Survey of Estimates of Economic Value of Open Government Data

Posted by Ömer Faruk Sarı at Aug 22, 2015 08:30 AM |
This is a survey of estimates of economic value of open government data, and public sector information in general, across regions, countries, and sectors offered by several reports published during the last decade. The survey is undertaken by Ömer Faruk Sarı, a student of Business Administration at Koc University in Istanbul, Turkey, and research intern with CIS.

 

Introduction

This is a survey of economic value estimates of open government data, and public sector information in general, by consultancy groups and government bodies across the world. The first part of the post lists estimates from different regions and countries, while the second part collects estimates for different sectors. Major reports surveyed in this study include the 'MEPSIR: Measuring European Public Sector Information Resources' report (2006), 'The Value of Spatial Information' report by ACIL Tasman (2008), 'Review of Recent Studies on PSI Re-Use and Related Market Developments' report by Graham Vickery (2012), 'Market Assessment of Public Sector Information' report by Deloitte (2013), 'Open Data: Unlocking Innovation and Performance with Liquid Information' by McKinsey (2013), 'Big and Open Data in Europe: A Growth Engine or a Missed Opportunity?' by Warsaw Institute for Economic Studies (2014), and 'Open for Business: How Open Data can Help Achieve the G20 Growth Target' report by Omidyar Network (2014).

Note about Exchange Rate:The monetary values stated in these reports vary by years and currencies. The original estimates are mentioned in the currency concerned followed by the converted amount in US Dollar (using exchange rate of the same year) provided within brackets. The exchange rates concerned are mentioned at the bottom of the post.

 

Countries and Regions

Global

McKinsey estimates global economic value of open data as USD 3.2 Trillion for seven sectors - Education, Transportation, Consumer Products, Electricity, Oil and Gas, Healthcare, and Consumer Finance. [1]

European Union

Pira International Ltd. et al, in 2000, estimated the monetary value of open data for EU countries as EUR 68 Billion (USD 76 Billion). [2]

Zangenberg and Company, estimated this number for EU countries as for minimum EUR 29 Billion (USD 38 Billion) and for an upper limit of EUR 143 Billion (USD 188 Billion). [3]

The Warsaw Institute for Economic Studies (WISE Institute) estimates the economic value of open data in EU, as increase in GDP by 2020, as EUR 206 Billion (USD 253 Billion). [4]

Graham Vickery estimated this number as EUR 200 Billion (USD 264 Billion) in 2012. [5]

In 2006, MEPSIR, in their report for European Commission, mentioned EUR 27 Billion (USD 36 Billion) could be gained by use of open data. [6]

McKinsey, in their report in 2013, estimated the monetary value of open data for EU countries as USD 900 Billion. [1]

G20

For G20 countries taken together, Omidyar Network estimates the economic value of open data as USD 2.6 Trillion. [7]

Australia

Omidyar Network, in their study on business value of open data, estimated the potential of open data for Australia as AUD 3.4 Billion (USD 2.8 Billion). [7]

In 2008, ACIL Tasman estimated the potential economic value of open data for Australia as AUD 1.4 Billion (USD 938 Million). [8]

John Houghton's estimation for the monetary value of open data is AUD 195 Million (USD 197 Million). [9]

Denmark

Zangenberg and Company, in 2011, estimated the economic value of open data for Denmark as DKK 520 Million (USD 92 Million). [3]

France

SerdaLAB, in 2009, estimated EUR 1.57 Billion (USD 2.3 Billion) can be gained by open data in France. [10]

Germany

In 2011, Dr, Martin Fornefeld et al estimated the economic value of open data for Germany as EUR 1.7 Billion (USD 2.2 Billion), only for geo-information. [11]

The POPSIS study estimated this number as EUR 3.2 Million (USD 4.2 Million), in the same year, 2011. [12]

Norway

Graham Vickery's report mentions the potential value of open data as NOK 260 Million (USD 43 Million). [5]

Spain

The Proyecto Aporta (Spanish open data portal project) study estimated the economic value of the infomediary sector in Spain as EUR 330-550 Million (USD 452-753 Million), in 2012. [13]

The Netherlands

In 2011, the POPSIS study estimated the economic potential that can be gained from open data in Netherlands as EUR 78 Million (USD 102 Million). [12]

United Kingdom

Deloitte, in their report, estimated the value of open data as GBP 6.2-7.2 Billion (USD 10-11.8 Billion) for United Kingdom. [14]

Rufus Pollock, in 2011, estimated GBP 4.5-6 Billion (USD 7-9.3 Billion) that can be unlocked by use of open data. [15]

Dot-Econ's estimation for monetary value of open data in United Kingdom is EUR 590 Million (USD 778 Million). [16]

United States

McKinsey's estimation, in 2013, for the value that can be unlocked by open data in United States is quite remarkable at USD 1.1 Trillion. [1]

Pira International Ltd. et al, in 2000, estimated the value as EUR 750 Billion (USD 838 Billion). [2]

 

Data Types and Sectors

Consumer Finance

McKinsey estimates USD 210-280 Billion, globally, for the consumer finance sector. [1]

Based on McKinsey's Report: The estimate for G20 countries is USD 169 Billion; for Australia, the estimate is AUD 4.2 Billion (USD 4.3 Billion).

Consumer Products

Across the globe, with the use of open data McKinsey estimates USD 520-1470 Billion can be generated from services of consumer products. [1]

Based on McKinsey's Report: G20 countries, in total, have a potential value of USD 419 Billion for this sector; the value is estimated at AUD 10 Billion (USD 10.2 Billion) for Australia.

Education

McKinsey estimates that USD 890-1180 Billion can be generated alone in education sector, across the globe. [1]

Based on McKinsey's Report: Open data in the education sector in G20 countries can generate USD 717 Billion; for Australia, value of open data in education sector is estimated to be AUD 14 Billion (USD 14.2 Billion).

Electricity

McKinsey estimates USD 340-580 Billion, across the globe. [1]

Based on McKinsey's Report: For electricity sector, USD 193 Billion is estimated for G20 countries; estimate for Australia for electricity sector depending on open data is AUD 6.7 Billion (USD 6.8 Billion).

Geospatial Data

Dr. Nam D. Pham estimates the potential value of Geo-spatial information in US as USD 96 Billion. [17]

In the report by Pira International Limited et al, the economic value of geo-spatial information in EU estimated as EUR 36 Billion (USD 40 Billion). [2]

Fornefeld et al estimates the value of geo-spatial information in Germany as EUR 1.7 Billion (USD 2.2 Billion). [11]

The POPSIS study estimates the economic value of Meteorological data re-use market in Netherlands as EUR 10 Million (USD 13 Million). [12]

Graham Vickery estimates (in 2012) NOK 72 Million (USD 12 Million) can be generated in Norway through geo-spatial information. [5]

The Proyecto Aporta study estimates potential value of geo-spatial information in Spain as EUR 183 Million (USD 240 Million). [13]

ACIL Tasman in their report, estimated that as a direct result of the uptake of spatial technologies New Zealand’s real GDP increased by NZD 1.2 Billion (USD 670 Million) in 2008 through productivity-related gains as a result of the increasing adoption of modern spatial information technologies since 1995. [8]

In the United Kingdom, a 'supply-side' assessment estimated the market size and growth potential for geographic information (GI) products and services. The market size in year 2007 was estimated to be GBP 657 Million (USD 1.32 Billion). [18]

Based on PwC's study in 2010, John Houghton estimates the value of spatial data in Australia as AUD 25 Million (USD 25.3 Million). [9]

Ordnance Survey of UK estimates the economic value of open data published by the same agency as GBP 2.9-6.1 Million (USD 4.5-9.5 Million). [19]

Healthcare

Globally, USD 300-450 Billion is the estimate of McKinsey, depending on open data use in healthcare sector.[1]

Based on McKinsey's Report: Open data in the healthcare sector can generate USD 242 Billion for G20 countries; estimate for Australia is AUD 5.9 Billion (USD 6 Billion).

Oil and Gas

McKinsey estimates USD 240-510 Billion that can be generated through open data for the oil and gas sector, across the globe. [1]

Based on McKinsey's Report: Oil and gas sector, with the use of open data, can generate USD 169 Billion for G20 countries; the value for Australia is estimated to generate AUD 4.8 Billion (USD 4.9 Billion).

Transportation

McKinsey estimates the value of transportation sector with the use of open data as USD 720-920 Billion for the transportation sector, globally. [1]

Based on McKinsey's Report: G20 countries altogether can generate USD 580 Billion in transportation sector; estimate of the value of open data in the transportation sector in Australia is AUD 18 Billion (USD 18.2 Billion).

 

Reference

[1] Manyika, James, et al. 2013. Open Data: Unlocking Innovation and Performance with Liquid Information. McKinsey Global Institute. October. Accessed from http://www.mckinsey.com/insights/business_technology/open_data_unlocking_innovation_and_performance_with_liquid_information.

[2] Pira International Ltd. et al. 2000. Commercial exploitation of Europe’s Public Sector Information - Executive Summary. European Commission, Brussels. Aceeseed from ftp://ftp.cordis.europa.eu/pub/econtent/docs/2000_1558_en.pdf.

[3] Zangenberg and Company. 2011, Kvantificering af værdien af åbne offentlige data (Quantifying the Value of Open Government Data). Report Prepared for the Danish National Information Technology and Telecom Agency. Accessed from https://digitaliser.dk/resource/1021067/artefact/Kvantificering+af+den+erhvervsm%c3%a6ssige+v%c3%a6rdi+af+%c3%a5bne+offentlige+data+-+Zangenberg2011.pdf.

[4] Buchholtz, Sonia, et al. 2014. Big and Open Data in Europe: A Growth Engine or a Missed Opportunity? demosEUROPA – Centre for European Strategy and Warsaw Institute for Economic Studies. Accessed from http://www.bigopendata.eu/wp-content/uploads/2014/01/bod_europe_2020_full_report_singlepage.pdf.

[5] Vickery, Graham. 2012. Review of Recent Studies on PSI Re-Use and Related Market Developments. European Commission, Brussels. Accessed form http://ec.europa.eu/information_society/newsroom/cf//document.cfm?doc_id=1093.

[6] Dekkers, Makx, et al. 2006. MEPSIR: Measuring European Public Sector Information Resources - Final Report of Study on Exploitation of Public Sector Information – Benchmarking of EU Framework Conditions. European Commission, Brussels. Accessed from http://ec.europa.eu/information_society/newsroom/cf/document.cfm?doc_id=1198.

[7] Lateral Economics. 2014. Open for Business: How Open Data can Help Achieve the G20 Growth Target. Omidyar Network. June. Accessed from https://www.omidyar.com/sites/default/files/file_archive/insights/ON%20Report_061114_FNL.pdf.

[8] ACIL Tasman. 2008. The Value of Spatial Information: The Impact of Modern Spatial Information Technologies on the Australian Economy. March. Accessed from http://www.crcsi.com.au/assets/Resources/7d60411d-0ab9-45be-8d48-ef8dab5abd4a.pdf.

[9] Houghton, John. 2011. Costs and Benefits of Data Provision. Report to the Australian National Data Service. September. Accessed from http://www.ands.org.au/resource/houghton-cost-benefit-study.pdf.

[10] Guerre, Louise, et al. 2009. Le marché de l’information électronique professionnelle en France. SerdaLAB. Presentation at CCIP on January 27. Accessed from http://www.fnps.fr/Public/Article/File/DOCUMENTS/Presentation_ET_IEP09_270109.pdf.

[11] Fornefeld, Martin, et al. 2011. Die europäische Gesetzgebung als Motor für das deutsche GeoBusiness (European Legislation as a Driver for German GeoBusiness). Accessed from http://www.micus.de/pdf/MICUS_GeoBusiness-BMWi.pdf.

[12] Citadel Consulting et al. 2011. POPSIS: Pricing Of Public Sector Information Study - Models of Supply and Charging for Public Sector Information (ABC) - Final Report. European Commission. October. Accessed from http://ec.europa.eu/newsroom/dae/document.cfm?doc_id=1158.

[13] Ministry of Finance and Public Administration et al. 2012. Characterization Study of the Infomediary Sector. Proyecto Aporta. Accessed from http://datos.gob.es/sites/default/files/files/Estudio_infomediario/121001%20RED%20007%20Final%20Report_2012%20Edition_vF_en.pdf.

[14] Deloitte. 2013. Market Assessment of Public Sector Information. Report to the Department for Business, Innovation and Skills, Government of UK. Accessed from https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/198905/bis-13-743-market-assessment-of-public-sector-information.pdf.

[15] Pollock, Rufus. 2010. Welfare Gains from Opening up Public Sector Information in the UK. University of Cambridge. Accessed from http://rufuspollock.org/economics/papers/psi_openness_gains.pdf.

[16] DotEcon. 2006. The Commercial Use of Public Information (CUPI). Report OFT861. Office of Fair Trading, Government of UK. Accessed from http://www.opsi.gov.uk/advice/poi/oft-cupi.pdf.

[17] Pham, Nam D. 2011. The Economic Benefits of Commercial GPS Use in the U.S. and the Costs of Potential Disruption. June. Accessed from http://www.gpsalliance.org/docs/GPS_Report_June_21_2011.pdf.

[18] Coote, Andrew, and Les Rackham. 2008. An Assessment of the Size and Prospects for Growth of the UK Market for Geographic Information Products and Services. ConsultingWhere. Accessed from http://www.consultingwhere.com/wp-content/uploads/resources/UK_Market_Assessment_v11_Final.pdf.

[19] Carpenter, John, and Phil Watts. 2013. Assessing the Value of OS OpenData™ to the Economy of Great Britain - Synopsis. Ordnance Survey. June. Accessed from https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/207692/bis-13-950-assessing-value-of-opendata-to-economy-of-great-britain.pdf.

 

Exchange Rates

Note: Exchange rates are taken for December of the year concerned.

Euro per 1 US Dollar
2000 0.8947
2006 0.7580
2009 0.6868
2010 0.7562
2011 0.7599
2013 0.7296
2014 0.8123
British Pound per 1 US Dollar
2006 0.5095
2011 0.6415
2013 0.6106
2014 0.6397
Australian Dollar per 1 US Dollar
2008 1.4919
2011 0.9874
2014 1.2144
New Zealand Dollar per 1 US Dollar
2008 1.7923
Norwegian Krone per 1 US Dollar
2010 5.9774
Danish Krone per 1 US Dollar
2011 5.6495

 

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