The global geographic information system (GIS) market is expected to increase from $7,612.9 million in 2014 to reach $14,623.8 million by 2020, growing at a CAGR of 11.4%. Among the various industry verticals, the Government sector accounted for about 28.3% share of the global GIS market in 2014. The increasing urbanization, in addition to the growth of enterprise GIS in developing countries, is expected to boost the demand of geographic information system during the forecast period. During the recent years, the demand for 3D based GIS has increased, owing to the development of smart cities in China, India, and other South East Asian countries. The use of 3D GIS is witnessing rapid growth in building surveillance application.
According to Environmental Systems Research Institute Inc. (ESRI), the adoption of 3D based urban mapping is witnessing a rapid growth, owing to the conversion 2D to 3D mapping of smart cities. The modern GIS maps are constructed in a way that new data can be added, as it becomes available and hence the transition from 2D based map to 3D map is gaining pace. The real estate company utilizes the 3D based information to leverage marketing opportunity. Providing line of sight visualization in any direction from any location in a building, offers competitive advantage to the real estate developers.
The increasing investment in GIS based infrastructure by government sector is among prime growth factors for the global GIS market. The increased investment in home land security, along with large capital funding for urban development in developing countries is driving the growth of global GIS market. The growth of facility management infrastructure has also benefited the penetration of enterprise GIS solution in the recent years. Recently, the government of India has started digital India initiative. The government along with the private sector companies is expected to invest heavily in improving internet connectivity and location based services infrastructure in the country, during the next five to six years.
The development of geographic information system is a costly process. Apart from the costly software and hardware, the database development cost in a GIS solution is usually very high. Moreover, the skill development of workers, along with high maintenance cost of the database are some of the key hurdles in the adoption of GIS solution in small and medium scale industries.
Asia-Pacific is expected to be the fastest growing GIS market during the forecast period, owing to the increasing penetration of GIS solution in utility sector, government sector, and water and waste water sector in developing countries, including India and China. The upsurge in urbanization along with purposed investment in smart cities in the region is expected to boost the demand of GIS in the coming years.
Some of the major companies operating in the global geographic information system (GIS) market include 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.
News Courtesy: P&S Market Research