How Has The Construction Accounting Software Market Size Evolved In Recent Years?
The construction accounting software market has seen considerable growth due to a variety of factors.
•In the past few years, the market size for construction accounting software has seen consistent growth. It is projected to increase from $1.64 billion in 2024 to $1.72 billion in 2025, with a compound annual growth rate (CAGR) of 4.9%.
Factors contributing to growth in the past have included the prevalence of manual accounting procedures in the construction industry, construction sector growth and infrastructure projects, complications with construction project finances, the adoption of technological solutions in construction management, and the requirement for precise cost assessment and project budgeting.
What Is The Projected Growth Of The Construction Accounting Software Market?
The construction accounting software market is expected to maintain its strong growth trajectory in upcoming years.
• There will be a robust increase in the size of the construction accounting software market in the upcoming years, with expectations that it will reach $2.26 billion in 2029, growing at a 7.0% compound annual growth rate (CAGR).
The predicted growth within this period is due to factors such as an increasing need for real-time financial reports, the recognition of project profitability's significance, the challenge of managing payments to subcontractors and vendors, the use of cloud-based construction accounting solutions, a rise in demand for mobile construction accounting apps, a focus on data safety and regulatory compliance, and the advent of specialized features within accounting software, along with the rise of subscription-based and software-as-a-service (saas) models. The forecast period is also likely to see trends like the use of artificial intelligence for automation, collaborations between accounting software firms and construction companies, technological improvements in data analytics and business intelligence, blockchain adoption for secure and transparent transactions, and the integration of the internet of things (iot) for real-time project data.
What Are The Key Drivers Fueling Growth In The Construction Accounting Software Market?
The expansion of the construction sector is anticipated to drive the advancement of the construction accounting software trade. Construction pertains to the building of various facilities such as homes, factories, highways, and bridges. The adoption of construction accounting software allows companies in the industry to efficiently oversee their expenses and earnings in real-time, offering crucial data on their financial well-being. It aids in detecting potential issues early, enabling the rectification of these problems before they escalate into major hurdles. Additionally, the software simplifies and expedites the invoicing and payment process, resulting in significant time and effort savings. For example, figures from the UK's Office for National Statistics in November 2023 reveal that the worth of new construction projects in Great Britain hit an all-time high of £132,989 million in 2022, reflecting a 15.8% surge. This expansion was primarily attributed to an upswing in private sector endeavors, worth £14,093 million, as well as an enhancement in public sector contributions of £4,068 million. Consequently, the ascending construction industry is spearheading the progress of the construction accounting software sector.
What Are The Principal Market Segments In The Global Construction Accounting Software Industry?
The construction accounting software market covered in this report is segmented –
1) By Component: Solution, Services
2) By Deployment Type: Cloud, On-Premises
3) By Functionality: Audit Reporting, Accounts Payable And Receivable, Project Costing, Other Functionalities
4) By Application: Small And Mid-Size Construction Companies, Large Construction Companies
Subsegments:
1) By Solution: Cloud-Based Construction Accounting Software, On-Premise Construction Accounting Software
2) By Services: Implementation And Integration Services, Training And Consulting Services, Support And Maintenance Services
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Which Emerging Market Trends Are Altering The Construction Accounting Software Sector?
The trend of product innovation is gaining traction in the construction accounting software market. Dominant players in this market are unveiling innovative product offerings to maintain their competitive edge. For example, in August 2022, American software corporation AvidXchange rolled out AvidPay integrated with TimberScan Titanium, a fresh accounts payable solution crafted for the construction segment. The firm has integrated complete purchase-to-pay solutions tailor-made for the construction industry to enhance the efficacy of the payable process. This advancement allows industry professionals like builders and developers to utilize a single, fully automated platform for managing financial tasks such as billing and processing remote payments from any geographical location. The technology also provides an embedded workflow to handle tasks like purchase orders and invoice management, with options for setting up rules for automatic routing to expedite payments.
Who Are the Key Players in the Construction Accounting Software Market?
Major companies operating in the construction accounting software market include:
• Oracle Corporation
• Intuit Inc.
• Trimble Inc.
• Sage Group plc
• Xero Ltd
• Procore Technologies Inc.
• Deltek Inc.
• Tally Solutions Pvt. Ltd
• Buildertrend
• CMiC
• Acumatica
• Chetu Inc
• FreshBooks
• BQE Core
• Foundation Software LLC
• Computer Guidance Corporation
• B2W Software Inc.
• Jonas Construction Software Inc.
• Penta Technologies Inc.
• Corecon Technologies Inc.
• GCPay
• Online Check Writer
• Adeaca Corp
• Melio Payments
• Knowify
What are the Regional Insights into the Construction Accounting Software Market?
North America was the largest region in the construction accounting software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the construction accounting software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
