Analysis by Deployment Model (On-Premises, and Cloud); by Application (Residential, and Commercial); and by End-User (Housing Associations, Property Agents, and Property Investors) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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The global property management software market is estimated to garner a revenue of ~USD 5 Billion by the end of 2033 by growing at a CAGR of ~ 6% over the forecast period, i.e., 2023 – 2033. Besides, the market generated a revenue of ~USD 3 Billion in the year 2022. The growth of the market is primarily attributed to the growing population worldwide, which was ~7.9 billion in 2021 and is expected to reach ~8.5 billion in 2030, along with the rising demand for residential and commercial properties amongst the global populace. The growing conveyance of property has led to the use of new automation tools in the real estate industry. Innovations such as smart and AI-enabled property management software have shifted manual property management solutions to automatic management solutions. This, as a result, is anticipated to create numerous opportunities for the growth of the market in the upcoming years.
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Additionally, the rising urbanization worldwide along with cities focusing on creating more housing to meet the needs of different household types and income levels is predicted to present the potential for market expansion over the projected period. Rapid urbanization is reshaping cities. The development of residential real estate as a mainstream investment sector is contributing to the rising sale and purchase of residential properties globally. For instance, between 2020 and 2021, the number of residential property sales grew by ~20% in England.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~6% |
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Base Year Market Size (2022) |
~ USD 3 Billion |
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Forecast Year Market Size (2033) |
~ USD 5 Billion |
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Regional Scope |
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Growth Drivers
Increasing Use of Software as a Service (SaaS) – In real estate organizations, SaaS offers high scalability and wide customization options. The rising adoption of SaaS for managing properties is expected to escalate the demand for property management software in the forecasted period. It was found that, in 2020, more than 35% of the companies worldwide were running their organization on SaaS, whereas it is expected that by 2025, over 80% of the businesses will convert their systems to SaaS. Moreover, proliferating investment in the real estate sector is resulting in its automation which is also driving the growth of the property management software market.
Growing Workforce Migration – The inflow of workforce immigrants in any region leads to a surge in housing demand in that region. It was found that, internationally, the number of people migrating for work grew from 164 million to 169 million between 2017 and 2019. The rising provision of web-based services in the real estate sector is expected to boost market growth in the upcoming years.
Upsurge in Online Hotel Bookings – Which accounted for more than USD 174 million across the globe in 2022.
Growing Tourism Industry – As per the tourism industry statistics 2020, global revenue for travel and tourism reached ~USD 440 billion in 2020.
Rising Digital Property Buyers – More than 50% of buyers found their homes through the internet.
Challenges
The global property management software market is segmented and analyzed for demand and supply by deployment model segments into on-premises and cloud. Amongst these segments, the cloud segment is anticipated to garner the largest revenue by the end of 2033, backed by the worldwide growing real estate industry along with various large enterprises shifting towards cloud-based property management solutions as cloud-based PMS offers seamless data integration and a backup facility that prevents data loss. It was observed that ~80% of the leading real estate performers around the world were using some form of cloud in 2022, and this included many corporate occupiers, housing associations, and property managers.
The global property management software market is also segmented and analyzed for demand and supply by application, into residential and commercial. Among these segments, the commercial segment is expected to account for a sizable share. The growth is attributed to the growing commercial real estate (CRE) industry along with many CRE companies opting for more digitized operations as it facilitates ease of use, scalability, and cost-effectiveness. According to a survey conducted in 2020 that consisted of 200 CRE senior executives in 10 countries, ~41% of respondents agreed that their company has stepped up efforts to redefine business processes to include the use of technology and tools.
Our in-depth analysis of the global property management software market includes the following segments:
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By Deployment Model |
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By Application |
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By End-User |
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The North American property management software market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the rising demand for rented properties, followed by the growing presence of tenants in the region, the increasing number of houses rented by the residents, and the availability of various property management software for landlords. For instance, according to the 2021 statistics, around 42 million, or ~34% of U.S. households, rent their homes. Property management software has shrunken the need to hire third-party property managers by landlords as PMS evades human errors and streamlines rent collection processes through automation. Moreover, it simplifies tracking finances, reduces communication gaps, and stores and leases documents and contracts directly between landlords and tenants. All such factors are also driving the growth of the property management software market in the region. Furthermore, there is a growing awareness related to real estate crowdfunding among the people in the region, that is predicted to boost the market’s growth in the region.
Yardi Systems, Inc.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Growing population as well as rising sale of property as well as increasing digital buyers along with rising online hotel bookings are some of the major factors anticipated to drive the growth of the market.
Ans: The market is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2023 – 2033.
Ans: Possibility of adopting the wrong system for operation as well as concern of affordability for smaller businesses are some of the factors estimated to hamper the market growth.
Ans: The market in North America is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Yardi Systems, Inc., RealTimeRental, Oracle Corporation, IBM Corporation, Honeywell International Inc. AppFolio, Inc., Total Management, Buildium, LLC, Entrata, Inc., Trimble Inc., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by deployment model, application, end-user, and by region.
Ans: The cloud segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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