Part
01
of one
Part
01
The Total Addressable Market for the GIS data vertical (for user generated street view maps, i.e. customers want images and object detection for inventory, road assessment and city planning) for 2017-2025 on a global basis.
Both market research firms Technavio and Inkwood Research have reports on the global geographic information system (GIS) market where they segmented the market into software, data, and services. Though the full version of these reports are behind paywalls, there was enough information in the firms' press releases for me to estimate the current and projected size of the data segment. Based on my calculations, the size of the global GIS market's data segment is expected to grow at a CAGR of 13.97% from US$2.82 billion this year to US$8.03 billion by 2025.
Current and projected size OF the GLOBAL GIS MARKET
A search for the current and projected sizes of the total addressable market for the GIS data vertical revealed that the amounts are not readily available. To estimate the amount, I figured I could perform a bottom-up or top-down market sizing analysis. Since there is very little quantitative information specific to the data vertical or to user-generated street view maps, I reckoned top-down sizing is the more feasible approach to use in this case. Consequently, I looked for the size of the global GIS market, which will serve as my starting point. There are several industry reports that indicate the size of the global GIS market and the relevant figures I was able to gather from these reports are listed below.
During the period 2017-2023, the global GIS market is projected to grow from US$8,985.5 million in 2016 to $17,510.9 million by 2023 at a CAGR of 10.1%. From these figures, it can be estimated that the size of the global GIS market this year is around US$9,893.0 million or 110.1% of US$8,985.5 million.
During the period 2017-2023, the global GIS market is projected to grow from US$5.33 billion in 2016 to $10.12 billion by 2023 at a CAGR of 9.6%. From these figures, it can be estimated that the size of the global GIS market this year is around US$5.84 million or 109.6% of US$5.33 billion.
The size of the global GIS market in 2016 was estimated at $5.52 million. By 2025, the size is expected to reach $11.2 billion. From these figures, it can be estimated that, during the period 2016-2025, the global GIS market will grow at a CAGR of 8.18%.
During the period 2017-2025, the global GIS market is expected to grow at a CAGR of 15.90%
During the period 2016-2020, the global GIS market is expected to grow to $16 billion by 2020 at a CAGR of over 10%. This means that, if a CAGR of 10% is assumed, the size of the global GIS market this year can be estimated to be around US$12 billion (or US$16 billion / 1.10 / 1.10 / 1.10).
Considering that both P&S Market Research and Technavio gave a much higher estimate of the global GIS market size, it can be inferred that the reports of these two market research firms are more comprehensive in scope compared to those of Markets and Markets and Grand View Research. In addition, it can be observed that, unlike the other market research firms, both Technavio and Inkwood Research had segmented the global GIS market by product type into software, data, and services.
Given all these observations, I decided to go with the figures provided by Technavio and Inkwood Research. We can expect that the global GIS market will grow at a CAGR of 15.90% from around US$12 billion this year to around US$39 billion by 2025. The US$39-billion amount was computed as follows:
US$12 billion x 1.159 x 1.159 x 1.159 x 1.159 x 1.159 x 1.159 x 1.159 x 1.159 = US$39 billion
current and projected SIZE OF the DATA SEGMENT
As mentioned above, both Technavio and Inkwood Research have segmented the global GIS market into software, services, and data. While the two market research firms did not directly provide the yearly projected size of the data segment in their press releases, there is enough information for the yearly projected size to be triangulated.
In its press release, Technavio mentioned that "the data segment is the second largest segment in the market in 2015 and is expected to reach USD 4.373 billion by 2020, growing at a CAGR of over 11%." The market research firm described the data segment to be inclusive of predictive analysis data and digital maps data and named Google as one of the key vendors. My understanding is that this is the data vertical you are referring to.
If we assume that the CAGR will continue to be 11% until 2025, we can estimate the following yearly size of the data segment of the global GIS market:
2017 - US$3.197 billion or US$4.373 billion / 1.11 / 1.11 / 1.11
2018 - US$3.549 billion or US$4.373 billion / 1.11 / 1.11
2019 - US$3.940 billion or US$4.373 billion / 1.11
2020 - US$4.373 billion
2021 - US$4.854 billion or US$4.373 billion x 1.11
2022 - US$5.388 billion or US$4.373 billion x 1.11 x 1.11
2023 - US$5.981 billion or US$4.373 billion x 1.11 x 1.11 x 1.11
2024 - US$6.639 billion or US$4.373 billion x 1.11 x 1.11 x 1.11 x 1.11
2025 - US$7.369 billion or US$4.373 billion x 1.11 x 1.11 x 1.11 x 1.11 x 1.11
If the size of the data segment this year is US$3.197 billion, then it means the data segment accounts for 26.6% of the US$12-billion global GIS market.
Alternatively, we can use the information provided in the figure in Inkwood Research's press release. To determine the share of each segment, I zoomed in on the bars corresponding to software, data, and service and measured them. You may see my computations below.
2017
---
Software - 19mm (55.9%)
Data - 8mm (23.5%)
Service - 7mm (20.6%)
Total - 34mm
2025
---
Software - 18.5mm (54.4%)
Data - 7mm (20.6%)
Service - 8.5mm (25.0%)
Total - 34mm
Since we know the size of the global GIS market this year and by 2025 from the preceding section, we can compute the size of the data segment to be:
2017: 23.5% of US$12 billion = US$2.82 billion
2025: 20.6% of US$39 billion = US$8.03 billion
Based on these figures, the size of the data segment will grow at a CAGR of 13.97% during the period 2017-2025 and the yearly value will be:
2017 - US$2.82 billion
2018 - US$3.21 billion
2019 - US$3.66 billion
2020 - US$4.17 billion
2021 - US$4.76 billion
2022 - US$5.42 billion
2023 - US$6.18 billion
2024 - US$7.04 billion
2025 - US$8.03 billion
Since my computations using Inkwood Research's bar charts involved fewer assumptions, we can say that this second set of values is more accurate.
You may be interested to know as well that, according to the study "Review of Web Mapping: Eras, Trends and Directions" that was published in the International Journal of Geo-Information this year, the volume of data collected via sensors, mobile, and social media channels is growing, and geospatial imagery and features account for a significant fraction of this volume. One example cited was that "the amount of Google Earth imagery grew from an estimated 150 TB in 2006 to 3 petabytes in 2016, including aerial, satellite, 2D, 3D and historical imagery."
CONCLUSION
While the current and projected sizes of the data segment of the global GIS market are not readily available, I was able to triangulate them based on information provided by market research firms Technavio and Inkwood Research in their press releases. My calculations show that it is likely that the size of the data segment of the global GIS market will increase from US$2.82 billion this year to US$8.03 billion by 2025 at a CAGR of 13.97%.