According to strategic research conducted by Frost & Sullivan, a Mountain View, Calif., market research company, total revenues in the remote sensing data and geographic information system (GIS) software markets rose 10% in 1998, while 1999 revenues are forecast to increase 11.7%. The steady growth is representative of increasing adoption among new commercial users, and the expanded use of imagery and GIS software by existing users, the report stated.

"As pricing declines and more simplistic software becomes readily available, new users are expected to implement these software applications for their business," the report stated. "These and other factors have created new capabilities and opportunities for the commercial remote sensing and GIS markets."

According to the report, base mapping data, such as panchromatic orthophotography, will increasingly become the foundation upon which companies build visual records of geographic data. Also, increasing availability from a growing number of satellite-based and aerial imaging companies will continue to create downward pressure on the pricing of such data products. Greater affordability of these base layers will enable more frequent data purchases and free up resources for specialized attribute data collection.

"Due to continued federal, state and local government's dominant use of remote sensing data throughout the forecast period, data providers will be able to more aggressively target commercial markets with specialized data products bundled with software and/or attribute data," the report stated.

The remote sensing data and GIS software markets defined in the study include revenues generated from satellite operators' images, enhanced data generated by value-added resellers and ground station fees paid for satellite imagery reception rights.

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