US: The worldwide GIS and geospatial analysis software market continued growing through 2011 and 2012. The market’s growth was driven by industry-specific regulatory requirements, emerging market adoption and increased use of mobile solutions. ARC is forecasting market growth to continue through 2017. Numerous technology, industry-specific, and regional factors will drive future growth in the GIS market. Many of these factors have existed for years, while a few are effects from new legislation and changing market dynamics. “Adoption of mobile GIS by utilities for field work such as maintenance and network build-outs continues to increase sales to utilities. In addition, the recently enacted US legislation known as “Moving Ahead for Progress in the 21st Century (MAP-21)” includes budget items that ARC believes will increase spending on GIS solutions in the US by the federal government,” according to Clint Reiser, Enterprise Software Analyst, and the author of ARC’s “Geospatial Information Systems Global Market Research Study”.
ARC expects government regulations and compliance requirements to stimulate sales of GIS to utilities over the next five years. Ongoing regulations assure that utilities will continue to maintain and update their GIS solutions to manage the ongoing proliferation of spatial data. For example, recent US regulations on pipeline safety establish requirements on maximum allowable pressure that affect onshore gathering lines, onshore transmission lines, and offshore gathering lines. GIS is the natural platform for the management of these and other compliance-related data sets.
ARC’s GIS forecast includes an increase in sales resulting from the recently enacted US legislation known as “MAP-21.” This legislation includes elements on transportation infrastructure and watershed management that reference the use of geospatial technology. The act includes a national flood mapping programme that specifies the use of the most up-to-date geospatial technologies where applicable. ARC expects the flood mapping initiative to increase GIS expenditures from both federal and local governments. The legislation also orders the development of a national transportation atlas database that ARC expects to increase GIS expenditures by the transportation division of the US federal government. Finally, the act promotes the use of innovative project delivery methods, including digital 3-dimensional modeling technologies, which ARC expects to be used by agencies and service firms responsible for the design and management of infrastructure projects.
The cloud computing paradigm enables widespread delivery of geospatial analysis capabilities to the market. The cloud is especially well-suited for the delivery of spatial analysis capabilities, in conjunction with customer demographic data and other general data sets, to the market through a software-as-a-service (SaaS) subscription model. Insurance companies and retail chains are currently adopting this model to analyse topics such as the spatial distribution of natural disaster risks, retail-expansion planning, and sales-territory management. The SaaS model is most likely to expand to other business cases where GIS is needed periodically by a limited number of employees within an organisation.
Source: ARC Web