The global market for Geospatial Information Systems (GIS) is forecast to grow 50 per cent over the next five years, representing a compound annual growth rate of 9.3 per cent, according to a new ARC Advisory Group study.
GIS captures and analyses location information and can be a useful tool in process control for mines and other remote areas.
According to the ARC study, ‘Geospatial Information Systems Worldwide Outlook’, GIS market revenues will be driven in the near future by continued worldwide spending in non-cyclical industries such as electric power, oil and gas distribution, and divisions of federal governments.
Growth in the mid to latter years of the forecast period will be driven by increased adoption of GIS in emerging markets such as Asia, Latin America, and the Middle East; and a return to spending in North America and Europe by industries hardest hit by the global economic downturn, the study said.
Many publicly-traded enterprise software suppliers external to the GIS market have already reported substantial reductions in 2009 revenues.
“However, GIS software differs from other enterprise software markets due to the extensive sales to businesses in non-cyclical sectors such as utilities and government,” said ARC enterprise software analyst principal study author, Clint Reiser.
“Therefore, the economic downturn’s effect on the GIS market is expected to be subdued in comparison to the downturn’s effect on other enterprise software markets.”