The Automated Valuation Model Market has evolved into a core component of modern real estate, banking, and mortgage ecosystems. In 2024, the market was valued at approximately USD 3.6 billion, driven by rapid digitization in property assessment and lending. Automation has reduced valuation turnaround times by 60–70% compared to traditional appraisal methods, significantly improving cost efficiency and scalability.
Over the last decade, adoption of automated valuation models has accelerated as financial institutions processed higher transaction volumes. Between 2019 and 2024, global usage of automated valuation platforms increased by nearly 2.3×, reflecting rising demand for faster, data-backed property valuations across residential and commercial segments.
Historical Market Performance: 2015–2024
From 2015, when the Automated Valuation Model Market was estimated at USD 1.1 billion, growth has been consistent. By 2018, the market crossed USD 1.9 billion, supported by early AI and machine-learning integrations. Despite a temporary slowdown in 2020, valuations rebounded strongly, growing 14.2% year-over-year in 2021 as mortgage refinancing volumes surged globally.
In 2022, the market expanded to USD 3.1 billion, registering 11.5% YoY growth. This upward trend continued in 2023, with revenues reaching USD 3.4 billion, before hitting USD 3.6 billion in 2024, indicating a stable 6–7% annual growth even in volatile real estate conditions.
Market Forecast and CAGR Outlook (2025–2032)
Looking ahead, the Automated Valuation Model Market is projected to grow at a compound annual growth rate (CAGR) of approximately 12.1% from 2025 to 2032. By 2027, market size is forecast to reach USD 5.1 billion, while 2030 estimates exceed USD 6.9 billion. By 2032, total market value is expected to surpass USD 8.5 billion.
This expansion is largely attributed to increasing digital mortgage penetration, where over 75% of new mortgage originations in developed markets are expected to rely on automated or hybrid valuation tools by 2030.
Year-over-Year Growth Comparisons
Between 2020 and 2021, transaction-driven demand pushed YoY growth above 14%. From 2021 to 2022, growth moderated to 11.5%, reflecting market normalization. In 2023, YoY growth stabilized at 9.7%, while 2024 recorded approximately 6.2%, signaling maturity in developed regions but strong upside in emerging markets.
Forecast data indicates growth will re-accelerate to 10–13% annually from 2025 onward, supported by regulatory acceptance of automated valuations in lending and insurance.
Regional Market Breakdown
North America dominates the Automated Valuation Model Market, accounting for nearly 41% of global revenue in 2024, equivalent to USD 1.47 billion. High mortgage volumes and advanced data infrastructure underpin this leadership.
Europe held approximately 28% share in 2024, with market revenues around USD 1.0 billion, driven by digital land registries and open banking initiatives.
Asia-Pacific is the fastest-growing region, projected to expand at ~14.8% CAGR through 2032, fueled by urbanization and smart-city investments.
Latin America and Middle East & Africa jointly represented 11% of global revenue, or roughly USD 400 million, but are forecast to grow above 13% CAGR.
Segmentation by Property Type
Residential properties account for nearly 62% of Automated Valuation Model Market revenue in 2024, driven by high transaction frequency and mortgage lending volumes. Commercial real estate contributes approximately 25%, while land and mixed-use valuations represent the remaining 13%.
Between 2025 and 2030, commercial AVM adoption is expected to grow faster, at ~13.5% CAGR, as institutional investors increasingly demand real-time valuation analytics.
Technology and Model Insights
Machine-learning-based valuation models now generate over 55% of total market revenue, up from 38% in 2019. Rule-based and regression models continue to decline, losing nearly 4–5 percentage points of share annually.
Advanced AVMs can process over 1 million property records per hour, reducing per-valuation costs by 45–60% compared to manual appraisal methods. Accuracy rates in mature markets now exceed 90–92%, a significant improvement from ~80% in 2016.
Industry Usage and Institutional Adoption
Banks and mortgage lenders remain the largest end users, accounting for 48% of total demand in 2024. Real estate firms contribute 22%, followed by insurance providers at 15% and government bodies at 10%.
Government-backed digital land and housing initiatives have increased budget allocations for property data platforms by 30–35% since 2020, indirectly boosting adoption of automated valuation solutions.
Investment and Cost Efficiency Metrics
Enterprises deploying automated valuation systems report average cost savings of USD 300–450 per property valuation. At scale, large lenders processing 500,000+ valuations annually can save over USD 150 million per year.
Global investment in real estate analytics software, including AVMs, exceeded USD 2.8 billion in 2023, up 18% year-over-year, indicating strong investor confidence in valuation automation.
Key Challenges and Risk Metrics
Despite growth, challenges persist. Data inconsistency accounts for ~20% of valuation inaccuracies in emerging markets. Regulatory restrictions still limit AVM-only valuations in nearly 30% of countries, necessitating hybrid appraisal models.
However, by 2030, regulatory acceptance rates are expected to exceed 85% globally, significantly reducing adoption barriers.
Conclusion: Data-Backed Market Outlook
The Automated Valuation Model Market has grown from USD 1.1 billion in 2015 to USD 3.6 billion in 2024, and is projected to reach USD 8.5+ billion by 2032. With a forecast CAGR of ~12.1%, driven by digital mortgages, AI-driven analytics, and cost efficiencies exceeding 50%, the market remains one of the fastest-growing segments in real estate technology.
As transaction volumes rise and valuation accuracy surpasses 90%, automated valuation models are set to become the default standard across global property markets.
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