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Industries reliant on US government data see revenues double over ten years

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Don Graves Deputy Secretary of Commerce | Official Website

Recent estimates indicate that industries heavily reliant on U.S. government data reached nearly $800 billion in revenue in 2022, doubling from approximately $400 billion in 2012. This growth was particularly notable in Internet Publishing and Broadcasting, Web Search Portals, and Management Consulting Services. The Department of Commerce's Office of the Under Secretary for Economic Affairs (OUSEA) blog analyzed these trends using data from the U.S. Census Bureau.

The Federal Government collects and shares a wide range of data about individuals, households, and businesses. This information is often available to the public at no cost and covers various topics such as prices, finances, weather, and agricultural output. In fiscal year 2023, the combined budget for the 13 principal statistical agencies was around $3.5 billion; this figure is expected to triple during the decennial census year in 2030.

While all industries use government data to some extent, sectors like professional services and information technology rely more heavily on it. The blog updates a previous estimate from a 2014 Department of Commerce report on revenue generated by industries dependent on government data.


Don Graves, Deputy Secretary of Commerce | Official Website

Over the past decade, revenue from these industries has grown significantly. From 2012 to 2022, total revenue almost doubled from $393.6 billion to $750.7 billion. Growth was steady until a spike in 2020 followed by stabilization in subsequent years.

Internet Publishing led much of this increase, tripling its revenue since 2012 and becoming the largest category within government data-intensive sectors by 2022. Management Consulting also saw substantial growth of over 40%, ranking second-largest that year.

Revenue growth for government data-intensive services (GDIS) outpaced overall economic growth but remained slightly smaller as a percentage of gross output compared to total revenue growth across all sectors. From 2012 to 2022, GDIS revenue grew significantly when compared with non-GDIS services like transportation or utilities.

The methodology used for this analysis is based on a report titled “Fostering Innovation, Creating Jobs, Driving Better Decisions: The Value of Government Data” published by the U.S. Department of Commerce in 2014. It defines government data-intensive businesses as those heavily relying on such data for production processes.

Data was sourced from the U.S Census Bureau's Service Annual Survey using NAICS codes consistent with those used in the original report. However, it should be noted that this analysis does not account for new industries or firms that may have become more reliant on government data since then.

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