PropTech Market Size: Growth Outlook, Segments, and Funding Trends
Despite tighter capital markets, PropTech is expanding across software, data, and smart-building solutions. Here’s how the market is sizing up, where growth is concentrating, and what it means for investors and operators over the next five years.
PropTech market size: defining the scope and recent momentum
In the PropTech sector, PropTech—spanning property management software, data/analytics platforms, leasing and transaction marketplaces, and smart-building tools—has matured into a multi‑billion‑dollar global market. Sizing varies by definition, but one anchor segment is property management software, which was valued at roughly the low‑single‑digit billions in 2023 and is expected to nearly double by 2030, according to recent research. That trajectory reflects consolidation of legacy tools into cloud platforms, embedded payments, and workflow automation across residential and commercial portfolios.
Capital availability has moderated since the 2021 peak, but investors have not abandoned the category. Venture activity in PropTech slowed in 2023 alongside broader tech markets and rising rates, then began stabilizing in 2024 with more disciplined rounds and later‑stage financings, data from analysts shows. The rebalancing is pushing start‑ups to prove unit economics earlier and rewarding platforms with recurring revenue and clear cost‑savings for landlords and operators.
Where the growth is: segments and use cases
Software-led segments are anchoring revenue today. Property management and accounting platforms, tenant engagement apps, and AI‑powered leasing tools continue to win share as owners digitize workflows end‑to‑end. Enterprise data providers and marketplaces—where landlords, brokers, and investors source listings, comps, and market intelligence—now form a durable revenue base; companies like CoStar, for example, generate well over $2 billion in annual revenue through subscriptions and advertising, as reflected in investor materials.
Another growth engine is building operations technology. Energy management, occupancy analytics, and predictive maintenance are benefiting from the convergence of IoT, cloud, and ESG imperatives. Adoption is accelerating as owners seek to reduce costs and comply with local performance standards. The emphasis on operational resilience and decarbonization is highlighted in industry reports, which point to digitized building systems as a key lever for NOI improvement and asset differentiation.