Global Geospatial Analytics Market: Information by Component (Solution, Services), Solution (Data Integration and ETL, Geocoding and Reverse Geocoding, Thematic Mapping and Spatial Analysis), Deployment (On-Premises, Cloud), Enterprise Type (Large Enterprises, Small and Medium Enterprises), Application (Disaster Management and Risk Reduction, Public Safety and Medicine, Surveying, Climate Change Adaptation), End-User (Defense and Internal Security, Retail and Logistics, Healthcare and Life Sciences), and Region—Forecast Till 2032

Market Overview

The global geospatial analytics market size was valued at USD 106.2 billion in 2023 and is projected to reach USD 797.0 billion by 2032, registering a CAGR of 11.9% during the forecast period (2024-2032). The growing number of smart cities throughout the world is one of the primary factors driving the Geospatial Analytics market growth. 

Geospatial analytics is the act of gathering, analyzing, and interpreting spatial or geographic data to discover patterns, trends, and correlations within a geographical environment. This field uses various technologies, such as geographic information systems (GIS), remote sensing, global positioning systems (GPS), and data visualization tools, to extract relevant insights from spatial data.

The global geospatial analytics market share is driven by a rise in demand for AI-based GIS solutions and an increase in demand for geospatial analytics in smart city development and urban planning. The high cost of geospatial analytics, regulatory difficulties, and a lack of comprehensive government policies regarding geospatial analytics are projected to impact market growth significantly. Furthermore, the adoption of cloud-based GIS and the increased use of AR and VR technologies in geographic information systems are likely to impact market growth throughout the forecast period substantially. However, each of these reasons is expected to impact the geospatial analytics market's growth significantly. 

Highlights

• Solution accounts for the largest share by component.
• Thematic Mapping and Spatial Analysis generates the highest revenue share by solution.
• Cloud dominates the market by deployment.
• Large Enterprises hold the major market share by enterprise type.
• Surveyingled the market growth by application.
• Defence and Internal Security influenced the market by end-users.

Market Dynamics

Market Drivers

Rapid Urbanization and Population Growth

As urban populations continue to rise fast, cities must meet rising housing, transportation, utilities, and public services needs. Geospatial analytics contributes significantly to urban planning and infrastructure development by giving information on population density, land use patterns, transportation networks, and environmental conditions. The global population is predicted to rise roughly 0.91% in 2024, or approximately 73 million people annually. According to the United Nations Population Fund (UNFPA), the world's urban population will grow by over 1.5 billion over the next 15 years and 3 billion by 2050. By 2050, the world's urban population will have more than doubled, with cities housing nearly 7 out of every ten people. City planners use geospatial analytics to find acceptable areas for future residential buildings, plan efficient transportation routes, and allocate resources for infrastructure projects.

Furthermore, many communities worldwide are investing in smart city efforts to improve livability, sustainability, and efficiency by leveraging technology and data-driven approaches. Geospatial analytics is critical to smart city programs, delivering real-time data on traffic flow, air quality, energy use, and trash management. According to Statista, Singapore and South Korea are at the forefront of smart city activities globally. Singapore has topped numerous smart city rankings since its Smart Nation initiative in 2014. China is also proposing to build approximately 500 smart towns by 2024.

Additionally, by 2050, the United Nations predicts that 70% of the world's population will reside in cities, increasing the need for urban energy infrastructure. Smart cities are expected to save USD 22 trillion by 2050 through efforts such as energy-efficient buildings and public transportation. Investing in city-level action, such as smart streetlamps, self-cooling buildings, and smart electric car chargers, can yield the highest carbon-mitigation ROI. As cities expand and adapt, the need for data-driven insights to support urban planning, infrastructure development, and smart city projects grows, propelling global adoption and investment in geospatial analytics.

Market Restraints

Cost and Resource Constraints

Implementing geospatial analytics solutions frequently necessitates substantial investments in technical infrastructure, software licenses, data collection, and specialized individuals. Furthermore, small organizations may incur significant upfront costs when deploying geospatial analytics systems. For example, a small landscaping company wishing to improve its service routes and scheduling may need to invest in GIS software, GPS devices, and personnel training. Small enterprises with limited finances and resources may need help to make these early expenditures.

Furthermore, geospatial analytics solutions necessitate continual data collection, processing, and maintenance, which might result in ongoing costs for enterprises. For example, a power firm that uses geospatial analytics to monitor its infrastructure and assets may need to invest in data storage, cloud computing resources, and software updates to maintain its geographical data's long-term accuracy and dependability. GIS software costs between USD 600 and USD 17,000 per year, and a basic GIS system installation costs between USD 500,000 and USD 800,000.

According to research by the International Federation of Surveyors (FIG), poor countries face barriers to accessing geospatial data and technology due to financial constraints, inadequate infrastructure, and capacity limits. Addressing these difficulties requires targeted investments, capacity-building programs, and stakeholder partnerships to democratize geospatial information and technology access.

Market Opportunity

Rising Demand for Location Intelligence

Location Intelligence is primarily driven by the increasing adoption of smart devices and investments in IoT and network services, which enable smarter applications and greater network connectivity. The COVID-19 epidemic has resulted in greater adoption of location intelligence solutions to manage the changing business landscape, allowing organizations to analyze, map, and share data about customers' whereabouts.

Furthermore, cities worldwide face tremendous problems due to rising urbanization, population increase, and climate change. Geospatial analytics is essential for urban planning and development because it provides information about population dynamics, land use patterns, transit networks, and environmental variables. Geospatial analytics was utilized by city planners in Barcelona, Spain, to rethink public areas, optimize public transit lines, and improve urban resilience to lessen the impact of heatwaves and floods. 

Similarly, retailers and marketers use geospatial analytics better to understand consumer behavior, preferences, and spatial patterns. Retailers can use location-based data analysis to discover the best shop locations, understand foot traffic trends, and efficiently target advertising efforts. For example, the Transverse transaction was announced precisely in January 2023. Following the purchase of Transerve, Precisely's portfolio of data integrity software and data now includes additional SaaS location intelligence capabilities, allowing clients to use location data and analytics to acquire new business insights without requiring specialist knowledge or experience.

Furthermore, SuperMap Software Group, Asia's top GIS platform maker and the world's second-largest, has officially announced the latest version of its GIS product line: SuperMap GIS 2023. In addition to updating existing products, SuperMap GIS 2023 includes several new products, such as cross-platform remote sensing image processing desktop software (SuperMap ImageX Pro [Beta]), cross-platform nautical chart production desktop software (SuperMap iMaritimeEditor), web-side 3D geographic design application (SuperMap iDesigner3D), and 3D WebGPU client (SuperMap iClient3D for WebGPU [Beta]). 

Regional Analysis

North America Dominates the Global Market

The global geospatial analytics market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global geospatial analytics market shareholder and is estimated to grow at a CAGR of 11.3% over the forecast period. As an early adopter of modern technology, the area focuses on improving its operations and customer experience through personalized location-based solutions. For example, in November 2022, AWS IoT Core, a managed cloud service that enables users to connect billions of IoT devices and transport trillions of messages to AWS services, launched AWS IoT Core Device Location. This advanced functionality lets users control and track IoT devices using their location data, such as longitude and latitude coordinates.

Additionally, Amazon Web Services IoT Core Device Location enables customers to optimize their business processes, streamline and simplify maintenance activities, and uncover new use cases. In September 2023, AWS announced support for the most recent enhancement to Semtech's LoRa Edge GNSS technology in the newest AWS IoT Core Device Location version. This increase results in up to two times greater GNSS accuracy and a higher solution success rate. 

Asia-Pacific is anticipated to exhibit a CAGR of 12.2% over the forecast period due to increased market competition among countries such as China, India, and Japan. The huge regional population is increasing the development of location-based services to provide current customer analytics and targeting solutions.

Furthermore, growing GIS applications in the agricultural sector are increasing demand in India. For example, in December 2023, the Ministry of Panchayati Raj implemented technologies such as the GIS software "Gram Manchitra" and the mobile application "mActionSoft" to improve authority and spatial planning at the grassroots level of Gram Panchayats. Geospatial technology provides a unified platform for visualizing and strategizing developmental projects, hence assisting in creating the Gram Panchayat Development Plan (GPDP). Such factors are expected to accelerate the Asia-Pacific region's market expansion. 

In Europe, rising urbanization and economic development will likely boost market expansion. In addition, the presence of key players is expected to drive market expansion in this area. Furthermore, the combined use of geographic information systems and business intelligence drives the industry in the United Kingdom. Using GIS and business intelligence helps firms increase efficiency and save costs. 

In Latin America, considerable growth in numerous end-user industries, such as healthcare, consumer electronics, and automotive, is expected to supplement market growth. 

In the Middle East and Africa (MEA), high investment in advanced technologies will increase the region's worldwide market share. Similarly, the increased preference for personalized offerings is projected to drive the adoption of geospatial analytics solutions throughout the area.

Segmental Analysis

The global geospatial analytics market is segmented based on component, solution, deployment, enterprise size, application, andend-user.

The market is further segmented by components into solutions and services.

The solution category is predicted to have the highest geospatial analytics market share. Geospatial analytics solutions are software tools and platforms that allow enterprises to collect, analyze, visualize, and understand spatial data to gain relevant insights. These solutions often incorporate geographic information systems (GIS), remote sensing software, spatial analytics platforms, and data visualization tools. The significant capabilities of these solutions in handling industry-specific functions will likely drive up demand. Organizations can achieve their business goals using geospatial analytics solutions' demand and supply insights.

Based on the solution, the market is fragmented into data integration and ETL, geocoding and reverse geocoding, and thematic mapping and spatial analysis.

The thematic mapping and spatial analysis segment is expected to experience considerable growth. Businesses are eager to understand customer behavior and demand trends, which will drive the adoption of these solutions. Thematic mapping and spatial analysis solutions help organizations view, analyze, and interpret spatial data to uncover patterns, trends, and linkages within geographic contexts. Thematic mapping solutions use colors, symbols, and patterns to visually depict spatial data and convey information about specific themes or features, such as population density, land use, or environmental considerations. 

By deployment, the market is sub-segmented into On-Premises and cloud.

The cloud sector is predicted to increase and maintain a leading market share during the projection period. Cloud deployment refers to delivering geospatial analytics software and services over the internet using cloud computing platforms. Cloud deployment allows enterprises to access geospatial analytics solutions on a subscription basis, removing the need for significant upfront investments in hardware and infrastructure. Cloud deployment provides scalability, flexibility, and accessibility, allowing enterprises to quickly install, scale, and manage geospatial analytics systems without relying on physical infrastructure.

Additionally, cloud deployment is ideal for enterprises that want agility, cost-effectiveness, and the flexibility to use advanced analytics capabilities, real-time data processing, and collaborative workflows in a distributed and scalable environment. The ability of the cloud deployment strategy to access massive amounts of data will drive demand for geospatial analysis. Globally, the popularity of cloud technologies is increasing considerably due to their functions and services.

Based on enterprise size, the market is divided into Large Enterprises, Small and Medium Enterprises.

The large enterprise segment is expected to capture the most market share and have the greatest CAGR over the forecast period. Huge enterprises operate on a vast scale, have considerable resources, and employ a large workforce. These firms usually have complicated business procedures, diverse operations, and a global presence. Large corporations use geospatial analytics tools to assist strategic decision-making, optimize operations, and achieve a competitive advantage across several business activities and departments. The designated IT budget in major organizations facilitates the introduction of new and advanced technologies. These businesses are early adopters of innovative technologies and are eager to improve their operations and customer service.

The market can be bifurcated by application into Disaster Management and Risk Reduction, Public Safety and Medicine, Surveying, andClimate Change Adaptation.

The surveying segment held the most significant market share in 2023. Geospatial analytics collect, analyze, and interpret spatial data for land surveying, cadastral mapping, and engineering applications. Surveyors and engineers can use geospatial analytics tools like GPS, LiDAR, and photogrammetry to precisely measure land boundaries, topographic features, and infrastructural assets. Geospatial analytics solutions facilitate cadastral mapping, land parcel identification, and land administration systems, assisting governments, land developers, and engineering firms in managing land resources, resolving property disputes, and supporting land use planning and development projects. Businesses heavily invest in location-based solutions to obtain insights and better understand their customers' preferences. 

The market is classified into defense and internal security, retail and logistics, healthcare, and life sciences based on end-users.

The defense and internal security category is predicted to achieve a significant market share during the forecast period. The defense and internal security sector includes government agencies, military groups, and law enforcement agencies tasked with national defense, homeland security, and public safety. Geospatial analytics are critical for defense and security applications such as intelligence collecting, surveillance, reconnaissance, threat assessment, and mission planning. Defense and security organizations employ geospatial analytics to evaluate topography, monitor borders, track troop movements, detect and deter threats, and coordinate emergency response activities. Geospatial analytics technology provides defense and internal security personnel with fast and accurate intelligence.

Recent Developments

• April 2024- SAP SE (NYSE: SAP) announced that Swedish-based DeLaval, a member of the Tetra Laval Group, selected SAP S/4HANA Cloud to build out its new cloud-based ERP system as part of its company-wide transformation.
• April 2024: Leica Geosystems, a division of Hexagon, announced the release of Leica iCON GPS 120, a smart antenna designed to provide construction professionals with scalable and adaptable machine control solutions.