How consumers, businesses and society benefit from ...

[Pages:92]the economic impact of geospatial services:

how consumers, businesses and society benefit from location-based information

Important Notice on Contents ? Estimations and Reporting

This report has been prepared by AlphaBeta for Google. All information in this report is derived or estimated by AlphaBeta analysis using both proprietary and publicly available information. Google has not supplied any additional data, nor does it endorse any estimates made in the report. Where information has been obtained from third party sources and proprietary research, this is clearly referenced in the footnotes.

The amounts in this report are estimated in both US dollars and local currencies. The conversion is based on the average exchange rate in 2016, sourced from X-.

AlphaBeta is a strategy and economic advisory business serving clients across Australia and Asia from offices in Singapore and Sydney.

SYDNEY Level 7, 4 Martin Place Sydney, NSW, 2000, Australia Tel: +61 2 9221 5612 Sydney@

SINGAPORE Level 4, 1 Upper Circular Road Singapore, 058400 Tel: +65 6443 6480 Singapore@

contents

06 EXECUTIVE SUMMARY

16 CONSUMER BENEFITS 21 Calculating consumer benefits 25 Commuting efficiency: Beating congestion 25 Fuel efficiency: Saving money at the pump 25 Personal safety: Safer routes and driving 27 Purchasing efficiency: Faster shopping

28 BUSINESS BENEFITS 31 Calculating business benefits 32 New products and services: A US$400 billion industry 35 Productivity benefits for other sectors 46 Boosting growth: Helping small businesses find new customers 48 Supporting tourism spend: Helping travelers plan and find places

50 SOCIAL AND ENVIRONMENTAL BENEFITS 53 Job creation 53 Traffic congestion 55 Urban planning 58 Civic engagement 59 Public Health 60 Safety and emergency response 61 Disaster preparation and response 64 Environment and wildlife preservation 66 Knowledge creation and human capital development

68 CONCLUSIONS

72 APPENDIX A: REGION-SPECIFIC BENEFITS

79 APPENDIX B: DETAILED METHODOLOGY

GLOBAL ECONOMIC IMPACT OF GEOSPATIAL SERVICES

DURING 20161:

CONSUMER BENEFITS

Consumers value digital maps at up to

US$105 PER USER

resulting in total benefits of

US$347 BILLION PER YEAR.

Digital maps reduce travel time by

12% ON AVERAGE.

The value of time saved is

US$264 BILLION

based on local wage rates.

Consumers save more than

21 BILLION HOURS

per year from more efficient purchasing descisions. The value of time saved is

US$283 BILLION.

BUSINESS BENEFITS

Geospatial services industry generated revenue of approximately

US$400 BILLION IN 2016.

Geospatial services could have a significant productivity impact in sectors representing approximately

75% OF GLOBAL GDP.

Digital maps have supported over

US$1 TRILLION

of yearly sales for businesses.

SOCIETAL BENEFITS

CO2 emissions from vehicles could be reduced by

1,686 MILLION MT

from more efficient trips and reduced congestions.

Potential employment directly linked to digital maps of over

4 MILLION JOBS GLOBALLY.

Emergency response times

DECREASED BY 20%

resulting in more lives saved. Geo-services also help prepare for a natural disaster (e.g., highlighting flood risk).

1. Data in exhibit is estimated by AlphaBeta using a rangge of original and third party sources. See Appendix for detailed methodology.

executive summary

MEASURES OF SUCCESS: HOW AREXCEOCUUNTTIRVIEESUFMARMIANRGY? 7

Geospatial services are now deeply embedded in our everyday life.1 Satellite-based mapping technology helps commuters bypass rush-hour traffic in London and find their Airbnb apartment in New York. It tracks cyclones in the tropics, can monitor when and where commercial fishing occurs around the world, and can even help improve voter turnout at elections.

But despite the growing use of geospatial technology around the globe, its true economic value remains hidden, as traditional measuring concepts have failed to keep up with the rapid evolution of the industry. Quantifying the extent of geospatial benefits can be difficult given that many geospatial services are provided free of charge and therefore go unmeasured. In addition, it's often impossible to separate geospatial services from the broader product they're embedded in (such as ride-sharing apps). Lastly, it's hard to measure the indirect benefits of geospatial services, which have become indispensable for a wide range of professions--from urban planners to ambulance drivers.

1. See Box 1 at the end of this chapter for a detail definition of geospatial technology and services. When appropriate, the term "digital maps" has been preferred to it, as it is a common geospatial service that consumers are more familiar with.

8 EXECUTIVE SUMMARY

The goal of this report, which is based on a consumer survey across 22 countries spanning six regions2 and other innovative estimation approaches (such as big data analysis of online job postings), is to broaden the public knowledge about the many ways in which geospatial services contribute to our society. It provides the most comprehensive economic impact analysis of the geospatial services industry to date and should help inform the actions of investors and decision-makers in government3.

The study's main finding is that digital maps are playing a significant role in changing our lives for the better. Digital maps have become powerful tools for policymakers to ensure the safety of their citizens and inform urban planning decisions, and for companies and consumers to save time and money when managing their daily affairs. And the benefits of digital maps are far bigger than people may think. As an industry, geospatial services generate US$400 billion in revenue per year. However, their total economic contribution is several times higher, as geospatial services are estimated to:

Generate consumer benefits worth over US$550 billion.

Create approximately 4 million direct jobs, and potentially 8 million indirect ones.

Improve revenues and costs by at least 5% in sectors contributing approximately 75% to global GDP.

Have a myriad of other positive effects for society and the environment, such as reduced air pollution through more efficient transportation because of GPS navigation, which could potentially reduce global CO2 emissions by 5% per year.

The following sections provide further details on the benefits for consumers, businesses, and the society and environment at large (Exhibit 1).

2. Europe (UK, Germany, Spain, Italy, Russia); Middle East (Saudi Arabia, United Arab Emirates, Turkey); Africa (South Africa, Nigeria); North America (US); Latin America (Mexico, Brazil); Asia Pacific (Australia, India, Japan, New Zealand, Singapore, Korea, Taiwan, Thailand and Indonesia). 3. See Box 5 in Chapter 3 for comparisons with other studies on the industry in terms of scope.

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