GVR Report cover Property Management Software Market Size, Share & Trends Report

Property Management Software Market Size, Share & Trends Analysis Report By Deployment (Cloud, On-premise), By Application (Residential, Commercial), By End-user, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jul, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68039-053-5
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2018
  • Number of Pages: 80

Report Overview

The global property management software market size was valued at USD 2.9 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.8% from 2021 to 2028. The market is expected to witness an incremental surge in demand for Property Management Software (PMS) owing to escalating demand for web-based services including Software as a Service (SaaS) by property management software providers. SaaS-enabled PMS helps manage daily operations including tenant and lease tracking, building maintenance, and accounting, among others. The software provides a centralized platform to view all the properties and also enables supervision of other property-related operations, such as maintenance tasks and addressing the requirements of tenants. It mainly offers online document storage and sharing, electronic lease agreements, financial reporting, online maintenance requests and tracking, accounting capabilities, and integrated banking among other applications.

North America property management software market size, by deployment, 2017 - 2028 (USD Million)

In recent years, PMS solutions have shifted from manual to automatic management solutions. The automatic property management solution has improved the property management software system, thereby decreasing human errors and allowing property managers to allocate work assignments efficiently to avoid interruptions in service. An automatic PMS helps in reducing the time taken in responding to complaints and grievances of tenants or owners. Also, it simplifies the property management procedures by facilitating rent collection processes, tracking finances, reducing communication gaps, and storing and leasing documents and contracts, among others.

Whereas, in traditional ways of property management the data is entered manually using Microsoft Excel, Notepad, or other spreadsheets, which makes the process slow, inefficient, and prone to errors. Also, landlords or property owners either manage their property themselves or hire third-party property managers, which involves more workforce and time investment. Thus, property management software was formed to evade human errors and streamline the work through automation. The easy availability of property management software has automated and simplified the work of owners and property managers. Moreover, PMS solutions and computer record-keeping have significantly augmented the productivity of hospitality industries by updating and centralizing multiple computers and devices records. Also, PMS solutions can be customized as per the requirement of the hospitality industry to further upsurge ease of operations, including automation of bookings, hotel inventory supply management, check-in and check-out, Point of Sale (POS) integration, security and room locks, food and beverage costing, and reporting of Key Performance Indicators (KPI).

Moreover, the advent of cloud technology is one of the key advances in the software industry. Cloud technology has significantly changed the way software applications are operated and provided to end-users. This change has allowed software developers to focus on the technology feature of software while outsourcing the management feature to cloud service companies. SaaS software facilitates multifamily property management enterprises to easily integrate property management software across the portfolio. SaaS platforms enable property managers to integrate advanced payment solutions with their property management software for easy and continuous transactions.

Impact of COVID-19

In the wake of the COVID-19 outbreak, there has been a significant disturbance in most industries worldwide. While few industries experienced a contraction in their businesses and productions, others faced severe outcomes such as the shutdown of businesses and movement restrictions, among others. However, during the pandemic, the real estate industry experienced both the surge and decline all at once. In the initial phases of the pandemic (Q1 & Q2), real estate companies, managers, and property owners were majorly concerned with keeping visitors and tenants safe and adhering to governmental laws and regulations. This, in turn, resulted in decreased real estate property sales. Although several corporate offices, schools, and colleges are still closed, businesses are opting for work from home option. On the contrary, the pandemic provided property managers an opportunity to introduce and use new automation tools such as smart and AI-enabled property management software. The AI-enabled management tool collects the data through Wi-Fi and automatically responds to leads, helping in reducing operational risks and improving customer service.

Deployment Insights

The cloud segment accounted for the largest revenue share of 60.3% in 2020 and is expected to continue its dominance over the forecast period. This is attributable to the growing adoption of cloud deployment among various end-users including property managers, housing associations, and corporate occupiers, among others. Factors, such as scalability, ease of use, cost-effectiveness, and fewer disputes with tenants are encouraging small, medium, and large enterprises to shift toward cloud-based property management solutions. Also, cloud-based property management software offers backup facility and seamless data integration, which helps in preventing data loss. Besides, it also saves property managers indirect costs of money recovery as well as direct costs included in automating a labor-intensive procedure.

The on-premise deployment segment is expected to register considerable growth over the forecast period. This is attributable to the associated benefits, including ownership and control over hardware and a high level of data security than cloud-based property management software. Also, on-premise PMS offers customization as per business or user needs. The benefits mentioned above of on-premises deployment are contributing to the growth of the on-premises deployment segment over the forecast period.

End-user Insights

The property managers/ agents segment accounted for the largest revenue share of 36.9% in 2020 and is anticipated to continue its dominance over the forecast period. This is attributable to an increasing number of commercial property and real estate developments across the globe. Also, PMS helps property managers and agents to have a track of all the properties along with necessary maintenance work. Thus, this evolving trend of workplace mobility is propelling market growth.

The housing associations segment accounted for a revenue share of 30.6% in 2020 and is expected to witness considerable growth over the forecast period. This is attributable to a few challenges faced by apartments and townships, including racking tenants, receiving payments, and leasing agreements, among others. However, all these challenges have forced market players to offer solutions for tracking payments, inspections, maintenance, and transparent and comprehensive reporting. Affordable housings using PMS allocates accurate rent payments depending on the amount paid by the tenant compared to government payment.

Application Insights

The residential segment dominated the market for property management software and accounted for the largest revenue share of 69.3% in 2020 and is expected to continue its dominance over the forecast period. This is attributable to increasing investments in real estate. The residential segment is further distributed in sub-segments, namely multi-family housing/ apartments, single-family housing, and others. The commercial segment is expected to register considerable growth over the forecast period.

Global property management software market share, by application, 2020 (%)

The growing commercial sector across the globe is one of the major factors propelling the market demand. The rising cyber risk management, growing disposable income, and changing consumption technologies, among others are other factors expected to fuel investments in the commercial sector, thus driving the PMS market growth. Moreover, the commercial segment comprises various sub-segments, namely retail spaces, office spaces, hotels, and others. PMS has become an essential tool in the hotel management industry. It helps in handling the interface of numerous departments within a hotel to manage the property effectively. Also, it helps in automating hotel operations such as guest bookings, guest details, materials management, online reservations, food and beverage costing, point of sale, accounts receivable, sales and marketing, events, HR and payroll, maintenance management, quality management, and other amenities.

Regional Insights

North America dominated the property management software market and accounted for the largest revenue share of 65.3% in 2020. This is attributable to the presence of prominent players in the region, including AppFolio, Inc.; Entrata, Inc.; MRI Software LLC; and Yardi Systems Inc. The U.S. dominates the region in the current scenario, owing to an increasing number of hotel spaces in the country. Europe accounted for the second-largest market share in 2020. The growth can be attributed to the rising presence of a large number of commercial and residential buildings, along with a high degree of digitalization in the region.

In Asia Pacific, the market for property management software is expected to emerge as the fastest-growing region, registering a CAGR of 6.9% from 2021 to 2028. This is attributable to the rapidly evolving infrastructure, coupled with accessibility for the collection and maintenance of property information and escalating demand for improved data administration in the region. Furthermore, factors such as increasing population, government regulations, rising cloud-based solutions, and outsourcing services are key factors supporting market growth in the region. Besides, technological advancements such as Artificial Intelligence (AI), data analytics, machine learning, and voice commands to improve the capability of property management software are expected to increase the adoption of property management software in the region.

Key Companies & Market Share Insights

The property management software providers are focusing on new product development, which aids in strengthening their market presence. For instance, in April 2020, Yardi Systems Inc. announced new functionality updates for its existing Yardi Breeze property management software amid COVID-19. The new features include online state-based lease documents, credit/ debit card, ACH, or PayNearMe walk-in flexible payment options, and customer relationship management, among others. These abovementioned features will help property managers, vendors, tenants, and owners stay connected on a single platform working remotely due to social distancing measures in the ongoing COVID-19 crisis. Some of the prominent players in the property management software market include:

  • AppFolio, Inc.

  • Console Australia Pty Ltd

  • CORELOGIC

  • Entrata, Inc.

  • InnQuest Software

  • IQware Inc.

  • MRI Software LLC

  • RealPage, Inc.

  • Yardi Systems Inc.

Property Management Software Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 3.0 billion

Revenue forecast in 2028

USD 4.2 billion

Growth rate

CAGR of 4.8% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments Covered

Deployment, application, end-user, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; France; Spain; China; India; Japan; Brazil; Mexico

Key companies profiled

AppFolio, Inc.; Console Australia Pty Ltd.; CORELOGIC; Entrata Inc.; MRI Software LLC; RealPage, Inc.; Yardi Systems Inc.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global property management software market report on the basis of deployment, application, end-user, and region:

  • Deployment Outlook (Revenue, USD Million, 2017 - 2028)

    • Cloud

    • On-premises

  • Application Outlook (Revenue, USD Million, 2017 - 2028)

    • Residential

      • Multi-family Housing/ Apartments

      • Single-family Housing

      • Others

    • Commercial

      • Retail Spaces

      • Office Spaces

      • Hotels

      • Others

  • End-user Outlook (Revenue, USD Million, 2017 - 2028)

    • Housing Associations

    • Property Managers/ Agents

    • Property Investors

    • Others

  • Regional Outlook (Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

      • Spain

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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