A quick-dive into the value-prop for maps and how they serve the world
There’s a certain irony in explaining the significance of map data across a conference table. The quizzical looks, raised eyebrows, and occasional nods are all too familiar.
On average, users access location data about 4.5 times daily, either sharing their location with an app or using navigation/location-based services. From an infrastructure perspective, Mapping APIs are accessed more often than payment solutions like Stripe or Mastercard.
Behind every Uber ride you book, every food delivery order, or package you track online, there’s a map working diligently in the background. It’s not merely a visual representation of our world; it optimizes routes, estimates times, and enhances user experiences.
The Many Faces of Map Data
Our daily interactions might often reduce map data to just the Google Maps screen on our phones. However, the industry’s depth is vast. The routine act of using Google Maps to navigate to the nearest bar is probably its most trivial use-case. Let’s explore a few broader market implications:
- Logistics & Delivery: Companies like Amazon and FedEx streamline their delivery routes using platforms like Route4Me, which specializes in route optimization — a market worth over $2.9 billion.
- Real Estate: Platforms such as Zillow or Redfin integrate data from CoStar, a comprehensive provider of real estate-related map data. CoStar, a significant player in this vertical, boasts a market cap of $30 billion.
- Travel & Tourism: TripAdvisor and Airbnb use Mapbox, a platform offering customizable maps and location data services, valued at over $1 billion.
- Digital Marketing: Geotargeting is a potent tool for businesses delivering location-specific ads. GroundTruth leads in location-based marketing, tapping into a segment worth over $21 billion.
- Urban Planning & Development: City planners and governments rely on map data for tasks like designing public transport routes and emergency planning. Many turn to ESRI, a dominant player in the Geographic Information System market, valued at $10.8 billion.
These examples are just a glimpse into the broader Location-Based Services or Map-data market. Each provider operates in a specific niche, gathering data from various sources to build APIs tailored for their customer base. Typically, they utilize three core data pieces: Satellite Imagery, Vector Tile-sets, and Points of Interest data. All other analyses, data pipelines, or APIs stem from these foundational elements.
Dissecting a Digital Map
Its easy to assume that these are discrete pieces of data without a geospatial component. And the mistaken assumption, is understandable. We have a financial bias in our understanding of data, making it difficult for most to imagine the difference in how map-data is built and consumed.
It’s important however to understand the maps are built by aggregating from several sources. Like we discussed earlier, there are three fundamental building blocks to maps:
- Basemap (Vector Tiles): This foundational layer, akin to a canvas, is where other data is overlaid. It’s the default view you see when you open Google Maps.
- Satellite Imagery: Another foundational layer, this provides a bird’s-eye view of the world. It serves both as a basemap and a data extraction source.
- Data Layers: These are detailed datasets, such as traffic conditions or building footprints in a city, layered over basemaps. This layer encompasses businesses, addresses, transit stops, and other visible map information.
So the various businesses we mentioned like Route4Me and Groundtruth, aggregate data specific to their niche, layer it on top of these basemaps and provide them to their respective custoemrs. The data then, is as diverse as the customer base we discussed earlier; and so are the data collection/aggregation methods employed.
The Value of Specific Data: Warehouse’s
So far we’ve discussed the what map data is used for, and what its composed of; But if we want to examine why all this data matters, its valuable to look it at via an example
Lets consider a seemingly niche, extremely detailed dataset like Warehouse locations with Entry-Exit points. And we breakdown, just like we did earlier, the various industries and verticals where this data is valuable and how:
1. Logistics and Supply Chain Management:
- Companies like FedEx, UPS, and DHL optimize their delivery routes using this data, ensuring timely deliveries and efficient fuel usage.
- Loading-unloading points help logistics companies schedule fleet movements, preventing congestion and ensuring smooth operations.
- For expanding logistics companies, understanding warehouse density and traffic patterns offers insights into market size and potential demand.
2. Infrastructure Development:
- Real estate developers and investors identify areas with a high concentration of warehouses, indicating potential commercial activity hubs to guide investment decisions.
- City planners and developers use this data to plan infrastructure like roads, utilities, and public transport around these hubs.
3. Retail and E-commerce:
- Retailers like Amazon or Walmart decide where to stock goods based on the proximity of warehouses to their retail outlets or customer bases.
- E-commerce companies select warehouses that optimize last-mile delivery, ensuring faster delivery times and reduced costs.
4. Environmental Planning and Management:
- Knowing warehouse locations and traffic patterns helps environmental agencies plan for emission controls and monitor air quality.
5. Insurance and Risk Management:
- Insurance companies assess risks associated with warehouse operations, adjusting premiums based on potential accidents during peak loading-unloading hours.
We’ll keep this going, so stay tuned
The uninitiated in mapping can easily confuse why any of this is valuable , and default to the assumption that google maps on their phone is the only use case for maps.
At proto, our goal is to bring mappers-mapmakers-cartographers to the fore, and as we work towards doing so, it is imperative that we make an attempt at bringing more attention to the industry and to its stories, methods and nuances.
With that in mind, we’ll produce content in the coming months to highlight the work of mappers worldwide and bring the general public closer to this industry, enhancing awareness.
This is the first in a series of blogs titled “Maps 101”. In this series, we’ll delve deeper into technical aspects of cartography, real-world case studies of its utility and deep-dives into the industry.
For starters, Check out these pieces about Building the Future of Maps & Why Mapmaking is content creation.
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You can follow us on twitter & instagram, and if you wanna get started on proto; Join our Map-to-earn program here!
See you soon and Happy Mapping !
