Construction Accounting Software Market Set to Grow to $1.2 Billion by 2028
Is it possible to operate a construction business without the use of software? Well… yes. However, in doing so, it could feel like death by a thousand cuts. Suffice it to say that construction software is vital to safely maintaining and growing a construction business. Luckily the industry has a robust software market to choose from! To add context (and dramatic numbers) into the mix, the construction accounting software market is projected to grow $943.91 million to $1,217.42 billion in 2028!
Covid- 19 Construction Software Hit
While enduring the rippling effects of COVID-19 on the physical side of the construction industry were some of the hardest (lockdowns, disruption of supply chains, halting of projects, etc.), this also affected the global accounting software market growth. According to The Insight Partners Report, the pain was not only felt in the USA, but a staggering decline in Europe-Italy being the most affected. Government lockdowns shut down construction projects which naturally caused zero construction activity, which resulted in plummeting numbers for the construction accounting software market.
The Fog is Lifting
Thankfully in 2021, we could see light at the end of the tunnel as restrictions started to lift. The construction industry was moving again, and therefore so was the construction accounting software market. A busy construction industry demands more software to automate tasks, monitor growth and implement healthy growth habits.
Here are a few major projects, currently in the works, that are projected to inject giant amounts of money into the construction industry:
1. Amazon HQ2 (Arlington/Crystal City, Virginia)
According to Clark Construction, the first phase of the new Amazon HQ2 office space at National Landing, which began in January 2020, is on track to be completed by 2023.
2. Samsung Chip Factory (Austin, Texas)
Samsung announced in 2021, that it is planning to build a $17 billion semiconductor fabrication facility in Taylor, Texas, northeast of Austin. Samsung plans to begin operations beginning in 2024.
3. Blue Castle Nuclear Plant (Green River, Utah)
Blue Castle Holdings Inc. is working on a project to build a two-reactor nuclear energy facility near Green River, Utah, with a potential construction budget of $20 billion.
These 3 projects are just a tiny snapshot of what is to come. You can view the larger list at Indovance.com.
Final Walk Through
In 2023, there may be financial strain due to, but not limited to, the recent SVB downfall. However, the construction industry still expects to make significant profit margins thanks to several large US projects in progress… This is fantastic news for the construction accounting software market! The construction accounting software market relies on construction physical labor and accounting professionals, to maintain and exceed their projections.
Arnold Palmer once said, “The road to success is always under construction”. This quote rings true for the financial path of the construction industry. From the desk to the construction site, it takes a village to operate a successful construction business with the help of good construction software!