GIS Market to Cross US$17.5 Billion by 2023 - 30/05/2018
According to a market research report, the GIS market is expected to reach US$17.5 billion by 2023, increasing urbanisation in addition to the surging adoption of GIS solutions in enterprise applications in developing countries is the key factor bolstering the demand for the system. The growth can also be attributed to the implantation of LIDAR technology and increasing availability of spatial data and cloud technology.
On the basis of project size, the GIS market has been categorised into small (less than US$250K), medium (US$250K to US$1 million), and large (more than US$1 million). During the forecast period, the market is expected to register the fastest growth in medium-sized projects. This can be attributed to the increasing expenditure of the defence and healthcare sectors in GIS.
Based on application areas, governments contributed the largest revenue to the GIS market in 2017. Community planning, urban and rural planning, and information extraction on natural calamities are some of major application areas. Although governments in developed countries are the major users of the technology, governments in developing countries too are heavily investing in digital and data-based GIS solutions for urban and rural planning, public health improvement, and optimal utilisation of natural resources. This, in turn, is expected to increase the market penetration of the technology in the coming years.
During the forecast period, the GIS market is expected to witness the fastest growth in APAC, owing to the increasing use of this technology by governments, and for water and wastewater management, in the developing countries of the region, including India and China. Increasing urbanisation, supported by growing investments in smart cities, is expected to bolster the demand for the technology in the region in the coming years.
Effective implementation of a GIS is hugely hampered by the limited or no availability of resourceful data. Data constraints in GIS implementation include quality and quantity of the existing data, and physical and political barriers in creating an effective database for the GIS. Data is the most important asset in the GIS technology. Building a database of resources and using that information in planning future development are only possible with collective commitment and political stability of a country, as the authenticity of the spatial data depends a lot on the government’s long-term development vision in addition to its willingness toward publicising critical location-based information. Thus, data constraints in GIS development hinder the growth of the GIS market.Last updated: 13/12/2018