Unpacking PropTechs and IoT ecosystems: European insights with a novel business model taxonomy

Abstract

Purpose – PropTechs and IoT ecosystems are essential for transforming buildings into smart buildings to improve sustainability, optimise processes and transform the user experience of buildings. To gain insight into PropTechs, we develop a business model taxonomy of PropTechs offering solutions for the smart built environment. The paper also provides insights into the PropTech landscape and how to encourage the adoption of PropTech solutions. Design/methodology/approach – We use an iterative, multi-method approach that includes a systematic literature review, an analysis of 90 PropTechs from Germany, Austria and Switzerland and 14 expert interviews. Findings – The taxonomy comprises 16 dimensions, grouped into Value Proposition, Value Architecture, Value Network and Value Finance. Other findings highlight the growing importance of PropTechs in the real estate industry. Building owners are responsible for proactively adopting digital strategies to ensure adaptability, long-term value and sustainable retrofits. Similarly, PropTechs should engage service providers at an early stage and support product viability through vertical integration. Practical implications – The taxonomy provides practitioners with a structured framework to analyse and differentiate PropTechs while helping them identify complementary solutions that contribute to a robust ecosystem. Originality/value – This research offers a comprehensive and systematic foundation – previously lacking – for advancing knowledge of PropTechs and the technological evolution of buildings, thereby facilitating deeper understanding and supporting theory development.