Innovation Management Market Share, Size, Trends, Industry Analysis Report, By Offering (Solutions, Services); By Function; By Innovation Management Tools; 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
Global 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 a 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 the development and management of innovation processes and embark on significant opportunities to stay ahead of the competition.
However, the higher resistance to adopting technological advancements, along with the increased familiarity of traditional innovation management systems, is expected to impact the innovation management market in the long run negatively.
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 appealing 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.
Improved data-driven decision-making process
The potential of innovation management in ensuring the utilization of optimized 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 innovation management software is expected to contribute effectively to acquiring compatible innovation strategies among the companies.
Restraining Factors
The decrease in research innovations is likely to impede 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 innovation management market growth.
Report Segmentation
The market is primarily segmented based on offering, function, innovation management tools, and region.
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By Offering |
By Function |
By Innovation Management Tools |
By Region |
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By Offering Analysis
The training, support, & maintenance service segment is expected to witness the highest growth during the innovation management market 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 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 to a substantial innovation management market 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 innovation management market share in 2023
The product development segment registered the largest innovation management market share in 2023. 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 assist in observing the performance of employees.
According to the innovation management market forecast, the business process segment is expected to grow at a reasonable rate over the next few years due to rising concerns about the effective management of business operations with optimized utilization of resources. These innovation management tools help firms identify 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
The Project Management Platforms segment held a significant innovation management market share in 2023
The project management platforms segment held a substantial innovation management market share due to the rising adoption of innovation management tools for project management. 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.
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 with substantial expansion activities, primarily acquisitions among the key players, 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 key regions across the globe to provide a better understanding of the product to the users. Also, the report provides market insights into recent developments and trends and analyzes the technologies that are gaining traction around the globe. Furthermore, the report covers an in-depth qualitative analysis pertaining to various paradigm shifts associated with the transformation of these solutions.
The report provides a detailed analysis of the market while focusing on various key aspects such as competitive analysis, offering, function, innovation management tools, and vertical and 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, regions, 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
