U.S. Real Estate Software Market Size, Share & Trends Analysis Report By Type (CRM, ERP, Contract), By Deployment, By Application, By End-use (Architects & Engineers, Real Estate Agents), And Segment Forecasts, 2023 - 2030

Market Size & Trends

The U.S. real estate software market size was evaluated at USD 2.45 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 10.3% from 2023 to 2030. The continued integration of the latest technologies, such as big data analytics, Artificial Intelligence (AI), and Machine Learning (ML), into real estate solutions is expected to play a niche role in driving the growth of the market. Several real estate companies are integrating these technologies into their respective digital platforms to implement new business models and focus on a large customer base, supporting the proliferation of the market.

Significant population growth and rapid urbanization are encouraging the government to invest in the real estate sector, creating robust business opportunities for the U.S. real estate software market. A remarkable increase in residential and commercial real estate projects in the U.S. is expected to boost market growth during the forecast period. Furthermore, the U.S. government’s supportive initiatives for digitization are encouraging real estate companies to digitize their business operations. Real estate companies are adopting real estate software for digital marketing, generating potential leads, and gaining insights to make data-driven decisions, to achieve higher profitability from this potential market.

The increasing government initiatives toward the development of infrastructure have been significant in boosting the U.S. real estate software market growth. The U.S. Department of Transportation has been involved in Public-Private Partnerships (P3s), a contractual agreement between private entities and public agencies to enable better private participation in project delivery. The spending in the U.S. construction industry is likely to drive positive adoption of U.S. real estate software solutions over the forecast period. For instance, according to the U.S. Census Bureau, in February 2023, construction spending was USD 1,844.1 billion.

The integration of AI in real estate software has been on the rise among companies in the U.S. This can result in a major boost for the real estate software industry due to the various benefits of AI integration, such as automated valuation models, smart property analysis, mortgage calculation, property recommendation, CRM, management software solutions, automation of manual tasks, and aid in property development. These benefits have accelerated the adoption of AI-integrated real estate software solutions, resulting in more companies offering advanced products. For instance, in April 2023, Restb.ai (a Spanish computer vision company specializing in image recognition for the real estate industry) announced the launch of its AI-powered property description technology for the Canadian and U.S. real estate industries, enabling easy automation of creating property listing descriptions.

The high adoption of real estate software can be attributed to its ease of management, scalability and security, marketing and workflow automation, relationship retention, and generating potential leads. However, the high costs of real estate software are expected to restrict the U.S. real estate software industry growth during the forecast period. To overcome this issue, the companies operating in the market focus on understanding the exact client requirements and design the software accordingly to eliminate the additional costs which are incurred due to obsolete features.

Type Insights

The Customer Relationship Management (CRM) software segment accounted for the largest market share of 27.3% in 2022. The significant market share can be attributed to the presence of top companies offering different types of real estate software solutions, which can enable a wider reach and attract more customers. Some of the major companies offering different types of real estate software solutions include Altus Group; Rockport; and Matellio Inc., among others. The solutions these companies offer include property valuation software, which offers a myriad of functionalities, including commercial property valuations, cash flow forecasting, sensitivity analysis, and transaction analysis, creating a favorable environment for the U.S. real estate software industry.

The contract software segment is expected to register a CAGR of 11.4% through 2030. The growth of the segment can be attributed to the presence of top companies offering different types of contract software solutions, which can enable a wider reach and attract more customers. Further, the rising adoption of several digital technologies, such as AI-based contract software and e-signatures, is expected to create robust opportunities for segment growth in the forecast period.

Deployment Insights

The on-premise segment accounted for the largest market share of 46.8% in 2022. The growth of the segment can be attributed to several benefits, such as improved data security, and better control, among others, associated with the on-premise deployment of real estate software. The new, innovative real estate software solutions, which support on-premise deployment, are launched aggressively by top companies operating in the U.S. real estate software industry and are also contributing to the growth of the on-premise segment. For instance, SAP SE offers a solution named “SAP S/4HANA”, a software solution for contract, lease, and real estate management that supports on-premise deployment.

The cloud segment is anticipated to grow at a CAGR of 11.8% during the forecast period. The growth of the cloud segment can be attributed to benefits such as lower costs, flexibility, and scalability, associated with cloud-based deployment. The demand for cloud-deployable real estate software solutions has been gaining significant traction. For instance, in December 2022, Agilysys NV LLC, a hospitality software solution provider based in the U.S., announced an agreement with Marriott International, Inc., a hotel chain based in the U.S., to deploy Agilysys NV LLC's cloud-native property management system software across Marriott International, Inc.'s premium, luxury, and select service hotels in the U.S. and Canada in coming years.

End-Use Insights

The architects & engineer segment accounted for the largest market share of 38.5% in 2022. Advances in Virtual Reality (VR) and Augmented Reality (AR) and their continued integration into real estate software, coupled with the significant growth in the number of construction projects being undertaken across the globe, are expected to open lucrative opportunities for architects and engineers, thereby driving the adoption of real estate software by architects and engineers over the forecast period. Several architects and engineers use real estate software to limit their reliance on paperwork and documentation while ensuring well-organized and automated worksites and lowering overall costs, supporting the growth of the U.S. real estate software industry.

The real estate agents segment is anticipated to grow at a CAGR of 10.9% during the forecast period. The growth of the segment can be attributed to the benefits such as additional help in managing relationships with brokers, sellers, agents, developers, and financial institutions, offered by real estate software. The presence of several incumbents in the market offering a complete package of software solutions for real estate agents is contributing to the growth of the segment. For instance, Propertybase, a real estate software provider based in the U.S., offers a solution named Propertybase GO, an ideal software package for real estate agents. The functionalities of the software include done-for-you lead generation, real estate CRM, and easy marketing automation.

Application Insights

The residential segment accounted for a market share of 60.7% in 2022. Business process outsourcing is used by various IT & telecommunications firms to develop and enhance their product & service offerings. In-house hiring is costly and requires lots of resources such as training, upkeep, office space, payroll, and IT infrastructure. BPO can provide better services with reduced costs to the clients through outsourcing as it saves expenses and resources in the setup process.

The commercial segment is expected to grow at the highest CAGR of 11.1% during the forecast period. The growth of the segment can be attributed to various strategic initiatives being pursued by the incumbents of the market to help customers in streamlining their business. For instance, in March 2023, STRATAFOLIO, INC, a software solution provider based in the U.S., became a member of Intuit QuickBooks Solution Provider Program. Using the Intuit QuickBooks platform, commercial real estate owners can handle their portfolios better from a single location and use critical data to streamline their business.

Key Companies & Market Share Insights

The key players operating in the U.S. real estate software market include Altus Group Ltd.; Black Knight Technologies, LLC; Costar Realty Information Inc.; SAP SE; and MRI Software, Inc. to broaden their product offering, companies utilize a variety of inorganic growth tactics, such as partnerships, regular mergers, and acquisitions. For instance, in October 2022, it launched its new MRI Agora Platform solution to enable real estate professionals to make better data-driven decisions and automate mundane tasks. The integrated MRI Forms Intelligence solution uses AI technology to quickly read digital documents and reduce data errors. Some prominent players in the market include:

• Altus Group Ltd.

• Attom Data

• Badger Maps

• Black Knight Technologies, LLC

• BoomTownROI

• CoreLogic

• Costar Realty Information Inc.

• Commercial Real Estate Exchange, Inc. (Crexi.com)

• LionDesk LLC

• Microsoft Corporation

• MRI Software Inc.

• Propertybase

• RealPage, Inc.

• Realvolve

• Reonomy

• SalesRabbit Inc.

• SAP SE

• Spotio

• Wise Agent

• Yardi Systems Inc.

U.S. Real Estate Software Market Report Scope

U.S. Real Estate Software Market Report Segmentation

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the market report based on type, deployment, application, and end-use:

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Customer Relationship Management Software

    • Dialer Software

    • Prospecting

    • Others (Marketing Automation, Salesforce Automation, Social Media Monitoring)

  • Enterprise Resource Planning Software

  • Property Management Software

  • Contract Software

  • Others (Content Management Software, Investing/Financial Management Software, Skip Tracing Software, Property Valuation Software)

• Deployment Outlook (Revenue, USD Billion, 2018 - 2030)

  • Cloud

  • On-premise

• End-Use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Architects & Engineers

  • Project Managers

  • Real Estate Agents

  • Others (Lenders, Financial Advisors, Property Owners, Sales Professionals)

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Commercial

  • Residential