Geospatial Technologies’​ Economic Impact to Rise by 460% Between 2022 and 2030

Ananyaa Narain

Vice President- Consulting
Geospatial World

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The global economy is expected to grow at real GDP of 5.9 percent and 4.9 percent in 2021 and 2022, respectively. While the world is on track to recover from the COVID-19-induced crisis, faster growth is constrained now by three significant challenges – the Russia-Ukraine war, high inflation, and a looming economic recession. Though economic recovery is expected to be positive and uneven across countries, economists worldwide fear the regionalisation of trade, leading to increased transaction costs and prolonged higher inflation. Today, leaders at Davos, World Bank officials, and leading world economists are not shying away from adding their bit to the growing chorus of stagflation or a prolonged economic recession – worrying governments, businesses, and the common person. A lot, therefore, is thus dependent on the choices policymakers make today to recover from the looming crisis and the business strategies which will, if not make better, subsume some of the stagflation impacts.

Geospatial Technology Revolution

The world is already in a digital revolution. Digital economy – driven by adoption of digital technologies across all economic sectors is one of the effective measures to mitigate the negative economic news we hear daily. One of the critical components of digitalisation has been the spurring innovation and impact of #geospatialtechnology. While, even today, I find it hard to make people (including my family) understand the meaning and relevance of geospatial technology in our world – their rising impact and influence on varied activities of the government, businesses, and citizens cannot be overlooked. Especially today, when forces of world economics (GDP, Inflation, Employment, etc.) struggle, the possibility of deploying ‘geospatial’ as part of the long-term solution for, say, improving government program’s productivity, efficiency, and effectiveness, increasing business agility and profiles, and facilitating employment and digital inclusion for citizens – is the need of the hour.

The impact of geospatial can be felt across all sectors – from when we use the GPS to navigate through the horrendous traffic or the use of earth observation data for accounting GHG concentrations for carbon accounting. Geospatial is used worldwide, ingrained in all workflows in some form or another, and albeit in some cases as an ‘unrecognised’ feature, for activities such as emergency response, precision farming, efficient asset monitoring – and so on and so forth! While difficult to estimate, the economic impact of geospatial is so much more and goes beyond the depths of economic impact calculations.

USD 30.24 Trillion in Economic Impact

The GeoBuiz-22: Global Geospatial Industry Outlook– a product of Geospatial World’s Consulting Division, brings forth the direct economic impact of geospatial technologies for different regions and sectors. The report estimates that the economic impact of geospatial technologies on the global economy is going to rise by approximately 89% between 2022 and 2025 and by 196% between 2025 and 2030 (high-range) on the backdrop of public policy reforms and increasing investments in geospatial infrastructure (both public and private) and industry acceleration programs worldwide.

The Geospatial industry has indeed been lucky during the past two years, as governments worldwide recognized the power of location in addressing the COVID-19 situation, mass vaccination drives, supply chain disruptions, and lockdown struggles of the AEC industry, to name a few. The COVID-19 pandemic was brutal on the world as a whole, yet we surfaced through in bits and pieces, and geospatial technology had a crucial role to play in it. Today, the geospatial industry has gone a step ahead to address the world’s critical problems – climate change, poverty, sustainable cities, communities, etc. This has only raised the bar for what all geospatial technologies can be used for and how relevant is its innovation and impact to the world economy and society. After all, a probable USD 1.4 trillion industry (in 2030) providing solutions for various sustainability and socio-economic and environmental issues; leading to an impact of USD 30.24 trillion (high-range) in 2030 – how can that not help economic growth?

Source: GW Consulting Analysis

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