Research Firm Estimates Accelerated PropTech Growth Over Next 10 Years

A new study from market research firm Future Market Insights suggests that the proptech market is going to continue growing at a faster rate than it has already.

“The PropTech market is expected to experience remarkable growth, with a projected CAGR of 9.3% from 2023 to 2033,” the firm wrote. “This comes after a slightly lower CAGR of 7.2% recorded between 2018 and 2022.”

FMI said that tech solutions are “are effectively bridging the communication gap between startups and real estate firms, resulting in significant growth within the PropTech market.” Some of the technologies in play include artificial intelligence, data automation, sustainable technology, and Internet of Things (IoT). Expectations of cost savings, better customer experiences, and higher resulting revenues are driving the expansion according to the analysts.

Also important is a growing acceptance of technology by CRE companies, which are traditionally seen as slow to adopt new technology. The big uses have been in asset and facility management.

Currently, U.S. proptech companies have a 20.4% global market share. FMI expects proptech to grow over the next decade at a CAGR of 12.5% in India, 8.4% in the U.K., 10.4% in China, and 5.6% in Japan.

“Both seasoned businesses with a history in real estate and recent entrants with a focus on cutting-edge technologies are important players in the PropTech market,” the firm says. “These businesses provide various services, including virtual property tours, Internet marketplaces, smart home technology, property management systems, and data analytics tools.”