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The geographic information system (GIS) market valued $10.8 billion in 2018, is expected to register a CAGR of 10.7% during the forecast period. Factors including rising investments in geographic information system solutions primarily by government, increased availability of spatial data and cloud technology, and rising adoption of geographic information system for location as a service (LaaS) application is propelling the growth of the GIS market.
Among all regions, North America was the largest market for GIS in 2018, and public sectors including homeland security and defense, plays a major role in the growth of the market in the region. Geographic information system can help agencies, such as the homeland security, in times of terror attack, such as in case of explosion of a biological weapon, to determine the radius of the attack and take preventive measures.
Fundamentals Governing GIS Market
The global GIS market is displaying increasing investments by governments for application in homeland security, as well as military and aerospace application. Over the years, several geographic information system vendors have also come-up with innovative products to suit the requirements of governments in developing countries. Recently, the Government of India started “Digital India” initiative, where the government, along with private sector companies, is expected to further invest in improving internet connectivity and location-based services infrastructure, across the country. The country is also expected to develop geographic information system-based data for land records, land management, and ownership details.
Modern geographic information system solutions provide precise and meaningful business intelligence for effective product management and accurate marketing information about clients. The modern geographic information system technology is steadily transforming the enterprise command technique, under multiple location scenarios. Moreover, organizations are also investing heavily in geographic information system implementation to access geographical data through software application. The enterprise geographic information system solution offers numerous benefits such as resource sharing, organization data, and improved decision-making. The technology also helps the organizations in effective inter-departmental communication.
Structural Analysis of GIS Market
Based on offering, the data category accounted for the largest revenue share in 2018, as it is widely used for mapping, routing, geocoding, reporting, data management, and modeling. Also, the category is registering high demand in regional literacy mapping applications in developing countries, such as India, China, Brazil, and Mexico. Further, growing demand for data from the government, transportation, and telecommunications sectors is pushing its market growth. Moreover, the Chinese government is increasing the overall infrastructure spending. For instance, from January to September, 2018, China’s total fixed asset investment reached a value of $327.8 billion to boost its slowing economy.
In terms of function, the mapping category showcased the largest revenue share, generating $3,824.6 million, in 2018. Increasing urbanization in developing as well as developed countries augmented the demand for mapping function in urban planning applications, such as land acquisition, assessing urban growth, water quality management, environment impacts, and classification of land zone. Countries, including China and India, are recording significant growth in the urban population, which is resulting in development of societies and buildings to accommodate the rising population.
Under segmentation on the basis of project size, medium-sized projects witnessed the largest revenue share in 2018. This is attributed to the increasing expenditure by the defense and healthcare sectors. According to Stockholm International Peace Research Institute (SIPRI), the world military expenditure reached $1.8 trillion in 2018, increased by 2.6% from 2017. Also, governments of developing countries are often reluctant to undertake high-cost and time-consuming geographic information system projects.
On the basis of application, application of geographic information system in the government sector accounted for the highest revenue share in 2018. Community planning, urban and rural planning, and information extraction on natural calamities are some of major areas of the geographic information system technology in the government application. 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 geographic information system solutions for urban and rural planning, public health improvement, and optimal utilization of natural resources.
Geographical Analysis of GIS Market
Globally, North America held the largest share in 2018. The defense sector, primarily homeland security, and presence of major players play significant role in shaping the market in the region. The military forces use geographic information system technology to gather intelligence, manage battle field operations, analyze terrains, and monitor possible terror activities. U.S. held the larger market share of in 2018 as compared to Canada. Large capital investments and rising expenditure in the defense and aerospace sectors in the U.S. is expected to drive the growth of the North American GIS market in the coming years.
During the historical period, growing demand for geographic information system solutions for government application in developing countries, such as China and India, drove the growth of the GIS market in the APAC region. The 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 geographic information system solutions in urban planning, facility management, and water & wastewater management.
Competitive Landscape of GIS Market
The global GIS market is consolidated, with top three companies accounting for around majority of the share in the market in 2018, and is characterized by the presence of companies such as Environmental Systems Research Institute (Esri) Inc., Hexagon AB, Autodesk Inc., Bentley Systems Incorporated, Schneider Electric SE, General Electric Company, Pitney Bowes Inc., Maxar Technologies Inc., SuperMap Software Co. Ltd., PASCO CORPORATION, IQGeo Group plc, and Trimble Inc.
Recent Strategic Developments of Major GIS Market Players
Major players in the market are focusing on product launches to increase their consumer base. For instance, In May 2019, Esri launched ArcGIS Excalibur, a web application that enables discover, search, and image exploitation for timely intelligence. ArcGIS Excalibur adds new value to imagery specialists as an intuitive application that helps to streamline structured observation management (SOM) workflows and helps to introduce users’ image exploitation and analysis. Furthermore, in 2019, IQGeo Group plc launched geospatial platform that takes a reality-centric approach, designed for infrastructure companies, providing real-time network view to the companies.
Key Questions Answered in the Report