PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1604472
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1604472
Global digital map market is projected to witness a CAGR of 15.32% during the forecast period 2024-2031, growing from USD 19.61 billion in 2023 to USD 61.34 billion in 2031. The rapid growth rate of the geospatial industry is the primary driver for the expansion of the digital map market as geospatial technologies continue to evolve with enhanced data accuracy and new data sources. The demand for precise geographic data is increasing across various sectors like urban planning, logistics, autonomous vehicles, and smart cities. According to Trimble Inc., the global geospatial market is projected to reach an economic impact of USD 681 billion by 2025, doubling to USD 1.44 trillion by 2030. This growth accelerates innovation in digital mapping, better decision-making tools, and integration with the Internet of Things, augmented reality, and autonomous systems. This data-driven approach transforms industries that rely on real-time, high-quality map services.
For instance, in July 2024, HERE Global B.V. integrated its HERE Matrix Routing with SAP Field Service Management, enhancing routing capabilities for optimized job assignments, reducing travel time, and improving efficiency, sustainability, and customer experience.
Rising Smart City Initiatives Drive Growth in the Digital Map Market
Smart city initiatives are a significant growth factor for the digital map market, primarily due to their reliance on real-time geographic data for optimum management and optimization. For instance, digital maps are applied in smart cities in many applications, such as traffic management, public transport routing, utility monitoring, and emergency services. Applications like Singapore's Smart Nation and Dubai's Smart City utilize high-definition maps to integrate sensor data across the city to support informed decision-making and better resource allocation. Global urbanization and growing demands for sustainability are why smart cities employ geospatial data in monitoring environmental factors, energy grid management, and optimization of public services. As these projects expand, there is an anticipated surge in demand for accurate and real-time digital mapping solutions, which will, in turn, boost the digital map market.
For example, in June 2024, TomTom International B.V. signed a long-term agreement with Microsoft to provide location technology for Azure Maps, Bing, Microsoft Power BI, and Microsoft 365, enhancing AI-driven product innovation and services.
Rise in Autonomous Vehicles Fueling the Digital Map Market
The growth of autonomous vehicles is fueling the market for digital maps, as this technology heavily relies on highly precise, real-time mapping for safe navigation. Advanced digital maps are required by autonomous vehicles to analyze the surroundings, plan routes, and avoid obstacles by incorporating sensor data and the latest real-time updates. According to the Canadian Parking Association, as the automotive sector keeps advancing, with autonomous vehicles forecasted to make up 37% of new passenger car sales by 2035, solutions for precision mapping will undoubtedly witness high demand in this industry.
Companies in the autonomous vehicle development sector have invested in high-definition (HD) maps, including road information, traffic data, and environmental factors. These maps evolve with time to improve the efficiency of driverless technologies. Thus, combining geospatial data and autonomous driving technologies is key to the spurt growth of the digital map market.
For example, in June 2024, HERE Global B.V. launched its Fleet Optimization software package, enhancing logistics with advanced AI and location-based APIs for improved multi-vehicle routing, cost savings, and delivery efficiency.
Government Initiatives Acting as a Catalyst
Government projects greatly boost revenues in the digital map market by increasing access and integrating spatial data into the business. Various frameworks like the United States National Spatial Data Infrastructure (NSDI) and the European Union INSPIRE Directive build standards for spatial data, thereby increasing availability to businesses and developers. Such programs boost the use of digital maps in applications like urban planning, environmental monitoring, and transportation management.
With access to data from the National Geographic Information Public Service Platform, advanced digital mapping solutions within China will fuel the demand for comprehensive geographic data. In India, the National Spatial Data Infrastructure (NSDI) is a government body that supports developing and using digital maps for smart cities and disaster management. Thus, government programs open new market opportunities, inducing innovation and increasing investment in digital mapping technologies.
For example, in June 2022, the United States Department of Transportation unveiled its updated Geographic Information Systems Strategic Plan to enhance geospatial data and innovation, aligning with national infrastructure goals to improve the digital mapping market.
Automotive Industry Leading in Digital Map Market
The automotive industry is the largest contributor to the digital map market, experiencing significant growth and revenue. Automotive manufacturers are increasingly integrating higher-definition maps into their vehicles as a part of advanced driver assistance systems (ADAS) and autonomous driving technologies. Moreover, prominent players require accurate digital maps for real-time navigation, route optimization, and safety features as they require continuous updates of digital maps to offer real-time mapping of road information and obstacles for autonomous vehicles. This demand has fueled technological advancements in map technologies, opening new opportunities for businesses focused on developing digital maps. The interest of the automobile industry in connected cars and smart infrastructure is driving the transition toward more sophisticated digital maps and setting it up as one of the growth drivers for the market.
North America Dominates Digital Map Market Share
North America is leading in the digital map market, driven by substantial demands from the developed automotive sector for high-definition maps utilized in autonomous vehicles (AVs) and advanced driver-assistance systems (ADAS). The region benefits from a wide array of smart city initiatives, wherein most cities incorporate digital maps for urban planning, traffic management, and public services. Strong research and development in geospatial technologies and cooperation between technology companies and government bodies continue to drive the market forward. Additionally, North America's focus on innovation and infrastructure development accelerates the adoption of real-time data and innovative mapping solutions, further enabling its position in the global digital map market.
For instance, in August 2024, Mapbox, Inc. launched enhanced raster data support for its tiling service. It enabled advanced weather visualizations and interactive maps with dynamic colorization, improving decision-making for commercial, government, and media sectors.
Future Market Scenario (2024-2031F)
Digital maps will transform to become highly accurate means of navigation for self-driving cars, using real-time data and predictive analytics to enhance efficiency and safety for passengers.
Cities will increasingly use digital mapping for urban planning, managing traffic, and public services to drive sustainable development and quality of life.
Digital maps will be tightly integrated with augmented reality technologies, providing new immersive navigation experiences and interactive overlays to engage users.
Digital maps tailored to user choice will offer customized route plans and location-based recommendations.
Key Players Landscape and Outlook
This digital map market is highly dynamic, with large players bringing innovation in sectors. To keep up with an increasingly strong need for applications from automotive, smart city, and consumer companies, companies have concentrated on offering more advanced technologies such as high-definition maps, real-time data integration, and augmented reality. Digital maps are considered a bright market outlook with enormous growth potential since they become a critical element of autonomous vehicles, urban planning, and location-based services. Additional impetus for expansion also comes from the expansion in geospatial technologies and investment in infrastructure. Future trends that will further transform the market include personalized mapping solutions and global data synchronization, which also upgrades both user experience and operation efficiency.
In August 2024, Mibro, a ZhenShi Information Technology (Shenzhen) Co., Ltd brand, selected HERE Global B.V. to enhance safety features in its kids' smartwatches, offering real-time and historical location tracking for parents.
In January 2024, HERE Technologies, Inc. partnered with Uber Technologies, Inc. to enhance mapping and geolocation functionalities and significantly improve pickup and drop-off accuracy for rideshare and food delivery services.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.