Innovation Management Market Share, Size, Trends, Industry Analysis Report, By Offering (Solutions, Services); By Function; By Innovation Management Tools; By Vertical; By Region; Segment Forecast, 2024 - 2032
- Published Date:Mar-2024
- Pages: 118
- Format: PDF
- Report ID: PM4668
- Base Year: 2023
- Historical Data: 2019 – 2022
Report Outlook
Innovation Management Market size was valued at USD 1.49 billion in 2023. The market is anticipated to grow from USD 1.65 billion in 2024 to USD 3.69 billion by 2032, exhibiting the CAGR of 10.6% during the forecast period.
Market Overview
Innovation management systems are gaining utility in the global space, driven by their higher intrinsic potential to boost the position of a company, optimize business operations, and meet changing consumer needs. The technological evolution in the world is driving research and development activities by companies with the increased accessibility of qualitative innovation management software and solutions.
For instance, in December 2023, Planforge unveiled a new option for idea management after the completion of its hybrid offering of project and portfolio management (PPM) software, aiming to tackle current challenges in sustainable innovations among organizations.
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Moreover, the emergence of machine learning, artificial intelligence and virtual reality are playing a prominent role in stimulating innovation activities in companies with their ability to streamline development and management of innovation processes and embark on significant opportunities to stay ahead of competition. The growing investments in innovation will further propel the demand for innovation management market. For instance, in July 2023, BizAway announced that it has received EUR 10 million to propel its innovation.
Growth Drivers
Rising Consumer Demand for Customized and Innovative Products and Services
The increasing investments in innovation activities are crucial for any business organization to compete in the market. This enables them to enhance their consumer services with the development of unique products and improving existing products by keeping an eye on consumer feedback, making them retain existing consumers and grab new consumers. Innovations not only focus on product developments but also assist them in controlling costs in business operations, taking significant steps in profit maximization initiatives. This existing trend is expected to showcase new demand for the innovation management market during the study period. For instance, in August 2023, Lenovo introduced a new support center in Bangalore, India to foster innovation activities.
Improved Data-Driven Decision-Making Process
The potential of innovation management in ensuring the utilization of optimiz ed resources, cost-effectiveness, and assisting in effective business strategies with the consideration of return on investment on the projects adopted by the companies is expected to stimulate demand. The offering of data-driven insights by the innovation management software is expected to contribute effectively to acquiring compatible innovation strategies among the companies.
Moreover, the growing developments among the companies are significantly fueling its adoption, driven by their potential to drive innovations. For instance, in December 2023, Everbridge received the artificial intelligence patent, particularly relevant to the analytics technology in event management software.
Restraining Factors
The Decrease in Research Innovations Is Likely to Hinder Market Growth
The insignificant returns from innovation activities by the companies are making them less interested in investing more funds in innovation. According to the Global Innovation Management Excellence Benchmark Report 2023, released by Arthur D. Little, companies invest around $2 trillion per year on research and development projects; however, they are witnessing lower returns from innovation.
Approximately 33% of the companies showed dissatisfaction with their innovation performance. As this trend continues, there will be a significant drop in the number of companies adopting innovations, substantially hampering market growth.
Report Segmentation
The market is primarily segmented based on offering, function, innovation management tools, vertical, and region.
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By Offering |
By Function |
By Innovation Management Tools |
By Region |
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By Offering Analysis
Training, Support, & Maintenance Service Segment is Expected to Witness the Highest Growth During the Forecast Period
The training, support, and maintenance service segment is projected to grow at a higher CAGR during the projected time frame, mainly driven by the growing organizational preferences to enhance skills among the employees. The growing importance of training support and maintenance among teams influences the way teams build strategies and manage their innovation performance, contributing to higher returns on innovation.
The consulting and system integration segments led the substantial revenue share in 2023, largely attributable to its proficiency in the transformation of traditional innovation mechanisms into digital innovation infrastructure with the latest technologies in organizations. The flexibility, risk mitigation, and scalability properties of these segments are likely to stimulate the adoption of innovation management.
By Function Analysis
Product Development Segment Held the Largest Market Share in 2023
The product development segment registered the largest market share in 2023 and is likely to retain its market position throughout the forecast period. This is highly influenced by the ability of innovation management tools to streamline real-time developments in the various stages of product development. The enhanced cost-efficiency, shorter design cycles, and tracking mechanism of product development in each phase are assisting in observing the performance of employees.
The business process segment is expected to grow at a significant rate over the next few years. This is due to rising concerns about effective management of business operations with optimized utilization of resources. These innovation management tools will help firms in ident ifying potential challenges in their day-to-day business operations, leading to a significant rate of adoption in the global market.
By Innovation Management Tools Analysis
Project Management Platforms Segment Held the Significant Market Revenue Share in 2023
The project management platforms segment held a significant market share in revenue in 2023, which is highly accelerated due to the rising adoption of innovation management tools for project management. In monitoring the growth and developments in the project, reverifying the possibilities of reaching targets or milestones and identifying the potential obstacles in the various stages are stimulating factors driving the acquisition of innovation management in the marketplace.
By Vertical Analysis
It & Telecommunication Segment Received the Dominant Share over Other Verticals in 2023
IT & Telecommunication vertical witnessed significant growth in 2023 and is perceived to register significant growth in the coming years. The growth of this segment can be attributable to the ongoing technological advancements and growing demand for customiz ed ideas in the marketplace. The digital transformation strategies of most companies in IT and telecommunications are creating the need for compatible tools with the potential to track or monitor real-time progress of their development strategies.
Regional Insights
North America Region Registered the Largest Innovation Management Market Share in 2023
The North American region dominated the market. The growth of the segment market can be largely attributed to the prevalence of larger demand for innovation management software and solutions in the region from various industry verticals, including IT and telecommunications, healthcare, retail, aerospace, manufacturing, and others.
The Asia Pacific region is expected to be the fastest-growing region with a healthy CAGR during the projected period, owing to the growing innovations and research activities among the small and large enterprises in the region. With rising technological adoption, companies in the region are showing tremendous interest in integrating innovation management software to streamline their development processes. According to the innovation management market analysis, this trend is anticipated to boost market expansion in the region.
Key Market Players & Competitive Insights
Strategic partnerships to drive the competition
The innovation management market is moderately fragmented, and is expected to witness competition due to the growing research activities to offer streamlined idea assessment throughout the life cycle and promote collaboration. For instance, in January 2024, Accenture announced the acquisition of Work & Co. to promote its global digital product offering.
Some of the major players operating in the global market include:
- Accenture (Ireland)
- Boston Consulting Group (US)
- Brightidea (US)
- Deloitte (UK)
- EY (UK)
- HYPE Innovation (Germany)
- IdeaScale (US)
- Induct (Norway)
- insightsoftware (US)
- InnovationCast (Portugal)
- inno360 (US)
- ITONICS (Germany)
- KPMG (Netherlands)
- Medallia (US)
- Miro (US)
Recent Developments in the Industry
- In December 2023, Wazoku announced the acquisition of the research and development partnership platform PosterLab to expand its business into Germany.
- In July 2023, Kearney, a consulting company, completed the acquisition of an advisory firm, Silicon Foundry, to enhance its innovative capabilities and strategic transformation.
Report Coverage
The innovation management market report emphasizes on key regions across the globe to provide better understanding of the product to the users. Also, the report provides market insights into recent developments, trends and analyzes the technologies that are gaining traction around the globe. Furthermore, the report covers in-depth qualitative analysis pertaining to various paradigm shifts associated with the transformation of these solutions.
The report provides detailed analysis of the market while focusing on various key aspects such as competitive analysis, offering, function, innovation management tools, vertical, and their futuristic growth opportunities.
Innovation Management Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 1.65 billion |
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Revenue forecast in 2032 |
USD 3.69 billion |
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CAGR |
10.6% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments covered |
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Regional scope |
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Competitive Landscape |
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Report Format |
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Customization |
Report customization as per your requirements with respect to countries, region, and segmentation. |
FAQ's
The Innovation Management Market report covering key segments are offering, function, innovation management tools, and region.
Innovation Management Market Size Worth $3.69 Billion By 2032
Innovation Management Market exhibiting a CAGR of 10.6% during the forecast period.
North America is leading the global market
key driving factors in Innovation Management Market are Rising consumer demand for customized and innovative products and services
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