US Construction Accounting Software Market to Grow at a CAGR of 5.5% to reach US$ 331.00 million from 2022 to 2028

The US construction accounting software market is projected to grow from US$ 239.56 million in 2022 to US$ 331.00 million by 2028; it is estimated to record a CAGR of 5.5% from 2022 to 2028.

The construction industry has begun to undergo technological transformation. Companies are implementing technologies to reduce costs and improve safety, efficiency, and quality of construction activities. The US is experiencing a rise in the number of construction projects, which are inclined toward adopting software-based solutions. As construction companies increasingly emphasize accounting decisions to determine the ROI and future of respective businesses, the demand for construction accounting software is rising. Analyzing finance using accounting software before starting a business allows emerging entrepreneurs to carry out unique business ideas and rapidly and efficiently reflect their vision. A business plan software analysis enables new business owners to understand the fundraising strategies and expansion policies. Additionally, the software-based accounting plans help end users foresee potential problems and obstacles. The awareness regarding the benefits of accounting software in construction projects is strongly growing among entrepreneurs in the US. Thus, many companies are offering construction accounting software due to the rising awareness among new entrepreneurs, which is expected to offer lucrative business opportunities for US construction accounting software market growth in the coming years.

Impact of COVID-19 Pandemic on US Construction Accounting Software Market

Since 2021, the construction industry has been improving rapidly due to rising construction projects and increasing investments in mega infrastructure development. According to the new residential construction statistics by the US Census Bureau and the US Department of Housing and Urban Development, privately‐owned housing completions were at an annual rate of 1,309,000 in February 2022, an increase of 5.9% from the January estimate of 1,236,000. Furthermore, single‐family housing completions in February 2022 were at a rate of 1,034,000, 12.1% higher than that of January at 922,000. Thus, such growth prospects in private home constructions in the post-pandemic scenario are expected to bolster the demand for construction accounting software in the country, which would propel the US construction accounting software market growth during the forecast period.

US Construction Accounting Software Market Insights

The construction industry is a major contributor to the US economy. As of 2020, the industry has more than 680,000 employers with ~7 million employees. Also, it creates nearly US$ 1.3 trillion worth of structures each year. The US economy has increased spending on the construction industry. In 2019, a few topmost construction spenders in the US were Texas (US$ 45.4 billion), New York (US$ 32.1 billion), California (US$ 24.8 billion), Florida (US$ 23 billion), and Pennsylvania (US$ 12.6 billion). Residential and nonresidential construction activities are increasing in the US. The US Census Bureau and the US Department of Housing and Urban Development have released their new residential construction statistics, which show 1,526,000 building permits, 1,425,000 housing construction starts, and 133,900 housing completions for October 2022 in the US. Further, public investment in affordable housing is supporting the residential building construction industry. All aspects described above about the construction of commercial and residential buildings in the US are projected to increase the penetration of construction accounting software. Also, the presence of construction accounting software providers such as Sage, Xero Limited, and Quickbooks would drive the US construction accounting software market growth during the forecast period.

Offering-Based Market Insights

The US construction accounting software market, by offering, is segmented into solution and services. In 2021, the solution segment accounted for a larger market share.

Deployment-Based Market Insights

The US construction accounting software market, based on deployment, is bifurcated into on premise and cloud. In 2021, the cloud segment accounted for a larger market share.

Application-Based Market Insights

The US construction accounting software market, based on application, is segmented into small and mid-sized construction companies and large construction companies. In 2021, the large construction companies segment accounted for a larger share in US construction accounting software market.

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US Construction Accounting Software Market: Strategic Insights

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The players operating in the US construction accounting software market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the US construction accounting software market. A few developments by in the US construction accounting software market are listed below:

• In 2022, Chetu Inc., a provider of world-class software development and support services, announced the opening of its latest software delivery center in Brandon, Florida.
• In 2020, Sage, the market leader in cloud business management solutions, announced the launch of Sage Intacct Construction. Company stated that the new cloud financial management solution is designed to meet the unique needs of construction companies by building the leading construction management functionality of Sage 300 Construction (formerly Sage Timberline) onto the Sage Intacct multi-tenant cloud platform.

Company Profiles

• Deltek Inc.
• Sage Group
• Xero Limited
• Viewpoint Inc.
• Intuit Inc.
• Acclivity Group LLC
• Chetu Inc.
• Corecon Technologies Inc.
• Freshbook
• Foundation Software, LLC