Downstream Application Market for GIS Software: Three Major Trends

May 30
13:40

2024

jodie mht

jodie mht

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The downstream application market for Geographic Information System (GIS) software is poised for significant growth, driven by three major trends. This article delves into the evolving landscape of GIS applications across mass-level, enterprise-level, and government-level sectors, highlighting key statistics, market dynamics, and future projections.

Summary

The downstream application market for GIS software is experiencing rapid growth,Downstream Application Market for GIS Software: Three Major Trends Articles driven by three major trends: increased segmentation, market expansion, and the transition from customized to standardized industry application platforms. This article explores the evolving landscape of GIS applications across mass-level, enterprise-level, and government-level sectors, providing key statistics, market dynamics, and future projections. Discover how GIS technology is transforming industries and what the future holds for this burgeoning market.

The Current State of the GIS Software Market

Market Share and Key Players

According to recent data, GIS platform software and hypergraph software hold a 21% market share, making them the leading local manufacturers, second only to the U.S.-based GIS giant, Esri. Gong Yajie, a prominent industry expert, emphasizes that while the GIS industry may be small, it occupies a crucial position in the midstream of the industry chain. Companies in this sector have accumulated significant technological advantages, making them well-positioned to expand into the vast downstream market.

The Importance of Midstream Technology

The midstream segment of the GIS industry is characterized by high technical expertise. Companies that excel in developing robust GIS platform products are essential for expanding the downstream market. The geographic information industry is highly competitive, with some software developers excelling in specific areas by integrating GIS modules to serve their customers better.

Downstream Applications: A Broad and Competitive Market

Categories of Downstream Applications

Downstream applications of GIS software can be broadly categorized into three segments:

  1. Mass-Level Applications
  2. Enterprise-Level Applications
  3. Government-Level Applications

Government-Level Applications: A Rapidly Growing Segment

Government-level applications have seen rapid development in recent years. The demand for GIS systems in industrial applications, such as digital city construction, water conservancy, land-use planning, environmental protection, and statistics, has surged. According to Ping An Securities, the market size for these applications is expected to exceed 9 billion yuan in the foreseeable future. The implementation of cloud GIS is anticipated to reduce the threshold for businesses to use GIS software, potentially adding another 10 billion yuan to the market size.

Three Major Trends in the Downstream GIS Market

1. Increased Segmentation and Market Expansion

Gong Yajie predicts that the downstream GIS market will continue to segment and expand. Companies that understand customer needs and excel in specific market segments will dominate the competitive landscape. The market size for downstream GIS applications is expected to grow significantly, driven by increased segmentation and expansion.

2. Transition from Customized to Standardized Platforms

The GIS industry is transitioning from customized solutions to standardized industry application platforms. This shift involves combining standardized core modules with customized workflows, making GIS technology more accessible and scalable.

3. Leveraging Existing Strengths to Enter New Markets

Gong Yajie highlights three types of applications where GIS software can make significant inroads:

  1. Large-Scale Applications: Areas such as land surveying and mapping, and digital city construction offer substantial opportunities. These sectors can accommodate a large number of suppliers without cannibalizing the company's downstream customers.
  2. Professional Applications: Fields like meteorology, environmental protection, and water conservancy benefit from the company's years of technical expertise. Analysts expect these applications to grow at rates of 30% and over 50%, respectively, in the next two years.
  3. Emerging Applications: Sectors such as banking and other emerging areas present new opportunities for GIS software.

Strategic Partnerships and Global Expansion

The company has also adopted a "borrowed boat" strategy, partnering with telecommunications providers like Huawei and ZTE to expand its overseas presence. Equipped with the company's GIS products, these partnerships are actively developing the global market.

Conclusion

The downstream application market for GIS software is set to experience significant growth, driven by increased segmentation, market expansion, and the transition to standardized platforms. Companies that leverage their existing strengths and form strategic partnerships will be well-positioned to capitalize on these trends. As the market continues to evolve, GIS technology will play an increasingly vital role in various industries, transforming how we interact with geographic information.

Interesting Stats

  • The global GIS market is projected to reach $14.5 billion by 2025, growing at a CAGR of 9.6% from 2020 to 2025 (source).
  • In 2020, the government sector accounted for the largest share of the GIS market, with a revenue of $2.5 billion (source).
  • The adoption of cloud GIS is expected to grow at a CAGR of 12.4% from 2021 to 2026 (source).

By understanding these trends and leveraging existing strengths, companies can navigate the competitive landscape and capitalize on the growing demand for GIS applications.