CCID Consulting: China's Engineering Construction Project Management Software Sector Sees Great Momentum
Over the past decade, China's engineering construction industry has kept a high average annual growth rate of over 20%. The gross output of the construction industry in 2011 reached RMB11.7734 trillion and its value added accounted for 6.79% of China's GDP that year.
Guided by China's overall strategy of integrating informatization and industrialization and driven by the vigorous supports of the governments' policies and the enterprises' urge for enhanced core competitiveness, more and more engineering construction enterprises have geared for engineering project management informatization. The sector now has the following features.
I. Rapid Growth
Based on its long-term monitoring of and study on China's engineering construction project management software, CCID Consulting believes that the market will achieve a compound annual growth rate (CAGR) of 27% in the next five years. By 2016, the revenue from the market will reach RMB1.335 billion. In the future, this particular sector will outplay financial management software, ERP software and other traditional management software and exceed the growth rate of the overall enterprise management software market, estimated at 20%.
Figure Forecasts on Size and Growth Rate of China's Engineering Construction Project Management Software Market, 2011-2016
Source: CCID Consulting, July 2012
II. Fierce Competition
Suppliers in China's engineering construction project management software can be divided into the following categories:
- Comprehensive suppliers that offer both ERP software and professional project management software, such as NEWGRAND Software;
- Suppliers of professional project management software, such as Ebuilds, Justwin, Primavera, Tsing-Tech Reachway and Bangyong;
- Software suppliers dedicated to construction cost software and tool design software, such as CABR Technology, Guangdong TOONE Technology and Glodon Software;
- ERP software suppliers such as UFIDA Software, Kingdee Software, Oracle and SAP;
- Regional software suppliers focusing on custom development.
CCID Consulting has found through market survey that leveraging integrated products, sound sales networks, numerous successful stories and talent advantages, Newgrand Software has been an outstanding player in its field. Although UFIDA Software, Shandong Inspur Software, Kingdee Software and other comprehensive software suppliers have entered the engineering construction project management software market in the industry, they still need some time for improvement in terms of talent, industry knowledge and product R&D. Professional suppliers of engineering project management software such as Guangdong TOONE Technology, Ebuilds and the Institute of Building Engineering Software will actively bring their advantages in this sector into full play, and their market position will be further reinforced.
Currently, China's engineering construction industry is enjoying a rapid growth, mainly attributable to two reasons. On one hand, China's urbanization is accelerating, and the urbanization rate has risen to 47.6% from 36.2% in 2000. In the next 20 years, urbanization acceleration will become the main battlefield of the engineering construction industry; on the other hand, as China is increasing its investment in infrastructure construction, the construction industry will benefit the most. Besides, the 2011-2015 Development Outline for Informatization of the Construction Industry issued by China's Ministry of Housing and Urban-Rural Development in 2011 will definitely benefit the project management software market.
In future, the sector will see the following four trends:
1. Risk management and data analysis will witness fast development;
2. Industrial applications will accelerate the in-depth development of engineering construction project management;
3. New technical applications will bring about new user experience in engineering project management;
4. Market competition will become fiercer and software manufacturers will attach more importance to the improvement of their services.
About CCID Consulting Co., Ltd.
CCID Consulting Co., Ltd., the first Chinese consulting firm listed in the Growth Enterprise Market (GEM) of the Stock Exchange of Hong Kong (HKSE: 08235) and the first consulting firm which gets ISO 9001 international and national quality management system standard certification, is directly affiliated to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Xi'an, Wuhan and Nanjing with over 300 professional consultants. The company's business scope has covered over 200 large and medium-sized cities in China. CCID Consulting provides customers with public policy establishment, industry competitiveness upgrade, development strategy and planning, marketing strategy and research, HR management, IT programming and management services, investment and financing, and M&A. The company's customers range from government departments at all levels and diversified industrial parks, to industrial users in strategic emerging industries in new generation information technology, energy saving and environmental protection, biological science and technology, high-end equipment manufacturing, new materials, and new energy. CCID Consulting commits itself to become the No. 1 advisor for urban economy, the No.1 consultancy for enterprise management, and the No. 1 branch for informatization consulting in China.