Geospatial Analytics Market

Geospatial Analytics: A Comprehensive Overview

Geospatial analytics refers to the use of geographical data and techniques to analyze and interpret various aspects of the physical world. The discipline encompasses a broad range of applications, from mapping and land use analysis to disaster response and environmental monitoring. In this essay, we will provide a comprehensive overview of geospatial analytics, its key components, and its importance in modern society.

Geospatial analytics relies on a variety of data sources, including satellite imagery, GPS data, and social media feeds. These data sources are combined and analyzed using advanced algorithms to create maps, identify patterns, and make predictions. The resulting insights can inform decision-making in a variety of fields, from urban planning to public health.

One of the primary applications of geospatial analytics is in the field of environmental monitoring. By analyzing satellite imagery and other data sources, scientists can track changes in the earth's climate, identify areas at risk of natural disasters, and monitor the health of ecosystems. This information can then be used to inform policies aimed at mitigating the effects of climate change and protecting the environment.

Geospatial analytics also has important applications in the field of public health. By analyzing data on population density, disease outbreaks, and healthcare access, researchers can identify areas at risk of epidemics and design targeted interventions. Geospatial analytics can also be used to track the spread of diseases in real-time, allowing public health officials to respond quickly and effectively to outbreaks.

Another important application of geospatial analytics is in the field of urban planning. By analyzing data on population density, traffic patterns, and land use, planners can design more efficient and livable cities. Geospatial analytics can also be used to identify areas at risk of natural disasters, such as flooding or landslides, and inform building codes and zoning regulations.

In addition to its practical applications, geospatial analytics has important implications for our understanding of the world. By analyzing patterns in geographical data, researchers can gain new insights into human behavior, such as migration patterns or the spread of cultural practices. Geospatial analytics can also be used to identify areas of biodiversity and inform conservation efforts.

Dynamics of Geospatial Analytics Market

Drivers in Geospatial Analytics Market

The geospatial analytics market is experiencing rapid growth, with predictions that it will increase from $49.1 billion in 2020 to $96.3 billion by 2025, at a CAGR of 14.5%. This growth is being driven by advancements in big data analytics, which are enabling better decision-making, saving time and resources for organizations. The increasing availability of location-based data, the emergence of advanced analytics tools, and the rising demand for real-time data analysis are also contributing to the growth of the market.

Cloud-based geospatial analytics solutions are becoming more popular due to their scalability and cost-effectiveness, and the use of AI and ML technologies is becoming more prevalent in geospatial analytics applications. The use of Big Data analytics, along with GIS, is resulting in increasing growth opportunities for emerging geospatial analytics vendors, as big data analytics can process large amounts of data quickly, thereby facilitating business intelligence.

Factors impacting the growth of the global geospatial analytics market include the upsurge in demand for AI-based GIS solutions, the increase in demand for geospatial analytics in smart cities development and urban planning, and the use of satellite monitoring to control the spread of COVID-19. However, the high cost of geospatial analytics, regulatory issues, and the lack of comprehensive government policies toward geospatial analytics are expected to affect the market growth negatively.

Despite these challenges, rising government and private investment towards technological advancement, expansion of industry players worldwide, and growing R&D activities are stimulating the higher adoption of geospatial analytics. Furthermore, location-based services have various applications across various end-use sectors such as mining, retail, transportation, urban planning, construction, etc. The adoption of cloud-based GIS and the increase in application of AR and VR technologies in geographic information system are also expected to have a significant impact on the market growth during the forecast period. Overall, the geospatial analytics market is expected to continue its rapid growth trajectory.

Restraints in Geospatial Analytics Market

The geospatial industry has seen a significant expansion in recent years, with a growing range of applications for geospatial data. However, the high cost of GIS solutions and barriers to accessing geospatial data have been identified as factors limiting the growth of this industry. The development of real-time GIS solutions has increased the complexity of GIS software, resulting in higher costs for both software development and data collection. Moreover, the availability of geospatial data in various incompatible formats has hindered market growth, leading to the adoption of geospatial data translators by GIS providers. However, the compatibility of such translators is often inadequate, resulting in higher costs for data conversion and integration.

The outbreak of COVID-19 in the last quarter of 2019 has led to a significant decline in business operations worldwide, with the manufacturing and transportation sectors being severely impacted. However, the pandemic has also created opportunities for the geospatial analytics market, with a two-fold increase expected during the forecast period. High-quality geospatial data has been instrumental in tackling the pandemic, providing essential information on risk factors, disease transmission, and prevalence forecasting. Governments around the world are adopting geospatial analytics to track the spread of the coronavirus and update infected patient information in real-time.

Collaboration and partnerships between different sectors have been instrumental in driving market growth, as seen in Tunisia where the Ministry of Public Health partnered with companies such as Esri, Graphiec, and the African Association for Geospatial Development to build a georeferenced database of hospital bed capacity and medical equipment. However, technical challenges such as the integration of geospatial databases and maps and the conversion of data into easily shareable visuals still persist.

Opportunities in Geospatial Analytics Market

The utilization of geospatial analytics and its benefits, such as having full control over geographical data, are now being acknowledged by a variety of small and medium-sized enterprises (SMEs). This has resulted in an increasing interest among businesses of all sizes to leverage the advantages of geospatial analytics to enhance their company's agility and scalability. To cater to the industry-specific demands of clients, particularly SMEs in sectors such as BFSI, retail, healthcare, and public, location analytics providers are adopting aggressive business strategies, such as acquisitions, to expand their service offerings in analytics. Enterprises have recognized several benefits of using geospatial analytics, including cost savings, improved agility and scalability, increased revenue, and better performance.

The growing adoption of the Internet of Things (IoT) and the increasing number of connected devices are expected to generate a massive amount of location-based data. This trend is anticipated to lead analytics vendors and SMEs to leverage geospatial analytics to enhance their operational capabilities and extract meaningful insights from this data. The concept of smart cities, which are data-driven and rely on real-time awareness sharing, is gaining traction. By collecting data from numerous IoT sensors and analyzing it through an enterprise GIS, data visualization on a map can provide immediate actionable insights. This data can be utilized to track the delivery of city services and highlight areas where local council services need improvement. Location-based analysis of IoT data has also been used by local governments to create smarter parks, enhance safety, and drive innovation.

Challenges in Geospatial Analytics Market

However, one of the main challenges in integrating geospatial analytics data with enterprise solutions, such as ERP and CRM, is the lack of skilled manpower. To make heterogeneous data from geographic sources compatible with existing databases, it needs to be processed. As various business enterprises use different business tools, this process often requires a customized approach. Geospatial analytics solution providers require trained personnel to meet clients' specific requirements. The shortage of experienced personnel is a significant challenge for providers of location-based analytics services since there is a limited number of specialists capable of delivering geospatial analytics solutions.

Ecosystem of Geospatial Analytics Market

The geospatial analytics market is segmented by vertical into several industries, including energy & utility, government, defense & intelligence, BFSI, real estate & construction, healthcare, mining & natural resources, automotive & transportation, agriculture, and other verticals such as sports, education, tourism, and media and entertainment. The agriculture vertical is expected to grow at the highest CAGR during the forecast period, owing to its ability to enhance land management and increase productivity while reducing costs. Geospatial technology can be utilized to analyze soil, estimate crop yield, analyze crop yield, and prevent soil erosion. Moreover, geospatial solutions can be used to alleviate the impact of droughts by examining the spatial distribution of rainfall and real-time sensors.

In terms of service segments, services are essential for integrating next-generation geospatial analytics solutions into enterprises' business environments. Geospatial analytics services can help to transform businesses with smart governance and technology integration roadmaps. As the adoption of geospatial analytics solutions increases across enterprises and service providers, the demand for supporting services is also expected to rise among organizations. The on-premise segment accounted for the largest share in 2020 due to its high level of data security and safety. However, the cloud segment is projected to witness the highest growth in the upcoming years, as it eliminates the need for IT infrastructure investment, and all data is stored on cloud servers, increasing the demand for geospatial analytics software in small and medium scale organizations.

The largest revenue share in the industry is held by the geospatial analytics solutions segment, which includes data integration, spatial analysis, visualization, geocoding, and more. Numerous businesses, including SMEs, large enterprises, and various other end-use verticals, are integrating geospatial analytics tools and solutions to evaluate, locate, and respond to changes in business trends and circumstances.

Additionally, companies are adopting geospatial analytics to improve agility and overall operational productivity, resulting in reduced operating expenses and increased knowledge of business patterns. As a result, the segment's growth is being bolstered across the global industry. The geospatial analytics services segment is expected to exhibit the highest CAGR over the forecast period, including maintenance and support services for thematic data and mapping, GIS consulting services, image processing, and other services.

The increasing demand and adoption of location intelligence technology are driving the segment's growth. Moreover, the rising application of geospatial analytics services across various verticals in developing nations such as India, China, Brazil, and many others is further fueling the segment's demand over the coming years.

Regional Insights

According to market research, North America is projected to dominate the geospatial analytics market in terms of market share during the forecast period. North America is an open market for geospatial analytics and is one of the leading regions in the industry. Many prominent players in the market are based in North America, and they rely heavily on geospatial analytics technologies across various sectors such as transportation, utilities, agriculture, and construction. Additionally, the adoption of location-based technologies in North America is expected to accelerate due to rising investments.

The demand for real-time and remote services in North America, including healthcare and education, is increasing significantly. The Kaiser Family Foundation reports that during the forecast period, the demand for patient monitoring, drug and medication delivery, online meetings, and digital healthcare services is increasing gradually, which is driving market demand. The remote provision of healthcare services is adopting advanced technology for diagnosis, treatment, and disease prevention.

Furthermore, the Asia Pacific region is projected to exhibit the highest compound annual growth rate (CAGR) during the forecast years due to increasing investments in innovative technologies and smart projects. The market growth is also attributed to rapid urbanization, industrialization, and growing AI capabilities with geospatial data across the world. Additionally, the penetration of IoT devices among the millennial population, rising disposable income, and digitalization are other factors that are fostering market growth.

Dominating Companies in Geospatial Analytics Market

• ESRI
• PRECISELY
• GOOGLE
• HEXAGON AB
• TOMTOM
• TRIMBLE
• MAXAR TECHNOLOGIES
• CALIPER CORPORATION
• BLUE MARBLE GEOGRAPHICS
• ESPATIAL
• RMSI
• MAPLARGE
• GENERAL ELECTRIC
• BENTLEY SYSTEMS
• FUGRO
• ORBITAL INSIGHT
• MAPIDEA
• GEOSPIN
• SPARKGEO
• ORBICA
• DESCARTES LABS
• SKYMAP GLOBAL
• REMOT TECHNOLOGIES
• CARTO
• UBIMO
• PASCO CORPORATION
• MANDALAY TECHNOLOGY
• GEOVIET CONSULTING
• GIS CO., LTD
• SUNTAC TECHNOLOGIES
• GEOMATIC CONSULTING INTERNATIONAL
• IMAGO GLOBAL
• MAPPOINTASIA
• VEGASTAR TECHNOLOGY
• HERE TECHNOLOGIES
• Alteryx, Inc.
• Oracle
• SAP SE

Recent Developments in Geospatial Analytics Market

• In 2021, Trimble Inc., a California-based technology company, acquired a 51% stake in Mobiliya Technologies, an Indian software development company that specializes in geospatial and mobility solutions. The acquisition was aimed at expanding Trimble's capabilities in the areas of location-based services, mapping, and navigation.
• In 2020, Bentley Systems, a Pennsylvania-based software company, acquired Citilabs, a Florida-based provider of transportation planning software. The acquisition was aimed at enhancing Bentley's offerings in the areas of mobility and smart city planning, leveraging Citilabs' expertise in geospatial analytics and modeling.
• In 2019, Hexagon AB, a Swedish technology company, acquired Thermopylae Sciences and Technology, a Virginia-based geospatial software company. The acquisition was aimed at strengthening Hexagon's position in the areas of defense and intelligence, leveraging Thermopylae's expertise in geospatial data management and analytics.
• Also in 2019, Esri, a California-based provider of geospatial software, announced a partnership with Mobileye, an Israeli provider of advanced driver assistance systems. The partnership was aimed at integrating Mobileye's technology for real-time mapping and localization with Esri's ArcGIS platform, enabling more accurate and up-to-date geospatial data for transportation planning and management.
• In November 2021, Geospark Analytics, a provider of AI-powered predictive analytics, announced that it had been acquired by Palantir Technologies. The acquisition will allow Palantir to integrate Geospark's technology into its own products and solutions.
• In August 2021, HERE Technologies, a location data and technology platform, announced a strategic partnership with PwC India. The partnership will enable PwC India to leverage HERE's geospatial technology and data to offer location-based solutions to its clients in India.
• In May 2021, Trimble, a provider of GPS and geospatial technology, announced that it had acquired ICEYE, a provider of satellite-based radar imaging. The acquisition will enable Trimble to expand its geospatial capabilities and offer new solutions to customers in industries such as agriculture, construction, and mining.
• In March 2021, Descartes Labs, a provider of geospatial analytics and AI, announced a strategic partnership with AWS. The partnership will enable Descartes Labs to leverage AWS's cloud infrastructure and services to offer scalable and cost-effective geospatial analytics solutions to its customers.
• In February 2020, Maxar Technologies, a provider of satellite imagery and geospatial solutions, announced that it had acquired 3D data and analytics company Vricon. The acquisition will allow Maxar to enhance its geospatial capabilities and offer new solutions to customers in industries such as defense and intelligence.

In conclusion, geospatial analytics is a powerful tool for understanding and addressing a wide range of challenges facing modern society. By combining data from a variety of sources and applying advanced algorithms, geospatial analysts can create maps, identify patterns, and make predictions that inform decision-making in fields ranging from environmental science to public health. As our ability to collect and analyze data continues to grow, geospatial analytics will only become more important in shaping our understanding of the world around us.