Worldwide Project and Portfolio Management Forecast,  2020-2024: Work Management and Enterprise Agile Coordination Drives Longer-Term Growth

Worldwide Project and Portfolio Management Forecast, 2020-2024: Work Management and Enterprise Agile Coordination Drives Longer-Term Growth

  • September 2020 •
  • 16 pages •
  • Report ID: 5973239 •
  • Format: PDF
This IDC study provides a 2020-2024 forecast for the worldwide project and portfolio management market, which grew 4.2% to $3.88 billion in 2019 with current IDC numbers (compared with growth of 6.9% to $3.73 billion in 2018). We initially expected the market to grow at a CAGR of 3.3% over the course of this five-year forecast period to reach $4.57 billion by 2024. We also see significant uptake of PPM in the cloud, which will continue through the forecast period. This growth was noteworthy in a challenging and dynamic 2019 to 1H20 market. Decision making in volatile financial and political environments demands effective prioritization, and we saw some revenue growth from major and key innovative smaller PPM vendors in 2019, with a few exceptions. The increasing role and complexity of sourcing for projects, programs, and portfolios in the enterprise and the need to align with business needs, corporate governance, and regulatory requirements have combined to retain growth for PPM as the global economy shifts with higher engagement remain in flux with volatile worldwide politics. IDC has seen increased alignment of PPM with ERP (including PSA), the evolution and rapid uptake of SaaS PPM, and increased coordination with application life-cycle management (ALM). Significant growth driven by work management is exemplified in vendors such as Workfront. Agile and service management vendors have been leveraging PPM and PSA through alliances, integration, organic development, and/or acquisitions. This continued to have an impact in 2019 and will play a role in market growth through 2020-2021. We expect PPM in that time frame to also play a synergistic role increasingly with new product development and the evolving Internet of Things (IoT) arena as well as governance for DevOps as organizations must increasingly coordinate software deployment from inception to deployment and service management (with an increasing range of platforms on which to deploy -- from mobile, social, and cloud to "things")."Global 2000 organizations continue to struggle with the complexity of project, program, and product delivery while seeking to manage economic and political volatility as operational and business needs change dynamically in the context of the COVID-19 pandemic. Agile management of human, financial, and other resources is key. In response, demand will remain ongoing for PPM tools across the PPM segments ranging from IT PPM, service resource planning and professional service automation, and new product development to capital projects and engineering and construction. Smaller vendors will play a core role in product and market innovation, including work management, PSA, and agile, and differentiated PPM solutions will come into play in that context as further consolidation and product evolution occurs. We therefore expect for this relatively mature market a solid CAGR of 3.3% for the 2019-2024 period, which is likely to be stronger as we revisit our forecast later in 2020 based on current indicators," says Melinda Ballou, research director for IDC's Agile ALM, Quality, and Portfolio Strategies service.