Geographic Information System (GIS) Market is expected to reach US$ 19.30 Billion by 2031

Rapid Development of Smart City Projects to Fuel Geographic Information System (GIS) Market Growth During Forecast Period

According to our latest study, “Geographic Information System (GIS) Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Component, Function, End User," the market was valued at US$ 10.27 billion in 2023 and is expected to reach US$ 19.30 billion by 2031; it is estimated to record a CAGR of 8.2% from 2023 to 2031. The report includes growth prospects owing to the current geographic information system (GIS) market trends and their foreseeable impact during the forecast period.

In smart city projects, a geographic information system (GIS) is used for site selection, land acquisition, urban town planning, designing, visualization, construction, project management, and reporting. The development of smart city projects is proliferating with significant investment from governments of several countries across the world. According to The Organisation for Economic Co-operation and Development (OECD), the smart city market was valued at US$ 511.6 billion in 2022 and is projected to reach US$ 1,024 billion by 2027; it is expected to register a CAGR of 15% during the forecast period. Additionally, geographic information system integrated solutions such as Building Information Modeling (BIM) are being widely used for the construction of town planning. As of 2023, the Netherlands, Italy, Germany, France, Spain, and many other countries in Europe have initiated more than 170 smart city projects with significant investments. European Investment Bank provided more than US$ 23.13 billion to support the development of sustainable smart cities project development in Europe. These smart cities require geographic information systems for urban planning. Further, more than 66% of cities in the US are investing in advanced technologies such as geographic information systems for mapping, smart home devices, and IoT solutions for smart city projects. In 2023, the Government of China announced its plan to build more than 500 smart cities. In July 2023, the government financed a project worth US$ 200 million to develop Guangzhou Smart City Project Phase 1. This project aimed to improve the digital infrastructure required by the Chinese Guangzhou’s municipal government for urban infrastructure development. Moreover, the construction of metro facilities, new airports, and railway networks is growing across the globe. For instance, in March 2023, the Canadian Kelowna City Council approved the funding of US$ 90 million for the Kelowna Airport terminal expansion project. As of 2023, in the US, six new airports are under construction. Also, in 2022, the Government of India announced its plans to build 220 airports by the end of 2025. In 2023, the government also approved US$ 3.93 billion for seven transformative railway projects to boost connectivity. Thus, the rapid development of smart city projects and growing infrastructure development projects across the globe fuels the geographic information system (GIS) market growth.

Geographic Information System (GIS) Market Analysis — by Geography

Source: The Insight Partners Analysis

Autodesk, Inc.; Topcon Positioning Systems, Inc.; Caliper Corporation; SuperMap Software Co., Ltd.; Hexagon AB; Hi-Target; Pitney Bowes Inc.; Maxar Technologies; AmigoCloud, Inc.; Trimble Inc.; Bentley Systems, Incorporated; Cadcorp Limited; Spatialworks Sdn Bhd.; Environmental Systems Research Institute, Inc.; Blue Marble Geographics; Abaco SpA; TomTom International BV; FARO Technologies, Inc.; L3Harris Technologies, Inc.; and Ba?arsoft Information Technologies Inc. are among the key players profiled in the geographic information system (GIS) market report. Several other major players were also studied and analyzed during the market study to get a holistic view of the market and its ecosystem.  

The report includes the geographic information system (GIS) market forecast by component, function, and end user. Based on component, the geographic information system (GIS) market is divided into hardware, software, and services. In terms of revenue, the software segment held a larger geographic information system (GIS) market share and is expected to record a higher CAGR during the forecast period.

The scope of the geographic information system (GIS) market report focuses on North America (US, Canada, and Mexico), Europe (Spain, UK, Germany, France, Italy, and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America). North America dominated the market in 2023, followed by Europe and APAC.  

The Asia Pacific geographic information system (GIS) market is segmented into Australia, China, Japan, India, South Korea, and the Rest of APAC. In terms of revenue, China held the largest geographic information system (GIS) market share in APAC. Asia Pacific has a strong automotive sector, supported by the growing automotive manufacturing industry in countries such as India, China, and South Korea. As the world's largest and most populous region, it encompasses a diverse landscape of automotive manufacturers. In the automotive sector, the connected vehicle industry is gaining significant traction and reshaping the way people interact with their vehicles and the transportation ecosystem. Leading automakers across the region, including Toyota, Hyundai, and BYD, are investing heavily in integrating advanced connectivity features into their vehicles. For instance, Toyota Corporation invested US$ 600 million in China's mobility technology company, DiDi Global. These companies are installing telematics solutions to track the vehicle's location and improve fuel efficiency. BYD and Toyota Corporations are offering fully connected vehicles for their premium vehicle models. These vehicles consist of several features, including infotainment systems, GPS tracking systems, and other GIS components.

China and India are actively promoting electric mobility, providing incentives for electric vehicle adoption, and supporting the development of charging infrastructure. The robust digital infrastructure in Asia Pacific, including the deployment of 5G networks, allows high-speed, low-latency connectivity. Such features enable vehicles to access real-time data, receive over-the-air updates, and communicate seamlessly with other vehicles and infrastructure.  

India, China, South Korea, and Japan are among the leading vehicle manufacturing countries worldwide. The rise in automotive sales propels the demand for geographic information systems. Also, the increasing adoption of advanced technologies and growing demand for unpowered trailers and caravans are a few factors contributing to the geographic information system market growth in the region.  

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