Home Inspection Software Market Introduction
Home inspection software, a type of property inspection software, offers both buyers and sellers a common channel to inspect the property prior to purchasing. It helps generate reports for real-estate firms to repair damages, fix faulty fixtures, and other maintenance. Most home inspection software solutions are cloud-based and available on a monthly or yearly subscription.
According to SR Analysis, the home inspection software market is expected to witness double-digit growth during the forecast period. Increasing disposable income, demand for a better lifestyle and superior living conditions, and safety concerns drive market growth, whereas lack of awareness in the emerging economies of Asia-Pacific, the Middle East, and Africa hinders the growth momentum.
The global Home Inspection Software Market is expected to expand at a CAGR of 11.7% during the forecast period, 2020–2029.
Home Inspection Software Market: Overview
The global home inspection software market is extremely fragmented with a number of private players. The cost of investment is moderate, and government intervention differs from region to region based on regulations. The impact of government intervention is moderate in the U.S. and high in India and China; thus, the impact of new players on the market fluctuates from high to moderate.
The number of inspection training service providers is high compared to the number of software providers. Thus, the supplier to buyer ratio is high, which results in low switching costs. In other words, suppliers’ bargaining power is low in the home inspection software market.
Europe’s Home Inspection Market is Dependent on Labor Markets Amid Political Uncertainties & Low Income
As per the Global Housing and Mortgage Outlook 2019 report, Europe has been observing a drastic slowdown since 2017, and it is expected to witness slow growth until the end of 2020.
Political instability, particularly due to Brexit, could lead to steady growth in home prices across the U.K. and Ireland. The inclination toward anti-EU political movements could increase the risk of bankers providing higher housing rates in the region. Despite a strong labor market, wage growth has failed to keep up with home price growth. Furthermore, the declining unemployment rate despite low income has expanded the pool of potential customers for residential properties.
Low Interest Rates to Bolster North America’s Otherwise Moderate Market, Which is Impeded by a Sluggish Real Estate Sector
North America’s sluggish real estate sector hampers the market growth. The sector has been witnessing a decline in property rates, and banks are offering low-interest rates for home loans to encourage property sales.
As per Fitch Rating Agencies, Canada’s real estate rates, notably home rates, have slowed to 3% and are expected to increase by a nominal 0.5% by 2020 end. The U.S. market is also experiencing sluggish growth and expected to register 3–4% growth in the next two years. Declining or stable unemployment rate and slow economic growth allow banks to keep interest rates stable at a certain level, permitting consumers to purchase or rent properties.
Asia-Pacific — A Promising Market With Significant Revenue Pockets for Investors
Stringent Regulatory Framework
China, India, the Philippines, and Thailand, among other emerging economies of Asia-Pacific, vary significantly from North America and Europe. In these countries, particularly India, the real estate sectors are highly governed and regulated by local and government agencies. A large share of the populace comprises homeowners, and regulatory processes dictate the steps for property rental or sale. Authorized agents who operate the process lack technical skills and infrastructure to install software and operate through mobile or desktop-based applications.
Availability & High Adoption of Alternatives
Agents, owners, and individuals opt for alternatives to home-inspection software, including web and mobile-based applications such as Nobroker.com, Nestaway, 99.acres.com, and housing property.com, which hinders market growth to an extent. Industry experts estimate that strategic partnerships between home inspection software vendors and real estate database website owners could create growth prospects for the home inspection software market. Vendors could offer inspection services to owners, which will aid market penetration.
For the purpose of our study, the home inspection software market has been segmented on the basis of component, deployment mode, and inspection type.
Overview: Segmentation by Component
Widespread Adoption of Cloud-based Home Inspection Software
Most leading home inspection software vendors offer cloud-based solutions. These solutions can be easily deployed on desktops and mobile phones and provide a unified cloud-based and mobile workforce application that offers service personnel greater convenience in inspecting and reporting homes using mobile devices. The solution enables easy upload of photos, videos, and comments and can generate inspection reports in various formats, amounting to high cost and time savings.
Growing Popularity of Training Services for an Interactive Experience
Companies such as EASY2CERTIFY, Carson Dunlop, and SHGI Corporation offer not only inspection software solutions but also related training services, which allow real-estate firms to allow to schedule clients and market their services with seamless reports, offering an interactive experience. These solutions and services are offered based on a yearly or monthly subscription basis. The software segment accounts for the larger value share and is expected to dominate the market during the forecast period.
Segmentation Overview by Deployment Mode
Mobile Segment Accounts for Lion’s Share of the Market, With Convenience & Time Savings Driving Adoption
Field service executives need to provide information and images regarding a property’s condition. With a mobile application, vendors can easily capture images and send them to the main system process, enabling instant report generation. Mobile applications, thus, enable real-estate firms to save time and money and deliver enhanced customer experience, which drives the segment’s growth. On the flip side, data security poses a concern for mobile application adoption, which may somewhat hinder the growth momentum.
Desktop Segment Registers Slow Growth, With Longer Time Frames Deterring Adoption
The use of a desktop is comparatively time-consuming here. The field service executive first inspects the home property, takes images, fetches data, and generates the report, with the whole process taking 1–2 working days. Thus, the desktop segment is expected to register relatively slow growth during the forecast period.
Home Inspection Software Market: Innovation & Developments
Home Inspection Software Market: Key Players
Home Inspection Software Market Segmentation
By Deployment Mode
By Inspection Type
Frequently Asked Questions (FAQs)