WHICH TYPE OF PROPTECH WILL SURVIVE COVID-19?
We have moved passed the question of will proptech survive, as from a high level, this crisis has shown a greater need for technology than ever before. The more meaningful analysis is to consider which type of proptech will survive and what will be needed in the future. In no particular order, below our thoughts as to what sectors will emerge:
(1) Construction: With delays for projects likely, and expenses being ever more scrutinized, tech that can build faster and at a lower cost will be highly prioritized.
(2) Smart Building: Smart buildings allow for cost savings in addition to improving health, well-being and safety of their occupants. With many experts claiming that this kind of pandemic may become more common in the decades ahead, smart building and IoT technology will find willing buyers.
(3) Environmental, Social and Corporate Governance (ESG): ESG technology was booming before COVID-19, and it will only will accelerate this trend even further — creating a greater sense of urgency and responsibility toward everything from consumer behaviour to climate change, supply-chain practices and the future of work and mobility.
(4) Industrial Technology: With the majority of people now required to purchase goods online (and with most likely to maintain these habits going forward), fulfillment software, last mile delivery and warehousing technology (especially for outside or custom delivery services) will be successful.
(5) Fast Connectivity: Anything that supports faster connectivity in homes and buildings, will be especially helpful as more and more people work from home in normal circumstances.
(6) Artificial Intelligence (AI) and Machine Learning (ML): AI and ML will remain a necessary tech adoption to allow for automated business processes. This will be key when physical interactions and staffing is constrained. This list is not exhaustive, but importantly, what’s not on here? All of those businesses that add “one more app” for one very small slice of scope of a service or product. Will proptech survive? Of course, and it will be stronger as the remaining companies will be strongly aligned with owners to produce immediate return on investment.