Urban Planning and Design Software Market Research Report and Outlook by 2028

The global market for urban planning and design software is projected to expand from US$ 2,916.26 million in 2021 to US$ 4,534.09 million by 2028, reflecting a compound annual growth rate (CAGR) of 6.5% during this period.

The trend of rural populations relocating to urban areas in pursuit of improved job prospects and living conditions is significantly contributing to the rise of suburban cities. Furthermore, both economists and urban planners have identified that the development of economic and infrastructural facilities in suburban regions plays a crucial role in this growth. According to an article from Times Property published in January 2022, while job opportunities tend to be more concentrated in city centers, suburban areas experience a peak in population density within a 2 km radius of these centers, largely due to enhanced transportation options and the presence of corporate offices. These factors are pivotal in the expansion of suburban regions, particularly in countries like India. Consequently, the anticipated transition of rural areas into suburban locales will necessitate the use of planning and design software for infrastructure development, which is expected to bolster the urban planning and design software market in the years ahead.

Urban planners are increasingly acknowledging the advantages of a centralized decision-making framework, which facilitates swift decision implementation, enhances work quality, and lowers costs. This shift is prompting governments to adopt this model more widely. Additionally, many urban planners are embracing a more inclusive version of this model, which incorporates ecosystem partners and stakeholders throughout the value chain. Consequently, the rising adoption of centralized decision-making frameworks by governments globally is creating new opportunities for developers in the urban planning and design software sector.

Effects of the COVID-19 Pandemic on the Global Urban Planning and Design Software Market

Prior to the COVID-19 pandemic, the demand for urban planning and design software was already substantial, driven by the increasing global population. City officials were tasked with planning for metropolitan areas and providing affordable housing and essential services to meet the growing needs of their populations. In 2019, around 55% of the global population, approximately 4.2 billion individuals, resided in metropolitan areas, a trend that was on the rise. This surge in urbanization led to a heightened demand for infrastructure development, thereby supporting the growth of the urban planning and design software market.

However, the COVID-19 pandemic negatively impacted the growth of this market in 2020, as it caused significant disruptions in the manufacturing and construction sectors. Many construction projects were either canceled or postponed, leading to widespread disruption across the construction industry. Additionally, as governments redirected their focus from development initiatives to healthcare responses, the urban planning and design software market also faced challenges.

In 2021 and 2022, the urban planning and design software market began to recover positively as lockdown restrictions were eased and manufacturing and construction activities resumed in urban settings. The demand for urban planning surged due to the increasing urban population. The World Bank Group has projected that the global urban population will reach 6 billion by 2045.

Despite the setbacks caused by the downturn in the manufacturing and construction sectors, the urban planning and design software market is expected to experience growth during the forecast period, driven by the rising urban population.

The global urban planning and design software market is categorized by component into software and services, with the software segment holding a significant share in 2021. The market is also segmented by deployment into on-premise and cloud-based solutions, with the cloud-based segment commanding a larger share in 2021. Furthermore, the market is divided by application into architects, city planners, and creative departments, where the architects segment held the largest market share in 2021. Geographically, the market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM), with North America leading the global urban planning and design software market in 2021.

The size of the urban planning and design software market has been assessed through both primary and secondary research methodologies. Initially, comprehensive secondary research was conducted utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach provided a foundational overview and forecast for the urban planning and design software market across all segments. Additionally, primary interviews were held with industry experts, including VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the urban planning and design software market. This process ensured data validation and offered further analytical insights into the subject.

Key players in the urban planning and design software market include Bentley Systems Incorporated, Modelur, SIMWALK, SketchUp, UrbanFootprint, Urbansim, T-Square Engineering, Inc., Esri, Holistic City Limited, and Act-3D.