Published: July 2020 | Report Code: IM10365 | Available Format: PDF | Pages: 240
The global GIS market size stood at $7.5 billion in 2019, and it is expected to reach $25.6 billion by 2030, exhibiting a CAGR of 12.1% during the forecast period (2020–2030). The rising investments in GIS-based infrastructure by the government sector, for military and aerospace applications, need for better utilization of spatial data for gaining real-time information of the location, and growing demand for these solutions from industries such as construction, utilities, and mining are the key factors driving the growth in the GIS industry.
Due to the effects of COVID-19, the implementation of geospatial solutions is expected to witness a rapid advance, thereby resulting in the fast growth of the GIS market. This is mainly due to the rapid adoption of the GIS technology for mapping the spread of the disease and implementing preventive measures. Hence, various government organizations are utilizing the GIS technology for varied applications during the pandemic.
For instance, since April 2020, several agencies, including the National Disaster Management Authority (NDMA) and National Informatics Center (NIC), have been utilizing GIS-enabled solutions, such as ArcGIS, ArcGIS Online, ArcGIS Pro, and ArcGIS Hub, provided by Esri Inc., to analyze the spread pattern of the virus, identify individuals who have come in contact with infected persons, and implement preventive measures.
The software category is expected to witness the fastest growth in the GIS market during the forecast period. This would mainly be due to the growing need for mapping field operations, integrating analytics tools, and managing and displaying geographic information through dashboards and reports. Further, based on software, the mobile category is projected to register the fastest growth during the forecast period, owing to the rising usage of mobile-based geographic information system software and focus toward integrating next-generation technologies, including cloud computing and machine learning (ML) in GIS solutions.
The cartographic category accounted for the largest size in the GIS market in 2019, on the basis of project size. This was mainly due to the surging utilization of geographical maps for better understanding and analyzing data. In addition, a cartographic data toolset allows government agencies to manage data, for map production, comprising toolsets such as Branding, Elevation, and Magnetic, provided by Esri Inc. Additionally, the digital category is projected to witness the fastest growth during the forecast period. This can be ascribed to the increasing need for integrating advanced data analytics tools in GIS software, for better analysis and visualization of data, to enable data-driven decision making.
Medium-sized projects held the largest revenue share in the geographic information system market in 2019, which is attributed to the increasing expenditure by the defense and healthcare sectors. According to Stockholm International Peace Research Institute (SIPRI), worldwide military expenditure stood at $1.8 trillion in 2018. The governments of developing countries are often reluctant to undertake large, high-cost and time-consuming geographic information system projects; hence, they also invest in medium size-projects, which is propelling market growth.
The government sector held the largest share in the geographic information system market in 2019. Community planning, urban and rural planning, and information extraction on natural calamities are some of the major applications of the GIS technology in the government sector. Although governments of developed countries are the major users of the technology, governments of developing countries are also heavily investing in digital and data-based GIS solutions for urban and rural planning, public health improvement, and optimal utilization of natural resources.
North America dominated the geographic information system market during the historical period (2014–2019). The major factors supporting the market growth include the rising utilization of GIS solutions by healthcare professionals and government organizations, highly developed infrastructure, and rapid adoption of advanced geographic information system mapping solutions to gather intelligence, manage battlefield operations, analyze terrain, and monitor possible terror activities.
Public sectors, including homeland security and defense, play a major role in the growth of the market in the region. Geographic information systems can help homeland security departments in times of a terror attack, such as in case of the explosion of a biological weapon, to determine the radius of the attack and take preventive measures. For instance, to better prepare for natural calamities, such as earthquakes, floods, and wildfires, the U.S. government has implemented the GIS technology, in collaboration with Esri Inc., to provide support to its citizens.
Geographically, the geographic information system market in APAC is projected to witness lucrative growth in the coming years. This is attributed to the increasing urbanization and growing demand for GIS solutions in government applications, in developing APAC countries, including China and India. In recent years, governments have increased the deployment of GIS in military organizations, for advanced infrastructure and homeland security.
Government of India’s initiative toward the development of 100 smart cities across the country is expected to provide considerable opportunities for the adoption of GIS solutions in urban planning, facility management, and water and wastewater management. Similarly, China is also investing in urban development. The country constitutes 19 city clusters, among which three major clusters — Pearl River Delta, Yangtze River Delta, and Beijing–Tianjin–Hebei — have been selected by the Chinese government for world-class infrastructure development. This is expected to increase the deployment of GIS in these cities during the forecast period.
The market is exhibiting an increasing adoption of GIS solutions in disaster management applications, including flood management, forest fire management, carbon management, and climate change. Governments of the developed countries of North America and Europe are profoundly reliant on geographic information systems for disaster management. Emergency management authorities use the available data to manage the disaster or analyze the consequences of a possible disaster, beforehand. In Taiwan, ArcGIS (GIS software from Esri) is managing the majority of the government's GIS tasks, through the emergency information management system (EIMS). Similarly, governments of several countries, such as India, Japan, and China, heavily rely on GIS-based disaster management technology.
The global geographic information system market is witnessing increasing investments by governments, for the usage of this technology in homeland security, as well as military and aerospace applications. Over the years, several GIS vendors have come up with innovative products to suit the requirements of the governments in developing countries. For instance, in 2017, Esri Inc. and Smart Dubai signed an agreement, which included the deployment of the ArcGIS technology in 44 entities by Dubai government. Moreover, the Indian government, along with Esri India Technologies Ltd., has been utilizing the GIS technology for the smart city project, for site selection, land acquisition, and construction and project management.
Modern geographic information systems provide precise and meaningful business intelligence for effective product management and accurate marketing information about clients, which is one of the major drivers contributing to the market growth. Organizations are investing heavily in geographic information systems, to access geographical data through software applications. Enterprise GIS solutions offer numerous benefits, such as efficient resource sharing, effective management of data, and improved decision-making, which enables enterprises to reduce inventory cost, product backlog error cost, and fleet management cost. Hence, rapid growth of the GIS market is expected in the coming years.
Geospatial information has increased exponentially over the past few years, which has led to the large-scale adoption of geographic information system technologies across new application areas, including marketing and advertisement. The development in distribution of several advanced software, such as software-as-a-service (SaaS)-based model and other data capturing technologies, and rise in the number of mobile device users are the key factors driving the growth of the GIS market, globally. In addition, the integration of GIS and building information modeling (BIM) solutions, developments in virtual-reality-based 3D GIS mapping, and integration of GIS mobile devices with sensor-based technology are resulting in increasing the spatial data availability for the GIS technology.
The GIS industry is fragmented in nature, with the presence of a large number of market players, which are engaged in strong competition. Major players in the geographic information system market are focused on the launch of integrated geographic information system solutions with advanced technologies, to improve their brand positioning. For instance:
|Base Year (2019) Market Size||$7.5 billion|
|Forecast Period CAGR||12.1%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Company Share Analysis, Companies’ Strategic Developments, Product Benchmarking, Company Profiling|
|Market Size by Segments||Component, Function, Data Type, Project Size, Industry, Region|
|Market Size of Geographies||U.S., Canada, U.K., Germany, France, Italy, Spain, China, Japan, India, Australia, South Korea, U.A.E., Saudi Arabia, Turkey, South Africa, Brazil, Mexico|
|Secondary Sources and References (Partial List)||American Congress on Surveying and Mapping (ACSM), American Society for Photogrammetry and Remote Sensing (ASPRS), Association for Geographic Information (AGI), Association of Precise Survey and Applied Technology (APA), China Association for Geographic Information System (CAGIS), GIS Association of Japan (GISA), International Cartographic Association (ICA), National Center for Geographic Information and Analysis (NCGIA), Urban Regional Information Systems Association (URISA)|
The GIS market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
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