Verdantix Forecasts A Real Estate & Built Environment Management Software Market Worth $12.9 Billion In 2029

Verdantix Forecasts A Real Estate & Built Environment Management Software Market Worth $12.9 Billion In 2029

In our 2024 Market Size And Forecast: Real Estate & Built Environment Management Software 2023-2029 report, Verdantix calculated the global market for real estate and built environment management software to be worth over $8.2 billion in 2023, with a strong projected 7.8% annual growth trajectory for the next five years.

Verdantix research forecasts that investment in real estate and built environment management software will grow to reach $12.9 billion by 2029. Growth rates will differ by functionality area and region, with the subset of energy and sustainability management software leading projections at a CAGR of 11%. This is closely followed by space and workplace management software at 10%, then asset and maintenance management software at 8%. This robust investment momentum will position total asset and maintenance management software spending to reach near parity with real estate management – which has a projected 5% growth rate – at $3.9 billion by 2029.

Regionally, the APAC market is anticipated to outpace other regions with a CAGR of 9% – compared with 7% in the Americas and EMEA – driven by high construction rates, burgeoning populations and positive economic outlooks. Despite APAC’s rapid growth, the Americas will maintain its dominance as the leading region by market share, surpassing $5 billion by 2029.

Market growth is fuelled by a complex ecosystem of drivers with significant regional heterogeneity. Sustainability-focused regulation and cost-reduction imperatives are leading drivers. For instance, as sustainability targets loom, the 2023 Verdantix smart buildings global corporate survey reveals that 62% of real estate managers and facilities managers (FMs) plan to increase spending on ESG reporting software over the next year to bolster asset value and attain building certifications. Simultaneously, mounting pressure to digitize real estate and FM processes in response to above-average inflation is spurring investment in automation, unlocking cost and time savings, extending asset lifespans, and improving operational efficiency.

The market size and forecast report provides a granular market breakdown, categorizing software solutions into four key functionality areas:

• Real estate management
• Asset and maintenance management
• Energy and sustainability management
• Space and workplace management

The Verdantix model combines disclosed and calculated software vendor revenues and survey data to deliver software suppliers, industry professionals and investors with key insights on market penetration by segment, region and asset type.

For deeper insights into market trends, regional growth dynamics and market penetration by asset type, access the full report: Verdantix Market Size And Forecast: Real Estate & Built Environment Management Software 2023-2029 (Global).