Verdantix Says Spending On Smart Building Software Will Reach $7.0 Billion In 2023 Reflecting A 7% Growth Rate
London – January 29, 2020. The global market for commercial real estate and building management software will grow from $5.3 billion in 2019 to $7.0 billion in 2023 according to a new study from independent research firm Verdantix. The forecasted compound annual growth rate of 7% will be driven by maturing technologies and growing customer demands. Vendors positioned to benefit from this growth include IWMS players such as Archibus, iOFFICE, Nuvolo and Planon, as well as specialist workplace players including Mapiq, Matrix Booking, Robin Powered and Thing-It Technologies.
“Whilst the building technology market has been in existence for over a decade, the vendor community have recently doubled-down on their R&D with many new market entrants, which is boosting growth rates as customers demand more sophisticated software tools” commented Verdantix Industry Analyst, Ibrahim Yate. “Once again, North America will lead spending on commercial real estate investment software as investors looks to leverage software to support their efforts to capitalize on the robust state of their regional CRE market.”
The Verdantix report, Smart Buildings Software: Market Size And Forecast 2018-2023 (Global), provides vendor executives with all the information they need to assess their market opportunity. Commercial real estate investment software will account for $300 million of the total $5.3 billion of spend in 2019. Property management software accounts for $2.1 billion, space and workplace management software $750 million, energy management software will account for $530 million and maintenance management software will reach $1,700 million. Between 2018 and 2023, spending will increase fastest across investment and workplace management solutions, with APAC seeing the growth outlook of 14%, North America 12% and EMEA 7%. Between 2018 and 2023, total market growth will vary between 5% and 11%.
“Our analysis indicates a slowdown in the growth outlook for the smart buildings software market, however some segments, such as investment and workplace management, as well as regions - such as APAC - indicate hotspots of strong growth” continued Yate. “Vendors looking to maintain and grow their market share need to ensure they adapt their messaging and outreach efforts to meet buyer’s new concerns, and convince buyers concerned about economic uncertainty of delivering a high and speedy return on investment.”
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