Proptech Market Size By Offering (Solutions and Services), Property Type (Residential and Commercial), Deployment (Cloud-based and Commercial), Application (Security and Surveillance, Property Management, Marketing Management, Investing Portfolio Management, and Others) End User (Real Estate Agents, Property Owners & Investors, Construction Companies, and Others), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2032

Market Perspective

The global Proptech Market size was worth around USD 20.19 billion in 2022 and is predicted to grow around USD 75.39 billion by 2032, with a compound annual growth rate of roughly 15.7% between 2023 and 2032. Proptech is gaining wide acceptance as it helps in increasing transparency, accelerates consumer demand, facilitates smart contracts, and improves consumer knowledge through technology that accelerates market growth.

With the spread of digital technology and the growing need for efficient and innovative solutions, Proptech companies offer a variety of products and services that are changing the way real estate professionals work.

The rise of virtual reality (VR) and augmented reality (AR) has increased the engagement with brokers and developers and helps them make better decisions which are expected to accelerate the growth of the market during the forecast period. In addition, the implementation of such technologies improves data management and simplifies large property management operations. Artificial intelligence in real estate has refined advertising efforts by identifying trends and providing actionable insights to clients.

The growth is expected to be driven by increasing demand for Property Management Software (PMS) and asset management software. Recent technological advances in security and surveillance allow real estate investors to use tools to help them to analyze the investment potential of entire markets and specific properties in minutes which propels the proptech market growth. 

Key Insights

• Based on offering, the services segment held the largest market share in 2022
• Based on property type, the residential segment dominated the market in 2022
• Based on deployment, the cloud-based segment is expected to register the largest share in 2032
• Based on application, the security and surveillance segment is expected to dominate over the forecast period
• Based on end users, the property owners/ investors segment dominated the market in 2022
• On the basis of region, North America accounted largest market share in 2022

The Emergence of Personalized Experience Real Estate is a Vital Trend

The growing need for more economical and environmentally friendly real estate solutions is gradually becoming a part of the real estate industry and one of the main trends in the proptech space. Currently, real estate agents can easily gather verifiable insights about existing and potential clients through social media platforms and real estate/Proptech websites with AI tools and algorithms.

By leveraging this, they are delivering a personalized experience to customers, increasing their chances of sales results and customer satisfaction. Real estate developers and agents are increasingly able to acquire information on client preferences and behavior due to technology advancements and data analytics, enabling them to design experiences that are more customized. The ultimate objective is to develop a more interactive and engaging experience that boosts customer satisfaction and loyalty which thereby fosters the proptech market growth.

Concerns Associated with Privacy and Security Violations Pose Challenge for Market Growth

Proptech industry expansion may be restricted due to privacy and security breaches during the forecast period. As information about people's identities, physical security, healthcare, and houses is kept electronically in the cloud, there is a chance that hackers may misuse the same. This makes Proptech vulnerable to hacking tactics.

Proptech companies store sensitive customer information such as payment information, personal information, and asset information that can be accessed by hackers.  Hackers can gain unauthorized access to buildings and properties managed by Proptech systems, which can cause theft, vandalism, or other types of damage. To mitigate these risks, Proptech companies must implement strong cyber security measures such as secure data storage, access control, encryption, and threat detection. In addition, regulatory compliance, employee training, and emergency response plans are essential to ensure the safety and privacy of both customers and property.

Recent Development

In April 2023: Tech Mahindra and Mahindra Lifespace Developers Ltd., launched a  3D offering platform that provides immersive experiences for customers that redefine their home shopping experience. This platform is designed to create images of homes and the perfect home environment in an almost real way, using photorealistic features.

In March 2023: Tavant launched Proptech 3.0, the latest phase of real estate technology which brings innovation to the real estate industry by providing end-to-end solutions and connected AI-based analytics that optimizes the ecosystem for all stakeholders. Tavant's mission is to empower the real estate ecosystem with solving solutions that strengthen processes and create and sustain the progress that optimizes and automates data security and surveillance.

In January 2023: Landeed raised USD 8.3 million in a seed round led by investors including Draper Associates, Y Combinator, and Bayhouse Capital. The company has created a standardized interface that simplifies multiple search methods across states and provides an intuitive user experience.

Segmentation Analysis

Based on product, the market is bifurcated into solutions and services. The growing demand for innovative rental practices, selling alternatives, and new idea agents & landlord services, among other things, is being attributed to the segment's growth, and the services segment is projected to dominate. The main factor fueling the segment's development is the growing need for professional services in the real estate business, such as consultancy, advising, and portfolio analysis.

Based on property type, the market is segregated into residential and commercial. The residential segment accounted for the dominating market share which is attributed to technological advancements in the residential sector across the real estate industry. The residential sector has drawn more attention from tech companies as they provide services, including digital closings and virtual open houses.

Regional Landscape

North America is Expected to Dominate owing to the Increased funding to Launch Innovative Solutions for the Real Estate Industry

North America is expected to hold a substantial protected market share and grow rapidly in the upcoming years driven by the increasing demand for property management software and asset management software. The presence of well-known operators in the region is considered a promoter of regional development. Moreover, it is considered to be a pioneer in the introduction of new technology in real estate.

According to the statistics, the region's tech-savvy millennial generation makes up about 43% of the housing market, fueling demand for the Proptech market.  For instance, according to the U.S. Bureau of Labor Statistics, the number of real estate tech companies is rising, which is transforming the commercial real estate industry in North America, thereby fostering the growth of the proptech market. The market vendors are utilizing big data, advanced technology, and extensive expertise to redefine the commercial appraisal space in North America. The proptech market in North America is rapidly growing, with the availability of several new entrants and ongoing innovations with an increasing number of investment prospects driving the market growth. 

Asia Pacific is the Fastest Growing Market Owing to Favorable Government Policy 

Asia Pacific is the fastest growing region due to the positive support and favorable policy on new housing purchases by the governments. China’s property sales have also increased on a year-on-year basis which plunged by approximately 26.7% in 2022, as per the National Bureau of Statistics. In addition, there was positive growth in the housing sector in India and an increase in the number of data centers in China and India which is further propelling the proptech market growth.

The potential for Proptech startups is currently profitable as companies mostly cater to Marketing Management-income groups and the goal of Proptech companies remains large-scale solutions that would make the Security and Surveillance-income segment a profitable investment. The startup also has opportunities to explore housing that enhances adaptation to climate change and limits harmful environmental impacts through technological innovation through modernization or reuse of existing housing.

Small, Property Management, and large organizations are encouraged to move to cloud-based Proptech solutions with benefits such as ease of use, scalability, cost, and fewer tenant disputes.  In September 2022, the Confederation of Real Estate Developers Associations of India (Credai) and startup incubator Venture Catalysts partnered to launch a USD 100 million fund to invest in Proptech startups. The fund invests in early-stage Proptech startups using data analytics, blockchain, artificial intelligence, and augmented reality fostering the Proptech market growth.

Competitive Landscape

• Altus Group
• Ascendix Tech
• Aurum Proptech
• Coadjute
• Enertiv, Inc
• John Salt Pvt Ltd
• Proptech Zone
• Reggora, Inc
• SPACEWELL INTERNATIONAL
• Tavant
• Tech Mahindra Limited

The global Proptech market is segmented as follows:

By Offering

• Solutions
• Services

By Property Type

• Residential
• Commercial

By Deployment

• Cloud-based
• Commercial

By Application

• Security and Surveillance
• Property Management
• Marketing Management
• Investing/ Portfolio Management
• Others

By End User

• Real Estate Agents
• Property Owners/ Investors
• Construction Companies
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America