US Construction Accounting Software Market Forecast 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.

In the first quarter of 2020, the COVID-19 pandemic inevitably disrupted the activities in the construction industry. However, the industry witnessed growth in its activities in the third quarter of 2020. In the last quarter, construction projects depended on the extent to which the pandemic impacted sub-contractors and suppliers in the supply chain. The number of single-family homes and privately‐owned housing under construction increased significantly in the US in the past ten years. 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 increased by 5.9% from 1,236,000 in January 2022 to 1,309,000 in February 2022. In addition, single‐family housing completions reached 1,034,000 in February 2022 from 922,000 in January 2022, an increase of 12.1%.

The US is witnessing many ongoing mega construction projects in 2022, reflecting a robust construction industry in the country. A few such construction projects are Samsung semiconductor fabrication facility in Texas (US$17 billion), Amazon HQ2 office space in Virginia (US$2.5 billion), and the US/Mexico border wall (more than US$1 billion). The continuous rise in the number of construction projects in the US generates significant demand for software-based accounting services. Therefore, the growing construction industry drives the US construction accounting software market growth.

The technology sector has witnessed a significant rise in cloud-based software in recent times. This is due to the fact that the cloud-based software simplifies a business planning process with tailored business plan templates through better planning. Cloud-based construction accounting software benefits companies to integrate with other software. Accounting software is expected to integrate with project management solutions. Construction companies can easily transfer their project data from the accounting solution into their project management solution and back. This benefit has attracted a significant percentage of end users. In addition, the internet infrastructure has matured in developed countries and is flourishing in several developing countries, allowing end users in both developed and developing countries to access cloud-based software. This factor is driving the US construction accounting software market growth. Construction accounting software developers continuously invest in developing robust and secured cloud-based software to protect customer data and prevent cyber-attacks. This factor will drive the cloud-based segment in the US construction accounting software market during the forecast period

The COVID-19 outbreak has negatively affected business activities and company revenues in the construction accounting software industry. Lockdowns, construction project halts, and supply chain disruptions in the construction industry hindered the US construction accounting software market growth, especially in 2020.

The US construction accounting software market is segmented on the basis of offering, deployment, application, and geography. Based on offering, the market is segmented into solution and services. In 2021, the solutions segment held a larger market share. Based on deployment, the US construction accounting software market is divided into cloud and on-premises. The market in the cloud segment is expected to grow at the fastest pace during the forecast period. Based on application, the market is segmented into small and mid-size construction companies and large construction companies. The large construction companies segment contributed a substantial share in 2021.

The US construction accounting software market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the US construction accounting software market. The process also serves the purpose of obtaining an overview and forecast for the market with respect to all the segments. Primary interviews were conducted with industry participants and commentators to validate data and gain more analytical insights into the US construction accounting software market. Participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the market. A few of the major players operating in the US construction accounting software market are Deltek Inc.; Sage Group; Xero Limited; Viewpoint Inc.; Intuit Inc.; Acclivity Group LLC; Chetu Inc.; Corecon Technologies Inc.; Freshbook; and Foundation Software, LLC.