Annual IT Spending by Western European Utilities to Reach $12.7 Billion by 2017, Says IDC Energy Insights
Source: idc-ei.com View: 287 Date: 2013-08-06

According to a new IT spending forecast report published by IDC Energy Insights, total year-end IT spending by Western European utilities is expected to be $10.4 billion in 2013, with the majority (62.9%) of IT spending being dedicated to IT services.

The report, Western Europe Utilities Industry IT Spending 2012–2017 Forecast (Doc # EIOS57V), which includes market sizing and forecast estimates for the utilities industry in Western Europe for 2012–2017, predicts that software spending will see the most significant boom, growing at a 2012–2017 CAGR of 7.4%, reaching $3.2 billion by 2017. IT services also has a positive outlook, expected to grow at average, 4.9%, while the hardware sector will barely grow, 0.7%, significantly below average over the period between 2012 and 2017.

"In 2013, total year-end IT spending by Western European utilities is expected to be $10.4 billion, with the majority (62.9%) of IT spending being dedicated to IT services," said Gaia Gallotti, research manager, IDC Energy Insights. "The prolonged economic downturn continues to take its toll on Western European utilities IT spending potential. More than ever utilities are striving to make the most of every dollar spent to achieve operational excellence, and reduce inefficiencies. However, the need to comply with energy policies and regulation will continue to drive utilities ICT investments, translating into an estimated total Western European utilities’ 2012–2017 CAGR of 4.9%."

The report shows that:

• Electricity companies take the most significant share of IT spending in 2013 with 67% ($7 billion).

• The gas and water segments are considerably smaller, but still relevant, especially in specific geographies, at 15.8% and 13.1%, respectively.

• IT services make up 62.9% of total IT spending for utilities, making it the largest share with over $6.6 billion in 2013. Following IT services are packaged software and hardware, which make up 23% and 14.1% of IT spending, respectively.

• Amongst the IT Spending on IT Services sub technologies by utilities, implementation and operations make up the largest share with 34.2% and 25.5% respectively.

This report contains a downloadable pivot table, a detailed overview of the current status of the utilities sector in the top 5 Western European countries (France, Germany, Italy, Spain, and the U.K.), plus the Nordics (Denmark, Finland Norway and Sweden) and BeNe (Belgium and Netherlands) regions, and an aggregate of the remaining Western European countries. There is also an overview of utilities’ business environment and IT spending behavior, priorities, and future outlook for utility providers in Western Europe for 2012 to 2017.

For additional information about this report or to arrange a one-on-one briefing with Roberta Bigliani or Gaia Gallotti, please contact Sarah Murray at 781-378-2674 or sarah@attunecommunications.com. Reports are available to qualified members of the media. For information on purchasing reports, contact insights@idc.com; reporters should email sarah@attunecommunications.com.

About IDC Energy Insights

IDC Energy Insights assists energy businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the utility and oil and gas industries. International Data Corporation ( IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. For more information, please visit www.idc-ei.com, email info@idc-ei.com, or call 508-935-4400. Visit the IDC Energy Insights Community at http://idc-insights-community.com/energy.

 

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For more information, please contact:

Heather Hargraves
hhargraves@idc.com
508-935-4162

Sarah Murray
sarah@attunecommunications.com
781-378-2674

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