The Global Lease Management Market Projected to Grow at a CAGR of 6.9% and Generate a Revenue of $8,990.6 million by 2031Download Sample Reports Overview
The global lease management market is predicted to be valued at $8,990.6 million by 2031, surging from $4,635.1 million in 2021, at a noteworthy CAGR of 6.9%.
Impact Analysis of COVID-19 on the Lease Management Market
The occurrence of COVID-19 pandemic is driving up the demand for projects involving smart buildings to effectively manage leases, as well as a trend toward IT modernization for increased company effectiveness. Additionally, the epidemic has speed up the adoption of digital technologies by real estate firms, property managers, and homeowner associations, to prevent any human close contact and also manage their work load amid scarcity of man power. Market participants provided cloud-based software to landlords during the pandemic to maximize rent collection, adhere to regulations, maintain profit performance, keep renters leased, and manage those tenants effectively. Furthermore, since the coronavirus pandemic was first discovered, the global economic expansion has been significantly impacted by this pandemic. The leasing management market is expanding during the outbreak. All facility management information is incorporated into the lease management software, enabling the company to operate remotely without affecting daily operations. During a pandemic, it is anticipated that the rise in propensity for working from home is anticipated to be the most significant driving force in the global lease management sector. On the contrary, due to the high associated expenses, the market for global leasing management is anticipated to suffer during the forecast period and even after the pandemic, as the pandemic has affected many industries’ financial conditions adversely.
Global Lease Management Market Analysis
An institution's lease portfolio's daily operations are organized and carried out as part of lease management. Document management, reporting, stakeholder coordination, and a variety of administrative responsibilities are all provided by lease management. Processes for lease accounting and compliance are closely partnered with a lease management solution. Lease management, which is integrated with automation capabilities, assists businesses in managing their lease documents, storing and tracking lease data, and producing reports. A Lease Abstract, which condenses the key provisions of a real estate leasehold agreement, must be created by extracting important information from the lease agreement text. Rise in use of the SaaS model by businesses seeking cost-effective remote access is expected to lead to significant growth in the global lease management market. Additionally, it is predicted that in the anticipated time frame, the demand for smart building initiatives will drive the global market growth. Further integration of new technologies for real-time data processing include mobility, IoT, and AI in traditional lease management market is further likely to drive the market growth.
However, the lack of awareness, and the cost of setting up lease administration software, as well as the high cost of maintaining this software, are expected to restrain the market during the forecast period.
Moreover, new technologies, including the Internet of Things (IoT), are seen as one of the biggest opportunities as they have the potential to transform the way real estate managers manage their properties. As leasing data can be automatically gathered by sensors and analysed for the most effective maintenance activities, the deployment of IoT will significantly speed operations.. The adoption of IoT will help in acquiring accurate results in the shortest amount of time while greatly reducing the load on leasing management tools. Even though the IoT is still in its infancy, it has enormous development potential. As a result, the global market for lease management will undoubtedly be positively impacted by the growth of the IoT sector.
Global Lease Management Market, Segmentation
The global lease management market is segmented based on component, deployment mode, enterprise size, end use industry, and region.
Component segment is further classified into solution and services. The lease management market's services segment is estimated to be the fastest growing during the forecast period. This is because lease management benefits the organization by providing end-to-end optimized solutions to the facility's maintenance and better business insights. These factors are expected to lead to high demand for the service segment during the forecast period.
Deployment segment is further classified into on-premises and cloud. The cloud segment is anticipated to have the fastest growth during the forecast period. The cloud segment's promising development prospects can be attributable to consumers' shifting preferences from conventional on-premise lease management to web-based leasing services. The advantages of cloud deployments, including their flexibility, cost-effectiveness, automation, and real-time access to leasing data, are boosting interest in cloud solutions.
Enterprise size segment is further classified into small & medium and large enterprises. The large enterprises segment is anticipated to have the highest market share during the analysis period. This is due to the rise in need for lease management solutions in large businesses for effective leasing portfolio management and the seamless functioning of business processes. These elements are anticipated to fuel large businesses' demand for lease management services.
End-use industry segment is further classified into retail, education, government, manufacturing, and others. The manufacturing segment is anticipated to have the dominant market share during the forecast period. Since the manufacturing industry operates on lease and has contracts with all the dealers, lease management software is commonly used in manufacturing facilities. The need for meticulous tracking of every transaction is anticipated to grow the segment market throughout the foreseeable future.
The global lease management market in the Asia-Pacific region is estimated to be the fastest growing during the forecast period. The region's early adoption of lease management systems is a key element in its growth. The area is home to well-known dealers, large telecom juggernauts, and a variety of companies that frequently select novel technology to increase their business productivity and efficiency. To fulfill the rise in demand that will drive the regional lease management market in the next few years, the leading companies are concentrating on developing lease management software.
Key Players in the Global Lease management Market
Some of the leading market players in the lease management market are
- Lease Accelerator, Inc.
- CoStar Group
- FORTUNE Media IP Limited
- Trimble Inc.
- RealPage, Inc.
- Oracle Corporation.
- Innolux Corporation
In January 2021, MRI Software LLC, a provider of real estate and investment management software, acquired AMT Direct, a lease accounting and management software company, to manage its leases and adhere to the new lease accounting standards.