Built Environment: Opportunities for mid-market PE in geospatial tech 

Geospatial technology, technology that collects and / or processes data associated with location, is continuing to attract mid-market investor attention with assets coming onto the market in 2024.  

There has been a significant increase in uptake of geospatial technology in the last six years. It is now considered a critical element in projects across sectors and is used at scale in areas ranging from marketing of real estate to EHS (Environmental, Health & Safety). Adoption and opportunity vary by sector with significant potential for growth in the slower adoption sectors like construction and engineering.  

What is driving the growth? 

Infrastructure: The UK government plans for significant infrastructure investment in the long-term will drive demand for geospatial information. Government often do not have in-house resource or expertise to implement complex infrastructure projects and will rely on specialists and consultants to advise and implement projects.  

Technology: Increased Digital Experience (DX) activity has driven adoption of geospatial technology across many sectors. Demand will continue to increase as ROI and efficiencies are more widely understood across the project lifecycle. 

Environmental and resources management: Key stakeholders have an increased focus on environmental impacts at every stage of a project lifecycle. Buildings are being designed and reconfigured to be more sustainable, driving the usage of digital twin and geospatial data. 

Construction: The construction market suffered during COVID but is entering an expansion phase in the next two to three years. This will lead to growth in the use of geospatial data which is essential at every stage of a construction project lifecycle. Read our recent article – Opportunities for investors to help Britain build better homes here.

Adoption: As geospatial technology advances, the adoption curve shifts up, creating long-term growth potential including increasing the types of usage for early adopters. 

What investors are asking 

It is worth noting that while the application of geospatial tech continues to expand, it is primarily used in infrastructure and construction projects. While the macro-construction environment remains gloomy, the relatively low penetration of geospatial services means a small increase in demand quickly translates to growth. Additionally, we’re seeing usage expand beyond construction and industrial projects into service led property management and environmental services. It is important to get a robust understanding of the market and opportunities for growth.  

Here are some questions we’ve helped PE and management teams answer recently: 

  • Which services offer the most attractive recurring revenue opportunities? 
  • Which segment of the value chain is most attractive to operate in? 
  • What are the competitive advantages of operating as a specialist geospatial service provider versus a large generalist? 
  • How can we overcome the talent shortages in the industry? 
  • What does the M&A opportunity landscape look like in the sector?  

Get in touch with a member of the team about opportunities in the Built Environment sector.  

Brandon Matthews

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+44 7771 401 723

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