Global Innovation Management Market size is expected to reach $1.97 billion by 2025, growing at a CAGR of 24.58% during 2020-2025. With the growing research and development activities in enterprises, companies are looking for streamlined approach to capture the ideas generated from various brainstorming session. Moreover, the company also need a platform through which it can track the ROI generated from the innovating ideas. This leads to rising demand for innovation management market. R&D spending by large companies worldwide have increased by 6.12% to reach $780 billion in 2018. Similarly, various countries such as the U.S., the U.K, France, Germany, India, and China are giving tax benefit for the companies, who carry out R&D activities. These initiatives leads to greater number of R&D activities and innovation in major countries, thereby creating opportunity for innovation management market.
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Application Type – Segment Analysis
Innovation management market is likely to register a CAGR of 25.88% from Product research and development application. Since 2015, organization are actively conducting R&D to develop innovative product and solution to bring disruption into the market. Most of the companies worldwide are organizing various local and global idea campaigns to foster innovation in products through shared experiences and ideas. Many organizations are conducting research through collaboration with other organization. This Ieads to the rising need for a common platform where the idea can be shared seamlessly. Similarly, most of the companies are actively using innovation management software for product lifecycle management, thereby avoiding the drop in sales due to demand saturation. Such requirement are accelerating the demand for product research and development applications.
Deployment Type – Segment Analysis
Cloud based deployment of innovation management software is expected to grow at CAGR of 31.37% during 2020-2025. The rising volume of R&D data and the growing adoption of cloud based solutions by enterprises are making it more convenient for innovation management solution providers to deploy the software in cloud. In 2019, approximately 80% of companies worldwide are using some form of cloud based services. Cloud Computing market is expected to reach $375 billion by 2025, expected to grow at a CAGR of 18.45% during 2020-2025. It is also expected that by 2020, 60% enterprise software will be cloud based. Similarly, the mobile data consumption worldwide is expected to increase at a CAGR of 40% during 2016-2021, owing to availability of high speed internet connectivity. Cloud based innovation management will be the most effective and cost effective solution to handle such a large amount of data.
Geography – Segment Analysis
In 2019, the innovation management market holds the largest market share of approximately 32.75%. The presence of prominent domestic solution providers, inclination of companies towards technological advancements, and widespread adoption of new technology makes the North America region a lucrative market for innovation management software. Further, the rising concern to manage better operational efficiency and business processes with minimal cost is continuously driving the R&D activities in this region, thereby creating new opportunity for innovation management software in this region. According to UNESCO Institute of statistics, the U.S R&D spending is 2.7% of the total GDP, while R&D spending in PPP$ is approximately 340,728 million. Similarly, the country accounts for 4,217 researchers per million inhabitants. With the large base of research activities in U.S, North America region holds the majority of the market share in innovation management market.
Drivers – Innovation Management Market
With the rising competition worldwide, companies are intensively focusing on R&D activities so as to gain competitive advantage. With the rise in R&D activities, it has become highly necessary for companies to manage those ideas through a common platform. This requirement leads to rising demand for innovation management software. According to UNESCO Institute of Statistics, global spending on R&D was reached approximately US$ 1.7 trillion in 2018. The countries like China, Japan, India, U.S, France, UK, and Canada contribute approximately 60% of total R&D spending worldwide. Most of these countries are offering tax benefit to the company for their R&D activities. Hence, most of the demand for innovation management software will likely to come from these countries with rising preferences for organizational innovation.
With the growing level of competition, enterprises are gaining competitive advantages through innovation. Through innovation, companies are differentiating their product from their competitors and try to tap into new customer segment. The need for change in business strategy from current operations to future opportunities in majority of the industry is changing the focus towards innovations. R&D activities towards product development have rose by approximately 20% during 2015-2019. Similarly, in 2018, 55% of businesses worldwide have reported positive outcomes due to innovation in product. Similarly, with the rising need for innovation, enterprises are increasingly conducting various brain storming session and generating huge volume of ideas. This results in proper management of idea/innovation on a common platform that is further creating a favorable market for innovation management market.
Challenges – Innovation Management Market
Unique idea/innovation management is a highly critical process, where any unauthorized sharing of idea could lead to major financial loss for the company. With the growing threat of online and offline hacking, the companies feel hesitant to share their data with the third party solution providers. Similarly, software deployment cost plays an important role in innovation management. It could increase the R&D cost by another 5%-10%. However, most of the end users are not well aware about the long term benefit of innovation management software and hence show their unwillingness to invest larger amount during initial set up.
Innovation Management top 10 companies include BrightIdea, Qmarkets, IdeaScale, Hype Innovation, EY Belgium, Innosabi, Planbox, Crowdicity, Inno360, and. In 2018, the innovation management market share of top 5 players is estimated approximately 48.32%. Acquisition, partnership, and Service differentiation are the key strategies adopted by most of the companies in this market.
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