The global digital map market size was estimated at USD 3,372.4 million in 2016 and is expected to witness significant growth over the forecast period. The ongoing migration from personal navigation devices to smartphones and consumer-centric applications is expected to drive the growth over the forecast period.
The industry is expected to exhibit rapid integration of geomatics systems including mapping, Global Positioning System (GPS), and imagery, wherein key players would increasingly try to develop and launch multi-platform applications. In addition, the rapid speed at which the automotive sector has been adopting digital mapping applications for usage in self-driving cars is also instrumental in increasing the competition in the industry. The automotive applications are, however, not only related to self-driving cars but also extend to a range of other applications including fleet management, logistics control systems, and Advanced Driver Assistance Systems (ADAS), to name a few.
North America digital map market, by application, 2014 - 2025 (USD Million)
Recent developments in the market including the acquisition of Nokia’s HERE by Daimler, Volkswagen, and BMW in 2015 and the investments by Apple to deploy sensor-based cars for mapping are a testament to the evolving structure of the industry. Though major players such as Google (for consumer mapping) and HERE (for automotive mapping in North America and Europe) have an edge in terms of technology deployed and collected database, many new players have been quite successful in the industry. However, the role played by open-data repositories such as OpenStreetMap and Open Addresses is also expected to be an important factor in shaping the competitive landscape of the market.
The digital map construction, however, includes a considerable amount of investment in terms of sensors, the technology employed for data collection, and the mode of data collection, which can limit the number of players entering the development segment. Yet, a large number of application providers who cater to niche segments and utilize novel techniques to build upon the existing data sets are expected to flourish over coming years.
The use of LiDAR and orthophotography has improved the accuracy of analysis provided by digital mapping professionals, thereby reducing the costs associated with supply chain & logistics management, disaster management, and infrastructure development in several regions across the globe. Owing to various benefits afforded by these two technologies, they are the most widely used methods for data collection. However, the costs associated with LiDAR is one of the major hindrances in its deployment by emerging players in the market.
While LiDAR holds a considerable market share in the industry, Geographical Information Systems (GIS) have the largest revenue generation capabilities owing to the fact that information obtained on Google Maps, Apple Maps, Foursquare, and several other applications is acquired through GIS and GPS. Furthermore, the adoption of 3D modeling and digital elevation models is expected to further increase the use of these systems over the forecast period.
The market has been segmented into indoor and outdoor usage based upon the application of mapping techniques in various end-uses. Outdoor usage includes the use of digital maps and navigation systems for product marketing, global networking, fleet management, land-based decision-making, environmental studies, disaster management, risk analysis, and other surveys.
Though amongst both the segments, the outdoor segment has a larger revenue share, the indoor usage segment is anticipated to grow at a rapid CAGR of 13.5% over the forecast period. This growth is expected to be primarily driven by an increasing demand from indoor location-based service providers.
Industry service providers offer numerous services including data processing, system infrastructure development, integration & licensing, distribution channels, and end-use applications and web services. Several digital mapping service providers integrate development data into the customer’s systems and provide it to them in accessible formats.
The development services segment forms the basis of the digital map value chain. It held a market share of 36.8% in 2016. Management services are expected to become the major revenue-generating venture buoyed by the demand from location-based services and solutions and are expected to grow at a CAGR of 12.3% over the forecast period.
The market is segmented based upon applications into automotive, military & defense, enterprise solutions, mobile devices, and government & public sector. Solution providers have been catering to a number of end users that have an extensive use for geospatial data. However, the recent advancements in technology, such as Internet of Things (IoT), sensor networks, and artificial intelligence have opened up a plethora of new avenues for the development.
Owing to the rapid growth in the number of smartphone users in the world, the mobile devices segment is expected to grow at an impressive rate with a CAGR of 12.2%. However, the automotive sector has been the largest user of digital map technology. This is greatly attributed to the renewed interest of automakers in connected and self-driven cars. The North American market for digital maps in the automotive sector is anticipated to reach USD 1,782.8 million by 2025, growing at a CAGR of 13.1% over the forecast period.
China digital map market, by services, 2016 (%)
The primary drivers of the digital map demand are the automotive and mobile devices end-use segments, that largely influence the regional adoption of digital maps. As a result, the North American region dominated the global market in terms of revenue generated. This can attribute to a large number of industry players situated in the region, a developed automobile sector, and the recent increase in mergers and acquisitions.
The rise in disposable incomes in Asia Pacific has led to a subsequent increase in demand for smartphones and cars. Additionally, the developing infrastructure in countries such as China and India has been opening new business avenues for vendors, contributing to the market’s growth. The Asia Pacific region is anticipated to grow at an impressive CAGR of 13.1% over the next eight years.
Key players operating in the industry are, ESRI, Inc., Google, Inc., DigitalGlobe, Inc., Apple Inc., HERE Holding Corporation, Getmapping PLC, Micello, Inc., and TomTom International B.V., among others. These companies are involved in various processes such as data collection, data processing, designing, and manufacturing of digital maps and cater to different end uses across the value chain.
Major strategies adopted by vendors include collaborations, new product developments, investments related to expanding capabilities, mergers & acquisitions, partnerships & agreements, and investments in research & development, among others.With the advancements in technologies, companies have introduced web services and mobile applications for maps that provide detailed information and real-time updates to users.
Base year for estimation
Actual estimates/Historical data
2014 - 2015
2017 - 2025
Revenue in USD Million & CAGR from 2017 to 2025
North America, Europe, Asia Pacific, South America, and MEA
U.S., Canada, Mexico, UK, Germany, France, China, India, Japan, and Brazil
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
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Segments Covered in the Report
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the market trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global digital map market based on technology, usage, services, applications, and region.
Technology Scope (Revenue, USD Million;2014 - 2025)
Usage Scope (Revenue, USD Million;2014 - 2025)
Service Scope (Revenue, USD Million;2014 - 2025)
Application Scope (Revenue, USD Million;2014 - 2025)
Military & Defense
Government & Public Sector
Regional Scope (Revenue, USD Million;2014 - 2025)
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