The report, which includes market size and current estimates for the utilities sector in Western Europe for the period 2011-2016, forecasts that IT spending on technologies and sub-technologies will see the most significant increase over the five-year period. Software spending will grow at a CAGR of 7.2% between 2011 and 2016, reaching $3.1 billion in 2016.
IT services also show a positive outlook, growing below average (4.9%), while the hardware sector will grow below average (3.1%) between 2011 and 2016.
"The need to reduce costs and achieve operational excellence, along with the need to comply with energy policies and regulations, will continue to drive utilities' investments in ICT," commented Gaia Gallotti, senior research analyst at IDC Energy Insights. "This translates to an estimated total CAGR of 5.1% between 2011 and 2016 for utilities in Western Europe."
The report shows that:
• Electricity companies will account for the largest share of IT spending in 2012, at 66.9% (US$7 billion).
• The gas and water segments are considerably smaller, but also significant, at 16% and 13% respectively.
• IT services represent 62.1% of total IT spending for utilities, making it the largest segment at over US$6.5 billion in 2011. Following IT services are software and hardware, which account for 22% and 15.9% of IT spending, respectively.
• Among IT spending on IT sub-technology services by utility companies, implementation and operation constitute the largest proportion, at 34.4% and 25.2% respectively.
The report, "Western Europe, Utilities Industry, IT Spending, 2011-2016 Forecast (IDC Energy Insights # EIOS56U, August 2012)," includes market size and current forecast estimates for the utilities sector in Western Europe for the period 2011-2016. It contains a downloadable pivot table, a detailed description of the current state of the utilities sector in the five main Western European countries (France, Germany, Italy, Spain, and the United Kingdom), and an aggregate for the remaining Western European countries. The report also provides an overview of the utilities business environment, spending patterns, priorities, and future prospects.
