Construction Accounting Software Market Report 2025

The construction accounting software market size has grown steadily in recent years. It will grow from $1.64 billion in 2024 to $1.72 billion in 2025 at a compound annual growth rate (CAGR) of 4.9%. The growth in the historic period can be attributed to manual accounting processes in the construction industry, growth of the construction sector and infrastructure projects, increasing complexity of construction project finances, adoption of technology in construction management, need for accurate cost estimation and project budgeting.

The construction accounting software market size is expected to see strong growth in the next few years. It will grow to $2.26 billion in 2029 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to rise in demand for real-time financial reporting, recognition of the importance of project profitability, challenges in managing subcontractor and vendor payments, adoption of cloud-based construction accounting solutions, increasing demand for mobile construction accounting apps, emphasis on data security and compliance features, development of industry-specific features in accounting software, rise of subscription-based and software-as-a-service (saas) models. Major trends in the forecast period include integration of artificial intelligence for automation, collaboration between accounting software providers and construction firms, technological advancements in data analytics and business intelligence, adoption of blockchain for secure and transparent transactions, integration of internet of things (iot) for real-time project data.

The expanding construction industry is expected to drive the growth of the construction accounting software market in the future. Construction encompasses the building of structures such as homes, factories, highways, and bridges. Construction accounting software allows firms to manage costs and income in real time, providing valuable insights into their financial performance. This software helps identify potential issues early and rectify them before they escalate, while also streamlining invoicing and payment processing, thus saving time and effort. For instance, in November 2023, the Office for National Statistics, a UK-based government department, reported that the value of new construction work in Great Britain reached a record high of £132.98 billion in 2022, reflecting a 15.8% increase. This growth was driven by a rise in private sector projects, totaling £14.09 billion, along with an increase in public sector work, which contributed £4.06 billion. Therefore, the growth of the construction industry is fueling the demand for construction accounting software.

The transition to remote and flexible work is also expected to contribute to the growth of the construction accounting software market. Remote and flexible work refers to employment arrangements that allow individuals to perform their job duties from locations outside the traditional office setting. Construction accounting software facilitates seamless financial management and reporting for remote and flexible work, ensuring real-time collaboration and accessibility for construction projects. For instance, a survey conducted by FlexJobs' Career Pulse in February 2022, involving 2100 participants, indicated that 65% of respondents strongly preferred full-time remote work, while 32% desired a hybrid work arrangement. This high percentage of 97% signifies that a significant majority of workers wish to have the option of working remotely to some extent. Therefore, the shift toward remote and flexible work is a driving factor for the construction accounting software market.

Product innovations represent a growing trend gaining traction in the construction accounting software market. Major companies within this market are actively introducing innovative products to maintain and strengthen their positions. An example of this is AvidXchange, a US-based software company, which unveiled AvidPay integrated with TimberScan Titanium, a novel accounts payable solution tailored for the construction industry, in August 2022. This comprehensive purchase-to-pay solution enhances the efficiency of funds payable processes for construction industry experts such as contractors and developers. By utilizing a centralized, fully automated platform, users can manage financial tasks such as invoices and facilitate payments remotely from any location. The embedded workflow streamlines processes such as purchasing orders and invoice management, offering users the ability to establish automatic routing rules to expedite payments.

Major companies in the construction accounting software market are increasingly focusing on technological advancements, such as the advanced Digital Construction Practitioner course, to enhance project management capabilities, improve efficiency, and streamline financial operations. This course emphasizes key areas like Building Information Modeling (BIM), data analytics, and cloud solutions, preparing participants to effectively navigate the complexities of modern construction projects. For instance, in July 2024, the Project Management Institute (PMI), in collaboration with Oracle, launched this course. PMI is known for its project management standards and education, while Oracle specializes in software and cloud solutions for business applications. The advanced Digital Construction Practitioner course equips professionals with essential skills in utilizing digital tools and technologies, ultimately enhancing project management efficiency and collaboration within the construction industry.

In July 2022, JDM Technology Group, Inc., a Canada-based software development company, undertook the acquisition of Deneb Software for an undisclosed amount. This strategic move aims to combine Deneb with JOBPOWER Software, another JDM Technology Group company with extensive experience in the construction software business. This integration positions Deneb to enhance its ability to assist contractors in distinguishing themselves within the competitive construction industry. Deneb Software, based in the US, specializes in the development of construction accounting and estimating software.

Major companies operating in the construction accounting software market include Oracle Corporation, Intuit Inc., Trimble Inc., Sage Group plc, Xero Ltd, Procore Technologies Inc., Deltek Inc., Tally Solutions Pvt. Ltd, Buildertrend, CMiC, Acumatica, Chetu Inc, FreshBooks, BQE Core, Foundation Software LLC, Computer Guidance Corporation, B2W Software Inc., Jonas Construction Software Inc., Penta Technologies Inc., Corecon Technologies Inc., GCPay, Online Check Writer, Adeaca Corp, Melio Payments, Knowify.

North America was the largest region in the construction accounting software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the construction accounting software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the construction accounting software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Construction accounting software is specialized software crafted for the construction industry, offering contractor organizations financial management capabilities to streamline their financial operations. This software contributes to faster workflows, heightened productivity, and simplified financial management within the construction sector.

Construction accounting software comprises two main components solutions and services. Solutions involve the process of addressing specific organizational issues through a set of software tools and services. In the construction industry, software solutions are employed to aid construction firms in the accounting and financial management of their building projects. These solutions can be deployed through cloud-based or on-premises methods, each offering distinct functionalities such as audit reporting, accounts payable and receivable, project costing, and more. These applications find utility in both small to mid-size construction companies and large construction enterprises.

The construction accounting software market research report is one of a series of new reports that provides construction accounting software market statistics, including construction accounting software industry global market size, regional shares, competitors with a construction accounting software market share, detailed construction accounting software market segments, market trends and opportunities, and any further data you may need to thrive in the construction accounting software industry. This construction accounting software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The construction accounting software market includes revenues earned by entities by providing services such as accounts payable and receivable, the general ledger, cash and financial management, financial reporting, and audit reporting. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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