North America Property Management Market Size, Share & Industry Analysis, By Deployment (Cloud and On-premises), By Application (Residential and Commercial (Retail, Government, Construction, Real Estate, and Others)), By End-User (Property Managers, Housing Associations, Real Estate Agents, and Others), and Regional Forecast, 2024-2032

The North America property management market size was valued at USD 7.93 billion in 2023. The market is projected to grow from USD 8.59 billion in 2024 to USD 16.50 billion by 2032, exhibiting a CAGR of 8.5% during the forecast period.

Property management software is a specialized software solution designed to streamline and automate the tasks associated with managing rental properties, real estate portfolios, and residential or commercial properties. In this scope, we have considered the market players offering property management software. The software provides property managers, landlords, and real estate professionals with tools to efficiently handle various aspects of property management, including leasing, rent collection, maintenance, accounting, and tenant communication. In addition, property management is the daily management of commercial, residential, or industrial real estate by contractors. Generally, the property managers are responsible for daily repairs and maintenance, along with security and upkeep of the property. These people usually work for owners of properties, which include condominium complexes, apartments, shopping centers, private home communities, and industrial parks.

During the wake of the COVID-19 pandemic, there was substantial disturbance in most businesses worldwide. While a few businesses underwent a reduction in their production, others faced severe consequences, including the shutdown of industries and movement restrictions. Although, during the pandemic, the real estate industry experienced both a surge and a decline.

IMPACT OF GENERATIVE AI

Integration of Generative AI to Enhance Operations and Create Market Opportunities

Generative AI can automate data processing tasks such as data entry, extraction, and analysis. This can help property management software platforms handle large volumes of property-related data more efficiently, leading to faster decision-making and improved operational efficiency for property managers. Generative AI can analyze historical property data to identify patterns, trends, and correlations, enabling property management software to offer predictive analytics capabilities. This can help property managers anticipate maintenance needs, predict rental demand, and optimize pricing strategies for better property performance. For instance,

• As per the survey conducted, generative AI technology could generate around USD 100 billion to USD 200 billion for the real estate industry.

Thus, this factor boosts the North America property management market growth.

North America Property Management Market Trends

Organizations Embrace Virtual Workplaces for Seamless Remote Collaboration

For the past few years, the work-from-home culture has taken pace. With the COVID-19 pandemic in between, it became the work culture for almost every organization. Working from home requires mobility in terms of access to office resources and data. Organizations are witnessing virtual workplace utilization for their employees to preserve their physical infrastructure, which will further assist in utilizing the office space in a better way. For instance,

• In August 2022, Daiichi Properties united with its property management support DPS and incorporated SAP C4C Service through SAP Plant Maintenance in SAP S/4HANA. Over these SAP intelligent technologies, Daiichi enhanced interactions with renters and appropriately continued the accounts of all the equipment, issues, and cost charging to customers.

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North America Property Management Market Growth Factors 

Surging Utilization of SaaS-based Software in Property Management to Drive Market Growth

In recent times, the urban population has increased, attributed to the higher living standards and greater opportunities. With this, the living space constraints are also increasing. Additionally, data-driven real estate companies rely on up-to-date information as offline networks make it difficult to access data, thus blocking the real-time decision-making process. SaaS software allows access to information from any location with an internet connection. In accordance with this, property managers utilize the SaaS platform to integrate property solutions with advanced payment systems, thus enabling multi-vendor platform integration in the existing system. Additionally, with SaaS, property managers typically pay a subscription fee, which often includes maintenance, updates, and support. This eliminates the need for large upfront investments in software licenses and hardware.

RESTRAINING FACTORS

Limited Technological Usage and Other Dynamic Risks May Hinder Market Growth

Several market leaders with substantial initial investments in property management services hardly face tasks regarding restricted utilization of technology, as they take contracts for long periods. Most of the time, large enterprises use innovative technologies, including SaaS software, building information modeling (BIM), and others, which allows them to provide better and enhanced services.

However, rising investment across real estate holds an array of dynamic risks. Besides, the scarcity of funds shifts the real estate agents to work with local developers. This entails operational delays on sites and even fraudulent activities. Furthermore, the threat of monetary harm to property business arises owing to the politically unstable conditions. Therefore, these are the factors that are impeding the growth of the market. Although, to resolve such issues, workforce and monitoring costs will play a vital role in the future.

North America Property Management Market Segmentation Analysis

By Deployment Analysis

Cloud-based Solutions Lead Due to its Economic Viability and Convenience

On the basis of deployment, the market is categorized into cloud and on-premises.

Cloud-based property management software deployment captured the highest market share in 2023, and is anticipated to grow at a maximum CAGR during the forecast period as it eliminates the need for costly on-premises hardware, servers, and IT infrastructure. Users pay a subscription fee based on usage, which can be more cost-effective than purchasing and maintaining traditional software licenses and hardware. Factors such as cost-effectiveness, scalability, ease of use, and fewer renter disputes are boosting medium, small, and large enterprises to move toward cloud-based solutions. Furthermore, cloud-based PMS software provides a backup facility and all-in-one data integration, which helps in avoiding data loss. Moreover, it also saves property managers unintended costs of money recovery and direct costs included in automating a labor-intensive procedure.

Additionally, on-premises services in North America offers advantages such as direct control over maintenance, security, and customization to suit specific needs. It also provides better oversight of tenant relations and allows for quicker response to emergencies. Thus, these factors promote market growth.

By Application Analysis

Residential Segment Dominates the Market Owing to Rising Electronic Payment Methods

On the basis of application, the market is categorized into residential and commercial.

The residential segment dominates and holds the maximum North America property management market share. The software helps landlords and homeowners with rent collection, lease management, maintenance tracking, and financial reporting, saving time and reducing manual errors for property managers and landlords. Also, this software enables landlords to offer online rent payment options to tenants through credit/debit cards or other electronic payment methods.

Furthermore, the commercial segment is expected to grow at the highest CAGR during the forecast period. This software assists property managers in managing the financial aspects of commercial properties, including tracking rental income and expenses, generating financial reports, and budgeting for property improvements. It ensures that property managers have accurate financial data to make informed decisions. Therefore, these factors play a vital role in driving market growth.

By End-User Analysis

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Rising Adoption of Property Manager Segments among Residents to Boost Market Demand

On the basis of end-user, the market is categorized into property managers, housing associations, real estate agents, and others.

The property manager segments held the largest market share in 2023, as this software helps property managers manage tenant information, lease agreements, rent payments, and communications more effectively. It enables property managers to communicate with tenants, address concerns, and enforce lease terms efficiently.

Moreover, real estate agents are expected to grow at the highest CAGR during the forecast period. Many real estate agents expand their services beyond traditional buying and selling transactions to include property management for their clients. This software allows agents to offer comprehensive services, including lease management, rent collection, and maintenance coordination.

REGIONAL INSIGHTS

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North America holds the largest share of the global market. The advancement of technology in the region, including cloud computing, mobile applications, and data analytics, has made property management software more accessible, user-friendly, and feature-rich. Property managers can now access their data and perform tasks remotely using any internet-enabled device. Moreover, property management companies and real estate agents in the region are increasingly investing in technology solutions to gain a competitive edge, improve customer service, and drive business growth. For instance,

• In July 2023, MRI Software expanded its product offerings by launching the first cloud instance to the Canadian market.

List of Key Companies in North America Property Management Market

Market Players to Adopt Merger and Acquisition Strategies to Expand Their Operations

Prominent firms in the industry are actively broadening their overall presence by presenting specialized solutions tailored to detailed sectors. They are strategically forming partnerships and obtaining local markets to establish a robust foothold in various areas. These enterprises are concentrating on generating effective marketing strategies and increasing new solutions for maintaining and growing their market share. Therefore, the rising demand for property management solutions is expected to create profitable opportunities for the market players.

List of Key Companies Profiled:

• IBM Corporation (U.S.)


• SAP SE (Germany)


• Buildium (U.S.)


• AppFolio, Inc. (U.S.)


• Archibus (U.S.)


• Corelogic Inc. (U.S.)


• Entrata Inc. (U.S.)


• Yardi Systems, Inc. (U.S.)


• ManageCasa (U.S.)


• MRI Software LLC (U.S.)


• DoorLoop (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2024: CoreLogic announced the launch of a new security platform for MLSs systems – Clarity Assure. The new, advanced security platform geographies adaptive authentication and influences multi-factor authentication to bid MLSs a fortified defense to defend its data and organization against escalating cyber threats.


• January 2024: MRI Software declared the launch of the next generation of MRI’s electronic CTM solution, aiding Colorado’s real estate market. The application provides wide functionality to a comprehensive range of customers in the industry, enduring significant improvements to deliver an even more complete, next-generation solution to the market.


• December 2023: IBM announced the acquisition of WebMethods and StreamSets platforms from Software AG. The acquisition within the firm is additional data of IBM's deep focus and assets in hybrid cloud and AI. StreamSets adds data ingestion abilities to IBM's AI, Watson, and the data platform. At the same time, webMethods offers customers and partners added incorporation and API management tools for their hybrid multi-cloud environments.


• November 2023: DoorLoop, an all-in-one property management software that automates everything from listing units to accounting, extended its offerings to proprietor's associations. Tenants can generate and submit requests to the community manager via the portal and make payments for assessments, association dues, and more.


• November 2023: Eptura announced the latest update to its Incorporated Workplace Management System, Archibus. This release includes interface developments and feature improvements to increase usability security and allow enterprises to get the most out of the Archibus BIM Viewer.

REPORT COVERAGE

An Infographic Representation of North America Property Management Market

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The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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Report Scope & Segmentation