Construction Accounting Software Market Research Report and Outlook by 2028

The market for construction accounting software is projected to expand from US$ 943.91 million in 2022 to US$ 1,217.42 million by 2028, reflecting a compound annual growth rate (CAGR) of 6.3% during this period.

Key players in the construction accounting software sector utilize dedicated servers and data centers to safeguard customer information and essential company data. Many businesses across various sectors are increasingly vulnerable to cyber threats, with a notable rise in cyber-attacks reported recently. Such data breaches can tarnish the reputation of accounting software providers, leading to significant financial repercussions. To mitigate the risks associated with data loss and potential financial turmoil, companies developing construction accounting software are channeling substantial investments into enhancing their security frameworks. They are also focusing on creating and integrating advanced anti-cyberthreat measures to protect vital information and data. By bolstering security through sophisticated encryption techniques and implementing strong anti-piracy or anti-cyberthreat solutions, these companies are likely to attract a larger customer base and drive financial growth. This trend is expected to significantly contribute to the expansion of the construction accounting software market in the upcoming years.

The Asia-Pacific (APAC) region is anticipated to exhibit the highest CAGR in the construction accounting software market from 2022 to 2028. The increasing population in countries like India and China is driving the demand for both commercial and residential infrastructure. Currently, China is experiencing a surge in construction activities. For example, in the first quarter of 2022, a project commenced for a 56 km metro railway line in Foshan, Guangdong, which is projected to be completed by 2026. Similarly, a 28 km metro rail line project between Chuansha Road Station and Dongjing Road Station in Shanghai also began in Q1 2022, with an expected completion date in 2027. Such extensive construction initiatives are likely to bolster the growth of the construction sector in the region, thereby enhancing the demand for construction accounting software.

In the Middle East and Africa (MEA), economic growth is drawing investor interest to nations like Saudi Arabia and the UAE, which is expected to create new opportunities for construction projects. The rise in construction activities, including both commercial and residential developments, is increasing the adoption of construction accounting software in the MEA region. In South America (SAM), Brazil holds a significant share of the market. In 2021, the Brazilian government allocated approximately US$ 167 million to 762 infrastructure projects aimed at improving conditions in tourist cities. Additionally, publicly funded initiatives such as the "My House, My Life" program are set to further stimulate growth in the construction sector. Such government efforts are expected to foster the development of the construction industry in the region. Increased public expenditure and infrastructural development are anticipated to further support the growth of the construction sector, leading to a higher adoption of construction accounting software.

The COVID-19 pandemic had a profound impact on two major markets in APAC?India and China. Lockdowns and temporary halts in construction activities across key countries in the Asia-Pacific region, along with significant disruptions in the supply chain for various materials and goods, severely affected the construction industry. This resulted in considerable delays in the development of essential infrastructure such as roads, schools, hospitals, ports, and airports, which are often funded through public-private partnerships in the region. Consequently, these challenges adversely impacted the uptake of construction accounting software in Asia Pacific.

However, in 2021, governments in the Asia-Pacific region began to invest heavily in infrastructure projects. According to the National Development and Reform Commission (NDRC), China has resumed work on nearly 90% of its key projects. Major railway projects have restarted, with 97% of significant highway and waterway projects and 87% of airport projects also back in operation in 2021. This recovery in the construction sector is expected to further enhance the growth of the construction accounting software market in Asia Pacific.

The construction accounting software market is categorized based on offerings, deployment methods, applications, and geographical regions. In terms of offerings, the market is divided into solutions and services. Deployment methods are classified into on-premise and cloud-based options. The application segment includes small and mid-sized construction firms as well as large construction enterprises.

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

The overall size of the construction accounting software market has been determined through a combination of primary and secondary research methods. Extensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative data related to the market. This process also provides an overview and forecast for the market across all segments. Additionally, numerous primary interviews have been carried out with industry participants to validate the data and gain deeper analytical insights. Participants in this research 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.