Urban Planning Software And Services Market Size, Share & Trends Analysis Report By Component (Software And Service), By Deployment, By End User, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global urban planning software and services market size was valued at USD 141.37 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.2% from 2021 to 2028. Factors such as high investment in computers and software and an increase in spending on non-residential construction projects are fueling the demand for urban planning software and services. The growing urban population worldwide is also boosting the demand for urban management solutions and services. For instance, according to the projection of the United Nations (UN), nearly 68% of the world’s population is expected to live in urban areas by the year 2050.

The COVID-19 pandemic, which led to the imposition of lockdowns in several countries, created major disturbances across a range of industries. The lockdown restrictions temporarily halted major infrastructure development activities, hampering the urban planning software and service industry. Nevertheless, the industry is expected to recover rapidly in the near future as restrictions relax. As the pandemic ebbs away and economies recover from the severe loss of revenues and spending on the healthcare sector, governments across the globe are expected to focus on other development activities that were hampered for more than a year.

Urban planning is a development process that encompasses political and technical concerns such as the usage and development of lands, the welfare of societies, and the protection of the environment. Therefore, city planners or urban planners that work with the government or other urban development entities often need tools that help them layout development designs and plans.

The rising availability of open-source software and imbalances in government budgets are expected to hamper the growth of the market. Reluctance to evolve from conventional business models and insufficient institutional planning capacity across various countries are also likely to impede the growth of the market. Nevertheless, factors such as the increasing number of suburban areas and cities, increased investments in smart city technologies and projects, and a budding global IT industry are expected to offer major growth opportunities to the market over the forecast period.

Component Insights

In terms of component, the urban planning software and services market has been segmented into software and service. The service segment is anticipated to register the highest CAGR of 5.1% over the forecast period. This can be attributed to the growing demand for infrastructure planning, building planning, advisory, and digital services by urban planners.

The software segment accounted for the largest revenue share in 2020 and is expected to retain its dominance throughout the forecast period. The growth of the software segment can be attributed to the increase in technology investments by governments for urban development.

Deployment Insights

The cloud-based segment accounted for the largest revenue share in 2020 and is expected to retain its dominance throughout the forecast period. In addition, the segment is also expected to grow at the highest CAGR of 4.5% throughout the forecast period. This can be attributed to the increase in awareness and popularity of cloud-based software deployments among organizations.

Benefits such as flexibility, enhanced computing power, and cost-efficiency are also driving the demand for cloud-based solutions. The web-based segment is expected to account for a significant market share in 2020 and is expected to maintain its position over the forecast period.

End-user Insights

The real estate and infrastructure companies segment is expected to register the highest CAGR of 4.9%. The growth of this segment can be attributed to the growing focus of governments globally on infrastructural development projects as an increasing number of people are moving to urban areas in search of jobs. The increasing availability of advanced solutions catering to real estate and infrastructure companies and the wide range of benefits associated with them are also driving the market across this segment.

The government segment accounted for the largest revenue share in 2020 and is projected to retain its position over the forecast period. This can be attributed to the increased investment of government entities in smart city technologies, projects, and other technological infrastructure for the welfare of society. For instance, in December 2018, China announced a “new infrastructure initiative” to surpass the U.S. and become a global technology leader. As a part of this initiative, the country aggressively increased its investment in smart city technologies, data centers, 5G, and other smart city areas.

Regional Insights

Asia Pacific dominated the market in 2020 and is anticipated to expand at the highest CAGR of over 6.1% over the forecast period. Factors such as ongoing smart city initiatives and growing industrialization are driving the market growth in the region. For instance, currently, over 26 smart cities projects are in progress across Association of Southeast Asian Nations (ASEAN) countries. In January 2017, India and Japan announced their collaboration over smart city developments. As a part of this association, Japan would assist India in the development of three smart cities, namely Ahmedabad, Chennai, and Varanasi. Additionally, in 2020, India’s total “Smart City Mission” investment allocation was raised to USD 28.3 billion.

North America accounted for the third-highest revenue share in 2020 and is expected to retain its position over the forecast period. The growth of the regional market can be attributed to the existence of market players in the region. Moreover, the growing preference for sustainable and eco-friendly city infrastructures is also driving market growth across the region. For instance, New Orleans, a city in Louisiana, U.S., recently invested in data analysis and management tools to monitor crucial trends associated with the COVID-19 pandemic.

Key Companies & Market Share Insights

The market has a fragmented competitive landscape as it features various global and regional market players. Leading industry players are adopting strategies such as partnerships, collaborations, mergers and acquisitions, and agreements to survive the highly competitive environment and enhance their business footprints. Moreover, urban planning service providers are spending substantial funds on research and development activities to develop advanced products and integrate new technologies in their offerings to achieve a competitive lead over other market players.

For instance, in November 2020, Autodesk announced an agreement to acquire Spacemaker, a Norway-based cloud-based AI software provider, for USD 240 million. With this acquisition, Autodesk aims to provide AI-powered design abilities for architectures to assist them in discovering better urban design selections. Some of the prominent players operating in the global urban planning software and services market are:

• AECOM

• Autodesk Inc.

• Bentley Systems

• Boston Consulting Group

• esri

• Holistic City Limited

• SketchUp

• SAVANNAH SIMULATIONS AG

• Stantec

• UrbanFootprint

Urban Planning Software And Services Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the global urban planning software and services market report based on component, deployment, end-user, and region:

• Component Outlook (Revenue, USD Billion, 2016 - 2028)

  • Software

  • Service

• Deployment Outlook (Revenue, USD Billion, 2016 - 2028)

  • Cloud-based

  • Web-based

• End-user Outlook (Revenue, USD Billion, 2016 - 2028)

  • Government

  • Real Estate and Infrastructure Companies

• Regional Outlook (Revenue, USD Billion, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa