GeoBuiz 2019 - Geospatial Readiness and Industry Outlook Report, Complimentary Edition

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Š GEOSPATIAL MEDIA AND COMMUNICATIONS COPYRIGHT 2019 All Geospatial Media and Communications reports are subject to a standard disclaimer.

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Executive Summury The GeoBuiz-19 report presents an evaluation and assessment of the Geospatial Industry fabric, the Location Analytics and Business Intelligence Market, the Geospatial Market in AEC Industry and a comparative appraisal of 75 countries on their geospatial preparedness, i.e. the Countries Geospatial Readiness Index-19.

The Geospatial Industry Fabric: The section I of the GeoBuiz-19 report brings forth a qualitative assessment of the geospatial industry in the digital ecosystem, the numerous ways in which geospatial industry and government stakeholders can capture data and precise positioning and the geospatial industry dynamics, i.e. the commercial geospatial industry landscape. On the basis of the inputs received from 100+ CEO’s and business, the major technology drivers, market opportunity, challenges and the way forward for the industry is defined. The report also provides an integrated view of the major trends in mergers and acquisitions and partnership that have happened in 2017-2018 and the new business models that have emerged owing to the technology disruptions.

Location Analytics and Business Intelligence Market: Section-II of the GeoBuiz-19 report, discusses the tremendous potential of location context for driving business intelligence. Adding location-based data visualization and analysis enables an organization to identify trends, discover relationships between disparate and unconnected datasets, and make better-informed decisions.

The section covers the role of new-age technologies, like Artificial Intelligence, autonomous systems, and IoT in helping LI develop innovative solutions, while at the same time making it reach to more users, in more ways than ever. Further, new application areas such as autonomous mobility and shared economy-based businesses are going to make LI even more pervasive than today.

Collaborations continue to drive tne LI’s penetration into new user segments as adoption of LI is relatively less capital-intensive, it’s easier to use and integrate, there are several plug-and-play options available. In addition, the new entrants in the LI market are focus on developing solutions and working in deeper collaboration with user industry, whereas the established players continue to improve their software and platform-based capabilities.

Along with rapid growth, the LI industry also faces some challenges such as stringent data privacy laws around the world, availability of timely and accurate location data, lack of skilled manpower and limited awareness about LI among its prospective users.

The industry can deal will most of these challenges be becoming more inherent with its user industries, bringing in transparent mechanisms to assure the consumers of their data protection, reaching out to the academia and research institutes, among many other things.

KEY FINDINGS: ¤¤The LI industry market size has grown from nearly US$ 9 billion in 2014 to around US$ 22 billion in 2018. By 2022, this number is likely to almost double its 2018 numbers. ¤¤Among the defined industry categories, location data and map content, and solutions and services account for nearly two-thirds of the market, which is expected to further solidify in the future since these sections are growing at a relatively faster pace. ¤¤Among the user industries that are expected to be expected to emerge as the biggest market of future for LI, retail, logistics, mobility, smart cities, real estate, etc. are the most popular ones. ¤¤Overall, the Asia Pacific, followed by North America, is the biggest market for LI. These two regions are expected to maintain their leadership in the foreseeable future as well.

Geospatial Market in AEC Industry: The third section of the GeoBuiz-19 report, duly highlights the importance of geospatial information and technology and its application in the AEC industry. While the AEC industry is known to be a laggard in the adoption of technology, it is still one of the most information dependent sectors. This section presents a brief overview of the global construction industry and the critical role of geospatial information and technology in enhancing the efficiency and productivity of the sector. Additionally, the section also explores the scope, trends, opportunities and market size of geospatial industry solutions in the AEC industry to define the existing and the potential market benefits for all stakeholders of the industry and the benefit of the geospatial solution and service providers, construction industry players and decision makers.

The AEC industry, on the whole, is undergoing throes of major change with the onset of integrated (geospatial + engineering) solutions to create operational efficiencies, create additional business avenues, eliminate data redundancy and costs across the planning, designing and engineering, construction and operations and maintenance continuum. From BIM to geospatial technologies to 3D printing and Digital Twins, the construction workflow is undergoing a massive transformation, and as the industry begins to

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embrace these technologies, investments in ConTech has also started to rise. Today, we see a massive investment in infrastructure highlight that there exists a tremendous potential in the industry to use innovative technologies to enhance efficiency, productivity and efficacy.

KEY FINDINGS: ¤¤The cumulative global AEC industry is estimated to be US$ 11.30 trillion in 2018 and Asia-Pacific, North America, and Europe to have the maximum market share with 66.1%, 12.4% and 8.2% respectively in 2022. ¤¤The investments in digitalization and its enabling technologies are expected to boost productivity gains by approx. US$1.6 trillion annually ¤¤Since 2011 up until 2017, start-ups in ConTech have attracted an investment of approx. $10 billion for BIM, datagathering analytics, design and planning software, among many other things. ¤¤The current geospatial market size in the AEC industry is estimated to be US$ 58.49 billion.

In the near future, geospatial technology shall become crucial for the overall growth of the AEC market, thus leading to socioeconomic development in which case ‘geospatial readiness’ is the need of the hour.

Countries Geospatial Readiness Index 2019: The Final section of the report is the Countries Geospatial Readiness Index (CGRI)-19, an annual appraisal of geospatial readiness of 75 countries. (+25 from CGRI-18). This index evaluates the geospatial preparedness of the select 75 countries on five pillars namely, data infrastructure, policy framework (geospatial and enabling), institutional capacity (education), user adoption and the geospatial industry fabric (innovation, incubation and accelerators, and capacity).

The CGRI-19 with the addition of regional overview section this year aims to provide a comprehensive region-specific outlook to the industry and government stakeholders of the multitude of opportunities available in the region. Post the regional overview, a holistic view of the critical aspects of the pillars is presented to enable the decision makers to develop an integrated approach to understand and maintain pillar-wise competitive advantage and enabling the visualization of internal differences for the pillar across regions and countries.

The index is utilized as a tool for decision-makers to assist countries in making informed decisions; and for this reason, the scoring of the countries is done in a percentile format to help readers understand the relative preparedness of the 74 countries in comparison to the USA –the topmost geospatially ready country. The USA, UK and Germany retain their position as top three respectively from CGRI-18.

KEY FINDINGS: ¤¤A critical component of the data infrastructure of a country is the technology architecture that makes available spatial data for use and application to government departments and the citizens. ¤¤2018-2019, has witnessed a number of data privacy legislations across all countries with specific laws governing data privacy, sharing and localization, thus, affecting a huge subsect of the geospatial industry (especially location). ¤¤Many of the universities of the ‘Leader’ countries provide their students with Geo-research lab facilities which enable students to experiment and innovate. ¤¤‘Leader’ economies like the Netherlands, USA, UK, Singapore and Canada, have managed to successfully integrate geospatial solutions at multiple levels of industrial, governmental and public adoption. ¤¤The Industry fabric of a country is enhanced in each country with the inclusion of associations and incubation centers and clusters. USA and EU lead the industry fabric pillar Geospatial Readiness is becoming an increasingly important aspect for all, developed, and developing economies. From foundational governance to implementation at industry and institutional levels including user-level espousal, the effectiveness rests on the proactive approach followed to convert this potential at national level, and regional levels.

Geospatial Industry Outlook & Readiness Index | 5

Table of Contents 1. GEOSPATIAL INDUSTRY �������������������������������������������������������������������������������������������������������������������������������������������������������������������������������10 1.1 Overview ���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������10 1.2 Geospatial Industry Data Sources ��������������������������������������������������������������������������������������������������������������������������������������������������������11 1.3 Geospatial Industry Dynamics ��������������������������������������������������������������������������������������������������������������������������������������������������������������12 1.4 Geospatial Market: At a Glance ������������������������������������������������������������������������������������������������������������������������������������������������������������13 1.5 Commercial Geospatial Industry Landscape ��������������������������������������������������������������������������������������������������������������������������������������15 1.6 Partnerships, Mergers and Acquisitions ����������������������������������������������������������������������������������������������������������������������������������������������17 1.7 Trends in Mergers & Acquisitions and Partnerships �������������������������������������������������������������������������������������������������������������������������19 1.8 Global Market: Size and Growth ����������������������������������������������������������������������������������������������������������������������������������������������������������21 1.9 Regional Markets: Size and Growth ����������������������������������������������������������������������������������������������������������������������������������������������������22 1.10 Business Models ���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 23 2. LOCATION AND BUSINESS INTELLIGENCE MARKET �������������������������������������������������������������������������������������������������������������������������25 2.1 Overview ���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������25 2.2 Industry Value Chain and Landscape ��������������������������������������������������������������������������������������������������������������������������������������������������25 2.3 Technology Drivers ���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 27 2.4 Industry Trends �����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������27 2.5 Partnerships and Collaborations ����������������������������������������������������������������������������������������������������������������������������������������������������������28 2.6 Key User Industries ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 29 2.7 Challenges ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������ 30 2.8 Way Forward ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������31 3. GEOSPATIAL MARKET IN AEC INDUSTRY �����������������������������������������������������������������������������������������������������������������������������������������������32 3.1 Overview ���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������32 3.2 AEC Industry: Vertical Market Size �����������������������������������������������������������������������������������������������������������������������������������������������������32 3.3 AEC Industry: Emerging Trends ������������������������������������������������������������������������������������������������������������������������������������������������������������33 3.4 Geospatial Technologies in the AEC Industry Value Chain �������������������������������������������������������������������������������������������������������������33 3.5 Integration of BIM with GIS ������������������������������������������������������������������������������������������������������������������������������������������������������������������35 3.6 Geospatial Market in AEC Industry ������������������������������������������������������������������������������������������������������������������������������������������������������35 3.7 Mergers and Acquisitions and Partnerships ���������������������������������������������������������������������������������������������������������������������������������������36 3.8 Benefits of Geospatial Adoption in AEC Value Chain ����������������������������������������������������������������������������������������������������������������������37 3.9 Challenges and the Way Forward ��������������������������������������������������������������������������������������������������������������������������������������������������������37 4. COUNTRIES GEOSPATIAL READINESS INDEX – 2019 �����������������������������������������������������������������������������������������������������������������������40 4.1 CGRI 2019 Assessment Framework & Research Methodology ����������������������������������������������������������������������������������������������������40

Countries Geospatial Readiness Index 2019 42 4.3 Regional Overview ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������44 4.4 CGRI-19 PILLAR Overview �������������������������������������������������������������������������������������������������������������������������������������������������������������������56 4.5 The Strategic Relevance of Geospatial Readiness ���������������������������������������������������������������������������������������������������������������������������66

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List of Figures, Graphs and Tables Figure 1.1 — Geospatial Industry and Digital Ecosystem ��������������������������������������������������������������������������������������������������������������������������������10 Figure 1.2 — Geospatial Industry Data Sources ������������������������������������������������������������������������������������������������������������������������������������������������ 11 Figure 1.3 — Geospatial Industry Dynamics ������������������������������������������������������������������������������������������������������������������������������������������������������12 Figure 1.4 — Commercial Geospatial Industry Landscape ������������������������������������������������������������������������������������������������������������������������������ 14 Figure 1.5 — Trends in Mergers & Acquisitions and Partnerships ����������������������������������������������������������������������������������������������������������������� 19 Figure 1.6 — Business Models in Geospatial Industry ������������������������������������������������������������������������������������������������������������������������������������� 23 Figure 2.1 — Location Compenents within Business Data ����������������������������������������������������������������������������������������������������������������������������� 25 Figure 2.2 — Industry Value Chain of Location Intelligence — Key Players ������������������������������������������������������������������������������������������������� 26 Figure 2.3 — Technology Drivers for Location Analytics ��������������������������������������������������������������������������������������������������������������������������������� 27 Figure 2.4 — Key Objectives for Industry Partnerships ����������������������������������������������������������������������������������������������������������������������������������� 28 Figure 2.5 — Way Forward for Location Analytics ��������������������������������������������������������������������������������������������������������������������������������������������30 Figure 3.1 — AEC Industry in the Global Economy ������������������������������������������������������������������������������������������������������������������������������������������ 32 Figure 3.2 — Integration of BIM and GIS in Construction Lifecycle ������������������������������������������������������������������������������������������������������������� 35 Figure 4.1 — Data Infrastructure Ranking Map ������������������������������������������������������������������������������������������������������������������������������������������������� 57 Figure 4.2 — Policy Framework Ranking Map ���������������������������������������������������������������������������������������������������������������������������������������������������� 59 Figure 4.3 — Percentage Regional Distribution of Core Geospatial Instituitonal Capacity ����������������������������������������������������������������������61 Figure 4.4 — User Adoption Ranking Map ����������������������������������������������������������������������������������������������������������������������������������������������������������63 Figure 4.5 — Industry Capacity Ranking Map ����������������������������������������������������������������������������������������������������������������������������������������������������65 Figure 4.6 — Geospatial Technologies Creating High-Value Impact (in US$ billion) ���������������������������������������������������������������������������������67 Graph 1.1 — Trends in M&A and Partnerships (2015-2018) ������������������������������������������������������������������������������������������������������������������������� 17 Graph 1.2 — Mergers and Partnerships in Spatial Analytics ��������������������������������������������������������������������������������������������������������������������������� 18 Graph 1.3 — Mergers and Partnerships in Earth Observation ����������������������������������������������������������������������������������������������������������������������� 18 Graph 1.4 — Mergers and Partnerships in Location Intelligence ������������������������������������������������������������������������������������������������������������������� 18 Graph 1.5 — Mergers and Partnerships in AEC �����������������������������������������������������������������������������������������������������������������������������������������������18 Graph 1.6 — Geospatial Technologies: Global Market Size ���������������������������������������������������������������������������������������������������������������������������� 21 Graph 1.7 — Geospatial Market: Region-wise Growth ������������������������������������������������������������������������������������������������������������������������������������22 Graph 2.1 — User Industry-wise Current Adoption and Expected Growth ������������������������������������������������������������������������������������������������ 29 Graph 2.2 — User Industry's Challenges �������������������������������������������������������������������������������������������������������������������������������������������������������������29 Graph 2.3 — LI Vendors' Challenges ��������������������������������������������������������������������������������������������������������������������������������������������������������������������30 Graph 3.1 — Global AEC Market, Vertical Market Size (US$ trillion) ������������������������������������������������������������������������������������������������������������ 32 Graph 3.3 — Trends in M&As and Partnerships in Construction Industry �������������������������������������������������������������������������������������������������� 36 Graph 3.4 — Benefits of Geospatial-based Solutions for AEC Industry ������������������������������������������������������������������������������������������������������ 37 Table 3.1 — Purpose of M&As and Partnerships ����������������������������������������������������������������������������������������������������������������������������������������������36

Geospatial Industry Outlook & Readiness Index | 7

List of Abbreviations AEC – Architecture, Engineering & Construction AGI – Association of Geospatial Industry ARSDI – African Regional Spatial Data Infrastructure AR – Augmented Reality BI – Business Intelligence BIM – Building Information Modelling BSDI – Bahrain Spatial Data Infrastructure CAD – Computer-Aided Design CAE – Computer-Aided Engineering CAGR – Compound Annual Growth Rate CDE – Common Data Environment CGRI – Countries Geospatial Readiness Index EO – Earth Observation

ESA – European Space Agency GDP – Gross Domestic Product GEO – Group on Earth Observations GIS – Geographic Information System GNSS – Global Navigation Satellite System GPS – Global Positioning System ICD – Columbian Data Infrastructure ICT – Information and Communications Technology IoT – Internet of Things INSPIRE – Infrastructure for Spatial Information in the European Community JAXA – Japan Aerospace Exploration Agency NASA – National Aeronautics and Space Administration

NGISSC – National GIS Steering Committee NSDI – National Spatial Data Infrastructure R&D – Research and Development ROI – Return on Investment SaSDI – South Africa Spatial Data Infrastructure SMEs – Small and Medium Size Enterprises UAE – United Arab Emirates UAVs – Unmanned Aerial Vehicles UK – United Kingdom UNGGIM – United Nations Global Geospatial Information Management USA – United States of America VAS – Value-Added Services VR – Virtual Reality

(2017) State of The Proximity Industry – Unacast

2018, European Steel in Figures 2018 covering 2008-2017, EUROFER The European Steel Association

List of Sources (2019, 2018, 2017, 2016) Industry Trends Analysis – Computing Technology Industry Association (CompTIA) (2019) Worldbank Database on Country-wise Current GDP

(2017) European Union Location Framework – European Union (2017) Sizing the Prize – PwC

(2018, 2016) Location Intelligence Market Study – Dresner Advisory

(2017, 2015) GNSS Market Report – European GSA

(2018) Market Landscape Report, Location Intelligence – Local Search Association

(2016) Whitepaper on Artificial Intelligence – Tractica

(2018) Location Platform Analysis and Evaluation – Counterpoint Research

(2016) Location Analytics Market Report – MarketsandMarkets

(2018) Location Trends – Here Technologiesa

(2016) Global Location Analytics Market Report – KBV Research

(2018) Location Platform Index: Mapping and Navigation, 1H18 – Ovum (2018) Location Intelligence and Insurance – Dmti Spatial (2018) State of Location Intelligence – Carto (2018) Location Intelligence Platforms – Forrester (2018) Highlights and Insights: Location Data Planning Resource – Unacast (2018) ICT Spending Forecast, 2018-2022 – IDC (2018) IOT Spending Guide – IDC (2018) AR/VR Spending Guide – IDC (2018) World AI Industry Development Blue Book – China Academy of Information and Communications Technology (CAICT) (2018) Artificial intelligence in India – hype or reality – PwC (2018) Global Mobile Market Report – Newzoo (2018) Global Innovation Index Report (2018) Global Location Analytics Market Report – Mordor Intelligence (2017) Mobile Location Based Services – Strategy Analytics

8 | ©Geospatial Media and Communications

2018, Steel Consumption, OECD 2017, Construction Startup and Venture Capital Activity, Cb Insights, JLL Research 2018, ConTech Investments 2017, SwissRe and CB Insights 2015, Geospatial + Building Information Modelling, Enhancing productivity, efficiency, compliances, mechanization for construction industry, Geospatial Media and Communications

(2016) Location Intelligence Strategy Update – NSW Government

Trans-European Networks for Energy, European Commission

(2014) Location Intelligence Strategy – NSW Government

2019, Eastern Partnership: Commission sets out TEN-T Investment Action Plan of €13 billion for better connectivity and stronger growth in the region, European Commission

Global Construction 2030 A global forecast of construction industry to 2030, GCP Global 2015, Assessing the global transport infrastructure market: Outlook to 2025, PWC 2018, Global GFCF Data, World Bank 2018, GDP Data, International Monetary Fund 2016, BCG, Digital in Engineering and Construction 2017, McKinsey, Construction Productivity 2017, PWC, Global Infrastructure Investment 2016, McKinsey, Bridging Global Infrastructure Gaps 2015, World Bank, Transport Sector Global Private Participation in Infrastructure Update 2016, Roland Berger, Digitalization in the construction industry Building Europe’s road to “Construction 4.0”

Internal Market, Industry, Entrepreneurship and SMEs, European Commission 2017, Handbook for the introduction of Building Information Modelling by the European Public Sector, European Commission 2016, National Infrastructure Delivery Plan 2016–2021, Infrastructure and Projects Authority, GOV.UK 2018, The Dutch Multi-Year Programme for Infrastructure, Spatial Planning and Transport (MIRT), Government of the Netherlands 2017, Polska Infrastructure 2016, Infrastructure Evidence Base Ten-Year Capital Intentions Plan 2016, Infrastructure New Zealand

2018, Steel Consumption, Worldsteel.org

2018, KPMG, Investment raises Chile infrastructure

2017, Deloitte, Overview of steel iron market 2017

2018, Colombia roads more traveled, World Bank

GLOBAL GEOSPATIAL INDUSTRY OUTLOOK

GeoBuiz - 2019

1. Geospatial Industry 1.1 Overview The geospatial industry, historically associated with land-marine survey and maps, has evolved into a set of technology segments grouped under GIS/Spatial Analytics, GNSS and Positioning, Earth Observation (EO) and Scanning. But then definitions can be tricky, especially in a fast-changing technology landscape. With the onset of a digital revolution in which the ‘where’ dimension is becoming fundamental to all decision-making, geospatial has emerged as an enabler of the entire digital space. Smartphones in every hand and advancements in computing technologies, aero-space platforms, sensors and digital communication have steered the growth and expansion of geospatial industry into new and varied applications. The continuous growth in digital infrastructure and digital technology ecosystem of Artificial Intelligence, Internet of Things (IoT), Big Data, and Cloud is further accelerating the geospatial industry’s global reach and contribution.

STANDARDS

BUSINESS INTELLIGENCE

ENTERPRISE

OPEN DATA

DIGITAL ENGINEERING

GIS/SPATIAL ANALYTICS

SOCIAL MEDIA

EARTH OBSERVATION

DRIVERS

SCANNING

INTERNET OF THINGS

APPS WORKFLOW AUTOMATION

INTERCONNECTED SYSTEMS

ARTIFICIAL INTELLIGENCE

CLOUD

WIRELESS & BROADBAND

GEOSPATIAL VALUE IN WORLD ECONOMY AND SOCIETY

DELIVERY PLATFORMS

BUSINESSES

GNSS & POSITIONING

PROCESSES

FACILITATORS

WEB PORTALS CITIZENS

GEOSPATIAL TECHNOLOGIES

GOVERNMENT

Figure 1.1 — Geospatial Industry and Digital Ecosystem

BIG IOT DATA

One of the fastest growing industries globally, geospatial industry is today helping in translation of innovation into business practices across governance, developmental activities, enterprises and society. Over the years, it has transformed itself from a mere mapping tool into a complete industrial process offering immense value in terms of enhancing productivity, cost effectiveness, transparency, safety and project management. ¤¤The GNSS and Positioning segment is primarily driven by IoT and wireless technologies with interconnected systems as the facilitators. ¤¤The Spatial Analytics segment is today mainly driven by Cloud — which has evolved from being merely a storage platform to one offering analytical capabilities with open data as the primary facilitator. ¤¤The Earth Observation industry is being primarily driven by Artificial Intelligence (AI). Interestingly, the EO segment was one of the earliest users of Cloud and Big Data, mainly owing to the humongous size of data it produces. Even as it leverages AI, one of the primary reasons is the data volume. Capacity development and innovations in AI will primarily drive the commercialization of EO revolution. Open data is one of the primary facilitators here.

10 | ©Geospatial Media and Communications

Global Geospatial Industry Outlook ¤¤The Scanning segment is being driven by Artificial Intelligence and Big Data. For HD maps to become a norm and autonomous vehicles a reality, standards has to be one of the prominent facilitators of this segment. ¤¤The next big thing for the industry is the integration of AI and machine learning with geospatial. However, there exists an acute skill gap issue. The workforce is equipped to handle the technologies used today, but is not skilled enough to manage the technologies of the future like AI, Machine Learning etc.

1.2 Geospatial Industry Data Sources The geospatial industry value chain commences with the capturing or sourcing of a wide range of geospatial data and its precise position on earth, above surface, below surface, under water and indoors. The geospatial data sources include: ¤¤Earth observation data through sensor-systems on space, aerial, terrain, sub-surface and underwater platforms; ¤¤Outdoor and indoor positioning data using space and land-sea based communication networks, respective devices, receivers and correction algorithms and; ¤¤Location data comprising geocoded business, device and other data sets from multiple sources.

The spatial data (images, point clouds, geospatial and location data) captured through sensors is processed and integrated with other spatial and non-spatial data sets to render required map content, spatial and location analytics.

These integrated data sets are made available to users either for further integration with business and decision-making processes or as a final product/service. While the national geospatial agencies are still the key content producers, the emergence of private (or commercial) data producers to meet the demands of ‘digital economy’ has been the force behind taking the geospatial industry to masses. Unlike a decade ago, today, the geospatial industry positions itself more as a 'solution and service provider' rather than a 'tool/equipment' or a 'content provider' only.

The value of the geospatial industry depends on the level of geospatial adoption by enterprises and government departments. The user end integration is defined at five levels ranging from basic use of maps to enterprise level adoption for seamless workflows.

Figure 1.2 — Geospatial Industry Data Sources

LOCATION DATA

GEOSPATIAL DATA

Outdoor Positioning/Navigation

Earth Observation Space

Aerial

SAR Satellites

Optical Satellites

Aircraft

Unmanned Aerial Vehicle

Terrain

Sub Surface

Under Water

Mobile

(USA-GPS, EU-Galileo, Russia- GLONASS, China-BEIDOU, India-IRNSS)

Submarine

Space

Mappers, Geo Taggers

Ground Penetrating RADAR

Short-range Radio Technology (Ultra Wide Band)

Satellite-based Navigation Systems

Balloon

Handheld Devices

LiDAR, Scanner, Total Stations

(India-GAGAN, VAS, IGNOS, MSAS, Japan-QZSS)

Unmanned

Bathymetric LiDAR, SONAR, Camera, Eco -Sounder

Digital Transaction Data

Magnetic Positioning RFID

Satellite-based Augmentation Systems

Indoor LiDAR/Scanner + Spherical Camera +SLAM

Connected Devices/Sensors Data

Business & Operation Data

Blue Tooth Beacon

Locator

Boat/Ship

Others Sources

Video Satellites

Camera, LiDAR Static

Indoor Positioning/Navigation

Terrain

WiFi and Cellular Signals

Ground-based Augmentation Systems

(RTK Stations, CORS Networks)

CensusDemography Data

Camera Systems SLAM

Crowd Source Data

Geospatial Industry Outlook & Readiness Index | 11

GeoBuiz - 2019 1.3 Geospatial Industry Dynamics Geospatial industry is developing at a fast pace and innovations in the technological landscape are providing thrust to this development.

Figure 1.3 — Geospatial Industry Dynamics

Technology Drivers

Market Opportunity

 Artificial Intelligence  Miniaturization of Sensors  Automation  Cloud as a Platform  Internet of Things

 Improving World Economy  Growing Geospatial Market  Crowdsourced Data  Convergence of Technologies  Mainstreaming of Geospatial

Challenges

Way Forward

 Skilling & Reskilling Workforce  Restrictive Regulations  User Mindset  Frequent Disruptions D igital Vulnerability & Cyber Security

 Coopetitive Business Models  Organic Growth with Strategic Alliance  Open Source and Standards  Enabling Public Policy  X-as-a-Service

Source: Geospatial World Magazine; based on survey of 100+ CEOs, business leaders and 1,500 geospatial industry professionals worldwide

12 | ©Geospatial Media and Communications

¤¤The drivers of the digital revolution such as Artificial Intelligence, automation, Cloud, IoT and miniaturization of sensors are adding to the momentum in the geospatial industry as well. ¤¤There are a plethora of opportunities for the geospatial industry to achieve higher growth. With the global economic situation improving, the industry is witnessing the business landscape is conducive for growth and expansion.

Mainstreaming of geospatial has and continues to add to this growth momentum. However, the industry also realizes that to achieve full potential there needs to be a convergence of various technologies, within and outside, and complete services/solutions must be offered. The industry also has to leverage the power of crowdsourced data and Web 2.0 technology to move towards analytics. ¤¤Like to all industries, geospatial industry too is facing a few hurdles in its growth pathway. Continuous disruptions and advancements in technology are cutting down gestation periods and shortening product lifespan, thus putting pressure on bottomlines. This leads to the need for skilling new workforces and re-skilling of existing ones. Lack of appropriate regulations and policies, limitations in the user mindset, and the digital vulnerability/cyber security are additional challenges being faced by the industry. ¤¤Industry insiders agree that way forward would need innovations in technology and business approaches. No wonder coopetitive business models, i.e. the need to work collaboratively as well as competitively, are gaining pace. Organic growth with strategic alliances are also the need of the hour for the industry to emerge as a service/solution-centric one. While continuous innovation remains a top priority for the industry, it also needs to adopt open source and open standards to realize full potential of technologies. Enabling regulations and public policies taking care of data privacy and security issues are also the need of the hour.

ies in Automati on

1.4 Geospatial Market: At a Glance

• Navigation • Real Estate • Autonomous Mobility • BFSI • Smart City • Hospitality • E-commerce • Fleet Management • Healthcare • Retail • Media & Advertising

• Transport Infrastructure → Airports → Ports → Railways → Road • Industrial Infrastructure • Buildings Infrastructure

• Agriculture • Urban Planning • Defense & Intelligence • Municipalities • Utilities • Natural Resources • Climate & Environment • Public Safety • Disaster management

Architecture, Engineering & Construction Market

ve rgence on C

Professional User Domains

Fu tu

Location Analytics & Business Intelligence Market

re L

Autonomous and Robotics

ospati al Marke

t

na

io

fe

ss

l Ge

o Pr

Commercial Companies

Thematic Mapping

• Technologies → GNSS & Positioning → GIS/Spatial Analytics → Earth Observation → 3D Scanning • Map Content • Solutions • Services

• Forest Cover • Water Resources • Meteorological Department • Soil Cover • Land Use and Land Cover • Hydrography

National Geospatial Agencies • National Mapping • Earth Observation/Space • Spatial Data Infrastructure • Land and Cadastre • Geological Survey • Statistics and Census

The professional geospatial market can be broadly divided into national mapping agencies, thematic mapping organizations, commercial companies and professional user domains. Primary professional users of geospatial have been agriculture, urban planning, defense & intelligence, municipalities, utilities, natural resources, climate & environment, public safety and disaster management domains.

While the use of geospatial in the traditional sectors continues to rise, the two industries that are currently witnessing large use of multiple geospatial technologies, mostly in integrated forms, are Architecture, Engineering & Construction (AEC) and the Business Intelligence & Location Intelligence. However the future of geospatial market lies in automation. As the world moves towards complete automation,we will see a huge use of geospatial technologies in times to come.

Geospatial Industry Outlook & Readiness Index | 13

Spatial Analytics

GNSS and Positioning

Earth Observation

14 | ©Geospatial Media and Communications

RADAR

LiDAR

Drone

Aerial

Satellite

Indoor Positioning

Surveying

GNSS

BIM

Map Content

Image Analytics

Location Intelligence

Explanation: Esri is present across four industry segments: GIS; Location Intelligence; Image Analytics; and Map Content

Dotted boxes represent presence of a company in particular industry segments.

Red boundary represents a company’s group across different industry segments.

Business Intelligence

Solution Providers

Scanning

GIS

Figure 1.4x.x — –Commercial IndustryLandscape Landscape Figure Commercial Geospatial Geospatial Industry

GeoBuiz - 2019

Global Geospatial Industry Outlook 1.5 Commercial Geospatial Industry Landscape Historically, the geospatial industry has witnessed the following trends: ¤¤It strongly identified itself with the geospatial data market. ¤¤Government organizations had been primarily responsible for data generation and its adoption in the user domain. ¤¤The commercial industry has focused majorly towards providing hardware, software and services to the stakeholders. ¤¤The solution companies had remained smaller in size, without paying much attention to building capacity to implement turnkey projects at large scale.

With inadequate assessment of the tangible value of the technology, it has been commonly perceived by the users that geospatial is a luxury technology to have. This fact is vindicated by the Geospatial World Magazine survey of 100+ CEOs and business leaders and 1,500+ professionals worldwide where 'user mindset' came up as a visible hurdle in the uptake of technology.

However, as we enter the digital age, and geospatial becomes the 'by-default' technology in all spheres of governance, businesses and daily lives, the industry is evolving fast. ¤¤In the past few years the geospatial industry has made a lot of sustained efforts to move towards extending product portfolios and developing seamless workflow solutions, either through acquisitions or strategic collaborations. ¤¤Major players such as Hexagon and Trimble have adopted strategic business models to develop seamless connectivity of their technologies across domains, either by acquiring new businesses or partnering with others. ¤¤While there is a move towards hardware and software integration, in some cases, tech companies have attempted to bring content capability as part of their product portfolios. ¤¤However, we are yet to see any major interaction between technology players and solution companies. ¤¤A lot of hardware companies are seen building in-house software capabilities for GIS-ready data for customers.

Spatial Analytics ¤¤The spatial analytics segment is witnessing strategic interaction among specialized domain players (GIS, location intelligence or image analytics) to develop expertise across the value chain. GIS majors like Esri and Pitney Bowes’s increasing interest in developing location intelligence expertise are cases in point. ¤¤A host of new companies have emerged targeting the location market. They are increasingly partnering with both spatial and non-spatial content companies. ¤¤There is a greater synergy between the specialized domains (GIS, location intelligence and image analytics) to deliver customized solutions to users, who are increasingly demanding analytics as a service. ¤¤GIS companies are the change-makers of this domain. For instance, Esri’s partnership with Autodesk gives it a play in the BIM area, while its collaboration with SAP and SalesForce enables it to enter the business intelligence market. Its collaboration with HERE and DigitalGlobe (a Maxar company) is aimed at enriching its content platform and democratizing its GIS application for a larger market.

Earth Observation ¤¤With the realization that pretty pics alone don’t sell and image analytics becoming a big business unit, the earth observation segment is coming out of its data-box approach. ¤¤This change has largely been sparked by the dynamic approach of a host of VC-funded NewSpace companies

Geospatial Industry Outlook & Readiness Index | 15

GeoBuiz - 2019 (majorly in the US and UK) that have not only broken technology barriers in the domain, but also ushered in a mindset overhaul. ¤¤These NewSpace companies have challenged the well established and monopolistic market, spurring incumbeats to scout for new commercial markets, and encouraging them to invest in analytics business. ¤¤For instance, Planet's recent acquisition of Boundless is for developing seamless image analytics. Similarly, DigitalGlobe's collaboration with companies like Nvidia, Amazon, Orbital Insight is to acquire expertise in image analytics. ¤¤On the other hand, the much-talked about merger between MDA and DigitalGlobe to create Maxar Technologies is to build a complete value chain in the EO segment — satellite and sensor manufacturing, communications infrastructure, data processing to analytics. ¤¤Even in the broader EO market (satellite, aerial and drone-based platforms), satellite companies are entering into the other two domains to take a leadership role in delivering integrated EO solutions. For instance, Airbus developed a drone unit and miniaturized its sensors for the said purpose. ¤¤Image analytics as a business is opening up new opportunities and soon companies in this domain will be able to deliver macro-level GIS applications. This has largely been powered by the rise in Artificial Intelligence and Machine Learning. It is here that the new-age AI-enabled companies will give established players a run for their money.

Map Content ¤¤There is also a visible trend of map content companies being proactive in partnering with a diverse set of stakeholders, forging partnerships with spatial analytics players on one hand, and chipset manufacturers, automobile manufacturers and their OEMs on the other, to expand their footprint. ¤¤Map content players are also seen increasingly collaborating with companies in infrastructure or urban administrations and have become a part of multi-stakeholder initiatives in emerging market segments of smart cities and immersive reality (3D, AR, VR, digital twin) applications.

Others ¤¤The segments of GNSS and positioning and scanning are still more about selling in boxes. ¤¤The scanning segment is actively collaborating with companies in the BIM+Geospatial segment to deliver solutions in the AEC area – a trend that has been discussed in the partnerships, mergers and acquisitions section. ¤¤A look at the market directions and trends in acquisitions show a move in this direction. ¤¤Geospatial hardware companies such as Trimble, Topcon Positioning, Hexagon, and Faro are expanding their product portfolio by way of M&As and partnerships to develop/acquire software capabilities. ¤¤Software companies such as Bentley Systems and Autodesk are developing/acquiring workflow integration capabilities.

16 | ©Geospatial Media and Communications

Global Geospatial Industry Outlook 1.6 Partnerships, Mergers and Acquisitions Geospatial Media mapped nearly 250 leading geospatial companies for their M&A and partnership activities between 2015 and 2018 to identify key trends. The number of M&As and partnerships both rose substantially during this.

M&A activities continued to rise in 2018 in a market moving towards consolidation. As expected, cash-rich companies went for the kill. A look at the mergers & acquisitions and the partnerships among 250 leading geospatial industry players shows the trend to be moving towards: ¤¤ Acquiring technical capacities in emerging technology fields; ¤¤ Partnerships with stakeholders to (co-create solutions) and leading digital technology companies (to enable the Cloud platform model); and ¤¤ Consolidation within the industry, especially in the earth observation segment.

Graph 1.1 — Trends in M&A and Partnerships (2015-2018)

158

148

137

84 52 39

2015

56

35

2016 Acquisition

2017

2018

Partnership

Source: Geospatial Media Analysis

GIS/Spatial Analytics: As indicated by Graph 1.2 (Page 18), though the GIS/Spatial Analytics Segments was lukewarm in terms of M&As, it saw a significant number of partnerships. With the clear demand for analytics as a service, GIS players were seen to be moving to bridge the gap between GIS, location analytics and map content to give integrated business intelligence solutions.

Earth Observation: The EO sector remained hot throughout the year with start-ups in commercial space (or space 2.0) segment successfully attracting venture capital as well as strategic corporate investments. M&As in the EO segment was slow but the sector witnessed some meaningful partnerships to deliver imagery as a complete service and not just a standalone product. This trend is indicated by Graph 1.3 (Page 18).

Location intelligence: This, being one of the new segments of the geospatial industry, is a relatively less mature market.

Most of the large and medium size companies are focusing on developing new applications and targeting untapped user segments. During the last four years, companies have focused on expansion through forging partnerships rather

Geospatial Industry Outlook & Readiness Index | 17

GeoBuiz - 2019 Graph 1.2 — Mergers and Partnerships in Spatial Analytics

Graph 1.3 — Mergers and Partnerships in Earth Observation

41

37

33

22 9 1

2015

5

2016

Acquisition

5

2017

3

2018

2015

50

25

2015

8 2016

Acquisition

9 2017

Partnership

Source: Geospatial Media Analysis

1

2

2

2016

2017

2018

Partnership

Source: Geospatial Media Analysis

Graph 1.4 — Mergers and Partnerships in Location Intelligence

9

8

Acquisition

Source: Geospatial Media Analysis

54

10

3

Partnership

47

11

Graph 1.5 — Mergers and Partnerships in AEC

34

45

40

35

24

22

18

2015

2016

20

11 2018

Acquisition

2017

2018

Partnership

Source: Geospatial Media Analysis

than acquisitions. A similar trend is expected to continue in the short to medium term, or till the industry begins to mature. After which, market consolidation may begin to take place. Graph 1.4 illustrates this trend.

AEC industry: As indicated by Graph 1.5, the M&A activity within the geospatial companies focused on AEC industry has increased rapidly in the past two years. Geospatial Media’s press mapping of the largest AEC-focused companies suggests that between 2016 and 2018, the number of M&A deals have increased by over 177%, while the number of partnerships among major players fell by nearly 38%. The total number for M&A and partnerships stood at 25 and 18, respectively. Large organizations like Bentley, Autodesk, Trimble, Hexagon have actively pursued growth and consolidation via acquisitions. Some of the most prominent acquisitions have been with companies that offered workflow related solutions, simulation software, 3D modelling, IoT-related solutions, etc.

18 | ©Geospatial Media and Communications

Global Geospatial Industry Outlook 1.7 Trends in Mergers & Acquisitions and Partnerships The top nine companies most active in merger & acquisitions and partnerships in 2017 and 2018 were picked up and further analyzed. It was observed these companies are very active in extending their product portfolios as well as leveraging partner networks towards expanding their market outreach. Simply put, they are trying to achieve inorganic growth to upgrade themselves in the value chain and build/consolidate their presence in the broader geospatial industry. Figure 1.5 further illustrates this trend.

Figure 1.5 — Trends in Mergers & Acquisitions and Partnerships AEC

Professional Geospatial Market • Action Modular • Plaxis Software

Bentley Systems

Trimble

Hexagon

• Agency9

• Analytical Graphics Inc • Microsoft • Siemens • NM Group • Veltec • Innovative Software Engineering

Maxar

• Viewpoint • Fabsuite

• H itachi Construction • Machinery • HCSS

• • • •

• Luciad

• AGTEK

• Bricsys

• Systems

• 10-4 systems

Brookfield (GIS) eledyne Optech T Komatsu DAQRI

• Assemble Systems • PlanGrid • Topcon •S age •U nity

• SMC

• Catavolt

• Autodesk

Autodesk

Cyient

• e-Builder • Stabiplan

• Cecium

• Vantage • CalAm • Propeller Aero • CNH • XAPT Corporation • Modern • Aquarius Spectrum

• Smart Guided

• Clevest • Building Connected • CDDT • Surbana Jurong

• Kii Corporation

• EA Technology • DigitalGlobe • Neptec Design Group • Ecopia

• Micello

Planet Topcon

• VIRES • AutonomouStuff

• Ansem N.V

• Orbital Insight

Here Technologies

Automation

• ACE Enterprise • Ebid • S-Cube • Aiworx inc • Futuretech • Legion • SoilVision • Synchro Software

• Atos • Topcon

• Savor Oy • Silvadata • Bina Vision • Bos Forestry • Miller Electronics

LI & BI

• Mapillary • Increment P Corporation • Adsquare

• Boundless

• Farmshots

• Orbital Insight

• McCormick

Dark: M&A; Light: Partnerships

• XEE • Freight • MediaTek Verify • Altair • EPAM Semicon- • Gramin ductor • Naver • Actility Corp.

• Decawave

• Consortium (Allianz Axel Springer Daimler Deutsche Bank with Postbank CORE)

• Terra Bella

• Advanced Telematic Systems

• ClearEdge3D • Viasys VDC • Autodesk

• BMW • Fujitsu • Renovo

• S k Telecom • Baidu

• ThunderBuild

Source: Geospatial Media Analysis Geospatial Industry Outlook & Readiness Index | 19

GeoBuiz - 2019 Key Takeways: • The AEC sector stands out as the most favored market segment for M&A activity for the geospatial industry, followed by Location Intelligence. There is also a prominent move towards acquiring automation capabilities.

• Companies which have broad presence in the industry as well as construction market workflow are looking at acquiring capabilities in the AEC domain, while companies that primarily have data and content focus are looking to acquire the ones with AI and analytics expertise • When it comes to building technology portfolio, acquisition is the preferred route for companies as compared to building own technology expertise. However, it is also observed that wherever there are opportunities for integration with other processes, strategic alliance becomes the preferred route.

• Bentley Systems leads the pack in 2018 with 8 acquisitions (significantly higher from 3 in 2017). All the acquisitions have been towards firming up BIM portfolio capacities.

• Hexagon continued to make some significant buys (5 in 2017 as well as 2018) to augment its presence in workflow and productivity improvement solutions. While Hexagon strengthened its CAD portfolio with the acquisition of Bricsys, more interesting was its move to acquire AutonomousStuff to bolster the move into IoT and autonomous solutions.

• Trimble acquired 6 companies. Among these, acquisition of e-builder was been the most significant to strengthen its construction program management capacities at US$ 500 million.

• Autodesk continued its push into the AEC technology sector with the acquisition of Plangrid at US$ 875 million (its biggest acquisition ever) for Cloud-based collaboration platform capabilities. Autodesk also acquired BuildingConnected, a construction segment vendor bidding platform at US$ 275 million to strengthen the procurement.

• Topcon strengthened its modelling, virtual design and construction solutions through acquisitions of ClearEdge3D and Viasys VDC.

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Global Geospatial Industry Outlook 1.8 Global Market: Size and Growth The geospatial industry was valued at an estimated US$ 339.0 billion in 2018. The cumulative geospatial industry is projected to reach US$ 439.2 billion by 2020, growing at a CAGR of 13.8%. This growth acceleration can be accredited to continuous technology advancements in the industry, democratization of geospatial information riding on integration with advancments in digital technologies and resultant innovative business models. ¤¤GNSS and Positioning technologies segment accounted for an estimated 59.4% of the total geospatial market in 2018, and is expected to maintain its share in the global geospatial industry during the forecast period (20182020). This lion's share in the market is mainly due to the growing demand for location-based information, proliferation of mobile devices and the growing need for GNSS devices in various industry segments such as agriculture, aviation, and Intelligent Transportation Systems (ITS). ¤¤The market size of the second largest geospatial technology segment — GIS/Spatial Analytics — is expected to grow at a CAGR of 12.4% during the period 2018-2020. This growth can be mainly accrued to growing adoption of spatial analytics in city planning, utilities management, e-governance, applications, retail and logistics sector, disaster management and various other applications. The Spatial Analytics industry is poised for greater growth with the demand for adding location context to data rising.

Graph 1.6 — Geospatial Technologies: Global Market Size CAGR: 11.9%

CAGR: 13.8% 439.2

339.0 299.2 269.8

3.4 34.0 42.4

5.3 4.4 37.5 46.1

40.2

75.9

66.0 88.3

57.5 78.6

50.0 69.9

44.8 56.7

12.1

62.2

52.2

113.9

127.2

143.6

2013

2014

2015

GNSS & Positioning

8.6 6.6

10.1

14.2

GIS/Spatial Analytics

161.7

178.4

2016

2017 Earth Observation

201.5

2018 3D Scanning

228.7

260.8

2019

2020

In Billion US$

193.6

215.2

241.2

385.3

Total Geospatial Market

Source: Adapted from Market Research Reports available in public domain (list available in the references section) and Geospatial Media Analysis

Geospatial Industry Outlook & Readiness Index | 21

GeoBuiz - 2019 ¤¤The Earth Observation industry, estimated to be worth US$ 57.5 billion, is expected to touch US$ 75.9 billion in 2020, growing at a CAGR of 15.0%. With the smallsat and nanosat revolution in full swing, shift towards highresolution and near-real-time data offering and expansion of value-added services, the demand for EO-data is set to increase significantly over the next three years. ¤¤The global Scanning market is currently estimated at US$ 10.1 billion and expected to reach US$ 14.2 billion by 2020, registering an impressive CAGR of approximately 18.2% during the forecast period of 2018-2020. The surging acceptance of scanning solutions in architecture and engineering, automobile and aerospace designing and the integration of indoor and outdoor spatial data environments are the key factors driving this market growth of the scanning segment.

1.9 Regional Markets: Size and Growth As the global geospatial industry continues to gain relevance and maturity, the overall market is expected to grow at a high rate during the forecast period (Graph 1.7). ¤¤Research indicates that USA and Europe will continue to lead the market. This finding has been corroborated by the Geospatial World Magazine survey which finds USA and Europe to be the most lucrative markets. ¤¤The 2018 GeoBuiz Report indicated that the Asia-Pacific Region is the fastest growing region for the geospatial industry with an estimated market share of 30.3%. This again, to a great extent matches with the findings of the Geospatial World Magazine Survey. According to business leaders, India and China are third and fourth, respectively in the list. These two Asian powerhouses, coupled with other APAC economies, will surely make Asian region the growth center in times to come.

Graph 1.7 — Geospatial Market: Region-wise Growth

USA

Europe

India

China

Australia

APAC

Middle East

Africa

Latin America

Source: Geospatial World Magazine; based on survey of 100+ CEOs, business leaders and 1,500 geospatial industry professionals worldwide

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Global Geospatial Industry Outlook ¤¤The demand for geospatial data and services in these regions is going to be driven by sharp expansion of the user base–aided by numerous initiatives being taken by the governments in these regions to bridge the prevailing digital divide. ¤¤Africa and Middle East, will see a sharp increase in the usage of geospatial information and technology in the future years. However, despite the high growth rate, the market share of these regions is not likely to see major changes since the base value is low.

1.10 Business Models The geospatial industry is not only getting transformed by new technologies, but also by emerging business models.

With frequent disruptions, reduced gestation periods and shorter product/solution life-spans, the industry is adopting new business models to manage profit vulnerabilities.

The Geospatial World Magazine survey, through focused survey groups and interactions with the geospatial industry leaders, has found that one of the foremost business models driving the geospatial industry is the X-asa-Service Model. Several segments of the geospatial spectrum have traditionally been product-oriented, which essentially offered piecemeal products, instead of end-to-end solutions. The end consumer was required to either develop in-house capacity or hire consultants or system integrators to help with its implementation, operations and maintenance. However, with the gradual realization of consumer preferences/limitations and increasing market competition, X-as-a-Service is emerging as the complete consumer-centric business model. It is expected to gain further momentum as these technologies expand their applicability and reach out to new user segments.

Figure 1.6 — Business Models in Geospatial Industry

01

X - As a Service

02 Business Models

03 04 05

Coopetition & Partnerships

Subscription/ Pay-per-use

Consultation

Platforms

Source: Geospatial World Magazine; based on survey of 100+ CEOs, business leaders and 1,500 geospatial industry professionals worldwide

Geospatial Industry Outlook & Readiness Index | 23

GeoBuiz - 2019 Another important emerging business model is the Coopetition & Partnerships. An increasingly larger number of companies in the geospatial domain are now entering into partnerships to deliver better and customized solutions to their customers and to enter new markets, customer segments and regions.

In case of the Subscription/Pay-per-use Model, which has been prevalent trend in the industry for the past few years, the primary focus is to encourage the user community/clients to ‘subscribe’ for content or analysis, software and hardware by essentially paying a small subscription fee. Because of the smaller upfront investment and low cost of upgradation, this business model has been highly effective in capturing new consumer segments that were earlier not utilizing the potential of geospatial technologies on account of budgetary constraints.

The Consultation Business, which has been an established model in the geospatial industry, bridges the ‘technological skills and domain expertise gap’ that exists between the technology/product vendor and end user. It involves the need assessment for potential users, identifying the best possible fit available from the vendors and putting together a tailored, ready-to-use system for clients. This business model is growing because of the fact that technology vendors do not adequately understand user-domain related intricacies, while the users are well equipped to keep up with the plethora of technology options and development that are regularly being introduced in the market.

Another important business model is the Platform Model. It has already started to bring about disruptions in the geospatial industry. The Platform business model harnesses scalable networks of users, enables ecosystem-value creation, and drives innovation models bringing in an enterprise-wide transformation. This model is inclusive of the Platform-as-a-service model and the economic model of platform, which is inclusive of apps, marketplace and microservices. However, because this model requires huge resources to develop the necessary technology infrastructure and ecosystem, its adaption by the is expected to be slow.

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Global Geospatial Industry Outlook

2. Location and Business Intelligence Market 2.1 Overview Location Intelligence solutions are one of the relatively new components of the geospatial industry. It is a means of combining location data with business data/processes in order to draw meaningful insights, discover relationships between various factors and identify trends. It has a wide range of applications ranging from rendering basic features such as map-based visualization to enabling complex analytics for scenario analysis. Location Analytics solutions and platforms are also being used to create services based on real-time movement of objects (people, vehicles, packages, etc.)

For Location Intelligence, a user needs to either capture/curate location data related to its operations, or procure it from a third-party. In general, most businesses, institutes and government bodies routinely collect vast amounts of data on their assets, operations, transactions, human resources, customers, citizens, etc. While the level of details at which these data points are collected may vary for each one of them, usually, there is always some location component which can be utilized for generating business intelligence.

Figure 2.1 – Location Compenents within Business Data Business Data Assets Database

Address of offices, outlets, machines, warehouses, etc.

O&M Schedule

Location of the equipment scheduled for repair and maintenance

HR Database

Inventory Database

Address of employees, travel requirements

Itemized data on availability of specific items tagged to outlets, warehouses, etc.

SCM Database

Address of transport assets, vehicles and points of source and delivery

CRM Database

Demographic data of consumers including Zip code/city/state etc.

Location Contents

For example, an organization that runs logistics operations would usually maintain information on the location of its warehouses, location of vehicles, routes, etc. Similarly, another organization that runs a chain of restaurants, maintains a database on outlets, warehouses, delivery channels and other related attributes. Most of these datasets normally contain a location aspect within them. According to a 2018 report on the ‘State of Location’ by Carto, nearly 94% of all organizations collect and/or store location data in some form.

2.2 Industry Value Chain and Landscape The value chain of Location Intelligence begins with creating software or platforms, geocoding engines with analytics features, added with map rendering capabilities and simulation algorithms. This is followed by capturing map and location data, which includes getting the map data (base maps, satellite imageries, map layers, etc.) and geographic coordinates of objects and Points-of-Interest (PoI). These are integrated with business data and processes to create user and industry specific solutions.

Geospatial Industry Outlook & Readiness Index | 25

GeoBuiz - 2019 Figure 2.2 – Industry Value Chain of Location Intelligence – Key Players Enterprise Applications

Software and Platforms

Map and Location Data

Solutions and Services

Consumer Applications

The industry landscape of LI is a mix of well-established and large players such as Google, HERE, Esri, Apple, Baidu, etc. on one end, and new players offering innovative solutions, location data and map contents on the other.

This industry map shows the current portfolio distribution of major Location Intelligence organizations under three categories: ¤¤Platform/Software ¤¤Map Contents and Location Data ¤¤Solutions and Services The large players within the LI industry have so far not shown great interest in building their presence in solutions. Their portfolios look more focused on using the location intelligence technology for developing software/platforms and enriching the content data.

In contrast, newer entrants in the market have looked to form their niche in the specific industries of their expertise, and therefore they deal directly with the endusers with their customized and readyto-use solutions in the market.

Innovative solutions of organizations such as GroundTruth, Foursquare and Ubisense are helping the Location Intelligence industry expand its user base. Given the relevance that location-based solutions

High Presence

26 | ©Geospatial Media and Communications

Moderate Presence

Low/No Presence

Global Geospatial Industry Outlook have demonstrated over the last decade for a variety of sectors, it is expected that the industry landscape will continue to see new players offering interesting breakthroughs.

2.3 Technology Drivers The permeation of technologies such as IoT, Big Data Analytics, Cloud Computing, Artificial Intelligence, etc. have also greatly aided the spurt in adoption of Location Intelligence solutions.

Future

Blockchain

Current

While Artificial Intelligence, Autonomous Systems and IoT have a relatively moderate impact on Location Intelligence industry at present, their impact in future is expected to be tremendous.

The advent of 5G will transform the amount of location data that can be captured and will lead to new and innovative services. This will fundamentally require location awareness.

Figure 2.3 – Technology Drivers for Location Analytics

HD Maps Artificial/Virtual Reality

Low Impact

HD Maps Artificial/Virtual Reality

Autonomous Systems Artificial Intelligence Internet of Things

Medium Impact

5G Internet of Things Artificial Intelligence Autonomous Systems

Big Data Analytics Cloud Computing

High Impact

Some of the current drivers such as ‘Big Data’ and ‘Cloud Computing’ may gradually transform into being fundamental enablers or pre-requisites in the near future, just as broadband connectivity is today. These drivers influence: • • • • •

Expanding the user base; Reducing the cost of acquisition; Speed of data acquisition and service delivery; Ever-growing list of formats for adoption (software, portal, app, platform, plug-ins, etc.); Fundamental requirement of location awareness for many new services.

2.4 Industry Trends With the growing focus of modern-day businesses on exploring the shared economy models, the Location Intelligence industry is playing a crucial role. For effective delivery of services, the location data of assets, customers, partners and the distribution network is of the essence. Such business models have already grown to prominence in public transport, hospitality, real estate, etc. and continue to expand it reach — effectively expanding the opportunities for LI with it.

Many of the large Location Analytics players are gradually adopting platform-based solutions and services models.

Platforms have many advantages that suit a wide array of modern-day applications as it provides a more collaborative environment, offers agility and requires comparatively less resources for deploying. Aided by growing Big Data and Cloud Computing capabilities, it is therefore expected that most of the mid-tier vendors will embrace the ‘platform’ model in future.

LI service and solution providers are focusing on integrating real-time data to cater to industries such as media and advertising, automobiles, city traffic management, etc. The growing availability of consumers’ location data, prevalence of sensors data through IoT and widespread availability of Could Computing is enabling analytics and rendering of real-time data.

Geospatial Industry Outlook & Readiness Index | 27

GeoBuiz - 2019 Indoor mapping has emerged as a big segment of Location Intelligence industry. Most of the major players, including Google, HERE and Baidu, are investing aggressively in building indoor maps either organically or through partnerships and acquisitions. Indoor mapping is slated to be a big market for media and advertising sector. However, its scope may be limited in countries which have high penetration of organized retail players.

Autonomous mobility is going to make Location Intelligence a fundamental requirement, even for the most basic operations. The fact that location awareness of vehicles, road, traffic, routes will have to be integrated right from R&D stage to the actual operations, is encouraging Location Intelligence vendors and automobile OEM companies to work together to develop future-ready solutions.

2.5 Partnerships and Collaborations ¤¤Collaboration with user industries has been the most common objective of partnerships within the Location Intelligence industry. Partnerships with automobile OEMs and solution providers have been remarkably strong.

Location Analytics industry is aggressively partnering with companies working on solutions for autonomous mobility. For example, TomTom and NVIDIA partnering for Cloud-to-car mapping system. TomTom also partnered with Cisco for IoT data and with Bosch to develop solutions. ¤¤Embedment with Business Intelligence solutions for wider use of Location Intelligence technology has been the second most common theme during 2014-2018. Some of the main examples include Esri’s partnership with Microsoft for its Power BI unit; Microsoft Azure Technologies and Carto's partnership for enterprise deployments; Pitney Bowes’ partnership with SAP HANA; etc.

29.9%

15.4%

11.2%

10.4%

9.1%

Product and Service Enrichment

Collaboration with User Industries

Portfolio Diversification

Embedment with Business Analytics

Augmenting IT Capabilities

Source: Geospatial Media Survey

24.1%

Others

% of total partnerships mapped within the LI Industry

Graph XX: Region-wise Market Share of LI inPartnerships 2018 Figure 2.4 – Key Objectives for Industry

Source: Geospatial Media Analytics

¤¤Augmenting IT Capabilities: Location Intelligence companies entered into several partnerships with IT firms. Many of them for Cloud Computing capabilities. For example, Pitney Bowes’ partnership with IBM’s BlueMix Platform; HERE partnered with MediaTek for developing future ready chipsets, among others. ¤¤Vertical Integration: Tier-1 Location Intelligence companies invested in building capacity (data) — their partnerships focused on getting different types of geospatial data, map contents, developing location engines, etc. These partnerships focused on forging closer associations with organizations from the ‘upstream’ of Location Intelligence value chain. Apt examples are TomTom's partnership with Bosch for road-condition data in 2016; HERE Maps partnering with Mapillary for map contents in 2016.

28 | ©Geospatial Media and Communications

Global Geospatial Industry Outlook ¤¤Portfolio Diversification: Location Intelligence companies also forged partnerships to boost their capabilities and to develop new services or reach out to new user segments. Nearly 12.7% of all partnerships evaluated by Geospatial Media accord for the aforementioned reason. For example, PlaceIQ and IRI partnership to combine location and customer purchase data. ¤¤Geographical Expansion: Partnerships of HERE with country-specific players such as Zenrin (Japan) and Baidu (China) for offering more comprehensive navigation services.

2.6 Key User Industries Graph 2.1 – User Industry-wise Current Adoption and Expected Growth

Smart City Administration

BFSI/Fintech

Future Current

Logistics and Mobility

Hospitality and Tourism

Real Estate

0

2

4

6

8

Weighted average of survey responses rated on a scale of 1 to 10

Media and Advertising

10

Source: Geospatial Media Survey

Location Intelligence solutions are quickly expanding across diverse industry segments because of inherent advantages, such as: ¤¤Ease of implementation and integration with BI solutions; ¤¤Non-reliance on geospatially-trained human resource; and ¤¤Prevalence of location data within business data.

The growth rates for Advertising and Market, BFSI/Fintech and Mobility are widely expected to be higher than the industry average. These user segments may therefore see their market share improve over the period.

Non-alignment with opera onal goals

3.7

Absence of reliable system integrators

3.5

Uneconomical value propos on

3.5

Unavailability of skilled manpower

3.2

Lack of awareness about LI

3.0

Absence of local solu on vendors

2.7

Weighted average of survey responses rated on a scale of 1 to 5

Graph 2.2 – User Industry's Challenges

Source: Geospatial Media Analysis

Acquiring real- me data Data privacy regula ons

Geospatial Industry4.5 Outlook & Readiness Index | 29 4.5

Uneconomical value propos on

3.5

Unavailability of skilled manpower

3.2

of awareness about LI GeoBuiz - Lack 2019

3.0

Absence of local solu on vendors

2.7

Acquiring real- me data

4.5

Data privacy regula ons

4.5

Limited awareness among users

4.0

Data quality and accuracy

3.6

Availability of skilled manpower Processing unstructured loc

on data

2.9

Weighted average of survey responses rated on a scale of 1 to 5

Graph 2.3 – LI Vendors' Challenges

2.6

Source: Geospatial Media Analysis

2.7 Challenges One of the biggest challenges in the adoption of Location Intelligence is that users are not yet aware of the role that these solutions can play in their strategic decision-making as well as day-to-day operations. Resultantly, majority of the users are not able to see the connect between Location Intelligence and their operational goals

Figure 2.5 – Way Forward for Location Analytics • Investments in developing the ecosystem for efficient use and application

• Convergence with complementary technologies will enhance value proposition of Location Analytics Solutions

• Participate in the growth of value chain and digital transformation

• Cross-disciplinary convergence for expansion of user base

• Innovative business models will help the Location Analytics industry reach out to new and wider user segments

• Collaboration with user industries to develop best-fit solutions

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Global Geospatial Industry Outlook

Acquisition and distribution of location data has become increasingly more controversial with the growing concerns around data privacy. Industry players are apprehensive of the impact that the changing public discourse and policy landscape is having on the subject.

2.8 Way Forward For the long-term and sustained growth of the Location Intelligence industry, the stakeholders must focus on meeting some of the basic requirements, which include continuous collaboration of user industries, convergence of technologies, innovative business models and participation in development of the market ecosystem.

Geospatial Industry Outlook & Readiness Index | 31

GeoBuiz - 2019

3. Geospatial Market in AEC Industry 3.1 Overview The Architecture, Engineering & Construction (AEC) industry assimilates professionals from the architecture, engineering and construction background to achieve a common goal. Through assimilation, the professionals in the three separate industries are able to deliver the final output in an efficient manner. The AEC industry comprises industrial, building and transport infrastructure. The transport sector consists of airports, railways, seaport and roadways infrastructure.

Figure 3.1 – AEC Industry in the Global Economy

13.3% of Global GDP 7% of the Global workforce $11.3 Trillion

Productivity gains averaging at two decades

Annual Revenue (2018)

1% each year in last

AEC Industry

Growth at a CAGR of

4% in next five years

Asia-Pacific to lead the construction market with share in 2022

66.1%

Source: Geospatial Media and Analysis

3.2 AEC Industry: Vertical Market Size The global AEC industry (transport, buildings and industrial) is estimated to be worth US$ 11.30 trillion in 2018 and is projected to reach US$ 13.21 trillion by 2022, growing at an estimated CAGR of 4%.

Graph 3.1 – Global AEC Market, Vertical Market Size (US$ trillion) CAGR: 4%

CAGR: 4%

US$ 9.67

US$ 13.22

US$ 11.30

8.25

7.08 6.08

Transport Infrastructure

2.65

0.06 0.06 0.26

0.94

Industrial Infrastructure Buildings Infrastructure

0.07 0.08 0.31

1.13

0.07 0.10 0.37

2014 32 | ©Geospatial Media and Communications

1.36

Source: Adapted from Market Research Reports available in public domain

0.68

0.68

0.56

3.60

3.09

Airports Ports Railways Road

2018

2022

Global Geospatial Industry Outlook 3.3 AEC Industry: Emerging Trends

Integrated Approach to Infrastructure Development

Investments in AEC Industry

Digitalization of the Construction Industry

Analysis of the government initiatives on effective national infrastructure planning and construction sector management demonstrates the trend towards:

Private sector investments in Greenfield and Brownfield investments via PPP are critical; Investments in ConTech on the rise

The ‘opportunity size’ of productivity gains by digitalization of the construction industry lies between 12% to 20% i.e. equal to $1 trillion to $1.7 trillion annually in 2016, according to the Boston Consulting Group.

• Integrated program and planning approach instead of individual projects at various government levels.

• Nodal institutional mechanisms for national level infrastructure sector planning, policy development, development of roadmap for adoption of best practices, technology and standards.

• Adoption of project life cycle management practices, enhancing project timeline and revenue visibility with government support is key to enhance private investments in the projects to meet demand-supply gap.

• During 2011-2017 period, start-ups in ConTech have attracted an investment of approx. $10 billion for BIM, data-gathering analytics, design and planning software, among many other things.

• Digital technology solutions such as Cloud and mobile, Internet of Things (IoT), AR/VR and Artificial Intelligence in addition to BIM are aiding digitalization of the construction industry for productivity gains.

• BIM enables the construction industry to harness the advantages of working in a Connected Data Environment (CDE) for evidence-based decision support systems throughout the life-cycle of a project.

3.4 Geospatial Technologies in the AEC Industry Value Chain Geospatial technologies are one of the key technologies set to revolutionize the AEC industry in the near future.

Geospatial technologies (hardware and software) are foreseen to improve efficiency and productivity metrics. ¤¤Remote sensing and photogrammetry have radically transformed the first step before construction i.e. the land surveying ensuring accuracy of every inch. ¤¤LiDAR and 3D laser scanning provides real-time and continuous monitoring of construction sites throughout the entire project lifecycle while simultaneously reducing timelines, costs and increasing accuracy and quality. ¤¤Deployment of GPS devices in construction cycle helps to improve fleet and equipment tracking, provide more accurate and location-based site surveying, and streamline workers efficiency to enhance overall productivity. ¤¤GIS extends BIM, bringing efficiency to construction planning and design by integrating location and thematic information in a single environment.

The Geospatial industry's position in the AEC industry value chain ensures high resolution data for decision making, efficient use of resources, timely awareness, and enhanced accuracy and productivity in the overall construction projects.

(Details about the role of geospatial technologies in AEC industry are present in the ‘Geospatial market in AEC Industry’ report)

Geospatial Industry Outlook & Readiness Index | 33

Geospatial Industry - Capability Map for AEC Workflow INTERGRATION OF GEOSPATIAL IN COVNSTRUCTION WORKFLOW Data Capture Hardware products

Services

Spatial Visualization and Analytics Visualization

Analytics

Construction Software Project Management

BIM and CAD

System Integration and Solutions

Hardware & Software

Software

System Integrators and Solutions

Services

(Analysis of 55 companies is available in ‘Geospatial Market in AEC Industry’ report)

Company's capability

Offerings via Partnerships

During the last five years, data capture technologies companies have continuously been investing in developing software capabilities, offering analytics-ready data. They have moved further ahead in acquiring BIM capabilities to deliver a complete range of production solutions across construction workflows. Some of the geospatial and design software companies have made a series of acquisitions & partnerships in the BIM sector and have gradually developed into a BIM solution company. However, there are not many indications of BIM companies acquiring geospatial companies.

34 | ©Geospatial Media and Communications

Global Geospatial Industry Outlook 3.5 Integration of BIM with GIS Integration of geospatial information with design and engineering workflow data, 3D modelling, simulation, scenario analysis, change detection, etc. delivers the much-desired seamlessness among different spatial and non-spatial datasets. The interface between geospatial and BIM creates a binding synergy between spatial, technical and commercial data attributes helping the AEC industry to derive and schedule a cost-effective, and time-saving execution. Geospatial information, along with other digital data and location dimension, adds spatial visualization to the BIM environment, facilitating seamless data exchange among the engineering and environment professionals, eliminating data redundancy and improving data integration workflows for better project planning.

Figure 3.2 – Integration of BIM and GIS in Construction Lifecycle Data Collection

Impact Mitigation

Simulations

Regulation and Permission

Study of Alternatives Spatial Plan Business Coordination

Citizen Participation Geo-data driven Approval Plans

Cost Calculation

Construction Process Simulation

Design and Engineering

Construction Logistics Planning

BIM Related Processes

Billing Operations and Maintenance

Recycling Redesign Revitalization

Monitoring

Visualization

Documentation

Planning

Conceptual Design Decommissioning

New cycle of construction

Spatial Awareness

Monitoring Operations and Operating Costs

Construction

Geospatially Informed Processes

Creating Common Data Environment (CDE)

Protection Measures On-site design changes Machineautomated Construction ground work Construction Site Monitoring progress of Logistics

Enforcement

Construction Logistics

3.6 Geospatial Market in AEC Industry The geospatial market in AEC industry is estimated to be worth US$ 58.49 billion in 2018, equivalent to 0.52% of the global AEC industry. The surge in requirement of resilience infrastructure is expected to be a major factor which will lead to growth of geospatial in AEC industry over the forecasted period.

Port

Airport Railway

US$ 10.62 Billion

43.3%

Global Revenue

US$ 58.49 Billion (2018)

18.2% Road

Transport Infrastructure Building Infrastructure North America Europe Middle East

Industrial Infrastructure

South America Asia-Pacific Africa

(Details about the role of geospatial technologies in AEC industry are present in the ‘Geospatial market in AEC Industry’ report) Geospatial Industry Outlook & Readiness Index | 35

GeoBuiz - 2019 3.7 Mergers and Acquisitions and Partnerships Graph 3.3 – Trends in M&As and Partnerships in Construction Industry

45 40 34 35 24 22

2015

20

18

2016

2017 Mergers & Acquisition

2018 Partnerships

Source: Geospatial Media Analysis

Table 3.1 — Purpose of M&As and Partnerships

Business Trends

Geospatial Company Typology Software

Mergers and Acquisitions Hardware

Software

Purpose • Focus on digitization and automation of the AEC workflow to provide one-stop solution and connect construction processes across design, build and operations.

• To integrate proven and unique site optimization technology for BIM Advancement and advanced 3D visualizations.

• To solve the complexity of delivering vertical building projects on time and in less budget by helping contractors improve quality and safety.

• Investments in analytical companies to enhance capabilities in Data modelling, 3D visualization, CAD/CAE, BIM and 3D Asset Management .

• Strategic partnerships with hardware companies to improve data capture capabilities (3D photogrammetry, 3D Laser Scanning, and UAVs) to improve outcomes for project delivery.

• To enhance and extend BIM beyond architectural and engineering designs.

• To simplify project lifecycle to set up better collaboration and communication in different stages by incorporating mobile apps on handheld devices.

Partnerships Hardware

• To create seamless workflow integration so as to enable transfer of data and position directly from robotic total stations to the mobile app; to develop solutions that will enhance customers’ current workflow and real-time visibility.

(Read in-depth analysis of reasons for Mergers, Acquisitions and Partnerships in ‘Geospatial Market in AEC Industry’ report)

36 | ©Geospatial Media and Communications

Global Geospatial Industry Outlook 3.8 Benefits of Geospatial Adoption in AEC Value Chain Project Management Benefits: Geospatial Media’s survey finds that easy spatial coordination and structural analysis is one of the key benefits derived from geospatial-based integrated solutions along with faster designing and structural analysis. The use of geospatial technologies such as GPS, LiDAR, 3D laser scanning, remote sensing, etc., optimizes the schedule for surveying and monitoring while simultaneously maintaining accuracy and quality.

Graph 3.4 – Benefits of Geospatial-based Solutions for AEC Industry Faster designing and drafting Easy spatial coordination and structural analysis Improved collective understanding of design intent Optimization of schedule, cost and speed Higher customization and flexibility Real-time communication, coordination, collaboration Source: Geospatial Media Analysis

3.9 Challenges and the Way Forward Challenges High cost of implementation

1

Lack of well-established value propositions (RoI)

2

Lack of skilled human resources and resistance to change

3

Lack of standards and unclear policy framework

4

Prejudice that BIM+Geo technologies are only for large projects

5

The Way Forward

1

2

3

4

Collaboration between universities, construction companies and geospatial industry stakeholders to enhance educational and training capacity Formulation of conducive policy framework in collaboration with industry stakeholders Focus on smaller, relatable examples instead of flagship projects bringing to end the prejudice that integrated BIM and geospatial technologies are only for bigger projects Integration with new-age disruptive technologies such as IoT, Cloud computing, virtual reality solutions for developing innovative solutions

The way forward to address the current challenges faced in BIM implementation is directly connected to enhancing the knowledge and awareness of BIM value-proposition among clients, CAD and GIS professionals and contractors and construction workers alike. In addition, the use of best practices and realistic use cases are relatively the easiest ways to dispel the myth of BIM and geospatial being relevant only for bigger projects. An enabling policy framework in support of technology adoption is a key solution to address all challenges.

Geospatial Industry Outlook & Readiness Index | 37

COUNTRIES GEOSPATIAL READINESS INDEX-2019

GeoBuiz - 2019

4. Countries Geospatial Readiness Index – 2019 The Countries Geospatial Readiness Index (CGRI)-2019, first introduced in 2017 by Geospatial Media and Communications, is now in its 3rd edition. The index is aimed to equip decision makers and larger community of stakeholders with a comparative framework to refer, as well as to engage effectively on various parameters for holistic development of the geospatial sector. It provides actionable insights on various constituents critical for development of an integrated approach for geospatial sector management for effective contribution to socio-economic growth and to achieve developmental objectives in any given country. In this edition, the Countries Geospatial Readiness Index-2019 has expanded the scope of the study to cover 75 countries (increased from 50 countries in past two editions).

4.1 CGRI 2019 Assessment Framework & Research Methodology The CGRI-2019 builds and improves on last year’s data collection while simultaneously deepening the analysis processes for overall appraisal of geospatial readiness of 75 countries. The research methodology for the study includes a combination of primary and secondary research. Relevant stakeholders have been approached for direct interactions and through online questionnaires. Further, information and insights obtained from the primary sources have been supplemented and validated through secondary sources (research papers and digital sources) to ensure authenticity of data research.

Data Infrastructure An efficient geospatial data infrastructure and its governance facilitate access, distribution and use of geospatial data and information in a country. Institutional mechanisms like national spatial data infrastructure (NSDI), national mapping and survey agencies, earth observation (or remote sensing) agencies, geospatial information coordination mechanisms are responsible for integrated geospatial management in the country and responsible for development of core geospatial infrastructure components such as geodetic frameworks, platforms and portals, data delivery mechanisms.

Policy Framework A conducive and aspirational policy framework is necessary to stimulate the geospatial technology-industry ecosystem in a country. The final assessment of the policy framework of 75 countries integrates the global e-government development index and the open data barometer scores .

Institutional Framework Geospatial domain education and research institutes, delivering a spectrum of courses ranging from short duration certificate courses (skill and capacity development) to research programs, are fundamental to advancing the frontiers of geospatial science & technology domains and its applications in a country are key to its geospatial readiness. More than 1,530 institutions and 5,800 courses have been mapped in the 75 countries under assessment for varied course levels as pure or interdisciplinary (electives of GIS and remote sensing) offerings. The comparative assessment of the countries has been made on the basis of their relative strengths in geospatial domain courses, institutes and integrating strengths of national higher education systems.

User Adoption Level The proliferation of evidence-based decision-making capacities at various user segments provide the imperatives for the industry to flourish. The agility of user ecosystem of the country in adopting geospatial solutions to derive

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Countries Geospatial Readiness Index (CGRI) Framework improvements in planning and monitoring, productivity and efficiency gains in business processes, delivery of consumer and citizen services, business intelligence is a key determinant of geospatial readiness of the country. User adoption level scores have been ascertained on the basis of information collected for various parameters through secondary sources and primary survey-based user perspectives collected from group meetings and questionnaires.

Industry Fabric The Geospatial industry's capacity to develop and deliver solutions and services to the customers, to collaborate and engage with various stakeholders through knowledge sharing and business development networks, new venture creation and technology research and commercialization support ecosystems are strong indicators to assess the geospatial industry ecosystem in countries. Further, the Country’s Global Innovation Index ranking has been included in analysis of geospatial domain-specific innovation support programs.

CGRI-19 Assessment Framework Pillars

Sub Pillars

Factors

Weightage

Stages of NSDI Topographic and Earth Observation Data Infrastructure

Scale and Frequency of Update of Available Thematic Layers Open and Linked Data Earth Observation Infrastructure and Data Resolutions

Data Infrastructure

20%

Satellite-Based Positioning Systems Positioning Infrastructure

Satellite-Based Augmentation Systems Ground-Based Augmentation Systems (RTK Base Stations and GCPS)

Platforms and Portals

Stage of Geospatial Technology Architecture

Standards National Geospatial Policy Core Geospatial Policy Framework

Open Data Policy Space-EO-GNSS Policy Drone Policy

Policy Framework

Science and Technology (S&T) and Innovation Policy Enabling Policies Framework

10%

Information and Communication Technology Policy + Telecom Policy Digital/AI/IoT Strategy BIM Plan/Strategy/ Policy

Knowledge Creation Institutional Capacity

Research Courses Post-Graduate Courses 20%

Graduate Courses Foundational Academia

Diploma Courses Certificate Courses

Mapping or Service Level Asset Management/Business Process Modelling User Adoption

20%

Analytics and Workflow Level System Integration Level Enterprise Level Industry Capacity

Industry Fabric

Industry Networks Innovation Promotion

Existence Of Industries In Different Geospatial Technology Segments Industry Networks

30%

Knowledge Networks Incubation And Accelerator Programs

Geospatial Industry Outlook & Readiness Index | 41

ASPIRERS

CHALLENGERS

LEADERS

GeoBuiz - 2019

COUNTRIES GEOSPATIAL

Rank 2019

Country

CGRI- 2019 Score (0-100)

1

USA

100.00

2

United Kingdom

62.16

3

Germany

49.51

4

The Netherlands

47.03

5

Canada

44.45

6

Denmark

44.06

7

China

41.19

8

Singapore

41.16

9

Belgium

41.11

10

Switzerland

40.94

Rank 2019

Country

CGRI- 2019 Score (0-100)

11

France

40.11

12

Japan

39.03

13

South Korea

38.70

14

Ireland

38.60

15

Australia

38.10

16

Austria

37.54

17

Sweden

37.14

18

Norway

36.82

19

Spain

36.79

20

New Zealand

35.77

21

Finland

35.54

22

Russia

35.27

23

Poland

35.18

24

Italy

34.12

25

India

31.91

26

Portugal

31.71

Rank 2019

Country

CGRI- 2019 Score (0-100)

27

Israel

26.90

28

UAE

26.50

29

Greece

26.20

30

Estonia

25.25

31

South Africa

24.42

32

Ukraine

23.62

33

Brazil

23.56

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Highest Rank

Lowest Rank

READINESS INDEX 2019 ASPIRERS

Countries Geospatial Readiness Index (CGRI) Framework

*USA’s score is identified as the benchmark *All countries scored relative to this benchmark

Rank 2019

Country

CGRI- 2019 Score (0-100)

34

Bulgaria

23.23

35

Hungary

22.68

36

Thailand

21.82

37

Philippines

20.17

38

Indonesia

19.94

39

Malaysia

19.66

40

Bahrain

18.65

41

Saudi Arabia

18.20

42

Colombia

16.84

43

Chile

16.32

44

Mexico

15.69

45

Brunei

15.47

46

Qatar

15.43

47

Kazakhstan

15.40

48

Kenya

15.09

49

Iran

14.98

50

Argentina

14.57

51

Egypt

14.43

52

Nigeria

14.21

53

Uruguay

13.53

54

Sri Lanka

13.46

55

Vietnam

13.32

56

Botswana

11.94

57

Ethiopia

11.89

58

Costa Rica

11.04

59

Rwanda

10.68

60

Morocco

10.53

61

Jamaica

10.38

62

Oman

10.33

63

Dominican Republic

10.23

64

Tanzania

10.01

65

Ghana

9.82

66

Azerbaijan

9.81

67

Bangladesh

9.68

68

Zimbabwe

9.62

69

Nepal

9.41

70

Namibia

9.30

71

Jordan

8.81

72

Uganda

7.97

73

Kyrgyz Republic

7.54

74

El Salvador

6.79

75

Sudan

5.77

Geospatial Industry Outlook & Readiness Index | 43

GeoBuiz - 2019

4.3 REGIONAL OVERVIEW NORTH AMERICA NORTH AMERICA RANKINGS COUNTRY

OVERALL OVERALL REGIONAL SCORE RANK RANK

USA

82.6

1

1

Canada

44.45

5

2

Mexico

15.69

44

3

Costa Rica

11.04

58

4

Regional Average

38.44

A collaborative approach, maybe?

The North America regional readiness story is two sides of the same coin; wherein USA and Canada outperform many developed countries to take the 1st and 5th position on CGRI-19, Mexico and Costa Rica, even though scoring on awareness, find themselves struggling to get out of the Aspirer’s bloc of geospatial readiness index.

In this case, will a collaborative approach among these countries work?

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T

he United States of America retains its numero uno position continuing from the last two editions of Countries Geospatial Readiness Index, making it the most geospatial-ready country, yet again. From a regional perspective, owing to USA’s 1st position and Canada’s 5th position (up two places from CGRI-18), the North America region continues to dominate the regional geospatial readiness for third year running. Even though Mexico and Costa Rica rank relatively low globally when compared to their other two counterparts; these countries are taking multitudes of initiatives to make themselves geospatial ready.

The countries in the North America region mostly operate in silos with each economy taking initiatives at the national level to promulgate the rise and adoption of geospatial solutions. In this respect, USA and Canada both continued to take necessary steps to strengthen the collective use of spatial data in the country. If there was one single cause that could be attributed to USA dethroning the UK from the top position on the CGRI-19 Policy Framework pillar this year, it was the clearance of the Geospatial Data Act 2017 by the US Congress. Also, the announcement of the National Space Strategy in 2018 added definite layers to the country's existing Space-Based Positioning, Navigation and Timing policy (2004), and the Commercial Remote Sensing Space Policy (2003). Not far behind is Canada, with its own Geospatial Operation Policy in place and a Space Strategy by the Canadian Space Agency in pipeline. With regard to having a well-defined and documented policy, both Mexico and Costa Rica fail to impress.

USA continues its dominance in the CGRI-19 Data Infrastructure pillar as well. The country has a rich heritage of having highest scale thematic layers (1:200-1:1,250) such as cadastral, topography, utility network, transport network, among many others with almost a monthly update.

Additionally, the country is a leader in earth observation, and has its own satellite-based positioning system, i.e. the GPS, a pioneer and still unmatched by any other positioning system in the world. While Canada closely follows USA; Mexico and Costa Rica, the two emerging markets have been able to successfully begin their NSDI journey in recent years.

Further, to build up their earth observation data capabilities, these countries are signing cooperation agreements with space agency around the globe (inclusive of ISRO, CNES, NASA) – showcasing a willingness to expand their geospatial readiness spectrum.

Supporting the development of data is the Institutional throughput and capability, which are at the core of North America’s Geospatial Readiness.

Countries Geospatial Readiness Index (CGRI) Framework Yet again, institutional capabilities of USA and Canada are unmatched.

Universities and colleges in these countries offer a wide and diverse range of core geospatial-related courses at research and post graduate levels; Thus building up graduate capabilities in the domain by offering ‘interdisciplinary’ course as an elective at School of Engineering, Architecture, and Agriculture and Forestry. Though ranking low on the CGRI-19 Institutional Capability pillar, Mexico and Costa Rica offer high number of diploma and certificate programs and geospatial courses to cater to the immediate demands of the students.

Of the 1,535 universities mapped for CGRI-19 Institutional Capability Pillar, 45.36% of those Universities are based in the North American region

The North America region is up for an exciting time ahead. With its regional readiness score the highest — the region should attract businesses to meet the demands of both developed and developing countries alike. The two sides of the North America — one a hub for innovation and growth and the other with willingness to learn, experiment and expand its readiness spectrum — the region is ripe for growth with future possibilities.

GEOSPATIAL MARKET IN NORTH AMERICA: TODAY AND TOMORROW

US$ 113.14 Billion (2018E)

US$ 138.17 CAGR 10.51% Billion (2020F)

US$ 67.13 Billion GNSS Positioning

US$ 29.23 Billion Earth Observation

US$ 36.26 Billion

GIS Spatial Analytics

US$ 5.55 Billion

Scanning

2020F Source: GeoBuiz-18: Geospatial Media Analysis

T

he Geospatial industry ecosystem of the North America region is primarily dominated by the USA, followed significantly by Canada. In CGRI-19’s Industry pillar, USA ranks at the top for all factors i.e. in terms of industry networks and knowledge networks; for innovation promotion and for having a vibrant ecosystem in all geospatial technology segments and across products, solutions, and services segments supported by the capabilities of a strong ecosystem to foster new ventures in the geospatial domain. The highest concentration of geospatial industry, professional and knowledge networks in the USA, mirrors the critical mass across value chain/sector segments.

Similarly, Canada stands at number 4 in the whole industry index, duly supported by a strong geospatial industry and innovation programs such as Tecterra. Geospatial Media’s analysis finds that both USA and Canada are home to companies as old as three decades; while simultaneously having the highest number of start-ups in geospatial domain.

In terms of the market, the region continues to be the largest at present with an estimated market share of 33.6% in 2018, growing at a CAGR of 10.51% between 2018 and 2020. Like for all other regions, the GNSS and Positioning technology segment is going to dominate the market with an estimated share of 48.56% in 2020. Additionally, as Mexico and Costa Rica move from Stage II of user adoption, i.e. asset mapping, monitoring and management, to Stage III, i.e. the analytics and workflow integration, in the next five years, and USA and Canada complete their transition to Stage V of User Adoption, i.e. the Enterprise wise adoption (CGRI-19 User Adoption Pillar), the demand for GIS and Spatial Analytics segment is going to see an unprecedented growth in the region, and is estimated to reach US$36.26 billion in 2020.

Geospatial Industry Outlook & Readiness Index | 45

GeoBuiz - 2019

EUROPE EUROPE RANKINGS COUNTRY

OVERALL OVERALL SCORE RANK

REGIONAL RANK

United Kingdom

62.16

2

1

Germany

49.51

3

2

The Netherlands

47.03

4

3

Denmark

44.06

6

4

Belgium

41.11

9

5

Switzerland

40.94

10

6

France

40.11

11

7

Ireland

38.60

14

8

Austria

37.54

16

9

Sweden

37.14

17

10

Norway

36.82

18

11

Spain

36.79

19

12

Finland

35.54

21

13

Russia

35.27

22

14

Poland

35.18

23

15

Italy

34.12

24

16

Portugal

31.71

26

17

Greece

26.20

29

18

Estonia

25.25

30

19

Ukraine

23.62

32

20

Bulgaria

23.23

34

21

Hungary

22.68

35

22

Regional Average

36.57

T

he European region continues to uphold its 2nd position in the regional assessment of geospatial readiness. Supported by integrated policy frameworks and mechanisms such as the INSPIRE Directive, and the European Space Strategy, European countries continue to dominate the top 25 of the readiness indexes.

The INSPIRE Directive, along with the European Space Policy and the Copernicus strategy, is aimed at providing significant benefits to the European (and global) community. Over the last decade, the European Commission has significantly and strategically invested in building common data infrastructure capabilities as well as GNSS and EO capabilities to formulate the digital infrastructure backbone of the economy. While the INSPIRE Directive has played a critical role in shaping the NSDI infrastructure in all 35 European countries, it is the initiatives by the European Space Agency under its Space strategy and Space policy that is aimed at supporting research, innovation and initiatives to develop competitiveness among nations — a result of which is seen in the CGRI-19 rankings.

In addition to geospatial-related initiatives, a common approach on the Digital Agenda of the European Union, formulation of the BIM Task Group to transform the construction sector, National Research and Innovation Strategy 2020, and the Horizon 2020 Strategy aid to the development and enablement of the geospatial readiness of the region. These integrated frameworks serve as infrastructural backbone for geospatial advancement and progression in any country.

Many of the European countries such as Germany, the Netherlands, Spain, Poland, France, Norway, Finland and Sweden conform to these policies by building their own suitable policies around it (as also in the case of INSPIRE). Further, United Kingdom, Germany, Switzerland, the Netherland, Spain, Sweden, Italy and Norway have well-defined innovation, science, and technology advancement policies, and strategic programs in place. These countries also have a high focus on digital governance initiatives and legislative frameworks to advance new technologies and transforming infrastructure-construction sector.

Further, the European Commission is largely focused at encouraging public/private sector partnerships as a new business model to remain competitive in the international market. The European Commission’s SME initiative; ESA’s Industrial Policy and ESA’s Business Incubation Centers, are all aimed at emphasizing the critical role of the private sector and the need for building a local industry. CGRI-19 finds many European countries to have moved into top 10 of the Industry Fabric

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Countries Geospatial Readiness Index (CGRI) Framework Pillar as compared to CGRI-18, i.e. Denmark, the Netherlands, Norway, and Finland are few of the countries that have benefitted largely from having ESA Business Incubation Centers in their home grounds; along with enabling national policy frameworks designed in alignment with the regional level policies for private sector development.

Ever heard of the Arctic SDI? Few European countries, namely, Denmark, Finland, Iceland, Norway, and Sweden, apart from following the INSPIRE Directive also follow a collaborative partner-based effort by the national mapping agencies called the Arctic SDI. The effort is supported by the advanced priorities of 2015-2020 Arctic SDI Strategy plan which provides the stakeholders of these countries to access geographically related Arctic data, digital maps, and tools to facilitate monitoring and decision-making.

In this regard, many European countries have taken the initiative to extend their start-up VISA services to attract entrepreneurial capital, notably among national innovation programs with focus on international participants such as: ¤¤French-Tech VISA in a program with 12 French tech centres across the country, enabling international Start-Up Founders, Tech Employees & Tech Investors to settle in France. ¤¤Start-up and Scaleup Denmark is a much-in demand accelerator program that intends to establish an ‘elite’ of high growth companies (and SMEs). ¤¤Nordic Innovation among Sweden, Denmark, Finland and Norway support innovation projects and programs to stimulate innovation in the Nordic markets.

Therefore, it is no surprise these countries rank high on the Industry Fabric Pillar of CGRI-19

GEOSPATIAL MARKET IN EUROPE: TODAY AND TOMORROW

US$ 86.47 Billion (2018E)

US$ 108.22 CAGR 11.87% Billion (2020F)

US$ 69.50 Billion

US$ 19.45 Billion

GNSS Positioning

GIS Spatial Analytics

US$ 15.26 Billion

US$ 4.01 Billion

Earth Observation

Scanning

2020F Source: GeoBuiz-18: Geospatial Media Analysis

D

igital initiatives, ICT and BIM policies by the European Commission has stimulated the use of geospatial and location data use in sectors such as telecommunications, construction, smart cities, utilities, and many others. Leading European countries such as the United Kingdom, the Netherlands, Germany, Denmark, Norway, Finland, France, Belgium, Italy and Sweden have undertaken focused initiatives to encourage the demand for geospatial data and services across different levels of public administrations, and rank high in the CGRI-19 User Adoption Level. Almost all European economies are somewhere in between system integration and the enterprise level of adoption.

This increasing level of use is also a sign for the geospatial industry players to address the market size of geospatial technologies. In Europe, thanks to the now-global coverage of Galileo, there is a rise in businesses providing GNSS equipment and services. Similarly, due to free and open data strategy of Copernicus program the European region is going to see a growth in Earth Observation market (VAS included) with an estimated CAGR of 16.36% in the next two years.

Geospatial Geospatial Industry Industry Outlook Outlook & Readiness & Readiness Index Index | 47 | 47

GeoBuiz - 2019

ASIA PACIFIC ASIA PACIFIC RANKINGS COUNTRY

OVERALL OVERALL SCORE RANK

REGIONAL RANK

China

41.19

7

1

Singapore

41.16

8

2

Japan

39.03

12

3

South Korea

38.70

13

4

Australia

38.10

15

5

New Zealand

35.77

20

6

India

31.91

25

7

Thailand

21.82

36

8

Philippines

20.17

37

9

Indonesia

19.94

38

10

Malaysia

19.66

39

11

Brunei

15.47

45

12

Sri Lanka

13.46

54

13

Vietnam

13.32

55

14

Bangladesh

9.68

67

15

Nepal

9.41

69

16

Regional Average

T

he Asia-Pacific region is deemed as the ‘engine’ of the global economy as it constantly continues to outstrip its western peers with an above average GDP growth rate of 3% (and more!).

As many of the Asian economies are working towards becoming the next ‘Silicon Valley’, the economies of this region continue to perform exceptionally in the Countries Geospatial Readiness Index-19. Of the total 16 countries assessed, 7 of them, — China, Singapore, Japan, South Korea, Australia, New Zealand and India — are in top 25 of the index. This performance further extends at sub-pillar level wherein these countries are competing shoulder-to-shoulder with the world leaders.

Historically, from a geospatial perspective, almost all Asia-Pacific countries have been working with an intention to strengthen and improve their geospatial readiness spectrum through dedicated policy efforts and cohesive approaches. Indonesia was the first country in the world to pass the Geospatial Information Act in 2011, to create an NSDI and promote spatial data sharing between government agencies. Ever since, many economies of the region have begun to draft their own geospatial and allied policies to support geospatial infrastructure and information use.

Additionally, the countries in the region are taking proactive measures to develop functional, effective and advanced data infrastructure. For instance, Australia established its Space Agency in July 2018 and Sri Lanka launched its NSDI portal in December 2018.

25.55

In terms of EO capabilities, China and India are progressing fast in space research, having carried out memorable missions in space over the past two-three years. While high-scale and high-resolution data dissemination continues to be a challenge, countries are working at national levels to address the same. Many countries lack earth observation capabilities of their own, and hence they collaborate with international space agencies such as JAXA, ISRO ESA, NASA to acquire and further disseminate data to businesses and citizens. For instance, the cooperation agreement between the European Commission and the Australian government is to ensure that Australia shall have high-speed access to data from the Sentinels through its Copernicus Data Access Infrastructure. In return, Australia has established a regional data access and analysis hub to facilitate Copernicus data access and exchange.

The technological advantage of the Asian economies is only valuable due to the high number of institutions and courses being offered by institutes of these countries to develop geospatial technology related capabilities.

Almost 30% of institutes assessed for the geospatial readiness index are located in the Asia-Pacific region. Unlike the developed economies

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Countries Geospatial Readiness Index (CGRI) Framework of Europe, USA and Canada, the top 10 geospatial ready countries of the region offer a wide combination of pure and inter-disciplinary geospatial and geospatial-related courses.

Universities in China, India, Singapore, Australia and New Zealand, in addition to offering research and post graduate courses in geospatial, have also developed GIS and remote sensing research labs to facilitate investigation and innovation in geospatial information. Philippines, Indonesia, Malaysia and Vietnam offer more graduate, diploma and certificate courses to create ‘geo-intelligent’ workforce.

The Asia Pacific region is witnessing an increasing demand for the convergence and integration of geospatial with other mainstream applications. The overall region is at the point of a breakthrough so much so that the use of geospatial solutions is now being mandated in government projects. The readiness index showcases that the region is ready to move from the challenger’s spectrum of geospatial readiness to leaders in coming times.

Critical policy developments of past three years include: • India: National Geospatial Policy 2016 (Draft), Space Activities Bill 2017(Draft), Digital Communication Policy 2018 and the Drone Regulations 1.0 • New Zealand: New Zealand Geospatial Strategy for Spatial Data Infrastructure; New Zealand Space Policy (2016) • Sri Lanka: National Data Sharing Policy 2018 • Malaysia: National Geospatial Master Plan (on-going); Outer Space Act (Draft) • Vietnam: National Spatial Plan and Space Policy (Draft) for digital maps and tools to facilitate monitoring and decision-making.

GEOSPATIAL MARKET IN ASIA PACIFIC: TODAY AND TOMORROW

US$ 102.80 Billion (2018E)

CAGR 17.98%

US$ 143.10 Billion (2020F)

US$ 94.29 Billion

US$ 23.80 Billion

GNSS and Positioning

GIS and Spatial Analytics

US$ 21.18 Billion

US$ 3.82 Billion

Earth Observation

Scanning

2020F

Source: GeoBuiz-18: Geospatial Media Analysis

T

he geospatial industry of the Asia Pacific region is witnessing a substantial growth owing to shifting of the market dynamics. In the CGRI-19 Industry Fabric pillar, China and India rank at number 10 and 11, respectively. Geospatial industry development is encouraged and supported by national technology business incubation centers such as GIS Innovation Hub (GIS) by Esri India, and Space Incubation by ISRO; National Hi-tech R&D Fund of China; industry and knowledge networks such as Association of Geospatial Industry. India and Chinese Association of Science and Technology aim to support building the geospatial ecosystem in these countries. Further, the industries are benefitting from the high economic growth and advancing adoption levels, especially at central and public administration levels.

In the CGRI-19 User Adoption pillar, Singapore, China and South Korea rank in the top 10, highlighting advanced stage of geospatial solutions adoption in these countries. The users of these countries are transitioning from Stage III of user adoption, i.e. from analytics and workflow level, to stage IV, i.e. the system integration level.

In terms of geospatial market, the Asia-Pacific region is going to be the fastest growing region (in absolute terms). By 2020, the region is expected to have a market share of 32.6%, surpassing North America and Europe. The GNSS and Position segment is going to be the largest market for the region, estimated to grow from US$ 69.27 billion in 2018 to US$ 94.29 billion in 2020.

Geospatial Industry Outlook & Readiness Index | 49

GeoBuiz - 2019

AFRICA AFRICA RANKINGS COUNTRY

OVERALL OVERALL SCORE RANK

REGIONAL RANK

South Africa

24.42

31

1

Kenya

15.09

48

2

Egypt

14.43

51

3

Nigeria

14.21

52

4

Botswana

11.94

56

5

Ethiopia

11.89

57

6

Rwanda

10.68

59

7

Morocco

10.53

60

8

Tanzania

10.01

64

9

Ghana

9.82

65

10

Zimbabwe

9.62

68

11

Namibia

9.30

70

12

Uganda

7.97

72

13

Sudan

5.77

75

14

Regional Average

T

he African region continues to hold the fourth position in the regional geospatial readiness score derived from CGRI-19.

Barring South Africa, all countries in assessment showcase a feeble performance in the overall geospatial readiness index. While even South Africa misses the mark of 30, three countries, namely, Namibia, Uganda and Sudan, fall in the lowest of the readiness spectrum, i.e. ranking at 70, 72 and 75, respectively. The scope for improvement for the Africa region (and countries) in geospatial readiness is extremely high; however, it is impossible to determine how long will it take.

Under the African Union, the region has a defined common approach to NSDI — i.e. the African Regional Spatial Data Infrastructure (ARSDI) paradigm. However, not much is known about the initiative and its implementation structure. While South Africa under the Spatial Data Infrastructure Act (2003) has set up its NSDI (SaSdi), even after implementation, it figures somewhere between Stage I and Stage II. The law is old, and the implementation guidelines do not conform to recent technology innovations. Further, the region also does not foster easy private sector participation which is currently foreseen to be one of the major challenges for geospatial readiness in the region.

11.83

This year, for the CGRI-19 Policy Framework, the African Space Policy and the African Space Strategy by and for the African Union countries have been taken into account. Foreseen as an initiative by the region to construct a more efficient space infrastructure, the policy is wellreceived from a geospatial readiness perspective. However, concerns exist within the Union regarding addressing the challenges of poverty, inequality, unemployment, disease, and making ‘space’ a ‘political’ priority. At present, South Africa, Egypt, Ghana, and Nigeria are the major space players in the region, though nothing in comparison to their European and Asian counterparts. In such a scenario, the region has to leverage international collaborations and seek help from leading countries on their space and geospatial information management frameworks and institutional capacities.

The lack of pure geospatial courses in Africa is one of the crucial reasons for resistance to change and adoption geospatial solutions as part of the daily workflow.

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On assessing the Institutional Capability of African Countries under the CGRI-19 pillar, it is found that the focus of these universities is offering diploma and short-term certificate programs in geographic information systems and remote sensing that enables the workforce to be geospatially ready quickly. A common thought among stakeholders is that the course structure in the universities need to be designed

Countries Geospatial Readiness Index (CGRI) Framework according to American and European coursework.

However, the will to educate and create awareness about geospatial solutions exists in these regions and therefore, study tours for government and students are occasionally being organized (funded by developed countries) in places such as London, the Netherlands, Germany, Finland and Denmark.

ecosystem in the country. More often than not, the adoption of geospatial solutions is approved on project basis, especially those which involve meeting the Sustainable Development Goals (SDGs).

Data sharing in African countries is also a major challenge. Lack of proper open data policy in the region is one of the major hindrances for the adoption of geospatial information and technology. Alternatively, the policy makers and decision makers of most of these countries do not understand the importance of implementing suitable laws and legislations and policies for the development of a successful technology

What’s driving Africa’s Growth? ¤¤ Global economic ties ¤¤ Rise of African urban customer ¤¤ Increasing investments ¤¤ Increasing technology awareness ¤¤ Ghana, Ethiopia, Tanzania lead Africa’s growth

GEOSPATIAL MARKET IN AFRICA: TODAY AND TOMORROW

US$ 6.94 Billion

US$ 8.26 Billion (2018E)

US$ 12.02 CAGR 20.63% Billion (2020F)

US$ 2.76 Billion

GNSS and Positioning

GIS and Spatial Analytics

US$ 2.28 Billion

US$ 0.05 Billion

Earth Observation

Scanning

2020F

Source: GeoBuiz-18: Geospatial Media Analysis

R

wanda, Namibia, Sudan and Tanzania rank fare poorly in user adoption and are at Stage I of CGRI-19 User Adoption as they are still struggling to develop their capabilities to provide digital map-based visualization.

Additionally, many of these countries do not have a well-formulated policy structure that mandates the use of geospatial information and solution in national and local projects. However, the countries in the region do recognize the need for geospatial products and services for informed decision making and, therefore, leverage support from multilateral organizations such as GEO, UNGGIM and the World Bank.

Egypt, Kyrgyz Republic, Ethiopia, Zimbabwe, Kazakhstan, Botswana, Brunei, Rwanda, Sudan and Tanzania rank poorly in the CGRI-2019 Industry Fabric pillar as these countries have few (or no) knowledge networks to promote research and experience sharing in various geospatial domains. The geospatial industry and professionals in these countries are part of ICT, mining and national industry chambers. The governments in these countries are interested in scaling up micro and small entrepreneurs and not the large geospatial private sector industries.

Even with poor geospatial readiness, the market for geospatial technologies in Africa is expected to grow at the fastest rate as compared to all regions, i.e. at a CAGR of 20.38% in the next two years. However, despite the high growth rates, the market share of the region is not expected to be of much value since the base value is very low.

For the region to take any successful steps towards a flourishing geospatial market, it needs to work on its geospatial readiness and move forward in the broader spectrum.

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GeoBuiz - 2019

MIDDLE-EAST & CENTRAL ASIA MIDDLE-EAST & CENTRAL ASIA RANKINGS COUNTRY

OVERALL OVERALL SCORE RANK

REGIONAL RANK

Israel

26.90

27

1

UAE

26.50

28

2

Bahrain

18.65

40

3

Saudi Arabia

18.20

41

4

Qatar

15.43

46

5

Kazakhstan

15.40

47

6

Iran

14.98

49

7

Oman

10.33

62

8

Azerbaijan

9.81

66

9

Jordan

8.81

71

10

Kyrgyz Republic

7.54

73

11

Regional Average

15.69

T

he Middle East and Central Asia region is among the most ‘prolific’ users of geospatial solutions. However, as a region on a whole, it is an aspirer in the Countries Geospatial Readiness Index-19. With the exception of Israel and UAE, all other countries in this region do not perform up to the expectation in the Countries Geospatial Readiness Index-19.

Israel, UAE, Bahrain, Saudi Arabia and Qatar are the only countries that have a functional NSDI in place to facilitate easy access to spatial information and data. In Bahrain, for the implementation of the Bahrain Spatial Data Infrastructure (BSDI), a National GIS Steering Committee (NGISSC) has been established which has also formulated a Data Exchange Policy for the said purpose. In Israel, the Survey of Israel is responsible for maintaining the SDI and the geoportal which is a national site that displays the framework along with 120 more layers of governmental data in a user-friendly environment. In Jordan, a feasibility study is underway for assessing the National Spatial Data Infrastructure in the country. In terms of space infrastructure and policies, UAE, Israel, Bahrain and Saudi Arabia have a well-defined space program or policy in place.

In recent years, it has been seen that many of the Middle East and Central Asian economies such as Israel, UAE, Bahrain, Saudi Arabia, Oman, Qatar and Kazakhstan have made remarkable progress in integrating geospatial technologies and information into many of its governance infrastructures to optimize the benefits of geospatial capabilities. The National Mapping Agencies of these countries, mostly also responsible for the NSDI, are making regular efforts to create, harmonize and disseminate quality spatial information for government departments.

Israel stands out from these countries, offering a high number of geospatial domain courses and advanced research facilities, interdisciplinary courses and electives and certificate and diploma courses to meet the need for everyday geo-intelligent workforce.

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For the CGRI-19 Institutional Capability, it is found that many of the countries of this region, such as Azerbaijan, Oman, Kyrgyz Republic, and Jordan, do not have research-focused geospatial courses or geospatial labs. The number of postgraduate and graduate courses are comparatively low, and the main focus of these countries is to provide certificate and diploma programs, thus not developing advanced and progressive geospatial capabilities in prospective students.

In terms of CGRI-19 User Adoption pillar, while awareness about the potential benefits of geospatial solutions exists in the region, the implementation of it is still at a nascent stage. Except for UAE and Israel, which rank in the top 30 at 26th and 29th, respectively, in other countries of this region, it is seen that the rest of the countries are

Countries Geospatial Readiness Index (CGRI) Framework either at stage I or in between stage I and stage II of user adoption. An assessment of the degree of usage of geospatial information and technology indicates that there is only a small section of users who are using geospatial solutions in their work.

Over the last years, in the region, many countries have seen a conspicuous migration to digital maps from hard copy paper maps. Yet, today in terms of usage, a lot of government departments and individual users still rely heavily on print maps and hard copies instead of digital copies. This lack of use of geospatial information has to do with availability, accessibility and quality of information and services.

The Middle East and Central Asia region are witnessing an accelerated growth of population translating into a stable growth rate after the oil crisis. While the region

is on a rebound, the use of information technology and geospatial technology is rapidly rising. It is recommended that these economies move towards a collaborative approach with the private sector and academia and research to formulate geospatial strategy and enhance user adoption.

Key Sectors for Geospatial Technologies: ¤¤ Oil & Gas ¤¤ Utilities ¤¤ Telecommunications ¤¤ Infrastructure ¤¤ Defense and Internal Security

GEOSPATIAL MARKET IN MIDDLE EAST AND CENTRAL ASIA: TODAY AND TOMORROW

US$ 7.27 Billion

US$ 9.57 Billion (2018E)

CAGR 18.60%

US$ 13.46 Billion (2020F)

US$ 2.67 Billion

GNSS and Positioning

GIS and Spatial Analytics

US$ 3.04 Billion

US$ 0.48 Billion

Earth Observation

Scanning

2020F

Source: GeoBuiz-18: Geospatial Media Analysis

T

he Middle East and Central Asian countries have strong government support programs for SMEs and startups, especially so in UAE, Saudi Arab, Bahrain, Brunei and Oman. These countries have structured mechanisms for venture funding, entrepreneur capacity development, incubation and acceleration hubs involving collaborations and strategic support of corporates and countries like the UK. However, instead of geospatial, the integrated industry approaches are more focused on FinTech, ICT and manufacturing SMEs. The geospatial industry in these countries (with the exception of Israel and UAE) are mainly distributors, resellers, or subsidiaries of foreign geospatial industry.

The development of product and solution companies and new geospatial venture creation mechanisms in these countries are relatively weak or insignificant compared to the leader and challenger countries. There is an imperative need to encourage public-private partnership in order to develop the local industry capacity.

The Middle East and Central Asia region is expected to have a global market share of 3.1% in 2020. The use of geospatial information and technology is going to continue its steady growth with the market being driven by the GNSS and Positioning and the Earth Observation segment. The market size of the geospatial technology is expected to rise from US$9.57 billion in 2018 to US$13.46 billion in 2020; showcasing a potential for businesses to leverage on geospatial awareness in the region.

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GeoBuiz - 2019

SOUTH AMERICA AND THE CARIBBEAN SOUTH AMERICA AND CARIBBEAN RANKINGS` COUNTRY

OVERALL OVERALL REGIONAL SCORE RANK RANK

Brazil

23.56

33

1

Colombia

16.84

42

2

Chile

16.32

43

3

Argentina

14.57

50

4

Uruguay

13.53

53

5

Jamaica

10.38

61

6

Dominican Republic

10.23

63

7

El Salvador

6.79

74

8

Regional Average

14.03

T

he last of the regions in the regional geospatial readiness is the South American and the Caribbean region. With the exception of Brazil, which continues to lead the region since the last two years, the rest of the countries are at a moderately lower level of geospatial readiness spectrum. The one country that has continuously failed over the past three years in making a mark in the geospatial readiness index is El Salvador; pushing the overall regional score to a new low.

Brazil, Colombia, Chile and Argentina are a few countries that have a functional NSDI at stage-I with limited effectiveness, i.e. lacking user engagement and uptake of geospatial information. These countries are also backed by policy mechanisms. Brazil’s Presidential Decree No. 6666 of 2008 that established the NSDI in the country; DANE's Decree 3851 of 2006 which created an administrative system for basic official information, which in turn led to the Colombian Data Infrastructure (ICD); Jamaica’s National Spatial Data Infrastructure (NSDI) policy advanced for approval (in draft — 2016); and Chile’s National Geospatial Policy which is in Parliament for approval.

Jamaica, Dominican Republic and El Salvador rank extremely low in the overall geospatial readiness index. While the El Salvador National Geographic Institute was one of the first agencies to launch a Cloudbased map service, lack of data integration at high thematic layers and enabling policy frameworks brings the score of the country down.

At present, these countries are still in the process of identifying and laying strong guidelines to formulate geospatial strategies for developing an NSDI, institutional capabilities, and for public and private use.

The NSDIs of Brazil and Mexico are known to offer a number of services, including an online, interactive map viewer providing relevant, accurate, and timely spatial information for national development.

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In terms of space capabilities, most countries are said to be ‘moderate’, while venturing into building their own satellites, and infrastructure capabilities in cooperation with the ESA, NASA and CNSA. Additionally, governments are investing in formulating national space programs and strategies to promote space capabilities in the region.

For instance, in October 2017, the Brazilian Ministry of Defence announced the drafting of a new blueprint to revamp the country’s space program, which includes the establishment of a national council for space affairs and an executive committee for space. Argentina, Mexico, Chile and Costa Rica, on the other hand, have developed new satellites domestically, highlighting the interest of South American countries in enhancing their space capabilities.

Countries Geospatial Readiness Index (CGRI) Framework In terms of the CGRI-19 Institutional Capability pillar, while the universities in Brazil, Colombia, Chile and Argentina are focusing more on enhancing geospatial knowledge through post-graduate and graduate interdisciplinary courses (more focussed on GIS), the rest of the countries in the region are mostly focusing on certificate and diploma programs. While these shortterm courses are much appreciated by most of the students who want quick employment in the sector, these courses do not enable innovation in the country which in return affects the growth of the local industry.

The user adoption of geospatial solutions in the region is largely restricted to the public sector which too faces its own challenges. The lack of convergence between different government departments, ministries and institutions brings with it problems of planning and cohesion. The region sees an ‘unorganized’ demand for geospatial data and technology which leads to data

duplicacy, unnecessary state spending and inefficient utilization of available resources.

Latin America has been witnessing a steady economic growth along with a growing understanding of the benefits of geospatial information and technology, which in turn is attracting interests and investments from various multilateral organizations, and core geospatial industry players.

Reason for low geospatial readiness score: ¤¤ Absence of policy guidelines, ¤¤ Dearth of human resources ¤¤ Inadequate geospatial investments ¤¤ Weak geospatial industry

GEOSPATIAL MARKET IN SOUTH AMERICA & THE CARIBBEAN: TODAY AND TOMORROW

US$ 7.27 Billion

US$ 9.57 Billion (2018E)

CAGR 18.60%

US$ 13.46 Billion (2020F)

US$ 2.67 Billion

GNSS and Positioning

GIS and Spatial Analytics

US$ 3.04 Billion

US$ 0.48 Billion

Earth Observation

Scanning

2020F

Source: GeoBuiz-18: Geospatial Media Analysis

I

n most of the countries, the users have begun to transition from stage II to stage III of CGRI-19 User Adoption; and its impact on the industry ecosystem, duly supported by incubation and innovation programs such as Startup Chile and Startup Brazil, has been substantial. At present, the geospatial industry in the region is primarily services oriented with few product (hardware and software) companies developed locally. Given the user potential and the projected market size (below), the time is right for the industry to step in and address the potential market.

The market for geospatial technologies in the South American and Caribbean region is expected to grow at a CAGR of 14.70%, estimating the market to be US$ 24.27 billion in 2020. The market is going to be driven by the GNSS and Positioning segment, driven by increased pervasiveness of GNSS-enabled devices and improved connectivity of public infrastructure systems. The GNSS and Positioning market is estimated to be US$ 15.70 billion in 2020; followed by the Earth Observation market which is estimated to be US$ 4.94 billion in 2020. The market potential and opportunity in the region is high as awareness of technologies is pushed through conferences, reading materials and other resources.

Geospatial Industry Outlook & Readiness Index | 55

GeoBuiz - 2019

4.4 CGRI-19 PILLAR OVERVIEW PILLAR I: Geospatial Data Infrastructure The geospatial data infrastructure of a country is indicative of an enabling environment for facilitating access to data, distribution of data and efficient use of information and intelligence derived from the data. The geospatial data infrastructure pillar is the foundation pillar of the Geospatial Readiness Index, representing a country's dedication to ensuring the functional mechanism of key institutions like the National Geospatial Agencies (National Mapping Agencies, Geological Agencies, Space Agencies, etc.) and the National Spatial Data Infrastructure (NSDI).

NSDI: In terms of the NSDI, regional level frameworks like the INSPIRE Directive and the Arctic SDI framework have been of great significance. The INSPIRE Directive, launched in 2007, ensures compatibility and usability of SDIs for the EU member states in a ‘community and transboundary context’. In a general context, NSDI frameworks at regional and national levels are critical for the development of spatial policies, for enhancing the use of spatial datasets, and for sharing of information in an integrated format.

Positioning Infrastructure: Inclusive of positioning systems (GNSS capabilities), augmentation systems and geodetic infrastructure (RTK base stations and Ground Control Points), a well-established and efficient positioning infrastructure system makes a country ‘strategically’ ready. Though smaller economies do not need to establish their GNSS or SBAS capability, their continued dependence for real-time positioning on the systems of the developed countries puts them at a disadvantage. While USA’s GPS, Russia’s GLONASS, the EU’s Galileo, and China’s Beidou provide global coverage; India’s NAVIC and Japan's QZSS provide regional coverage. These countries can provide tactical assistance to the military, and its citizens if ever there is the need.

Earth Observation: Earth Observation (EO) data provides substantial socio-economic benefits to countries to develop evidence-based decision support systems. Today, many countries have developed their Earth Observation satellites and programs to ensure unhindered and universal access to Earth Observation data and services. USA’s Landsat program, European Space Agency’s Copernicus program and Indian Space Research Organization’s EO program are globally known programs that provide high-resolution EO data for a significant number of applications.

Technology Architecture: A critical component of the data infrastructure of a country is the technology architecture (platforms and portals) that makes available the collected spatial data for use and application to government departments and the citizens. It is noted, that while countries like the US, UK, Australia, New Zealand and a few of the EU nations may have an advanced technology architecture, i.e. have an established clearinghouse and analytical facility, in countries such as India, Malaysia, Indonesia, and few Latin America countries, the technology architecture is only a data repository or a data-sharing platform.

Standards: The zenith for an adequate data infrastructure is accentuated by the spatial data standards adopted by the geospatial organizations of a country to maintain uniformity and interoperability. The common standards that are followed and implemented in almost all countries are the ISO and OGC. In addition to following the common standards, some countries like China have developed and adopted indigenous data standards of their own.

The leading countries of the data infrastructure pillar, the USA, UK, Singapore, Ireland, Germany, and the Netherlands, have mature data infrastructure capacities and provide high-scale and frequently updated thematic layers such as topography, cadastral, disaster zonation, transport, etc. With respect to Earth Observation, these countries either have their EO-based satellites, or they are able to access high-resolution Earth Observation data easily. Additionally, these countries have advanced technology architecture to facilitate access to spatial data.

56 | ©Geospatial Media and Communications

Countries Geospatial Readiness Index (CGRI) Framework Figure 4.1 — Data Infrastructure Ranking Map Highest Rank

Lowest Rank

HIGHEST RANKING

LOWEST RANKING

Rank

Country

Rank

Country

1

United States

1

Azerbaijan

2

United Kingdom

2

Oman

3

Singapore

3

Nepal

4

Ireland

4

Namibia

5

The Netherlands

5

Ghana

6

Denmark

6

Jordan

7

Belgium

7

Kyrgyz Republic

8

China

8

El Salvador

9

Germany

9

Uganda

10

South Korea

10

Sudan

Geospatial Industry Outlook & Readiness Index | 57

GeoBuiz - 2019 PILLAR II: Policy Framework For a country to be observed as ready in its geospatial capacity, it is essential to understand the geospatial and associated policy framework that enables and facilitates the geospatial economy of a country. Policy instruments are critical to advance a nation’s vision for the advancement of technology capabilities, capacity development, innovation and user adoption.

National Geospatial Policy: The evolution of the geospatial policy over the years provides significant value-addition to the spatial infrastructure and user adoption of geo-based applications in a country. In 2018, the USA passed the Geospatial Data Act of 2018 (now a part of the Federal Aviation Authority Reauthorization Act) that will help reduce duplicative spending on data collection and improve infrastructure planning nation-wide. Simultaneously, the UK government has established the Geospatial Commission which has formulated a comprehensive national geospatial strategy for which a call for evidence has already been launched.

Space Policies: With respect to space, the European Space Agency (ESA) implemented the European Space Policy in 2007 to bolster the space sector to sustain Europe’s competitiveness as a world leader in space. Most national space policies of the ESA member states are derivative of the regional policy, thus, providing an advantage to the ESA member states in the space policy environment. Additionally, the USA in 2018-2019 introduced Space Policy Directives (1-4), which include directions to regulate space traffic to the establishment of the US Space Force to ensure America’s dominance in space. These forward-looking policies of the European region and the USA indicate the reason for the growth of investment in space, especially in the USA and the European bloc.

Data Privacy and Open Data: The period 2018-2019 witnessed the implementation of the EU General Data Protection Regulation (GDPR) of the European Union which indirectly impacts the geospatial preparedness of a country by limiting the innovation capabilities of small geospatial companies that work with location data. The impact of the same will be felt at the global stage and not only at the European level. In 2019, the USA also signed the Open Government Data Act into law, which requires the federal government to provide public data in a machine-readable format in the public domain.

Drone Policy: The emergence of drones has caused an explosion in the legislative aspect of the industry, with frequent drafts and amendments to the rules of drone use and purchase. The significance of drone policies has increased substantially for the geospatial economy as greater emphasis is being placed on the use of drones for out-of-sight operations, strict registration requirements for commercial drone operators, the necessity of signaling the location of the drone operator, among many other provisions.

Associated Policies: Almost all countries have their Science and Technology policy and the ICT policy which facilitates the development of the fundamental IT infrastructure in a country on which the geospatial data infrastructure is constructed. Further, the geospatial preparedness is also augmented by sectoral policies such as telecommunications, digital policies and BIM guidelines or mandates. In addition, the UK beats the USA and the other European countries by mandating BIM Level 2 in 2016 for all public works. Following the same, the EU released its EU BIM Taskgroup Handbook in 2017 providing a common framework for BIM to the EU member states. Implementation of BIM will ensure integration of GIS. The enabling and facilitative policy framework of developed countries is an exemplar for the developing countries to learn and evolve their geospatial policies for the development of the industry; implementation of geospatial information and technology and for capacity development.

58 | ©Geospatial Media and Communications

Countries Geospatial Readiness Index (CGRI) Framework Figure 4.2 — Policy Framework Ranking Map

Highest Rank

Lowest Rank

HIGHEST RANKING

LOWEST RANKING

Rank

Country

Rank

Country

1

United States

1

Costa Rica

2

United Kingdom

2

Jordan

3

Switzerland

3

Azerbaijan

4

Germany

4

Dominican Republic

5

Sweden

5

Brunei

6

Canada

6

Iran

7

France

7

Kyrgyz Republic

8

Denmark

8

Morocco

9

Austria

9

El Salvador

10

Finland

10

Sudan

Geospatial Industry Outlook & Readiness Index | 59

GeoBuiz - 2019 PILLAR III: Institutional Capability The institutional capacity of a country is defined by dedicated investments in developing educational capabilities in main geospatial and interdisciplinary related courses and establishing geospatial research labs, which further propagates innovation in the region.

For the assessment of the institutional readiness in the geospatial domain, countries have been evaluated on their relative strengths in providing dedicated doctoral programs, post-graduate and graduate programs in the geospatial domain. Among the leaders, i.e. the USA, UK, the Netherlands, Germany, and Switzerland, government expenditure on education is a high percentage of GDP, while offering specialized courses in the geospatial domain. Additionally, many of the universities of these countries provide their students with Geo-research lab facilities which enable students to experiment and innovate.

Russia stands out in the institutional pillar, albeit the shortage in availability and range of courses has made a stride with its unique Samara National Research University of Russia. The university provides a platform for research in GNSS Technology, post-graduate programs in GNSS Algorithms and Hardware, and GNSS Positioning, Algorithms and Applications. While the plethora of geospatial-related courses is not limited to the university, unfortunately, the trend varies across the country.

Certificate Programs: The institutions of leader countries are also rich in providing certificate programs as an augmentation for skill development as compared to the challengers and aspirer countries of geospatial readiness where students primarily undertake certificate programs to acquire skills without necessarily partaking in full-time courses.

Though this disparity is minute, the implication of this is enormous as it focuses on the importance of enhancing knowledge base, as compared to merely acquiring employability skills with a short-term commitment.

Advanced Geo-research: The increasing demand and cognizance of geospatial education in the leader countries has led to high investments in specialized courses at varying levels of education, for instance, the Space Applications program at the Kennedy Space Centre, NASA; Geographic Information Science and Technology certificate program at the University of Southern California; Centre for Geospatial Research at the University of Georgia, USA; and the Geospatial Research Institute Toi Hangarau, New Zealand. In contrast, the challenges and aspirer countries have more generalized courses, with only a few universities offering optional specializations.

From Asia-Pacific, China and Singapore are the only two countries whose institutional capability is at par with the institutes of the developed countries. These countries are in competing position with the leaders as the institutes in the country provide not only quality graduate level programs, but also advanced research opportunities and vocational training that forms a conducive environment for the prosperity of innovation, discovery and effective implementation.

60 | ŠGeospatial Media and Communications

Countries Geospatial Readiness Index (CGRI) Framework Figure 4.3 — Percentage Regional Distribution of Core Geospatial Instituitonal Capacity

North America

Europe

Asia Pacific

South America and Caribbean

Middle East and Central Asia

Africa

Ph.D and Research Courses

7.80

24.07

8.82

30.96

37.18

39.08

14.18

42.53

16.51

Post Graduate Courses

16.37

35.77

33.02

20.73

16.49

26.93

27.53

15.09

8.00

35.61

20.18

33.96

32.36

17.92

38.91

Graduate Courses

Diploma and Vocational Courses

HIGHEST RANKING

LOWEST RANKING

Rank

Country

Rank

Country

1

United States

1

Zimbabwe

2

United Kingdom

2

Nepal

3

Canada

3

Botswana

4

Germany

4

Bangladesh

5

Australia

5

Azerbaijan

6

Singapore

6

Kyrgyz Republic

7

The Netherlands

7

Tanzania

8

Spain

8

Sudan

9

China

9

Uganda

10

New Zealand

10

Rwanda

Geospatial Industry Outlook & Readiness Index | 61

GeoBuiz - 2019 PILLAR IV: User Adoption The adoption of geospatial technology in a country is indicative of its geospatial readiness. The user adoption pillar is assessed for different levels of adoption of geospatial information in a country which is inclusive of the introduction of automation in spatial data collection; increasing dependence on real-time observations; enhancing innovation, among other things.

Mapping and/or Service Provision: The mapping level is the foundation stage of geospatial adoption in a country. At this level, countries can easily create base maps and thematic layers and present them in digital format to government departments and citizens to use. Almost all 75 countries, do fall in this level of user adoption, however, some of the challenger economies such as Sudan, Uganda, El Salvador continue to be at this level — struggling to move to the next level of asset mapping.

Business Process Modelling: Asset Mapping, Modelling and Processing are an important and a necessary aspect of maintaining and operating physical assets efficiently. ‘Aspirer’ countries, like China, Russia, India, Australia, have been observed having increasing local capacity in this area, attempting to give competition to the ‘Leaders’ like France, Singapore, Netherlands etc. It is, therefore, indicated that governments across the globe are encouraging asset management — thus resulting in increased visualization of geographic information, improved longevity and efficient execution of public works leading to informed decision-making.

Analytics and Workflow: An essential aspect of user adoption is the incorporation of location intelligence in business and process management. This affects aspects of business ranging from disaster management to advertising. The integration of workflow based on geospatial technology and information further helps implement smoother data transfer and delivery of the same in actionable form. Singapore, USA, the Netherlands and Austria lead in the use of historical data and geospatial analytics to ensure future modelling and analytics and evidence-based decision making.

System Integration: Going forward from the above aspects of adoption, the next natural step for adoption to move is towards system integration. The USA, UK, Denmark and Japan lead in the integration of multiple platforms (such as ERP, CRM, etc.) to provide customized solutions. Though the adoption of this aspect varies across the ‘Leaders’, ‘Aspirers’ and ‘Challengers’, there is some level of adoption across all groups, at least at a rudimentary level. The growth of system integration in developing economies is not as rapid as that in larger economies; however, the introduction of the same is a sign of increasing awareness of the importance of system integration.

Enterprise Level Integration: The ‘Leader’ economies, i.e. the Netherlands, USA, UK, Singapore and Canada have competently integrated geospatial solutions at multiple levels of industrial, governmental and public adoption.

Enhanced knowledge, practice and investment are required to succeed to integrate geospatial solutions at an enterprise to improve decision making, increase scalability of projects and bring greater returns on investments.

Many of the ‘challenger’ countries find adopting geospatial technologies at different levels daunting. Lack of awareness, lack of an established IT infrastructure, lack of facilitative policy framework, and lack of suitable human resources are few of the national-level challenges that hinder the adoption in these countries. To achieve greater level of adoption, countries need to focus on building collaborative approaches between the government and industry; invest in infrastructure and education and skill building; and enhance the digital, communication and wireless infrastructure and technology use nation-wide.

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Countries Geospatial Readiness Index (CGRI) Framework Figure 4.4 —User Adoption Ranking Map Highest Rank

Lowest Rank

HIGHEST RANKING

LOWEST RANKING

Rank

Country

Rank

Country

1

United States

1

Bangladesh

2

United Kingdom

2

Oman

3

The Netherlands

3

Nepal

4

Singapore

4

Namibia

5

Ireland

5

Ghana

6

Denmark

6

Jordan

7

Germany

7

Kyrgyz Republic

8

China

8

El Salvador

9

Belgium

9

Uganda

10

South Korea

10

Sudan

Geospatial Industry Outlook & Readiness Index | 63

GeoBuiz - 2019 PILLAR V: Industry Fabric The evaluation of the geospatial industry fabric of a country is critical to understand the local geospatial industry capacity and innovation, the presence of enabling industry associations and knowledge networks, and facilitative incubation and accelerator programs. The presence of local geospatial industries at the national and international stage signals an evolving geospatial economy of a country.

The geospatial industry landscape: The leader countries such as the US, UK, Germany, Switzerland and France are more product (hardware, software, and content) and solutions driven which is to say that these countries are more innovative and invest in developing technology-oriented geospatial solutions. On the other hand, in developing countries, the majority of the companies are service companies. The companies from these countries outsource technology and solutions from developed countries and provide services on a day-to-day basis. While in some economies, like India and China, new geospatial solutions are being developed, but this is still at a nascent stage.

Incubation and Accelerator Programs: The European Union sets a good example for the world with dedicated incubation centers for space, i.e. the ESA’s Business Incubation Centres (BICs). The BICs allow countries like the Netherlands, Switzerland, Germany and France to remain at the forefront of the space industry while providing substantial opportunities for accelerated investment and growth in emerging economies like Estonia, Ireland and Finland. 20 ESA BICs centres in 17 European countries have fostered more than 650 start-up organisations, on applications of space technology, showcasing the innovation and entrepreneurial spirit of the European region.

On a similar footing is Ordnance Survey’s Geovation, UK and Singapore Land Authority’s GeoWorks, Singapore, both of which are dedicated accelerator programs to provide opportunities to geo-tech and location companies to build and innovate their businesses. Additionally, these programs and incubation centers are also being mirrored in smaller economies in the hope of growth, like the Start-Up Bangladesh, the National Science and Technology Entrepreneurship Development Board of India, or the Global Acceleration and Innovation Network in Malaysia.

Associations and professional networks: Associations like the World Geospatial Industry Council (WGIC), International Federation of Surveyors (FIG), International Society for Photogrammetry and Remote Sensing Association for Geographic Information (AGI), UK, Geospatial Information and Technology Association, provide representation to the geospatial industry in the national and international markets, and in governance organization. Leading countries of this pillar have multiple independent and inclusive associations and professional networks in different technology domains (space, GIS, drone, GNSS, etc.). The challenger and aspirer countries, in contrast, have one or two associations which too are not effective representative bodies, thus reducing the industry capability of these countries.

64 | ©Geospatial Media and Communications

Countries Geospatial Readiness Index (CGRI) Framework Figure 4.5 —Industry Capacity Ranking Map

Highest Rank

Lowest Rank

HIGHEST RANKING

LOWEST RANKING

Rank

Country

Rank

Country

1

United States

1

Nepal

2

Germany

2

Tanzania

3

United Kingdom

3

Kyrgyz Republic

4

Canada

4

Rwanda

5

The Netherlands

5

Dominican Republic

6

France

6

Ethiopia

7

Denmark

7

Zimbabwe

8

Japan

8

Bangladesh

9

Switzerland

9

El Salvador

10

China

10

Sudan

Geospatial Industry Outlook & Readiness Index | 65

GeoBuiz - 2019

4.5 The Strategic Relevance of Geospatial Readiness The Relevance of Geospatial Readiness Geospatial Data Infrastructure Policy Framework

COUNTRIES

Institutional Capacity

Public Private Partnerships

GEOSPATIAL READINESS Investments

Industry Fabric User Adoption Level

Multi-fold societal and businessopportunities

Enhanced use of geospatial information and technology

TOWARDS SUSTAINABLE ECONOMIC GROWTH AND DEVELOPMENT The global economy is undergoing a major technological revolution as countries (especially developing countries) are beginning to recognize the critical role information technology and geospatial technology play in an economy’s growth. Many of the developed and developing countries, by way of dedicated policy frameworks, have begun to leverage geospatial technologies to stimulate economic growth, deliver better geo-enabled citizen services, bridge the evident socio-economic gaps, and meet the goals set under the 2030 agenda for sustainable development. For each country to meet the above defined strategic national goals, it is imperative that they are ‘geospatially prepared’ at both government and organizational levels to optimize the benefits derived from spatial analytics and location intelligence technology.

As the lingering fragilities of the global financial crisis subside, in today’s globally connected world, the accelerating rate of adoption of geospatial technology is seen to be a ‘constructive support system’ to address issues of national importance. The presence of an efficient and facilitative geospatial data infrastructure (topographic, earth observation and positioning); dynamic and progressive geospatial and associated policy frameworks; systematic institutional capacity to create a ‘geo-intelligent’ workforce; and an innovative and solution-centric industry fabric is critical for a country to employ geospatial technology and information to the benefit of society at large.

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Countries Geospatial Readiness Index (CGRI) Framework A country that is geospatially ready is able to leverage geospatial information and technology for informed decision making, impact assessments, better monitoring, and for achieving productivity and efficiency gains across all professional user domains, namely Architecture, Engineering and Construction (AEC), Agriculture, Urban Planning, Defense and Intelligence, Agriculture, Natural Resources, Disaster Management, etc. As countries leverage spatial information to build geo-based applications – the use of which creates a huge impact across all these sectors. The global impact of using geospatial technology is highlighted in Fig: 4.6 Figure 4.6 —Geospatial Technologies Creating High-Value Impact (in US$ billion)

623.2

603.9

244.9

222.7

Transportation

Utilities

Construction

Mining

111.7

Agriculture

95.8

BFSI

Source: GeoBuiz Report 2018

Not surprisingly, there is a close correlation that can be drawn between Countries Geospatial Readiness Index (CGRI), UNDP’s Human Development Index, WEF’s Global Competitiveness Index and the UN E-government Survey 2018.

Simply put, countries that are geospatial prepared in terms of spatial data infrastructure, utilization and the industry ecosystem, directly or indirectly also tend to gain in terms of contribution to GDP, higher standards of living for citizens, and high-quality infrastructure. The correlation drawn among these indices in Table: - brings across the value proposition of the geospatial readiness to the socio-economic indicators of the country.

The above table highlights that the impact of geospatial adoption differs from country to country and according to the defined national priorities. However, a common trend that is observed is the auxiliary influence of geo-technologies in e-governance, competitiveness and HDI. It is important to note that countries like India, owing to their marginally high population, suffer in the HDI, but are at a relatively strategic position in Global Competitiveness Index and e-government survey. This is due to inherent challenges in the country with respect to the population which hinders easy implementation of geospatial technology.

Geospatial Industry Outlook & Readiness Index | 67

GeoBuiz - 2019 Country

Geospatial Readiness Rank 2019

UNDP Human Development Index 2018

WEF Global Competitiveness Index 2018

UN e-Government Survey 2018

Top 5 countries in Geospatial Readiness Index USA

1

13

1

11

UK

2

14

8

4

Germany

3

5

3

12

Netherlands

4

10

6

13

Canada

5

12

12

23

5 Mid-level countries in Geospatial Readiness Index India

25

130

58

96

Portugal

26

41

34

29

Israel

27

22

20

31

UAE

28

34

27

21

Greece

29

31

57

35

Bottom 5 countries in Geospatial Readiness Index Jordan

71

95

73

98

Uganda

72

162

117

135

Kyrgyz Republic

73

122

97

91

El Salvador

74

121

98

100

Sudan

75

167

-

180

*UNDP’s HDI Index ranks 188 countries, UN e-Government Survey ranks 193 countries and WEF’s Global Competitiveness Index ranks 140 countries. GMC’s CGRI-2019 is an index of 75 countries selected on the basis of their GDP, population and geographical spread.

Conclusion A geospatial-ready country is in a position to develop an integrated approach on advancing geospatial technologies to the priority economic sectors of the country, while simultaneously delivering better geo-enabled services to citizens and/or consumers. Many countries all over the world have started undertaking national geospatial readiness assessments to comprehend their strengths and weaknesses in the sector. Debates and discussions have already ensued at the national level to understand who shall take the leadership role — the national geospatial organizations, the policymakers, the grassroot community or the local geospatial industry. More so countries have begun to recognize the need for developing collaborative frameworks within the geospatial community to derive significant economic and non-economic benefits for the country.

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GeoBuiz - 2019 Esri Geospatial Cloud

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ABOUT GEOSPATIAL MEDIA AND COMMUNICATIONS Geospatial Media and Communications, with its vision of making a difference through geospatial knowledge in World Economy and Society, works to build the geospatial industry in all its facets. In over two decades, Geospatial Media and Communication has built an international repute and credibility as an evangelist of the geospatial industry - hosting meaningful engagements to represent the entire eco system of the geo-spatial industry; supporting and advancing the work of UNGGIM member nations, European Commission, Open Geospatial Consortium and several national governments; interplaying the role of synergizing thought leadership of geospatial industry and facilitating advancement of its unparalleled value in the world economy and society.

Geospatial Media achieves the stated objectives by publishing content on geospatial technologies, trends, policies and applications by the Media Division of the Company. The Market Intelligence and Policy Advocacy Division, undertakes research and business consulting work and produces industry reports on market behaviour, requirements, challenges and prospects of geospatial information and applications for society and economy. In addition, the Business Development and Outreach division of Geospatial Media organises many national, regional and international conferences which are considered as most sought-after platforms for fruitful engagements, networking opportunities and meaningful conversations.

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