Geographic Information System Market Analysis
The geographic information system market is set to witness a spend growth of more than USD 4 billion with spend momentum to accelerate at a CAGR of nearly 9% between 2019-2024. The evolution of the smart city concept and the rapid rate of the execution of this concept will act as the primary growth driver in the geographic information system market. The development of a smart city involves the integration of geospatial technology to gather business intelligence, which aids in ensuring public safety and helps civic authorities to function more effectively. Geospatial solutions play integral parts in the transportation sector for highway maintenance, traffic modeling, route planning, and accident analysis. This will drive investments in the geographic information system market during the forecast period.
Top Spending Regions in the Geographic Information System Market
North America has the largest share in the global geographic information system market followed by Europe. Last year, North America accounted for 35% share in the global market.
North America
Buyers from the government, real estate, and retail sectors are the primary purchasers of GIS in North America. The increasing demand from buyers in the retail sector to leverage geospatial data to open new stores across the region will drive the market spend growth in North America during the forecast period.
Europe
By virtue of housing strong IT infrastructure and a high awareness about advanced technologies such as IoT and advanced analytics, buyers in countries such as Germany, the UK, Switzerland, France, and Luxembourg will exhibit a higher tendency towards purchasing GIS solutions.
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What are the Key Price Trends in this Market?
- Geographic information system service providers are incurring excess spend on technology adoption as they are implementing latest technologies such as AI, IoT, AR, VR, big data analytics, and 3D mapping solutions to automate their software development process and reduce labor requirements.
- The growing shortage of skilled labor, wage rise, and the stringency of regulations pertaining to employee benefits across the globe will increase service providers' employee-related cost during the forecast period.
- Subscription-based pricing model is the most widely adopted pricing models in the geographic information system market. In this model, buyers only pay a small sum upfront, which limits the risk of their investment. It allows the buyers the liberty to switch to another supplier if they are not content with the services offered by the existing supplier.
Download the free sample of this report to know what the key geographic information system procurement best practices that you must adopt to address price dynamism in this market.
Insights Offered in this Geographic Information System Market Report
- Global and regional spend potential for the geographic information system market for the period of 2019-2024
- Supplier relationship management practices in the geographic information system market
- Supplier margins and selection criteria in the geographic information system market
- Top geographic information system service providers and their cost structures
- Top geographic information system service providers in the US and their cost structures
- Geographic information system market spend analysis in the US
- Geographic information system price trends, and forecasts
- Cost drivers influencing the geographic information system prices
Insights into Geographic Information System Supply Market
- Technology firms account for the majority share in the supply market and they have a strong history of successful deployment of such solutions. However, during the past few years, the number of new service providers entering the market has increased, which has resulted in the market becoming fragmented. Hence, service providers are increasing their efforts in developing industry-specific GIS solutions to attract buyers.
- Geographic information system service providers are engaging in horizontal integration strategies by acquiring and collaborating with other regional and global service providers to get access to the latest technologies to expand their service portfolio.
- Buyers can consolidate their spend by procuring solutions such as consulting, cloud hosting, ETL solutions, and customer support from a single geographic information system service provider. This bundling of services is expected to reduce buyers' cost as the need for procuring these services separately from other service providers is eliminated
Insights into Some of the Leading Geographic Information System Service providers
The supply market dynamics hint at a substantial hike in service providers' OPEX which will drive buyer's procurement spend. Keeping such dynamics in mind, strategic selection of service providers and maintaining an effective supplier relationship management are observed to facilitate buyers with optimized procurement expenditure and better category management in the geographic information system market. This geographic information system market procurement intelligence report has enlisted the top service providers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top geographic information system service providers. The top geographic information system service providers highlighted in this report include:
- Environmental Systems Research Institute Inc.
- Hexagon AB
- Pitney Bowes Inc.
- Alphabet Inc.
- Maxar Technologies Inc.
- Orbital Insights Inc.
Criteria to select service providers in this dynamic geographic information system market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing service providers selection criteria.
