The achievement of pretty much any business goal is largely contingent on project management practices. To keep up with the ever-changing world of business, organizations need to make constant adaptations and alterations. That falls on the shoulders of project managers and their decisions of what to keep and what to change. So, what are the key data and facts in this field? Here is an extensive list of project management statistics that will help you grasp the concept better.
Project Management Statistics (Editor’s Choice)
- Demand for project management jobs is expected to soar to 87.7 million by 2027.
- 25% of organizations lack efficient technology for team collaboration.
- Jira holds the biggest share of the project management software market.
- Companies that don’t value project management experience 70% more project failures.
- 43% of organizations rarely or never experience cost overrun on budgets.
- 35% of senior management put organizational agility on the top of the list of success factors.
- 56% of companies have digital transformation strategies involving an AI element.
Statistics on the Project Management Industry
1. Modern project management began in the 1950s.
Project management goes back to the time when the pyramids in Egypt were built. One can't deny that such a feat required a certain level of management. Project management facts show that although the concept seems to be very old, modern-day project management dates back to 1956 and the formation of the American Association of Cost Engineers.
2. The global PPM market size is forecast to hit $5.6 billion by 2025.
The global Project Portfolio Management size in 2020 was $4.2 billion. Analysts predict that it will reach $5.6 billion over the following five-year period, growing at a 6.0% Compound Annual Growth Rate. The main incentives include increasing demand for resource management, cloud-based PPM solutions, 360-degree view of operations, etc.
3. North America spends about $2 trillion on projects each year.
Project management statistics suggest that North America is the largest revenue generator in the project portfolio management market globally. The region boasts huge spending on projects and remarkable progress in the field.
4. North America will boast the largest PM software market share by 2025.
The number of organizations that adopted project management software solutions in North America is rising. It’s no wonder then that expectations for the period until 2025 are that the region will take up the largest share of the project management software market.
5. Demand for project management jobs is estimated to reach nearly 90 million by 2027.
The number of jobs in demand in project management is expected to amount to 87.7 million, as evidenced by project management stats. The roles in the field won’t include only generic project manager titles, which vary according to the industry, but also roles like assistant project managers, schedulers, coordinators, etc.
6. Just 23% of organizations use PPM or resource management software solutions.
Although project management tools have proved useful for businesses, a project management survey shows that just under a quarter of organizations use project management software. Also, 54% don’t have an accessible real-time Key Performance Indicator.
7. 25% of organizations don’t have efficient technology for team cooperation.
A quarter of organizations claim that when working on informal projects, the technology they use for cooperation within the team isn’t efficient. What’s more, that takes up to 20% of their time working on projects.
8. More than half of employees are somewhat or dissatisfied with the PM level of maturity.
In 2016, project management statistics showed that 45% of employees were not quite satisfied with the maturity level of project management within their organization. 2020 brought a rise, with dissatisfaction reaching 52%. These figures reveal that more people can now tell the difference between good and bad project management.
9. Jira is the leading project management software by market share.
Jira is the project management industry leader with a 39.15% share of the market as of June 2021. Project management stats further show that Microsoft Project takes second place with an estimated 18.20% market share. Airtable and Smartsheet come in third and fourth, with 5.99% and 5.49%, respectively.
10. The BPM software market size is projected to hit $14.4 billion by 2025.
The business process management software market was estimated at $8.8 billion in 2020. By 2025, it is forecast to have reached $14.4 billion, growing at a CAGR of 10.5%. Among the various elements likely to fuel growth are machine learning technologies and AI, which will be integrated into BPM software.
11. Jira’s market share of project management technologies in the UK was almost 40% in 2020.
Project management facts reveal that Jira accounted for a 39.95% share of the UK market for project management technologies as of January 2020. Microsoft Project and Trello were also in the top three project management software by market share in the UK, with 13.33% and 6.67%, respectively.
12. Just over 5% of project professionals became unemployed due to the pandemic.
The COVID-19 crisis has had a somewhat negative impact on many business areas, including project management. As an immediate consequence of the crisis, 6% of project management professionals have been left jobless, while 6% don’t have a job because of another reason.
13. 16% of employees who work for organizations providing project management services think they’ll lose their jobs.
Project management statistics indicate that one in four project professionals working for organizations that offer project management services believe that there is a strong probability there will be layoffs. Some of them (16%) even fear that they will be among those who will lose their jobs.
14. 20% of project management professionals haven’t felt the negative impact of the pandemic.
Eight in 10 project professionals think that the COVID-19 crisis has negatively affected business in general at a moderate or extreme level. However, 20% seem to be unaffected by the crisis. What’s important to know is that most of the project management professionals considered for this data are in the IT/IS industry.
Project Performance & Project Management Failure Statistics
15. Companies that underrate project management see almost 70% more project failure.
The success of a project is almost all about project management. Poor project performance results in 11.4% of unsuccessful investments on average. Organizations report 67% more failed projects when they don’t consider project management a serious strategic element.
16. Organizations with low mature capabilities have over 20% of project failures.
As evidenced by project failure statistics, organizations that boast high maturity in competencies have a better project success rate than low-maturity organizations. Namely, the former have 11% of project failures, while the latter note 21% of unsuccessful projects.
17. Poor planning is among the top reasons for project failure.
Planning is crucial to project success and has a serious impact on the percentage of projects that fail. Among the examples of failed projects due to poor planning is the introduction of the Chrysler PT Cruiser. Project managers at Chrysler Corporation didn’t take the product delivery schedules into consideration which had a catastrophic effect on the project.
18. Construction projects rarely stay on budget.
Construction projects are usually complicated and expensive. Finishing within budget is a big challenge for construction project managers. Construction project failure statistics show that 9 out of 10 projects in that field go over budget. A well-known construction project that experienced an 80% cost overrun is the Chunnel.
19. Kmart's failed IT project contributed to its bankruptcy.
Among the most notable poor project management examples is Kmart’s attempt to modernize its IT system. Project management facts show that the enormous project was worth $1.4 billion, and its failure had a disastrous effect on the whole company. Some even put the unsuccessful costly IT project in the list of the major causes for Kmart’s bankruptcy.
20. The failure of 17% of IT projects can be detrimental to companies.
IT projects have become infamous because they are challenging and risky to manage. According to IT project failure statistics, if some IT projects fail, they could potentially ruin the company. Professionals, therefore, need to be extra careful when managing IT projects if they want to decrease the percentage of IT projects that fail.
(Forbes, McKinsey Digital)
21. Just one in three software projects doesn’t fail.
Software project failure statistics show that only one in three software projects can be considered successful. Being more complex and risky, big software projects are most likely to face hurdles and fail. Small projects aren’t exempt from failure either, with stats showing that one in 10 doesn’t achieve its goals.
22. Less than half of organizations rarely or never go over budget.
One of the biggest PM challenges is staying on budget. Project management statistics show that 43% of organizations mostly or always achieve all project goals within the planned budget and 47% have a track record of project success.
23. 29% of organizations mostly or always meet project deadlines.
Control and distribution of time are known to be key contributors to successful project management. Time management statistics reveal that the percentage of organizations that rarely or never deliver late is almost 30%. Also, 40% almost always accomplish projects’ full benefits.
24. 30% of project professionals believe that the pandemic has had an extremely negative impact on project financials.
43% of project management professionals think that the COVID-19 crisis has negatively affected project costs, profitability, and cash flow at a moderate level. Nevertheless, 27% note no negative effect of the coronavirus on project financials according to project management stats.
25. Only 21% of professionals report no negative impact of the pandemic on the speed of project delivery.
A half of project professionals think that the consequences of the coronavirus on project delivery speed are moderately negative. What's more, 29% chose the extreme negative end of the scale when describing the effects of the pandemic on the speed of project delivery.
Other Project Management Statistics
26. Project management may cost up to 20% of the overall budget.
Although it may seem expensive and unnecessary, project management is essential to the success of organizations. The importance of project management has increased due to the fact that good project professionals deliver success. PM holds the team and clients together and creates a happy environment that motivates team members to constantly improve their performance.
(Digital Project Manager)
27. Almost 70% of project professionals think that executives prioritize project management.
In the merciless race to get to the top, senior leaders of companies need to set their priorities straight. One of the most highly acknowledged positions is that of a successful project manager. Management statistics show 69% of project experts see their senior executives holding project management in high esteem, and a little below 46% of organizations recognize the importance of nurturing a work environment that appreciates project management.
28. 35% of executive leaders rank organizational agility as the top success factor.
Among the responsibilities of senior leadership is to secure the success of organizations. Project management success statistics reveal that over a third of executives believe that organizational agility is the major success element, whereas investing in suitable technologies and acquiring relevant skills come second and third.
29. Nearly 90% of organizations have at least one project management office.
In 2016, 71% of organizations had one or more PMOs. That percentage consistently increased, reaching 89% in 2020. Also, 50% of organizations report having more than one PMO, and data indicate that 26% of PMOs are less than two years old.
30. Almost 50% of organizations have career development plans for project managers.
Having skilled project professionals in an organization is an invaluable asset. Senior management, therefore, should support and plan the professional development of their project managers. According to project management statistics, 47% of organizations have a determined professional path for project managers.
31. 61% of organizations arrange training for project management.
Executive management of organizations sees the benefits of project management training. More than 60% of organizations invest in their project managers by providing training. In doing so, they define the career development of project professionals working in their organizations.
32. 51% of organizations include certification in their criteria for hiring PM professionals.
Organizations need to rely on adept professionals to achieve success. It’s no wonder then that project management stats show that over half of organizations insist on certification requirements when taking on new employees for PM roles. Some project management professionals have formal education, and others may hold certifications from various organizations.
33. Organizations accentuate leadership and technical skills almost equally.
Organizations need to be prepared for the future and think ahead of time. In light of that fact, they emphasize certain skills that are guaranteed to deliver a better project success rate. Technical and leadership skills are prioritized by 68% and 65% of organizations, respectively. They are closely followed by business skills, with 58%, and digital skills, with 50%.
34. Over 50% of companies have prepared a strategy for AI-incorporated digital transformation.
Many aspects of human living and working have become digitalized very fast. Artificial Intelligence is changing the world of business, and it impacts project management, too. 56% of companies have a digital transformation strategy that includes Artificial Intelligence, whereas only 24% haven't developed such a strategy yet, as evidenced by project management stats.
35. The top benefits of adopting Agile are related to speed and adaptability.
The leading advantage that 70% of organizations report for using agile project management methodology is the ability to manage changing priorities. The next two are project visibility and business/IT alignment with 65% each. The fourth reason stated by 60% of organizations is delivery speed/time to market.
How does project management improve the success rate of IT projects?
IT project success rate had plateaued for several years after finally starting to improve a few years back. Surveys from 2014 and 2016 have revealed an upward trend of IT project failures. However, 2017 finally brought a shift in the numbers in favor of successful IT projects. Among the reasons for that is the growing maturity of organizations with project management. Another reason is establishing PMOs which connect strategic visions and their implementation. Also, setting up EPMOs has proved beneficial to meeting project goals and business intent, as evidenced by IT project management failure statistics.
What percentage of projects fail?
While project management aims to avoid any project failure, some projects don’t deliver their goal, go over budget, or don’t meet the deadline, which results in 11.4% of wasted investments. Also, 67% more projects are reported as failures within organizations that don’t value project management sufficiently. In terms of maturity in competencies, organizations that rank higher have 11% project failures, whereas organizations that rank low have a higher percentage of projects that fail (21%).
How many projects can a project manager manage?
There is no definite answer to this question. Project management facts indicate that the number of projects a manager can handle depends on various factors. Some data show that, on average, project managers run as many as eight projects concurrently. High-performing organizations, however, assign fewer projects to project managers compared to low performers. This proves the point that the fewer projects are assigned, the better the performance. Some even argue that a project manager shouldn’t work on more than two or three projects at the same time.
What is the most common cause for the failure of development projects?
The goals of development projects are economic growth, change, and stimulation of national and sectoral development. In that way, development projects differ from commercial projects. However, the reasons for failure in development projects and commercial projects can be very similar. The usual causes for development project failure are lack of connection between donors and local organizations and managers, bad management decisions, miscommunication of goals, weak plans that don’t identify risk factors, etc. Also, leadership is crucial to good project management.
What is the average age of a project manager?
Although some of the data can vary, it is safe to say that the average age of a project manager is over 40. Project management fun facts and trivia show that in the US, the average employee age in project management is 43.8, whereas the average age of national project managers is 46.4.
What percent of a project should be project management?
Project cost management is considered successful if the total project costs don’t go over budget. The budget and the project size determine the costs of project management. The estimated expense of project management falls between 7% and 11% of the total project cost. However, if you add project control support, the costs of project management increase by 9%-15%. In other words, project management costs account for 7%-15% of the overall project budget.
What are the five stages of project management?
The success of projects largely depends on good project management practices, which, contrary to popular opinion, are as complicated as they come. Project management statistics reveal that organizing the work on a project in five phases helps you navigate through the chaos. Originally introduced by the Project Management Institute, the project life cycle includes the following five stages: initiation, planning, execution, monitoring and control, and project closure.