Effort estimation is crucial in software development, especially in Agile projects. The 2020 Standish Group survey found that only 31% of software projects success. The success of a software development project depends on the accuracy of effort estimation. This research aims to analyze studies related to effort estimation methods in Agile software development to identify related issues. A systematic literature review by Kitchenham was conducted across Emerald, Science Direct, Scopus, SpringerLink, and IEEE databases and identified 239 relevant studies from 2018 and 2023, ultimately focusing on 40 studies about effort estimation challenges in Agile software development. The research revealed 59 issues related to various estimation methods. The main challenge in effort estimation for Agile software development is team experience and limited knowledge about the domain, which results in inaccurate estimation result. Requirements’ details, tasks complexity, and lack of data will complicate problem-solving and the prediction of the duration of completion. Reliance on expert judgment will increase the risk of bias and inaccuracy in estimates. These challenges increase the likelihood of project failure due to a mismatch between initial planning and reality as development progresses.
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