We are happy to share another edition of PropTech Facts: we provide you short and sweet insights in the (Prop)Tech market. the trends we are seeing, and interesting data we come across.
The UN has cited technological advancement and increased population longevity as the key convergence of megatrends for the future.
APAC is at the center of this, with the # of those 65+ expected to double from 349 million to 850 million by 2040, 18% of the region's population.
Specifically, Japan has, globally, one of the highest proportions of those 65+, with 28% in this bracket, + it is expected to rise to 35% by 2040.
Moreover, Japan and South Korea have some of the highest working populations that are 65+. Both countries double that of countries like the US.
We are already seeing the global acceleration of technology changing how later-aged people are living + working.
Techs such as:
Wearables + wider IoT-enabled techs, allied with robotic assistance
Purpose-built homes and service models to support independent living
Elderly-specific UX + UI to make incorporation into traditional work methods easier
Based on geography, the global clean energy technologies market is segmented into APAC, North America, Europe, South America and MENA.
For some key clean technologies such as solar photovoltaic, wind, batteries, electrolyzers and heat pumps - China is in the lead, driven by its investments in renewable energy and environmental initiatives.
APAC is expected to continue to lead the CleanTech market as countries like China, Japan, and India have witnessed significant growth in clean energy adoption.
A recent analysis from the WSJ, found that 13% of Q4 earnings calls for the largest US companies, mentioned AI.
Given the rapid rise of the adoption of tools like ChatGPT, and its use by many, the rise and integration of AI has been immense.
This momentum is encapsulated well in the VC space where the val multiples in market for techs with components of AI, are reaching incredible levels (one company was offered multiple investment offers, at a valuation of 300x of revenue!).
For CRE owners, it will be very interesting to see how this will impact their portfolios.
One narrative is that AI will support the up-skilling of staff and drive greater productivity- thus will drive the need for more creative space.
An alternative view focuses on how AI will eradicate many roles, and thus further increase the pressure on owner’s ability to lease space.
There are still many pitfalls with AI (as recent cyber leaks, IP ownership and wrong output ("hallucination") examples illustrate), so I don’t think we will be quite saluting our AI masters just yet…
but what is clear is from our recent research is that it will have a material impact on CRE in the next few years.
Technology is not a widget; It is a journey towards competitive distinction.
When “technology” is reframed as “competitive distinction”, it ceases to be viewed as an adversary and starts to be seen as a strategic partner.
The primary obstacle, for Real Estate in particular, is the notion that technology is a costly imposition. For those companies expecting to thrive in the new conditions now facing the sector, there is no other way to say it than you simply must immerse yourselves in technological advancement.
It’s not about digital; it’s about profitability, sustainability, risk mitigation and brand reputation.
There are over 18,000 property technologies currently servicing Real Estate. You cannot be expected to know them all, so unburden yourself by aligning with someone who does. The Proptech Connection, global advisory for search, discovery and accurate selection.