Product Management Software Market Outlook
The global product management software market size was USD 16,399.8 Million in 2022 and is projected to reach USD 28,508.7 Million by 2031, expanding at a CAGR of 6.6% during the forecast period.
Product management software is designed to help businesses design, develop, market, and sell a product throughout its life cycle. The software assists in the efficient handling of the product cycle, from the idea conception to the launch phase and further updates. It allows for product planning and the setting of development strategies that are aligned with company goals.
Product management software helps in market analysis by accumulating data for competitive intelligence. Some common features of product management software include idea management, road mapping, prioritization, user feedback, and collaboration tools. Product management software provides seamless analytics, project coordination, and team collaboration in one place and promotes informed and timely decision-making.
Macro-economic Factors
Economic Growth
A robust global GDP fosters business investments in software solutions. Companies are inclined to invest in product management software to improve efficiency and innovation. For instance, Atlassian has registered considerable growth in its product management software products.
Atlassian’s Jira software has become a staple for agile deployment teams, facilitating collaboration and project tracking. Thus, the growing use of software is promoting economic growth, as well as encouraging corporate innovation and competitiveness, as they attempt to offer high-quality products in a quickly changing market landscape.
Globalization
Globalization is driven by the interconnected nature of business operations and the demand for streamlined product development. Globalization creates significant opportunities for businesses to expand their markets and reach new customers across the globe. This increases the complexity and diversity of product development, as businesses need to consider different customer preferences, regulations, standards, and languages.
Product management software helps businesses manage this complexity by providing tools for product design, engineering, collaboration, and lifecycle management. Globalization increases competition and innovation in the global market, as businesses need to constantly improve their products and services to stay ahead of their rivals.
Product management software helps businesses enhance their innovation capabilities by enabling data-driven decision-making, reducing time-to-market, and optimizing costs and quality. The globalization encouraged many companies to improve strategies to remain competitive in the market.
For instance, in 2020, Atlassian, an Australia-based software company, acquired Halp, a US-based provider of conversational ticketing solutions, showcasing the cross-border consolidation in the product management software sector. This international integration reflects the growing recognition of the importance of unified product management processes in the globalized business landscape.
Product Management Software Market Dynamics
Market Driver- Growing Complexity of Product Development
Product development processes have become complex, involving multiple stakeholders, cross-functional, and diverse sets of requirements. This complication creates challenges for businesses to successfully manage product development. Product management software helps organizations navigate this complexity by providing a centralized platform for collaboration and project tracking to ensure smooth and efficient product development.
Product management software assists organizations in dividing large projects into small tasks, tracking progress, and identifying and mitigating risks. Furthermore, software tools are becoming increasingly important for managing digital components, enabling agile development, and facilitating real-time data analysis. Thus, the growing complexity of product development drives the demand for product management software during the forecast period.
Market Driver- Increasing Demand for Innovative Products
Businesses are working under pressure to constantly innovate and develop new products, due to the rising consumer demand and competition. Thus, businesses are increasingly focuses on understanding customer needs and preferences to develop products that meet their expectations, which is propelling the market.
However, product management software helps organizations manage the full product lifecycle, from conception to launch to post-launch support, allowing them to bring innovative goods to the market quickly and efficiently. Product management software further helps in managing complex development cycles and ensure successful product launches.
Market Driver- Technological Advancements
Rising technological advancements are driving the demand for product management software, as businesses are rapidly shifting to digitization and automation. Thus, the requirement for effective communication, data analysis, and fast workflows is becoming important.
Machine Learning, Artificial Intelligence (AI), and data analytics are used in advanced software to provide robust capabilities, such as predictive analysis, trend analysis, and automated decision-making. These features enable product managers to make data-driven decisions, improve product development processes, and respond quickly to adapt to changes. This software automates and optimizes existing processes, as well as provides unique functionalities, making them crucial for organizations seeking agility, competitiveness, and successful product delivery.
Market Restraint- Security Concerns
Security concerns significantly affect the demand for product management software. Businesses are becoming increasingly concerned about data security, particularly when it comes to cloud-based product management software.
Organizations are required to secure their sensitive data against unauthorized access, breaches, and leaks. However, fear of data vulnerabilities and unauthorized access discourages organizations from adopting such software, particularly in industries where security is crucial, such as healthcare, banking, or defense.
Market Restraint- Complexity
Complex software generally requires extensive on-boarding, which impacts the overall productivity during the transition phase. Complex product management software often requires high initial and maintenance costs. This discourages SMEs from adopting such software, especially if the software complexity surpasses their operating requirements, which restrains the product management software market during the forecast period.
Market Opportunity- Increasing Demand for Agile and Collaborative Tools
Organizations are embracing agile approaches and cross-functional cooperation. However, product management software supports agile methodology and cross-functional cooperation, which creates lucrative opportunities in the market. Agile approaches emphasize development and flexibility, necessitate strong software solutions to streamline procedures.
Product management software promote cross-functional cooperation, allowing teams to work cohesively, respond to opportunities quickly, and increase overall productivity. Thus, the demand for product management software has increased, as businesses recognize the need for seamless collaboration in dynamic environments.
Scope of Product Management Software Market Report
The report on the global product management software market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Product Management Software Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016-2021
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Forecast Period
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2023–2031
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Segmentation
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by Deployment (Cloud-based and On-premise), Enterprise Size (Small and Medium Enterprises (SMEs) and Large Enterprises), and End-use Industry (BFSI, Manufacturing, Retail, Healthcare, IT & Telecommunication, and Others)
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Regional Scope
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North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered
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Aha! Labs Inc.; Asana, Inc.; Atlassian; ClickUp; craft.io; Dragonboat Inc.; Fibery Limited; Monday.com; Productboard, Inc.; ProductPlan; Propad; Smartsheet; and Wrike, Inc.
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Product Management Software Market Segmental Outlook
The global product management software market is segmented on the basis of deployment, enterprise size, end-use industry, and region.
In terms of deployment, the product management software market is bifurcated into cloud-based and on-premise. The cloud-based segment held significant market share in 2022, due to the growing deployment of cloud computing infrastructure and migration of on-premises solutions to the cloud by SMEs. Cloud based platforms enable seamless data sharing in real time, allowing remote access, and fostering efficient product development.
On the basis of enterprise size, the product management software market is segmented into small and medium enterprises (SMEs) and large enterprises. The large enterprise segment held a substantial share of the market in 2022. Large enterprises often have multiple product lines, teams, and geographically dispersed units. The scalability and customization options of product management software make it well suited for addressing the intricate demands of large enterprises managing extensive and multifaceted product ecosystems.
Based on end-use industry, the product management software market is segmented into BFSI, manufacturing, retail, healthcare, IT & telecommunication, and others. The manufacturing segment held a substantial share of the market in 2022, owing to the need for operational excellence and reliable output from smart factories. Product management software helps manufacturers to improve product quality, reduce costs, optimize production schedules, and manage orders and inventory efficiently.
Regional Outlook
Based on region, the product management software market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in the Asia Pacific is anticipated to grow at a rapid pace during the forecast period, owing to the increasing number of startups in APAC countries and rising technological advancements. The rapid expansion of the retail, IT services, and manufacturing industries is boosting the demand for product management software in the region.
Key Benefits for Industry Participants & Stakeholders
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In-depth Analysis of the global Product Management Software Market
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Historical, Current, and Projected Market Size in terms of Value and Volume
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Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
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Industry Drivers, Restraints, and Opportunities Covered in the Study
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Recent Industry Trends and Developments
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Competitive Landscape & Strategies of Key Players
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Neutral Perspective on Global Product Management Software Market
Segments
Deployment
Enterprise Size
- Small and Medium Enterprises (SMEs)
- Large Enterprises
End-use Industry
- BFSI
- Manufacturing
- Retail
- Healthcare
- IT & Telecommunication
- Others
Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Key Market Players Profiled in the Report
- Aha! Labs Inc.
- Asana, Inc.
- Atlassian
- ClickUp
- craft.io
- Dragonboat Inc.
- Fibery Limited
- Monday.com
- Productboard, Inc.
- ProductPlan
- Propad
- Smartsheet
- Wrike, Inc.
Competitive Landscape
- Top players in the market include Aha! Labs Inc.; Asana, Inc.; Atlassian; ClickUp; craft.io; Dragonboat Inc.; Fibery Limited; Monday.com; Productboard, Inc.; ProductPlan; Propad; Smartsheet; and Wrike, Inc.
- These companies are considered key manufacturers of product management software based on their revenue, product offerings, regional presence, and supply chain management system.
- These players are adopting key strategies, such as acquisition, collaborations, and geographical expansion, to boost their shares.
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