Surveying and Mapping Private Company Multiples and Valuation

Surveying and Mapping: Navigating Market Trends, Private Company Multiples and Valuation.

George Wellmer

August 4, 2024

Surveying and Mapping

Industry: Surveying and Mapping

Naics: 541370

Private Company Multiples

Industry Overview

The Surveying and Mapping Services industry in the United States has experienced notable fluctuations in revenue due to various economic factors and market dynamics. Here are the key insights:

Market Size and Growth

Projected Revenue: The market size for Surveying and Mapping Services in the U.S. is expected to reach $10.7 billion in 2024, reflecting a growth of 4.1% in that year alone.
CAGR: During the current period, the industry's revenue is anticipated to grow at a CAGR of 0.5%, with further expansion forecasted at a CAGR of 2.4% from 2024 to 2029, potentially reaching $12.1 billion by 2029.

Key Drivers of Industry Performance

Infrastructure Investment: The Bipartisan Infrastructure Law has significantly boosted funding for surveying and mapping services, particularly in highway construction and civil engineering projects.
Technological Advancements: The adoption of new technologies such as drones, LiDAR, and AI is expanding the capabilities of surveyors and mappers, creating additional revenue streams and enhancing service offerings.
Non-residential Construction Demand: As the economy continues to recover, steady growth in non-residential construction is expected to drive demand for surveying services.

Challenges

Interest Rates: The Federal Reserve's increase in borrowing costs has led to a decline in homebuying and residential improvements, negatively impacting demand from the residential sector.
Economic Uncertainty: Ongoing economic fluctuations and conservative monetary policies may keep interest rates elevated, which could hinder growth in the housing market.

Industry Outlook

The Surveying and Mapping Services industry is set to benefit from a combination of government investment in infrastructure and technological innovation. However, the impact of high interest rates on residential demand remains a critical factor to monitor. Overall, the sector is positioned for gradual growth, driven by non-residential projects and advancements in surveying technologies.