Report: Benefits of Geo services to global consumers (Oxera, January 2013)
Google has published an Oxera report that estimates the revenues from global Geo services at $150 billion to $270 billion per year. For context, these findings suggest that this growing industry is already larger than estimates of the size of the video game industry, and generates around one-third of the annual revenue generated by the airline industry.
This study is one of the first to consider Geo services as an industry in itself, encompassing all digital mapping and location-based services. Use of such services is increasing rapidly, with applications of the technology ranging from electronic maps that are accessible online and via smartphones, to satellite navigation and imaging, and location-based searching.
This study aims to quantify the impact of Geo services on the world economy and consumer welfare. For the purposes of the study, this impact has been divided into three broad categories:
– direct effects—the footprint of the Geo services measured according to the revenue generated by firms developing and providing Geo services and the value that they add;
– consumer effects—the benefits that accrue to consumers, businesses and government from using Geo services, over and above the value that may be paid for any services (ie, the revenue accounted for under the direct effects category); and
– wider economic effects—the benefits that accrue from Geo services improving efficiency elsewhere in the economy, by creating new products and services and creating cost savings that cannot be generated by other sectors."
– direct effects—the footprint of the Geo services measured according to the revenue generated by firms developing and providing Geo services and the value that they add;
– consumer effects—the benefits that accrue to consumers, businesses and government from using Geo services, over and above the value that may be paid for any services (ie, the revenue accounted for under the direct effects category); and
– wider economic effects—the benefits that accrue from Geo services improving efficiency elsewhere in the economy, by creating new products and services and creating cost savings that cannot be generated by other sectors."
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