Urban Planning Software & Services Market Size, Share, Trends, Growth 2030

Urban Planning Software & Services Industry Prospective:

The global urban planning software & services market size was worth around USD 145.81 Billion in 2022 and is predicted to grow to around USD 215.32 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 4.41% between 2023 and 2030.

The report analyzes the global urban planning software & services market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the urban planning software & services market.

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Urban Planning Software & Services Market: Overview

The urban planning software & services industry refers to the various sets of services, programs, and tools used by architects, urban planners, and related professionals for designing and managing urban areas. The software programs are essential tools that allow professionals to analyze and create scenarios in advance for developing urban areas, developing sustainable urban plans, and assessing the actual impact of new infrastructure and buildings. The end goal is to provide effective solutions that aim at urbanization but also meet community needs.

The fraternity includes a wide variety of products and services, such as geographic information systems (GIS), visualization software, and 3-dimensional modeling along with project management software, data analytics tools, and consulting services. The tools can be used by real estate developers, government agencies, and other organizations that are actively involved in urban planning and development. As the demand for sustainable urban planning and development is on the rise, the market can expect more revenue during the forecast period.

Key Insights: 

• As per the analysis shared by our research analyst, the global urban planning software & services market is estimated to grow annually at a CAGR of around 4.41% over the forecast period (2023-2030)
• In terms of revenue, the global urban planning software & services market size was valued at around USD 145.81 billion in 2022 and is projected to reach USD 215.32 billion, by 2030.
• The urban planning software & services market is projected to grow at a significant rate due to the growing rate of urbanization
• Based on component segmentation, software was predicted to show maximum market share in the year 2022
• Based on deployment principle segmentation, cloud-based was the leading type in 2022
• On the basis of region, North America was the leading revenue generator in 2022

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Urban Planning Software & Services Market: Growth Drivers

Rapid urbanization is a major reason for market growth

The global urban planning software & services market is projected to grow owing to the rising urbanization rate. The process of increasing the population migrating and settling in urban or surrounding areas is known as urbanization. With every passing year, a large part of the world’s population is shifting location to urban areas for better living standards and higher job opportunities.

This has put tremendous pressure on cities to ensure proper resource management, services, and infrastructure. As the trend continues to grow, the demand for urban planning services and programs is likely to grow as cities become more complex. Furthermore, the growing interest and investment of regional governments toward the development of urban regeneration projects and smart cities could lead to higher CAGR. These initiatives are directed toward improving sustainability, efficiency, and the living standard of the urban population.

Urban Planning Software & Services Market: Restraints

Lack of awareness to restrict the market growth

The global urban planning software & services industry is expected to come across growth restrictions owing to the lack of awareness surrounding urban planning software programs and their advantages. Many urban planners especially in struggling economies still rely on traditional paper-and-pen methods of planning cities for regional development. Densely populated countries are generally known to undertake unplanned construction and cities leading to frequent water logging during rainy seasons. In addition to this, the lack of adequate infrastructure to support the adoption of such advanced systems could lead to a higher loss of revenue.

Urban Planning Software & Services Market: Opportunities

Data-driven decision-making to provide multiple growth opportunities

The global urban planning software & services industry is expected to benefit from the rising demand for data-driven and well-researched decision-making across government and private sector businesses. The use of advanced urban planning software & services can provide excellent insights into various crucial aspects that play an important role in planning city development. For instance, land use, information on demographic trends, and transportation patterns can provide deep knowledge on the most viable solutions to issues arising in infrastructure development.

Urban Planning Software & Services Market: Challenges

Limited funding to act as a market challenge

Since the cost of such advanced software and its implementation expense is high, it may be difficult for regions with low funds to adopt urban planning software & services thus restricting the urban planning software & services industry growth. In addition to this, growing concerns over data security could further lead to lower growth in the industry since the programs collect and process sensitive data, raising concerns about data security and privacy.

Urban Planning Software & Services Market: Segmentation

The global urban planning software & services market is segmented into component, end-use, and region

Based on component, the global market segments are services and software. In 2022, the highest revenue was from the software segment. A major reason for segmental growth was the high rate of investment in technology-related companies along with the rise in the adoption of urban planning software programs for city planning. These tools are critical for managing and analyzing data related to available land, transportation systems, sewage plans, and other factors. Services, on the other hand, are expertise or consulting advice provided to infrastructure development units by service providers. The budget for the Department of Housing and Urban Development (HUD) in 2020 was $56.5 billion.

Based on end-use, the global urban planning software & services market divisions are web-based and cloud-based. The industry registered the highest growth in the cloud-based segment in 2022 due to the several benefits of cloud-based urban planning software programs. Some of these advantages include higher accessibility and cost-effectiveness. Furthermore, they can be easily customized as per the exact needs of the client including organizations and city authorities. In addition to this factors like high cyber security, scalability, improved collaboration & integration, and disaster recovery are important for segmental expansion. The starting price of using ArcGIS Urban is around USD 10,000 per year.

Recent Developments:

• In November 2020, Autodesk, an American multinational software corporation that specializes in the development of software products and associated services for the architecture, media, engineering, manufacturing, education, construction, and entertainment industries, announced the acquisition of Spacemaker which is an AI-driven software for urban planning. Spacemaker software is known for its generative design for architectural settings
• In October 2020, Sidewalks Labs, an urban planning and infrastructure subsidiary of Google, announced the release of Delve, powered by Machine Learning (ML). It can help architects, developers, and other planners to efficiently design urban areas
• In July 2021, Sasaki, a global designing firm, announced the launch of Density Atlas, a new platform for urban planners. The application will focus on providing information to developers and urban designers for a better understanding of density. It explores certain limitations associated with density and helps in defining standardized metrics meant for comparing different densities across global regions

Urban Planning Software & Services Market: Report Scope

Urban Planning Software & Services Market: Regional Analysis

North America to hold the majority of the market share

The global urban planning software & services market is expected to witness the highest growth in North America as it is currently one of the highest regional contributors. Factors like stringent regulations from the government and associated bodies ensuring implementation of planned urban region development are essential to the high CAGR, especially in the US. It is home to some of the most well-planned regions across the globe. Furthermore, the rising number of platform developers and service providers that have origins in the US but are expanding their businesses in the international market is expected to assist North America's lead with significant revenue share. The growing adoption of smart city development programs along with the existing presence of well-planned urban areas is critical to revenue in Europe. Spain, Germany, the UK, France, and other regions are expected to play an important role in regional growth.

Urban Planning Software & Services Market: Competitive Analysis

The global urban planning software & services market is home to players like:

• ESRI
• Bentley Systems
• Autodesk
• Hexagon AB
• Stantec
• Jacobs Engineering Group
• Atkins Global
• AECOM
• HDR Inc.
• Trimble Inc.
• City Form Lab
• IBI Group
• WSP Global Inc.
• Ramboll Group
• Adept Technology Pvt. Ltd.
• GHD Group
• Arup
• Skanska AB
• Urban Footprint
• Cardno.

The global urban planning software & services market is segmented as follows:

By Component

• Services
• Software

By End-Use

• Companies
• Government
• Real Estate & Infrastructure

By Deployment

• Web-Based
• Cloud-Based

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa