Urban Planning Software
Business for Sale Industry Economics
$1,771,000,000
Revenue
4.02%
Projected CAGR
2002 - 2020
Historical
2020 - 2026
Projection
3.29%
CAGR
$345,000,000
Profit
Quick Scroll
Summary
The Urban Planning Software industry provides a range of solutions for city and regional planning, including geographical information systems (GIS), site topography modeling, map analytics, and building information modeling software.
Industry demand is tied to construction activity and infrastructure investments made by both private and public entities. More broadly, urbanization and levels of both residential and nonresidential construction also dictate industry performance.
Over the five years to 2020, greater adoption of analytics and software in the urban planning space has supported strong industry growth; however, the economic recession in 2020 is anticipated to hamper industry performance.
Research projects, industry revenue to decline an annualized 0.1% to $1.8 billion over the five years to 2020, including a decline of 8.5% in 2020 alone related to COVID-19 disruptions.
Performance
The Urban Planning Software industry aids government and private sector clients in developing cities and urban areas. Industry software can provide users with geographic information, traffic flow data, and visual models of planned sites and structures to optimize many facets of development while simultaneously minimizing project costs.
Urban planners use industry products to analyze community needs, preplan project location, maximize accessibility and energy efficiency, assess overall project feasibility and identify any potential challenges prior to breaking ground. With evolving analytics and metadata capabilities, operators have moved beyond traditional services.
For example, solutions exist to monitor public service delivery and pollution levels within a given area. More recently, the Center for Systems Science and Engineering at John Hopkins University, with assistance from the Environmental Systems Research Institute Inc. developed a geographical information systems (GIS) dashboard which is aimed to finely monitor the global spread of COVID-19 (coronavirus) in an effort to contain it.
Overall, industry demand is dependent on government investment, aggregate construction and the size of the urban population.
Outlook
Over the next five years, the Urban Planning Software industry is anticipated to benefit from a growing urban population, higher spending on nonresidential construction projects, and continued high investment in computers and software.
However, the industry will encounter a variety of obstacles, including stronger external competition in the form of open-source software, in-house proprietary solutions developed by some companies, and declines in state and local government investment as governments deal with budget imbalances.
Nevertheless, strong demand will likely facilitate steady revenue growth over the five years to 2025. Research forecasts industry revenue to increase at an annualized rate of 3.3% to $2.1 billion during the outlook period.
Industry
This industry publishes software for urban planning professionals and municipal land use agencies. Types of software include geographic information systems (GIS), computer-aided design and drafting (CADD), and data processing and analytics.
Investment
The urban planning software sector has a high intensity of labor compared to its capital. In 2020, IBISWorld forecasts to invest around US$0.04 for dollars spent on work in the industry.
Capital investment in software urban planning is mostly directed to computer systems, servers, and different hardware that helps to code, create and test the development phases of new software.
In order to progress the development stage faster, operators are progressively investing in technologies such as quicker processors. The amount of labor required to produce the real product, implement the software, train consumers, offer product support, and maintain and run network and cloud infrastructure far outweighs the capital investment.
The reliance on labor to conduct critical work duties is expected to stay high over the next five years, if not increase. Computer programmers are becoming increasingly important in the maintenance of systems in an increasingly technological world. Employer competition is fierce, paving the way for wage increases.
Volatility
In the five years to 2020, the urban planning sector expects a low degree of revenue volatility. The industry revenue is projected to decrease by 4.1% in 2017 and is predicted to fall to 8.5% by 2020 as the impacts from COVID-19 continue to intensify, according to research forecasts.
Healthy building activities and good urban development trends have supported the demand for industrial products for much of the present time. While the investments of local government remain tense, urban planning and more products and services are necessary for the continuous urban change.
Following the effective containment of COVID-19 and the ensuing comeback in global economic activity, revenue growth is expected to take up again, according to the report. Revenue volatility is expected to stay somewhat low when the industry recovers from the recent external shock, according to a study.