In this paper, we study two sets of local geomagnetic indices from 26 stations using the principal component and the independent component (IC) analysis methods. We demonstrate that the annually averaged indices can be accurately represented as linear combinations of two first components with weights systematically depending on latitude. We show that the annual contributions of coronal mass ejections (CMEs) and high-speed streams (HSSs) to geomagnetic activity are highly correlated with the first and second IC. The first and second ICs are also found to be very highly correlated with the strength of the interplanetary magnetic field (IMF) and the solar wind speed, respectively, because solar wind speed is the most important parameter driving geomagnetic activity during HSSs while IMF strength dominates during CMEs. These results help in better understanding the long-term driving of geomagnetic activity and in gaining information about the long-term evolution of solar wind parameters and the different solar wind structures.