Urban Planning Software Market Size, Share, Growth, and Industry Analysis, By Type (Service, Software), By Application (Company, Government, Other) , Regional Insights and Forecast From 2025 To 2035

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URBAN PLANNING SOFTWARE MARKET OVERVIEW

The global urban planning software market size at USD 0.17 billion in 2025 and is projected to reach USD 0.18 billion in 2026, growing further to USD 0.25 billion by 2035 at an estimated CAGR of 4.6% from 2026 to 2035.

The urban planning software market is experiencing growth primarily due to the escalating global utrend and the increasing adoption of smart city initiatives. With millions of people migrating to cities every week, there is a pressing need for effective and sustainable urban planning solutions to address the resulting challenges. Cities worldwide are striving to optimize resource allocation, infrastructure development, and community design to accommodate growing populations while ensuring economic prosperity, environmental sustainability, and social equity. Urban planning software plays a pivotal role in this process by providing tools and technologies to streamline planning processes, analyze urban data, and simulate future scenarios. As the importance of efficient urban planning becomes increasingly evident in achieving smart city goals and improving the quality of life for urban residents, the demand for urban planning software continues to rise, driving market growth.

KEY FINDINGS

COVID-19 IMPACT:

Demand Declined Due to Disruptions in Construction and Real Estate

The COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic had a notable impact on the urban planning software market. Disrupted construction and real estate projects, coupled with government shifts in priorities towards healthcare and pandemic response efforts, resulted in reduced funding for urban development projects. Consequently, the demand for planning software declined as firms faced uncertainty and budget constraints, leading to postponements or downsizing of projects. While some software offered remote collaboration features, the disruption of traditional in-person planning sessions and consultations posed challenges to software adoption amidst the pandemic-induced remote work environment.

LATEST TRENDS

Rise of Cloud-Based Solutions to Enhance Accessibility and Collaboration Capabilities

The latest trend in the urban planning software market is the rise of cloud-based solutions, which are revolutionizing the industry by offering enhanced accessibility, scalability, and collaboration capabilities. These cloud-based platforms enable geographically dispersed teams to collaborate seamlessly on projects, overcoming traditional barriers such as location and time zone differences. Additionally, the adoption of cloud-based solutions reduces storage and maintenance costs, making urban planning software more accessible to smaller players, including municipalities with limited budgets and resources. This trend underscores the industry's shift towards more efficient and cost-effective planning solutions, driving innovation and competitiveness in the market.

• Over 90% of city staff in major municipalities utilize GIS software as the standard for creating maps, developing web applications, and performing spatial analysis across various departments.
• Approximately 65% of urban planning projects now incorporate AI applications in areas like energy, mobility, and public safety, transforming urban environments.

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URBAN PLANNING SOFTWARE MARKET SEGMENTATION

By Type

Based on type, the global market can be categorized into services and software.

• Services: The services segment includes consulting, training, support, and maintenance. Services help customers implement, use, and upgrade software solutions effectively and efficiently.

• Software: Software is the applications that urban planning software and service providers develop and sell to their customers, such as GIS, CAD, BIM, and simulation software. The software helps customers to design, analyze, and manage urban development projects and scenarios.

By Application

Based on application, the global market can be categorized into company, government, and other sectors.

• Company: This segment includes real estate and infrastructure companies that use urban planning software to design, develop, and manage their projects. These companies use the software to create 3D models, optimize site layouts, simulate scenarios, and collaborate with stakeholders.

• Government: This segment includes government agencies and entities that use urban planning software to plan, regulate, and monitor urban development activities. These agencies use the software to create master plans, zoning maps, land use policies, and environmental impact assessments.

Driving Factors

Growing Urbanization to Drive Market Enhancement

Global urbanization is accelerating, with millions flocking to cities every week. This surge creates an urgent demand for effective and sustainable urban planning solutions. As cities strive to optimize resource allocation, infrastructure development, and community design, the need for software tools that can streamline these processes intensifies, propelling urban planning software market growth.

• GovTech investments, including urban planning software, are projected to generate public value of nearly 25% of total urban infrastructure spending, indicating strong governmental support for digital urban planning solutions.
• Around 68% of the global population is expected to reside in urban areas, driving the need for advanced urban planning software to manage rapid urbanization.

Smart City Initiatives to Fuel Market Expansion

Governments worldwide are prioritizing smart city initiatives to enhance resident lifestyles and resource management. Urban planning software emerges as a critical component in the design, implementation, and monitoring of these initiatives. As the importance of efficient urban planning becomes increasingly evident in the realization of smart city goals, the market for urban planning software experiences significant expansion.

Restraining Factor

High Costs and Complex Implementations to Cause Inefficiencies in Urban Planning Initiatives

The urban planning software market faces constraints due to the high costs associated with software acquisition, including licensing fees, training expenses, and ongoing maintenance. These financial burdens pose challenges, particularly for smaller municipalities and developing nations with constrained budgets, hindering their ability to invest in advanced planning solutions. Moreover, the implementation and integration of complex software into existing workflows and data systems present additional hurdles. This process demands technical expertise and supplementary resources, potentially causing delays and inefficiencies in urban planning initiatives.

• Some city contracts with leading urban planning software providers account for 20–25% of total IT infrastructure budgets, highlighting significant financial investment required.
• Nearly 40% of government programs report difficulties in software development and implementing modern cybersecurity practices.
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URBAN PLANNING SOFTWARE MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, North America, Asia Pacific, Latin America, and the Middle East and Africa.

Asia Pacific to Lead the Global Market Due to Region’s Growing Investment in Infrastructure Projects

Asia Pacific holds the largest urban planning software market share due to factors such as rapid urbanization, increasing middle-class population, growing investment in infrastructure projects, and rising adoption of smart city technologies and initiatives. Asia Pacific is also home to some of the fastest-growing economies and urban areas in the world, which is propelling this region's growth.

KEY INDUSTRY PLAYERS

Key Players Focus on Partnerships to Gain a Competitive Advantage

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

• ESRI: Over 90% of city staff in major municipalities utilize ESRI GIS software for mapping, web applications, and spatial analysis.
• Bentley Systems: Contracts with Bentley Systems account for 20–25% of IT infrastructure budgets in some major cities, demonstrating the company's significant involvement in urban planning projects.

List of Top Urban Planning Software Companies

• ESRI (U.S.)
• Bentley Systems (U.S.)
• Autodesk (U.S.)
• Hexagon AB (Sweden)
• Stantec (Canada)
• Jacobs Engineering Group (U.S.)
• Atkins Global (U.K.)
• AECOMHDR Inc. (U.S.)
• Trimble Inc. (U.S.)
• City Form Lab (U.S.)
• IBIGroup (Canada)
• WSP Global Inc. (Canada)
• Ramboll Group (Denmark)
• Adept Technology Pvt. Ltd. (India)
• GHD Group (Australia)
• Arup (U.K.)
• Skanska AB (Sweden)
• Urban Footprint (U.S.)
• Cardno (Australia)

INDUSTRIAL DEVELOPMENT

April 2019: LotWorks Technologies introduced LotWorks, a cloud-based urban planning software tailored to assist developers and planners in efficiently managing land development projects, spanning from subdivision design to lot sales. This innovative platform aims to streamline the planning and execution processes, offering comprehensive solutions for urban development initiatives.

Report Coverage

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.