Year-end IT spending expected to be $9.1bn in 2011
IT market research company International Data Corporation (IDC) has predicted that Western European utilities’ IT spending will surpass $11.7bn in four years.
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 $9.1bn in 2011.
The report, Western Europe, Utilities Industry, IT Spending, 2010-2015 Forecast (IDC Energy Insights #EI0S55T, August 2011) shows that IT services currently make up 61.8% of total IT spending for utilities – the largest share, at over $5.6bn in 2011.
IT services are followed by packaged software and hardware, which account for 20.6% and 17.7% of IT spending respectively.
IDC Energy Insights EMEA chief Roberta Bigliani said that by 2015, Western European utilities’ IT spending will surpass $11.7bn, with an estimated CAGR of 6.2% for 2010-2015.
Bigliani said, "While electricity’s IT spending is already the most substantial in 2011, the subindustry is not expected to lower its spending any time soon."
"The water subindustry sector will have the slowest 2010-2015 growth rate, significantly below average at 4.8%, though this is to be expected as companies in the water subindustry are often smaller, making it more difficult for them to find financial resources to invest in IT.
"Overall, though, utilities’ IT investments will continue to be driven by smart metering 2012 rollouts, operational excellence, cost reductions, and the need to comply with energy policies and regulation," added Bigliani.