Geographic Information System (GIS) Software Market | 2031

Report Description

Geographic Information System (GIS) Software Market Outlook 2031

The global geographic information system (GIS) software market size was valued at USD 8.35 Billion in 2022 and is likely to reach USD 29.60 Billion by 2031, expanding at a CAGR of 15.1% during 2023 – 2031. The market growth is attributed to rising number of smart cities and increasing adoption of robots across the globe.

Increasing adoption of robots is expected to boost the demand for geographical information system (GIS) software. GIS software is used as a base for the guidance of robots. It contains robot guide information that includes sign patterns, road networks, path networks, and landmarks. Robot sensors detect these signs and patterns to position and navigate themselves. Therefore, rising number of robots across the globe is propelling the market. For instance,

• According to the report published by the International Federation of Robotics on February 16, 2023, there are 3.5 million operational robots present globally.

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Geographic information systems (GIS) software stores, visualizes, analyzes, and interprets geographic data. It shows several different kinds of data on one map, such as streets, buildings, and vegetation. GIS software performs several functions such as mapping, surveying, and others. It is primarily used in automotive, construction, mining, energy, agriculture, and other industries to manage and analyze data from a geographic location.

Rising number of smart cities across the globe is projected to drive the market in the coming years. GIS software is used for the development of smart cities. It enables planners to integrate a variety of data from multiple sources to perform spatial analyses and planning for installing utilities such as drainage, water pipelines, electricity, and communication cables.

• As per the report published by the IMD Smart City Index, there are 141 smart cities present globally.

The COVID-19 pandemic hampered the demand for geographic information systems (GIS) software. The abrupt rise in COVID-19 infection led governments to impose lockdowns and social distancing, which hampered the manufacturing of autonomous vehicles and autonomous robots. This impeded the demand for geographic information systems (GIS) software, as this software is utilized in autonomous vehicles and robots to guide them on their path.

Moreover, the shortage of labor and disruption in the supply chain hindered construction activities, which hampered the demand for geographic information system (GIS) software. It is utilized in construction activities to identify locations of interest for the construction site and assess environmental impacts on the site. For instance,

• As per the report published by the Royal Institution of Chartered Surveyors on August 6, 2020, 25% of construction projects were halted in the second quarter of 2020 and on-site productivity fell 12%.

Impact of Artificial Intelligence (AI) on Geographic Information System (GIS) Software

The rapid technological advancements introduced artificial intelligence in geographic information system (GIS) software, creating a lucrative opportunity in the market. AI-powered GIS software analyzes aerial and satellite imagery, facilitating automated identification of alterations in land use, land cover, and vegetation patterns.

AI-enabled GIS software predicts the future land use patterns, network demand, and utility demand corresponding to an increase in population. Artificial intelligence in GIS software offers real-time data analysis, enabling effective decision-making in critical situations.

Geographic Information System (GIS) Software Market Dynamics

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Major drivers

Increasing adoption of location-based services is anticipated to boost the demand for geographic information system (GIS) software during the forecast period.

Location-based services such as emergency services, delivery services, and tracking services rely on GIS technology, as it visualizes the current location of a service receiver on a base map that helps the service provider to interpret the location of the receiver by referring to the corresponding geographic background such as road networks, buildings, landmarks, and others.

Rising demand for autonomous vehicles is expected to drive the market in the coming years. GIS software is used in autonomous cars to guide the vehicle along the well-suited route to its destination, as it is loaded with precise road information that helps self-driving cars identify the road signs with a centimeter accuracy.

It also offers real-time traffic information on pedestrians, cyclists, and other cars on the road, which helps autonomous vehicles avoid accidents in critical situations. For instance,

• According to a report, there were 31 million cars with at least some level of automation in 2019 and the number is expected to surpass 54 million in 2024.

Existing Restraints

The complexity involved in spatial analysis and modeling is expected to restrict the market during the forecast period. Spatial analysis is a crucial component of the geographic information system that requires advanced skills, assumptions, and simplifications to determine the feasibility of a location for certain systems or to make weather predictions for a specific geographic area.

Moreover, the lack of standardization in GIS software, due to heterogeneity between datasets and the resulting maps, is projected to hamper the market in the coming years.

Emerging Opportunities

Growing urbanization across the globe creates an immense opportunity in the market. GIS software is used for urban planning, as it provides an improved understanding of the current needs of a city and helps in designs to fulfill those needs. It processes geospatial data from aerial photography, remote sensors, and satellite imaging, providing a detailed perspective of land, which helps city planners to build infrastructure. For instance,

• According to the report published by the World Bank, 56% of the global population, which is 4.4 billion, lives in cities. The number is expected to get double by 2050.

Scope of Geographic Information System (GIS) Software Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Geographic Information System (GIS) Software Market Segment Insights

Type Segment Analysis

Based on type, the geographical information system (GIS) software market is categorized into desktop GIS, server GIS, developer GIS, mobile GIS, and others. The server GIS segment held a large share of the market in 2022, due to its ability to display data on maps faster and better than in spreadsheets.

Web GIS software provides a platform for integrating GIS with business systems to enable cross-organizational collaboration. It is simply design that allows organizations to properly manage all their geographic data.

Moreover, it allows the sharing of GIS data, maps, and spatial processing across private and public computer networks, which increases its adoption. The desktop GIS segment is projected to grow at a robust pace during the forecast period, owing to its potential to allow users to visualize, analyze, and organize different layers of data by creating maps and scenes.

Desktop GIS visualizes different types of data, which allows users to understand trends, monitor changes, uncover patterns, and respond to events, facilitating improved decision-making. This increases their demand for GIS systems.

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Function Segment Analysis

In terms of function, the global market is segregated into mapping, surveying, location-based services, navigation & telematics, and others. The mapping segment accounted for a major share of the market in 2022, due to the increasing demand for location-based services and the rising adoption of navigation systems in the automotive industry.

GIS software is used in mapping by connecting data to a map and integrating location data with all types of descriptive information. GIS software in mapping helps users visualize and identify patterns to make informed decisions about a wide range of issues such as the blocking of roads and others.

This in turn is projected to increase the demand for mapping in the coming years. The telematics segment is anticipated to expand at a quick pace during the assessment period, owing to its ability to reduce fuel consumption & vehicle downtime and improve driving safety & productivity.

GIS software is utilized in telematics to help fleet managers understand where improvements are required to be made in driver safety standards and accident prevention measures by providing access to crucial location-based information, which increases their adoption in telematics.

Industry Vertical Analysis

Based on industry vertical, the geographical information system (GIS) software market is divided into automotive; energy & utilities; government; defense & intelligence; telecom & network; agriculture; banking, financial services, & insurance (BFSI); construction; mining; and others.

The telecom and network segment dominated the market in 2022, due to advancements in mobile technologies and rising demand for high-speed data services. GIS software is widely used in telecom and networks to help telecom providers understand demand & supply, network capacity, gaps in coverage, and store locations.

It allows telecom providers to track & maintain networks, monitor regulatory compliance, and enhance network planning, which enhances their adoption in telecom and networks.

The banking, financial services, and insurance (BFSI) segment is expected to grow at a considerable pace in the coming years, owing to the rising industrialization and increasing consumer demand. Geographic information system (GIS) software is used in BFSI to evaluate a loan application by tracking and assessing the performance of the property of the borrower over time.

Regional Outlook

In terms of region, the geographical information system (GIS) software market is categorized into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held a large share of the market in 2022, due to the increasing demand for automated spatial analytics and the presence of key market players such as Pitney Bowes Inc., General Electric, Trimble Inc., and L3Harris Technologies, Inc.

Moreover, increasing construction activities in the region are propelling the need for GIS software, as this software is utilized in construction activities to identify locations for construction sites and assess environmental impacts on the sites. For instance,

• According to a report, the market size of the US construction sector was valued at around USD 1.8 trillion in 2022.

The market in Asia Pacific is anticipated to expand at a high CAGR during the forecast period, owing to the growing infrastructure and rising urban development programs.

Moreover, government initiatives to develop smart cities in the region are estimated to boost the demand for geographic information system (GIS) software, as this software is utilized in planning the foundation for smart cities. It provides a variety of data from multiple sources that enable planners to perform spatial analyses for laying the foundation of smart cities. For instance,

• The government of India launched a mission to develop 100 smart cities across the country by June 2024, of which 22 smart city projects have been completed by April 2023.

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