Worldwide GIS Revenue Forecast to Top $2 Billion in 2004

24 Oct, 2004

GIS core business revenue will top $2.02 billion in 2004, an increase of 9.7% over 2003, reports the research firm Daratech. In 2003, core GIS revenue reached $1.84 billion, up 5.1%, by Daratech estimates.

Of core-business revenue, the group reports, software comprised 64% of the 2003 total, with GIS software vendors realizing $1.175 billion. ESRI and Intergraph led the market, accounting for nearly half of the GIS industry's total software revenue. Services accounted for 24% of total revenue, or $447 million. Hardware revenue, declining for many years, accounted for just 4% of total revenue in 2003, or $70 million. Data products accounted for 8%.

Industries in the regulated sector of the GIS market accounted for 44% of total GIS core-business revenues in 2003, or an estimated $815 million. By comparison, the public sector accounted for just over one-fourth (29%) of total revenue, or $533 million, while the private sector contributed 24%, or $437 million.

Daratech also announced that it will now use the term geospatial technologies when referring to "the geographic location and characteristics of natural or man-made features and boundaries on the earth." The firm will use GIS (geographic information system) to refer to "a computerized database management system used to process spatial data." "In essence," Daratech says, "geospatial is geographic information systems brought into the new millennium."