GEOSPATIAL ANALYTICS MARKET ANALYSIS

The global geospatial analytics market size was valued at US$ 59.46 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 7.1% from 2023 to 2030. Growing investments in geospatial technologies by major players, technological advancements in machine learning and artificial intelligence, increasing adoption of IoT devices among millennials, digitalization of systems, and increased investment in 5G infrastructure are boosting the growth of this market. 

Global Geospatial Analytics Market: Regional Insights

North America is anticipated to gain strong growth in the global geospatial analytics market during the forecast period. The region has presence of major market players functioning in the geospatial analytics market. With increasing geospatial applications in transportation and defense sectors the market is likely to show substantial growth in the region. LBS-based geospatial mapping applications are gaining traction as a base for the United States Geological Survey (USGS) activities and for NASA. Thus, the demand for geospatial analytics is increasing in the region, which in turn is driving growth of the market.

Europe is also expected to show substantial growth in the global geospatial analytics market over the forecast period. The rise in technological innovations in the region along with growing use of big data in large organizations are the major factors fueling the need for spatial analytics solutions in the region. Moreover, rise in interest in commercial Earth Observation initiatives in the region are also driving growth of the global geospatial analytics market in Europe.

Figure 1. Global Geospatial Analytics Market Share (%), By Region, 2022

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Global Geospatial Analytics Market Drivers:

Rise in demand for AI-based GIS solutions to propel the market growth

With the growing digitization, the dependence on highly accurate data is also increasing for delivering best consumer services. Due to this, the demand for location-based data in the businesses is growing rapidly. According to a 2018 report from CARTO, nearly 94% of all organizations gather and store location data. Such quantitative estimates are lucrative factors for the market growth. Thus, the rise in demand for AI-based GIS solutions is expected to support growth of the global geospatial analytics market over the forecast period.

Increasing GIS software demand in urban planning and smart city developments to boost market growth

Smart cities gather and need data and they depend on sharing real-time awareness. Collecting this data from numerous IoT sensors and analyzing the data using an enterprise GIS develops visualization of the data on a map to offer instant actionable insights. These insights are used for tracking the delivery of city services and highlight regions requiring improvement in local council services. Local governments are using location-based analysis of IoT data for developing smarter parks, driving innovations, and improving safety. GIS solutions are used for creating generalized location-enabled platform for use cases analysis in smart cities. Thus, growing demand for GIS software is expected to fuel growth of the global geospatial analytics market during the forecast period.

Global Geospatial Analytics Market Opportunities:

Rise in adoption of advanced technologies such as VR, AR, and IoT in GIS to offer multiple opportunities in the global geospatial analytics market during the forecast period. The use of Virtual Reality and Augmented Reality is on constant rise. Users are becoming more comfortable with this technology, which further is leading to integration of GIS capabilities into their applications by developers. The GIS-enabled AR apps are useful for anyone from architects to oil workers as well as municipal services for obtaining orientation and location of objects underground. Thus, the adoption of such advanced technology in GIS is increasing which is expected to create growth opportunities in the market.

Emergence of technologies such as geospatial AI is creating multiple opportunities in the global geospatial analytics market during the forecast period. Rise in geographic and geospatial information system GIS data and remote sensing data along with growing need for extracting meaningful information from this is creating multiple opportunities in the market. Due to various advantages of artificial intelligence technology, its use in geospatial solutions continues to rise. As a result, the global geospatial analytics market is witnessing lucrative opportunities that are likely to benefit the major players in the market.

Global Geospatial Analytics Market Trends:

Growing penetration of Geo AI is a major trend

Due to the scientific and technological advancements in last century, the AI has advanced with higher efficiency. The use of artificial intelligence is growing in healthcare and medical, business solutions, geospatial technologies, and other industries, specifically with the integration of high-performance computing capabilities and cloud computing. Geospatial artificial intelligence includes geospatial analytics and AI technology. The growing penetration of this technology is likely to continue in the global geospatial analytics market during the forecast period.

Advent of 5G is another trend in the market

Geospatial data with strong geospatial analysis offers effective and efficient telecommunication services. For instance, geospatial data plays an important role in the fit-for-purpose planning and optimal deployment of services and networks. It also helps in ensuring the cost effectiveness and efficiency of these networks. With advent of technologies such as digital mapping and location intelligence, 5G can help tackle environmental challenges such as disaster management and climate change. Thus, the trend of 5G is likely to boost growth of the global geospatial analytics market in the near future.

Global Geospatial Analytics Market Restraints:

High cost of GIS solutions to hinder the market pace

The demand for geospatial analysis solutions is increasing across multiple industries. However, the high cost of these solutions and data integration acts as major restraining factors in the growth of global geospatial analytics market. Due to high complexity of GIS software development as well as collection of real time data, the cost of these software becomes high. This factor is further expected to limit growth of the global geospatial analytics market in the coming future.

Lack of comprehensive government policies and regulatory issues to hamper the market growth

The need for geospatial information along with high-resolution remote sensing data is increasing for military and other applications. However, lack of nominal regulatory issues are persisting in various countries regarding use of geospatial technologies and data. For instance, the UN issued ‘Principles Relating to Remote Sensing of the Earth From Space’ general guidance that encourages sharing of international data and cooperation between countries. It however doesn’t address the issues linked to privacy or data misuse at individual level. This factor is further expected to hinder growth of the global geospatial analytics market during the forecast period.

Figure 2. Global Geospatial Analytics Market Share (%), By Component, 2022

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Global Geospatial Analytics Market Segmentation:

The global geospatial analytics market report is segmented into component, solution, deployment mode, enterprise size, technology, type, and industry vertical.

Based on Component, the market is segmented into Solution, Service. Out of which, Solution is expected to dominate the global market over the forecast period and this is attributed to the increasing need for geographic imaging for processing massive volume of geospatial data driving the adoption of geospatial analytics market. These solutions help save money and time, which leverages existing data investments, and further improves image analysis capabilities.

Service segment is also expected to witness significant growth in the near future and this is owing to the increasing need for remote mapping and sensing consultancy along with GPS satellite surveying and positioning services in different industries. Geospatial service providers are focused on updating the software solutions for providing more precise data in order for analyzing and comparing data of forestry, pollution, vegetation, erosion, weather, and land use. The segment is likely to gain major growth in the near future.

Based on Solution, the market is segmented into Geocoding & Reverse Geocoding, Data Integration & ETL, Reporting & Visualization, Thematic Mapping & Spatial Analysis, Others . Out of which, Geocoding & Reverse Geocoding is expected to dominate the global market over the forecast period and this is attributed to the growing progression of location data leading to rise in use of geocoding solutions among marketers. For instance, according to Coherent Market Insights, nearly 90% of marketers make use of location-based advertising, which further increases sales of geocoding solutions and increases the customer base.

Data Integration & ETL segment is also expected to witness significant growth in the near future and this is owing to increasing trend of multiple data integration from different sources for gaining insights on consumer behavior. Companies in retail segment are making use of geospatial data with the weather data trend to create their products. Thus, the segment is likely to show strong growth in the near future.

Based on Deployment Mode, the market is segmented into On-premise, Cloud. Out of which, On-Premise is expected to dominate the global market over the forecast period and this is attributed to the growing preference of on-premise deployment of geospatial applications due to various benefits. It offers faster and accurate decisions about software issues and helps in enhancing competitiveness in SMEs and research institutes linked to specific cases of environment and nature conservation.

Cloud segment is also expected to witness significant growth in the near future and this is owing to the growing need for enabling multiple users to access geospatial technology along with need for reaching different clients on demand driving the adoption of cloud-based geospatial analytics solutions. The demand for cloud deployment of geospatial solutions is further driving growth of this segment.

Based on Enterprise, the market is segmented into Large Enterprises, SMEs. Out of which, Large Enterprises is expected to dominate the global market over the forecast period and this is attributed to the high demand for geospatial analytics solutions in these enterprises. Large enterprises generally gave more than 10,000 employees. These companies have dedicated IT team for managing security operations and ensuring patch management, changing policies periodically, and standards compliance practices. The demand for geospatial analytics solutions is high in the segment to handle large amount of geospatial data. Thus, the segment is likely to gain major growth in the near future.

Small & Medium Enterprises segment is also expected to witness significant growth in the near future and this is owing to the growing focus on geospatial analytics solutions and increasing awareness regarding gaining insights through analysis of real-time data in SMEs. The adoption of geospatial analytics solutions is increasing in this segment, which in turn is driving growth of the segment in the global market. 

Based on Technology, the market is segmented into Remote Sensing, GIS, GPS, Others. Out of which, Remote Sensing is expected to dominate the global market over the forecast period and this is attributed to the increasing adoption of remote sensing for detecting and monitoring the characteristics of a region from distance through measuring the emitted and reflected radiation. Remote sensing software or platforms process the remote sensing data. The data generated by remote sensing is further utilized in various fields. Thus, the adoption of these solutions is driving growth of the segment.

GIS segment is also expected to witness significant growth in the near future and this is owing to the various benefits of using geographic information system (GIS). These systems are developed for capturing, storing, manipulating, analyzing, managing, and presenting all kind of geographical data. These software offer tools and functions for input and store spatial or geographical data. With increasing use of GIS solutions, the segment is likely to show substantial growth in the near future.

Based on Type, the market is segmented into Surface & Field Analytics, Network & Location Analytics, Geovisualization, Others. Out of which, Network & Location Analytics is expected to dominate the global market over the forecast period and this is attributed to the increasing significance of network and location analytics solutions in retail industry. The growing demand for better personalization by consumers to deliver the content irrespective of time and place, is leading to growing adoption of location analytics. This in turn is driving growth of the segment in the market.

Surface & Field Analytics segment is also expected to witness significant growth in the near future and this is owing to the widespread adoption by private and government companies for development of infrastructure projects. This is for determining the flow of water and for designing as well as constructing drainage systems.

Based on Industry Vertical, the market is segmented into Automotive, Energy & Utilities, Government, Defense & Intelligence, Smart Cities, Insurance, Natural Resources, and Others. Out of which, Defense & Intelligence is expected to dominate the global market over the forecast period and this is attributed to the growing adoption of geospatial analytics solutions in the industry. As modern military and intelligence are relying heavily on advanced technologies including thermal technologies, AI, geospatial and location solutions, among others. Geospatial data is one of the most important components of strategic intelligence. Thus, the segment is gaining traction in the market.

Automotive segment is also expected to witness significant growth in the near future and this is owing to the increasing growth of the industry on global level. With increasing demand for technologically advanced vehicles, the demand for geospatial analytics solutions is increasing in the industry. With growing sales of such vehicles, the segment is likely to gain robust growth in the near future.

Global Geospatial Analytics Market: Key Developments

In September 2020, Bentley Systems announced the launch of novel cloud service, OpenGround Cloud, which helps enable geotechnical professionals for accessing reliable geotechnical data that offers better engineering decision supporting and improving collaboration in the whole supply chain.

In September 2020, ESRI and AfroChampions, a nonprofit organization in Africa focusing on promoting policies to foster private-public collaboration for economic transformation of the region announced partnership, which will focus on promoting and increasing the adoption of geospatial technology and solutions among the countries in Africa.

In September 2020, ESRI announced acquisition of nFrames, which will allow the fusion of imagery with 3D GIS, further allowing users of both the company to seamlessly capturing and analyzing 3D data from drone, aerial, and ground-based sensors in an automated end-to-end process.

In September 2022, Sanborn Map Company Inc. completed acquisition of Applied Geographics, Inc., who has supported several businesses and governments for the development of the best GIS, geospatial, and location intelligence solutions.

Global Geospatial Analytics Market: Key Companies Insights

The global geospatial analytics market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global geospatial analytics market are Alteryx, Inc., Bentley Systems Incorporated, ESRI, Furgo NV, General Electric, Hexagon AB, Google, Inc., MDA Corporation, Oracle Corporation, SAP SE, Trimble, Inc., and TOMTOM International, Inc.

*Definition: Geospatial Analytics is the use of technology to collect, integrate, display, manipulate and analyze geographical data. This technology can be used for a wide range of industries, from determining the best location to build a new office or predicting how many people will travel to an event in the future.