Home News Business Global GIS revenue to reach $3.6 billion this year

Global GIS revenue to reach $3.6 billion this year

6 July 2006: Worldwide GIS/Geospatial revenue is forecast to reach $3.6 billion in 2006, up from $2.82 billion in 2004. This growth is driven by sales of commercial data products and the emergence of desktop and Internet-based systems. Core-business revenue includes software, hardware, services and data products.

The breakdown for these areas for 2004 is as follows: Software comprised over one-half of total revenue, with revenues from GIS software vendors reaching $1.5 billion. Data was the second largest component of core-business revenues, accounting for a quarter of total revenue, or $677 million. Services came in third, with core-business vendors accounting for one fifth of total core-business revenues, or $536 million. Hardware accounted for just 4% of total core-business revenues, or $113 million.

Revenues from the public sector—the two major segments being state and local governments, and federal governments—led market growth and now account for over one-third of total revenue. While federal governments were among the early adopters of GIS technology, recent trends toward devolving more responsibilities to states and localities have spurred those entities to become important consumers of GIS.

Industries in the regulated sector—utilities, telecommunications, transportation and education—once again are the largest consumers of GIS/Geospatial solutions. Utilities contributed almost half of total regulated-sector GIS revenues, while telecommunications companies accounted for a third.

Private sector growth continues to lag, as companies explore the business benefits of these technologies. Of the major industry segments within the private sector, earth resources represent the largest opportunity, accounting for over one-quarter of total private-sector revenue. Also notable is the AEC segment, driven by growing acceptance of geo-capable engineering applications.