Cost-Estimating Software Market Size and Growth 2031

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.

Cost-Estimating Software Market Analysis

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 Market Overview

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.

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Cost-Estimating Software Market: Strategic Insights

Cost-Estimating Software Market

• 
  CAGR (2023 - 2031)

  9.7%
• Market Size 2023
  US$ 1.85 Billion
• Market Size 2031
  US$ 3.89 Billion

Market Dynamics

GROWTH DRIVERS

• Rising Use of Cost-Estimating Software in Project Management and Growing Adoption of Cloud Computing

FUTURE TRENDS

• Integration of Augmented Reality and Virtual Reality for Cost Visualization and Rise in Demand for Blockchain Technology

OPPORTUNITIES

• Integration of Artificial Intelligence and Machine Learning and Expansion of Construction Industry

Key Players

• Salesforce Inc
• Oracle Corp
• Sage Group Plc
• Trimble Inc
• Procore Technologies Inc
• Autodesk Inc
• RIB Software
• Elecosoft
• ConstructConnect
• and MTI Systems

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Deployment

• Cloud
• On Premises

Industry Vertical

• Construction Industry
• Oil and Gas Industry
• Mining Industry
• Energy Industry

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Cost-Estimating Software Market Drivers and Opportunities

Rising Use of Cost-Estimating Software in Project Management

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.

Integration of Artificial Intelligence and Machine Learning

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.

Cost-Estimating Software Market Report Segmentation Analysis

Key segments that contributed to the derivation of the cost-estimating software market analysis are deployment and industry vertical.

• By deployment, the market is bifurcated into cloud and on premise. The cloud segment dominated the market in 2023.
• Based on industry vertical, the market is segmented into construction industry, oil and gas industry, mining industry, energy industry, and others. The construction industry segment dominated the market in 2023.

Cost-Estimating Software Market Share Analysis by Geography

• The cost-estimating software market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Europe and APAC.
• The North America cost-estimating software market is growing significantly due to the increasing investments in the construction industry. The US has taken the lead in the North America market, with Canada and Mexico closely trailing in terms of market share. Moreover, various companies are offering cost-estimating software in North America. For instance, RSMeans Data Online is regarded as the top construction-estimating software in North America. It is a common option for companies needing collaborative access and comes in three levels tailored to meet construction estimation requirements. The company offers a full database of construction costs in North America, including details on materials, equipment, labor, and productivity.

Cost-Estimating Software Market Report Scope

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Cost-Estimating Software Market News and Recent Developments

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:

• Salesforce, the global leader in CRM, announced the expansion of the Centre of Excellence (CoE) in Hyderabad, significantly strengthening the company's presence in India. Salesforce has been investing in India over the last decade. The Hyderabad CoE opened in 2016, firmly establishing India as a leading talent and global innovation hub for the company. Salesforce has over 9,000 employees in India across offices in Bengaluru, Mumbai, Delhi, Hyderabad, Pune, and Jaipur.

(Source: Salesforce, Press Release, March 2023)

• Oracle announced Oracle Construction Intelligence Cloud Service, a new suite of AI and analytics applications for the engineering and construction industries. Construction projects often encounter problems that impact productivity, safety, and profitability. The new suite uses machine learning to continually analyze project data managed in Oracle Construction and Engineering solutions to identify these potential risks and inefficiencies early, helping organizations make better decisions.

(Source: Oracle, Press Release, February 2021)

Cost-Estimating Software Market Report Coverage and Deliverables

The "Cost-Estimating Software Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:

• Cost-estimating software market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Cost-estimating software market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Cost-estimating software market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the cost-estimating software market
• Detailed company profiles