Industry Insights

COVID-19 and the Recovery Path for Geospatial Industry

How is the recovery path for the geospatial industry looking?…

WGIC Secretariat September 7, 2020

How is the recovery path for the geospatial industry looking? In this positively striking note, Sanjay Kumar writes about the V shape recovery path for the geospatial data and software companies, and U shaped recovery path for the ones allied with surveying & mapping.

He says that real-time geospatial & location data has been most in-demand. During the first quarter of the crisis, data companies didn’t get hurt much, and instead, few added progressive numbers to quarterly results. And this trend continued in the second quarter with an exception to a short patch of slowing down due to strict lockdowns worldwide.  Surveying and mapping, a steady segment of the industry witnessed a disruption during the first quarter. With the growing demand for construction and infrastructure projects, the sector might recover,  mostly taking a U-shaped recovery.

Executive Views from WGIC Member companies

In this article, we can see executives from WGIC member companies sharing their views.

Jack Dangermond, Founder & President, ESRI, said, “At every level of government and across society, geography has been essential for understanding and responding to the pandemic. The outcome is a new respect for geographic science and its application.”

Alain De Taeye, Member of TomTom’s Management Board, feels, “This is the worst ever crisis since 1930. A large number of companies would be out of business despite assistance from governments”.

Meanwhile, according to Jurgen Dold, President, GSI, Hexagon AB, “Geospatial industry will have financial challenges in the short term, but ‘valuable’ companies will carry on and become stronger, as we proceed towards recovery.”

Bryn Fosburgh, Senior Vice President, Trimble, explains, “COVID-19 has proven to be an accelerator in the digital transformation of the construction industry”.

Quarter-on-Quarter performance of select publicly-listed geospatial companies

The following table summarizes 2019 vs. 2020 Q1 and Q2 financials of select public companies, who are also part of the WGIC membership.

Cumulative revenue comparison of geospatial companies 2019 vs. 2020- Declined by 6.49 and 13.6 percentage during Q1 and Q2, respectively. Credits: Geospatial World Magazine.
Cumulative revenue comparison of geospatial companies 2019 vs. 2020- Declined by 6.49 and 13.6 percentage during Q1 and Q2, respectively. Credits: Geospatial World Magazine.

Credits: Geospatial World Prime & Sanjay Kumar

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