terms of application, the large enterprises segment led the Europe construction accounting software market in 2019. The large enterprises are capable of making huge investments on high-end software to increase productivity. Also, monetary and reputational risks are high if organizations are not focusing on implementing appropriate cyber security plan. Large businesses have multiple business segments or locations, and their core systems are generally interconnected. When it comes to the biggest security challenges they face, large organizations are most concerned associated to the advanced persistent threats; targeted attacks against employees such as phishing; and ransom-ware. Large organizations typically have larger budgets and more resources compared to SMEs; thereby, facilitating them to take better measures against any cyber threat. As accounts play a vital role in managing the financial transactions, the large and well-established companies invest significantly in proper financial software to prevent risk of malpractice. The accounting software in large-scale construction firms ensures 100% documented financial transactions and funds allocation. It is a cost-efficient and profitable solution for large businesses. These factors drive the construction accounting software market during the forecast period.
Also the ongoing COVID-19 is impacting the Europe region very badly. Spain, Italy, Germany, the UK, and France are some of the worst affected member states in the European region due to the COVID-19 outbreak. As per the latest WHO estimates, the overall confirmed cases in Europe accounted for more than 4.10 million, with 218,035 deaths till 28th August 2020. Businesses in the region including construction accounting software market are facing severe economic difficulties as they have to either suspend their operations or reduce their activities in a substantial manner. It is a fact that European construction accounting software market markets have had a lot of challenges due to COVID-19 crisis with stagnation trends in several countries. The ongoing crisis is expected to have a huge negative impact on the construction accounting software market in all the European countries this year. Pertaining to this fact, even the IT companies offering various construction related solutions have observed decline in their sales. However, as the regional experts of Europe foresee, positive growth rates will be seen next year and a normalization in 2022. This in turn, is anticipated to have a positive impact on the construction accounting software market in the coming years.
The overall Europe construction accounting software market size 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 construction accounting software market. The process also serves the purpose of obtaining overview and forecast for the Europe 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 who typically take part in such a process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the Europe construction accounting software market. Chetu Inc.; FreshBooks; Intuit Inc.; Sage Group plc; Viewpoint, Inc.; Xero Limited are among a few players operating in the Europe construction accounting software market.