Although the two largest players, ESRI and Intergraph, together account for nearly half of the total software revenue, there are roughly 20 companies that each account for more than one percent of total annual software revenues. In fact, new buyers and sellers have increasingly contributed to 80% of the markets total in 2004.
The GIS core business concentrated in three categories in 2004: market leaders; large companies acquiring or developing small GIS businesses; and specialized software companies, by far the largest in terms of number of entrants. Both existing and new players are using GIS/Geospatial technology, initiating profitable growth in new markets and application areas. Market growth has been driven by the increased availability of public and private data, which has benefited users with new applications at low incremental cost. The availability of services, applications, multimedia technology, database systems and mass-market user interfaces has increased the demand for integration services to further the growth of the GIS/Geospatial industry.
Customers are expecting more from their vendors, especially from market leaders such as Intergraph and ESRI, who account for the majority of the industrys software revenue. The industry is finding partnerships between generalist suppliers and GIS/Geospatial vendors beneficial to the market growth, as Geospatial technologies are complementing the systems integration activities of hardware and infrastructure suppliers. Hardware innovation is a new direction that the industry is continuing to undertake, where GPS technology, handheld computers and GIS software are integrated to provide up-to-the-minute data from enterprise databases for field-based personnel. This technology specialization enhances mission-critical decisions during emergency situations.
Undoubtedly, GIS/Geospatial technologies are increasingly establishing a solid network of information throughout the Internet, taking advantage of the Internet revolution by launching web sites and corporate-wide intranets. The only challenge is to determine what information will be disclosed, to whom the information will be made available, how the information will be displayed to specific users and how data will be protected. GIS software developments have undergone rapid measures to web-enable their offe rings.
With the significant effect of technological innovation and marketplace change, the GIS/Geospatial industry continues to integrate and interoperate among its developing technologies and database management systems, ERP, SCM and IT infrastructure enterprises. GIS/Geospatial technology is spreading into entirely new markets and there appears to be ample opportunity for strong growth for existing and new players.
Daratechs report, GIS/Geospatial Markets & Opportunities 2006, is available as an annual online subscription for $6997. For more information, visit www.daratech.com/research/gis/2006.
Daratech, Inc. is a leading provider of information technology market research and technology assessment, advisory and strategic consulting services, and executive-level conferences for manufacturing, engineering, construction and plant operations. Established in 1979, Daratech specializes in PLM, CAD/CAM, digital product simulation (CAE), PDM/EDM, AECO PLM (architecture, engineering, construction, operations, plant lifecycle management), document/enterprise content management, GIS and related areas.