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Indian geospatial industry is at an exciting stage of its development. Geospatial technology is growing, new companies are emerging and established ones are expanding. It has been such a powerful and useful tool that many disciplines ranging from infrastructure projects to wildlife management to agriculture, all have found uses for it. Spatial data is an essential component for planning projects across industry verticals. Today, the Indian government is facing various challenges such as rapid growth in population, environmental concerns, resource shortages, and most importantly security concerns. Driven by the increasing need to overcome these challenges, given the immense potential of GIS technology, the government is increasing investments for GIS implementation in land use planning, asset management, utility management, incident mapping, inspections, resource exploration and national security etc. This rapid evolution of GIS is transforming the dynamics of its usage across different verticals in India. With traditional database vendors extending support to geospatial data, and foreign players showing interest in the Indian market, GIS is all set to become the mainstream application around all the sectors in India. Central and state governments in India are the major users of advanced geospatial applications. The government feels that in order to retain the overall economic growth of the country and to have a continuous FDI inflow, GIS technology needs to be used extensively in applications such as pipeline laying, building roads and laying transmission grids. Also to sustain the current economic growth, India requires a large number of new projects to provide the required infrastructure and for that, GIS seems to be the only tool that would help in efficient and speedy development. Tracing the general trends in Indian geospatial industry, this report presents an in-depth analysis of market segments. It presents a holistic picture of the market in India: the overall market size, analysis of major sectors and industries from the demand as well as the supply side, the growth trends, major growth drivers, etc. The information was gathered through interactions with industry experts and stakeholders – vendors, product developers, users and consultants. The geospatial market is valued at Rs 8,389 million in 2008-09. The market can be broadly split into four broad categories – software, hardware, data sales and services. While the first three components contributed Rs 3,709 million, service sector chipped in the remaining revenue. There, however, is an overlap of Rs 762 million in the form of purchases of software and hardware products by the service segment. This segment added a value of Rs 3,918 million by developing products. The services segment contributed the lion's share with Rs 4,680 million, comprising 56 per cent of the total market. The contribution of other three components are: software (Rs 1,005 mn); hardware (Rs 2,262 mn); and data (Rs 422 mn) New initiatives by the government in sectors such as Urban Planning, Power, Land Records, Agriculture and Forests will be the major drivers for the growth of geospatial industry in the coming years. Pan India projects such as R-APDRP in the Power sector, AgRIS in Agriculture and NLRMP concerning the updating and maintenance of land records and validation of titles will boost growth. Further, in the coming years government is likely to initiate new development programmes in sectors like disaster management, police and education, which would attract more spending in GIS technology. According to industry experts imagery data market is expected to grow at CAGR of 15-20 per cent up to 2012-13. Since 2006-07, the sector has shown flat growth and grew at a CAGR of 3 per cent. It is estimated that GIS software market will grow at a CAGR of 23-25 per cent up to 2012-13. The hardware market has shown a growth of 9 per cent YOY in the last two years. The outlook for the segment looks promising with a CAGR of 21-22 per cent up to 2012-13. The GIS services market holds the lion's share. The size of this segment was valued at Rs 4,680 mn in 2008-09 and it grew at a rate of 16 per cent CAGR since 2006-07. This sector is poised to grow at a CAGR of 30 per cent up to 2012-13, thus growing at double the growth rates registered in the past. GIS, in fact, has revolutionised the way urban administrators devise their utility plans. It has simplified the accumulation and processing of data related to various departments such as Town Planning, Revenue and Water Supply, which is being used for a variety of administrative purposes. While ensuring transparency, it enabled faster and better interface with the citizens, enriching e-governance initiatives. A number of programmes are being launched in urban local bodies across the country. The National Urban Information Systems is a case in a point. With the Union Government deciding to allocate Rs 500 billion in the next four years to bolster infrastructure in urban areas under the Jawaharlal Nehru National Urban Renewal Mission, the demand for GIS products is expected to grow even further in this segment. The urban planning segment is likely to grow to Rs 2,240 million by 2011-12. Ministries and departments in Agriculture, Forestry, Marine, Petroleum and Water Resources will continue to drive growth in all the GIS segments – data, software, hardware and services. For example, AgRIS initiative alone, is targeted to cover 450 districts, is estimated to spend Rs 9,000 million on GIS. In sectors like land records, the GOI’s budget for NLRMP is Rs 56,560 million. The entire project is to be completed by the end of 12th Plan i.e. by 2016-17, which works out to an average expenditure of Rs 8,120 million every year for the next six years. In the power sector space, Government of India grant for Part A of the R-APDRP project is budgeted at Rs 100 billion. The average spend on GIS in this programme alone could be to the tune of Rs 4,000 to 5,000 million per year for the next five to eight years. The LBS market in India is still small compared to that in developed countries and is expected to triple by 2012-13. Going forward, experts feel the market for LBS will grow exponentially due to the advances in naviga tion and mobile technologies, the growing economy and increasing awareness. The other sectors such as disaster management, education and policing offer new frontier for GIS. The geospatial market is expected to grow to Rs 24,070 million by 2012-13, recording a CAGR of 33 per cent. Land Records are projected to be the major growth drivers with a market share of 36 per cent, followed by power and transportation & logistics segments with a market share of 16 per cent and 12 per cent respectively. With the growth of the geospatial industry, the demand for manpower too is growing the total human resource requirement by 2013 is 28,900, in addition to the above figure, close to 1.5-2 lakh people are expected to take part in non-technical surveys such as consumer indexing, demographic mapping. Apart from human resource crunch there are other issues as well that hinder the full-scale adoption of GIS in India: high costs of processors needed for sophisticated GIS software, low awareness and education levels, restrictions placed on the availability of spatial data, disparity between the various systems and high cost of satellite and aerial data. In spite of these impediments, industry experts feel that in the next few years geospatial technology will become an inseparable part in planning and developmental activities. As government embarks on developing roads & highways, hydrology, hydro power, bridges, land development and- earthwork, power distribution, the technology is heading to become ubiquitous. |
Market Report 2009
Market Report 2008
