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Smart City Investments Fuel Growth In Property Management Software Market: Pivotal Factor Influencing Property Management Software Market Growth in 2025
Property Management Software Market Size
Property Management Software Market Size Growth Forecast: What to Expect by 2025?
The market for property management software has experienced significant expansion in the recent past. The size of the market is projected to increase from $6.07 billion in 2024 to $6.67 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 9.9%. The historic period's growth can be linked to factors such as efficiency and time savings, the ability to manage properties remotely, financial management, tenant and lease management, observance of compliance and regulations, as well as user-friendly interfaces.
How Will the Property Management Software Market Size Evolve and Grow by 2029?
In the coming years, the size of the property management software market is projected to experience a sharp increase, swelling to a valuation of $9.79 billion by 2029 with a compound annual growth rate (CAGR) of 10.0%. This expected growth during the projected timeframe is linked to factors like customer relationship management, solutions for predictive maintenance, emphasis on energy efficiency and sustainability, self-service tenant portals, strategies for dynamic pricing, and enhanced reporting and analytics. Some major trends anticipated during this period are the integration of smart buildings, the dominance of cloud-based solutions, 3D visualizations and virtual tours, multinational and global property management, business intelligence and advanced reporting, and the application of dynamic pricing strategies.
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What Drivers Are Propelling the Growth of Property Management Software Market Forward?
The upsurge in smart city investments globally is anticipated to catalyze the expansion of the property management software market in the future. Governments worldwide are channeling funds into the development of smart cities. By utilizing information and communication technologies to manage urban services more effectively, smart city technologies generate a demand for efficient property management. The European Union is taking the lead in endorsing smart city initiatives and has allocated funds for research and predetermined sustainability goals for its member nations. The smart cities concept raises a lot of interest in developing countries as well. For instance, global smart city pilot projects that are either ready for or under construction surpass 1,000, with China alone accounting for about 500. As a result, the funds poured into smart cities are predicted to invigorate the growth of the property management software market.
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Which Emerging Trends Are Transforming the Property Management Software Market in 2025?
Harnessing the power of artificial intelligence (AI) for property management software applications is an evolving trend that is garnering attention in the market. AI-powered solutions can provide comprehensive assistance to realty companies for various functions like advertising endeavors, property portfolio management, leasing, accounting, operations, and more. For instance, in September 2024, Guesty, a property management software platform from Israel, introduced two AI-driven features - an AI assistant website builder and ReviewSmart AI. Guesty's AI Assistant allows property managers to devise websites using generative AI for a smoother process, whereas ReviewSmart AI serves as a smart analytics tool that converts negative guest reviews into valuable insights. This innovative tool automates the review analysis process saving substantial time and empowers property managers to develop informed decisions, further enhancing operations to elevate guest contentment.
What Are the Key Segments in the Property Management Software Market?
The property management software market covered in this report is segmented -
1) By Deployment: Cloud, On-premise
2) By Application: Residential, Commercial
3) By End-User: Housing Associations, Property Managers Or Agents, Property Investors, Other End-Users
Subsegments:
1) By Cloud: Public Cloud, Private Cloud, Hybrid Cloud
2) By On-premise: Self-hosted Solutions, Dedicated Servers
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Who Are the Key Players Shaping the Property Management Software Market's Competitive Landscape?
Major companies operating in the property management software market include AppFolio Inc., Console Australia Pty Ltd., CoreLogic Inc., Entrata Inc., InnQuest Software Corporation, IQware Inc., RealPage Inc., Yardi Systems Inc., Building Engines Inc., Innago LLC, Spacewell International NV, ManageCasa Inc., Planon Corporation, Jones Lang LaSalle IP Inc., Tenant Cloud LLC, Rent Manager-London Computer Systems Inc., ResMan LLC, Total Management Inc., SS&C Technologies Inc., RentPost Inc., PropertyZar LLC, Archibus Inc., MRI Software LLC, International Business Machines Corporation, SAP SE, MAISONETTE Inc., DoorLoop Inc., CondoControl Inc., Hemlane Inc., SFR software solutions Co. Ltd.
What Geographic Markets Are Powering Growth in the Property Management Software Market?
North America was the largest region in the property management software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the property management software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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