Market Overview

The proptech market size (total size of both B2C and B2B categories) for FY2020 is estimated as 611,000 million yen, 108.6 percent of the size of the previous fiscal year.

Of the total market size, B2C category is estimated as 485,200 million yen which is 109.6 percent of the size of the previous year, while the size of B2B is estimated as 125,700 million yen, 104.9 percent of the preceding fiscal year.  

Noteworthy Topics

Considerable Expansion Expected in Matching Services in B2C Category, and Real Estate Brokerage/Management Support/Value Assessment in B2B

Of the proptech market, the promising category that can considerably expand in B2C is “matching services”. The secondhand housing market is one of the few growth-expected markets in the housing industry, associated with rising number of housing stocks. This is highly likely to make the market brisk by increasing the number of those companies achieving efficient matching by means of technologies and those companies dedicating themselves in expanding customer base.

On the other hand, the largest market size and most promising service in the B2B category is real estate brokerage/management support/value assessment. While each enterprise faces to overcome the challenges of streamlining business workflows and improving labor productivity in the country suffering from ever decreasing population, the COVID-19 pandemic has caused even some mid-size to small size enterprises to consider deploying digital transformation. The demand for digital transformation tools that can be used for solving such challenges is another reason for the market to further expand. In addition, the digitalization promotion policy by the government is also projected to boost the market growth.

Future Outlook

The proptech market size is forecasted to expand to 1,246,100 million yen by FY2025, 203.9 percent of the size of FY2020. Among the total estimated market size in FY2025, B2C category occupies 1,001,700 million yen that is 206.5 percent of the size of FY2020, while B2B category is expected to achieve 244,500 million yen that is 194.5 percent of the size of FY2020.

Currently, the companies that have entered the proptech market tend to concentrate the resources specifically in the business domain where they can exert their advantages, by which to raise their positions in the market. On the other hand, there have been some alliances, mergers and acquisitions in progress among market players to generate the synergy effect. From hereon, it is likely for the leading market players in each of domains to accelerate alignment and M&As aiming to offer one-stop value-added services. 

Research Outline