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Product Management Statistics
Quixy Editorial Team
April 3, 2024
Reading Time: 7 minutes

It is not uncommon to hear the inquiry, “What is product management?” even from seasoned business professionals. The fact that product management includes a broad range of duties is one explanation. In fact, the function itself varies greatly depending on the organization.

The shortest explanation we could find for the query “What is product management?” is as follows: The process of strategically directing a company’s product creation, launch, and ongoing maintenance and enhancement is known as product management.

Key Product Management Statistics

Product managers are in greater demand than before.

However, this does not imply that the responsibilities assigned to the product management role or the challenges that a product manager could encounter are well understood.

The following data about product management might help you see past common assumptions and misconceptions about the field.

The value of product management 

  • A completely effective product manager may raise revenues by 34.2% for the company.
  • 81% of those surveyed stated they gauge their products’ success.
  • 54% of product personnel are in charge of various product types.

Product manager employment market

  • On average, a product manager makes $111,000 USD in the US. It is 66,000 euros in Germany and 37,000 USD in India.
  • The personal network is the primary source of hiring product managers (60%)
  • Of product managers, 40.5% are employed in software.

Typical issues that product managers face are

  • 39% express concern about launch dates being missed.
  • 42% of respondents express concern that the need to support older features by customers may make it harder to add new ones.
  • 28% concern that new introductions are not meeting management expectations.

The function of a product manager

  • Within their company, 43.3% of respondents believe that product managers are viewed as leaders and important differentiators.
  • While 26.6% believe that PMs have a defined job, others are unsure of it.
  • Of product managers, 43% are managers, and 46.2% are individual contributors.
  • 69% think that a product manager’s job is a leadership position.

Twenty-one percent of products don’t satisfy buyers

A 280-person group poll found that 1 in 5 goods do not satisfy the needs of the client, underscoring the significance of having a strong product manager.

You must understand the issues your clients are having and how your product can address them in order to satisfy their needs. Some of the talents that product managers possess may be linked to their inability to meet client needs. 

56% of respondents said their product manager’s abilities could be strengthened

In the “Challenges in Product Management” report, 56% of participants said they could do better as a product manager, rating their abilities as average or below average.

With these enhancements, more than four out of the five items may be able to satisfy the needs of the customers.

41.2% of respondents attribute the effectiveness of product management at their organization to the skill level of the product managers.

Also Read: Mastering These 10 Skills Is a Must for Every Product Owner!

Product management is the boss of 34% of the departments

Compared to the ratio of managing (23%) or marketing directors, this number is very large.

You can utilize these statistics to persuade upper management of the need for clearer reporting pathways throughout the company and the kind of prominent position that you, as a product manager, can play if you hope to gain more authority from the various departments.

Merely 5% of product managers have coding skills

Luckily, coding knowledge is not always required for product managers. Only 5% possess this ability.

However, this underscores how crucial it is to interact with your various teams in order to integrate your idea into the final product. You have to have faith in your group’s skills.

If you are proficient in coding, this may work in your favor when applying for a software development job in product management.

It’s important for product managers to always believe in their own worth. It can be difficult for some management teams to ignore the potential benefits a capable product manager can provide.

Well-developed product management can enhance your product and alignment with your consumers, even though the value and precise position of a product manager may not be clear in some organizations. 

Apart from all these statistics, here are some other factors that you must consider if you are thinking of starting a career in product management. The data that are mentioned below will help you understand the product management statistics in a better manner:

What Activities Do Product Managers Get Up To?

According to McKinsey & Company, nearly 80% of product managers are involved in design-related tasks. Half of the individuals involved in go-to-market choices also participate in price decisions, making up the same percentage. According to the same group, “60% of product managers possess fundamental analytics abilities that allow them to explore metrics and derive conclusions without depending on analysts.”

Glassdoor ranked a product manager’s job as the fourth best in the US. There are currently 12,173 product manager job listings on the employment marketplace.

Also Read: Agile Product Management Techniques for Faster Time to Market

What Is the Product Manager Growth Demand?

Over the past five years, product management has become twice as popular in the United States. Given that there will always be a need for goods, it is reasonable to assume that product management won’t go away very soon.

Knowing the User Adoption Rate

The user adoption rate is the proportion of users who have started using your product compared to all users who have access to it. For example, your user adoption rate would be 50% if your product has been out for a month and you have 100 users, but only 50 of them are actively using it.

Understanding user adoption rate is essential for product managers since it shows how successful your product is. The more users adopt your product, the more successful it is going to be on the market. Conversely, a reduced user adoption rate implies that your product might not be satisfying the demands and anticipations of your intended market.

81% of businesses with over 2,500 workers have a product management team

This figure demonstrates the significance of product management teams in major corporations. It demonstrates that most sizable businesses understand the importance of a committed staff overseeing their products. This data is a fantastic illustration of how product management is growing in significance inside the corporate environment.

Also Read: No-Code Apps for Project Management Departments

Merely 17% of Product Managers exclusively employ an “agile” methodology

This data, which implies that most Product Managers are not using an agile methodology solely, is a significant indicator of the current condition of Product Management. This could indicate that many product managers are not fully utilizing the efficiency gains and enhanced customer satisfaction that the agile approach can offer. Because of this, this figure serves as a crucial reminder for product managers about the importance of keeping abreast of industry developments and best practices.

80% of product management executives claim that their teams’ “market knowledge” is below target.

This figure is a clear sign that product management executives should concentrate on raising the level of market expertise among their teams. It emphasizes how crucial it is to keep abreast of the sector’s most recent trends and advancements and comprehend the requirements and preferences of the target audience. Product management executives need to know this information to make wise choices and develop profitable products.

Newsletter

Product management statistics in the field of low-code and no-code

  • The global market for low-code/no-code development platforms is anticipated to generate $187 billion in sales by 2030. By 2024, it will comprise more than 65% of all application development activity.
  • 75% of organizations are expected to use a combination of traditional innovation and low-code/no-code.
  • It was estimated that the low-code/no-code global market would reach $65 billion by 2027.
  • The global low-code/no-code market is projected to expand at a compound annual growth rate (CAGR) of 22.7% from 2020 to 2027. In 2019, the market was valued at USD 11.45 billion.
  • Of those who do not now use no-code solutions, 96% say they would be open to using them in the future.
  • According to data gathered from customer reviews for all low-code/no-code development platforms firms, “ease of use” is the most frequently used (20%) favorable term people use to describe low-code/no-code development platforms.
  • 24% of users had never used low-code or no-code platforms before. Of those, 40% have business backgrounds.
  • 84% of businesses now use low-code/no-code due to its capacity to lessen the burden on IT resources, accelerate time to market, and include the company in the creation of digital assets.
  • Solutions with little or no coding have the ability to cut the time needed to construct an app by 90%. (They can assist your app once it has been developed. For instance, you can significantly boost your product acceptance with the use of no-code product tour software.)
  • Over 500,000 computer science positions are available in the US, and the profession is expected to expand twice as quickly as other employment categories.
  • Low-code/no-code app security risks are reported by 25% of enterprises.
  • In the future, 30% of firms would rather use custom low-code or no-code for complicated business logic.
  • The average yearly compensation for a software engineer in the US was above $100,000. No-code solutions allow developers to focus on more challenging projects and are far less expensive than employing a new developer, even when they don’t functionally replace a developer entirely.

Conclusion

To sum up, the collection of the top 25+ product management statistics from different sources offers insightful information on product management. These statistics cover Numerous topics, including trends in market growth, rates of adoption of PMPs, effects on return on investment, success rates of new product launches, and effects on customer satisfaction. The information emphasizes the value of lifelong learning, the emergence of low-code and no-code platforms, the difficulties faced by product managers, and significant demographics in the product management sector. Product managers need to be aware of these numbers in order to stay current, adjust to market trends, and make wise choices that will promote innovation and product success in a market that is changing quickly.

Frequently Asked Questions(FAQs)

Q. What skills should every product manager should possess?

Every product manager should possess strong leadership, communication, adaptability, technical aptitude, problem-solving, strategic thinking, collaboration, risk management, and continuous learning skills, including proficiency in low-code/no-code (LCNC) technologies.

Q. What are the latest innovations disrupting product management?

The latest innovations disrupting the product management niche include the rise of no-code and low-code platforms. Businesses can adapt by leveraging these platforms to streamline product development processes, accelerate time-to-market, and empower non-technical teams to build and iterate products more efficiently. With no-code and low-code tools, product managers can quickly prototype, test, and iterate on product ideas, without relying heavily on traditional development resources.

Q. What are the latest technologies transforming product management operations?

The latest tools and technologies transforming product management operations include no-code and low-code platforms for rapid prototyping, AI and machine learning for data-driven decision-making, product analytics tools for real-time insights, collaboration and communication tools for team efficiency, and product road mapping software for strategic planning.

Q. What are the best practices for solving common problems in product management?

Best practices for solving common problems in product management include adopting a customer-centric approach, embracing iterative development, fostering cross-functional collaboration, making data-driven decisions, implementing Agile methodologies, and promoting a culture of continuous learning and improvement.

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