Daratech, Inc. of USA has forecast total GIS core-business revenue to top $2.02 billion in 2004, an increase of 9.7% over 2003. In 2003, core GIS revenue reached $1.84 billion, up 5.1%, by Daratech estimates. Core-business revenue includes software, hardware, services and data products.
Of core-business revenue, Software accounted for the lion’s share, comprising approximately two-thirds (64%) of the pie, with revenues from GIS software vendors reaching $1.175 billion. Environmental Systems Research Institute, Inc. (ESRI) and Intergraph Corporation led the market in 2003, accounting for nearly half of the industry’s total software revenues. Other software leaders in 2003 included Autodesk, Inc., IBM’s GIS Business Unit, GE Energy, Leica Geosystems, and MapInfo Corporation.
Services were the second-largest component, accounting for 24% of total core-business revenues, or $447 million. Hardware, a declining component of core-business revenues for many years, accounted for just 4% of total core-business revenues in 2003, or $70 million. Data products accounted for 8% of total core-business revenues.
Industries in the regulated sector of the GIS market accounted for close to half (44%) of total GIS core-business revenues in 2003, or an estimated $815 million. By comparison, the public sector accounted for just over one-fourth (29%) of total revenue, or $533 million, while the private sector contributed 24%, or $437 million.
In-depth analysis of the structure and composition of the GIS market, a detailed description of Daratech’s GIS market model, profiles of major core-business participants and their product lines, and other background information is available in the just-released publication “2004 GIS Markets and Opportunities.” The report is available in an online or hardcopy format.