The cost-estimating software market size is expected to reach US$ 3.89 billion by 2031 from US$ 1.85 billion in 2023. The market is estimated to record a CAGR of 9.7% from 2023 to 2031. Integration of augmented reality and virtual reality for cost visualization is likely to remain a key market trend.
The cost-estimating software market is predicted to grow considerably during the forecast period due to the rising use of software in project management. The software assists project managers, engineers, and cost estimators in estimating the financial resources required to complete a project within its parameters. In addition, with the growing adoption of cloud computing for cost estimation, companies can quickly access relevant data and generate accurate estimates seamlessly. Furthermore, the growing adoption of advanced technologies such as artificial intelligence (AI) and machine learning (ML) can considerably improve the precision of cost estimates by providing more accurate projections. Also, the increase in construction activities is expected to propel the demand for cost-estimating software as it can rapidly and precisely help estimate the expenses of a project. Moreover, the rising demand for cost visualization through VR and AR and the integration of blockchain technology for transparent cost estimation are expected to propel the cost-estimating software market growth during the forecasted period.
Cost-estimating software combines multiple approaches and resources to provide precise cost estimates. It helps organizations make more informed financial decisions by combining historical data with current market trends. The software has a variety of embedded functionalities that let users conduct in-depth budgeting and expense analysis. Automating difficult computations decreases the possibility of human error to a large extent. Furthermore, it enables real-time data revisions, guaranteeing that the estimates are relevant throughout the project's life cycle.
You will get customization on any report - free of charge - including parts of this report, or country-level analysis, Excel Data pack, as well as avail great offers and discounts for start-ups & universities
Cost-Estimating Software Market: Strategic Insights
Efficiency and accuracy are critical in the ever-changing field of project management. Using cost estimate software improves these areas significantly and offers several advantages. It greatly improves accuracy by reducing errors through the use of sophisticated algorithms, guaranteeing more accurate budget estimates. Additionally, the software accelerates the estimating procedure. Tasks that used to take hours or days can be completed in minutes using the software. In addition to saving time, this effectiveness enables project managers to react to changes more quickly, avoiding delays.
Cost-estimating software provides exceptional consistency because it uses a standardized method of calculation, ensuring uniformity across all project estimates. This uniformity is required for accurate comparison and analysis of various projects or proposals. The software also improves decision-making. When managers have accurate and trustworthy data at their disposal, they can make better decisions about project viability and budget allocation. As a result, projects are planned and carried out more strategically, maximizing resources and decreasing waste. Software for cost estimation also encourages accountability and openness among the project team members. Accessible detailed cost breakdowns make it easier to keep track of expenses and defend budgetary choices, building confidence among interested parties and facilitating the successful completion of projects. Hence, as cost-estimating software helps enhance accuracy and efficiency to promote accountability and strategic decision-making, its demand is increasing, boosting the growth of the cost-estimating software market globally.
Traditional cost estimation models frequently rely on manually picked characteristics, which are time-consuming and prone to bias. However, the use of technologies such as AI and ML can considerably improve the precision of cost estimates by providing more accurate projections. Large datasets can be quickly analyzed by AI algorithms. As a result, they spot trends and patterns that human analysts would miss. This feature enables the creation of complex cost projections that take a wide range of variables into consideration. AI systems also constantly learn from fresh data. This implies that as a result of their improving precision over time, estimations become more accurate.
Similarly, machine learning aids in the refinement of projections. Through the use of sophisticated models, ML is able to project expenses in many scenarios. It takes into account a wide range of factors that could affect project costs. For example, the analysis automatically incorporates changes in labor rates or material costs. Because of their flexibility, estimates are guaranteed to stay accurate and relevant even when project conditions alter. Furthermore, the estimations take a lot less time because of AI and ML, which speed up the planning stage and enable more responsive reactions to market changes. Thus, the integration of advanced technologies such as AI and ML is expected to fuel the growth of the cost-estimating software market during the forecast period.
Key segments that contributed to the derivation of the cost-estimating software market analysis are deployment and industry vertical.
The regional trends and factors influencing the Cost-Estimating Software Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Cost-Estimating Software Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 1.85 Billion |
| Market Size by 2031 | US$ 3.89 Billion |
| Global CAGR (2023 - 2031) | 9.7% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Deployment
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Cost-Estimating Software Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Cost-Estimating Software Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The cost-estimating software market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the cost-estimating software market are listed below:
(Source: Salesforce, Press Release, March 2023)
(Source: Oracle, Press Release, February 2021)
The "Cost-Estimating Software Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
The List of Companies - Cost-Estimating Software Market
Asia Pacific is anticipated to grow at the fastest CAGR over the forecast period.
The key players operating in the cost-estimating software market include Salesforce Inc, Oracle Corp, Sage Group Plc, Trimble Inc, Procore Technologies Inc, Autodesk Inc, RIB Software, Elecosoft, ConstructConnect, and MTI Systems, Inc.
The cloud segment led the cost-estimating software market with a significant share in 2023.
Integration of augmented reality and virtual reality for cost visualization is expected to drive the growth of the cost-estimating software market in the coming years.
The cost-estimating software market is expected to reach US$ 3.89 Billion by 2031.
The rising use of cost-estimating software in project management and the growing adoption of cloud computing are driving factors in the cost-estimating software market.
The cost-estimating software market was estimated to be valued at US$ 1.85 billion in 2023 and is anticipated to grow at a CAGR of 9.7% over the forecast period.