GIS Market Overview
The global GIS market was valued at $9,835.5 million in 2017 and is forecasted to witness a CAGR of 10.2% during 2018–2023. The increasing investment in GIS-based infrastructure by the governments is one of the key factors contributing to the growth of the market. Besides, growing investments in homeland security along with a surge in capital funding for urban development in developing countries are supporting the market growth. The growth of facility management infrastructure has facilitated the penetration of enterprise GIS solutions in recent years.
GLOBAL GIS MARKET, BY COMPONENT, $M (2013 - 2023)
Based on component, the GIS market has been categorized into hardware, software and data, among which the data component contributed the largest revenue, accounting for around 60% share, to the market in 2017. It is currently the fastest-growing category in the market, owing to its use in mapping, telecom, and network services. The increasing demand for GIS software from the government, defense, and transportation sectors is also contributing significantly to the market growth.
On the basis of project size, the GIS market has been categorized into small (less than $250K), medium ($250K to $1 million), and large (more than $1 million). Governments in developing countries are often reluctant to undertake high-cost and time-consuming GIS projects. Due to this, small- and medium-sized projects are undertaken in these countries, as compared to developed countries.
Based on application areas, GIS was most adopted by governments in 2017. Governments in developing countries such as China and India are making huge investments in digital infrastructure. During the forecast period, the fastest growth in the GIS market is expected from the engineering and business services. Also, the market growth of GIS in the telecommunication sector is expected to remain steady, at a CAGR of about 10%, during the forecast period, owing to the growth in wireless communication infrastructure in the Middle East and Africa.
Globally, North America is expected to continue holding the largest share in the GIS market in the coming years. The public sectors of the U.S., including homeland security and defense, play a major role in the growth of the market in the country. During the forecast period, the market is expected to witness the fastest growth in Asia-Pacific (APAC), on account of the increasing demand for the GIS technology from the emerging economies of the region.
GIS Market Dynamics
In recent years, the demand for 3D-based GIS has increased owing to the development of smart cities in China, India, and other Southeast Asian countries. 3D GIS is widely being used in building surveillance applications. Growing expenditure on disaster management facilities in Japan, China, and other developing countries of the APAC region is resulting in the increased adoption of the GIS.
Over the past few years, the GIS technology has witnessed a significant increase in its adoption for disaster management, including flood management, forest fire management, carbon management, and climate change. Modern GIS provides real-time information on geography, and any changes in the information leads to assessment by experts. The government in the developed countries of North America and Europe heavily rely on this system for disaster management. Moreover, the GIS technology for disaster management is also witnessing increased adoption in developing countries such as China, Brazil, and India. This, in turn, is contributing to the growth of the GIS market.
The increasing investment in GIS-based infrastructure by governments is one of the key factors contributing to the growth of the GIS industry. Over the years, many vendors have come up with innovative products to suit the requirements of the governments of developing countries. Growing investments in homeland security along with a surge in capital funding for urban development in developing countries are driving the growth of the GIS market. The growth of facility management infrastructure has also increased the penetration of enterprise GIS solutions in recent years.
High initial set-up costs of the system and lack of authentic spatial data are the major factors restraining the growth of the GIS market. Huge capital is required for database development and the management of the system. Small- and medium-scale industries and governments of developing countries are reluctant about undertaking high-cost projects, which, in turn, hinders the market growth.
GIS development is quite expensive. Apart from the costly software and hardware, the database development cost is usually very high impeding GIS market growth. Moreover, skill development of the workers and high maintenance costs of the database are the key factors limiting the adoption of these systems by small- and medium-scale industries.
GIS Market Competitive Landscape
The GIS market is fragmented due to the presence of a large number of regional players and a moderate number of global players. However, key players in the market have high penetration in the developed countries of Europe and North America.
Some of the major players operating in the global GIS market are Environmental Systems Research Institute Inc. (Esri), Pitney Bowes Inc., MacDonald, Dettwiler and Associates Ltd., SuperMap Software Co. Ltd., PASCO CORPORATION, Ubisense Group Plc., Bentley Systems Incorporated, Schneider Electric SE, and Autodesk Inc.