The construction accounting software market in North America is expected to grow from US$ 208.31 million in 2019 to US$ 273.41 million by 2027; it is estimated to grow at a CAGR of 3.9% from 2020 to 2027.
Construction industry is witnessing growing approach of ERP modules, which is expected to surge the growth of North America construction accounting software market. Building information management (BIM) has unwaveringly become mainstream among engineering and construction companies. In some markets, mainly in the US where procurement laws for projects may be revised, there has been a movement toward establishing minimum levels of BIM compulsory to avail tender in government-funded projects in order to support the Government. This necessity to move to a greater level of the agreement will intensify in the adoption of BIM in future. For companies in the engineering and construction markets, considering ERP or enterprise asset management (EAM) and project management choices, these trends elevate the importance of an integrated approach. As most of the large construction companies are considering ERP modules for a better flow of their business, the demand for construction accounting software is also set to increase, thereby substantially driving the North America construction accounting software market. The flourishing construction industry is among the other factors expected to positively influence the demand for construction accounting software market in North America.
In terms of deployment type, the cloud segment led the North America construction accounting software market in 2019. The technology sector has been increasingly witnessing a significant rise in cloud-based software in recent times. This is due to the fact that the cloud-based software simplifies a business planning process with tailored business plan templates through better planning. This benefit has attracted a large number of end users, and pertaining to the rising demand for cloud-based software, the majority of the construction accounting software market players are offering cloud-based products. Additionally, the internet infrastructure has matured in developed countries and is flourishing in several developing countries, thereby, allow end users in both developed countries as well as developing countries to access the cloud-based construction accounting software. This factor is driving the construction accounting software market. The construction accounting software developers are continuously investing in developing robust and secured cloud-based software with an objective to protect customer data and mitigate cyber-attacks. This factor is positively influencing a wide array of industrial entrepreneurs across North America, which is foreseen to drive the cloud-based construction accounting software market during the forecast period.
Also the ongoing COVID-19 is having a devastating impact over the North America region. North America is one of the most important regions for the adoption and growth of new technologies owing to favorable government policies to boost innovation and strengthen the infrastructure capabilities, especially in developed countries such as the US and Canada. Hence, any impact on the growth of industries is expected to affect the economic growth of the region in a negative manner. At present, the US is the world’s worst-affected country due to the COVID-19 outbreak, including the construction accounting software market. The US is a prominent market for accounting software, especially in the construction sector. An increase in the number of confirmed cases and rising reported deaths in the country has affected construction accounting software market significantly. The large as well as small construction projects had shut down across the US, Canada, and Mexico in last few months and the construction companies have reduced their spending on ad-hoc technologies such as accounting software, which, in turn, is negatively impacting the growth of the construction accounting software market in the present scenario. However, the construction projects have rapidly increased their productivity, which, in turn is anticipated to have positive impact on construction accounting software market from the next few months. North America region is home to a large number of technology companies, and thus the impact of COVID-19 outbreak is anticipated to be quite severe in the year 2020 and likely in 2021. The impact of COVID-19 is short-term; it is likely to decrease in the coming years.
The overall North America 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 North America 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 North America construction accounting software market. Acclivity Group LLC.; Chetu Inc.; CMiC; Foundation Software, Inc.; FreshBooks; Intuit Inc.; Jonas Construction Software Inc.; Sage Group plc; Viewpoint, Inc.; and Xero Limited are among a few players operating in the North America construction accounting software market