Milan, 29 July 2010

IDC Energy Insights today released a new IT Spending Forecast report, which covers the market sizing and forecast estimates for the utilities industry in Western Europe for 2009–2014.

"In 2010, total year-end IT spending by Western European utilities is expected to be $8.8 billion, with the majority, 63.7%, of IT spending being dedicated to IT services," said Roberta Bigliani, EMEA research director, IDC Energy Insights. "Smart grids, operational excellence, and costs reduction together with the need to comply with energy policies and regulation will continue to drive utilities IT investments. This translates into an estimated 2009–2014 CAGR of 3.2%."

In this IDC Energy Insights study, the analysis is arranged by major technologies, sub-industries (electricity, gas, water, and other), and top 5 Western European countries (France, Germany, Italy, Spain, and the U.K.) with the remaining Western European countries designated as "Other WE". The study also includes IT spending forecasts by sub-industries and total Western European utilities sub-technologies spending for the five-year period ending in 2014.

Major highlights from this new IDC Energy Insights IT spending forecast include the following:

* IDC Energy Insights forecasts Western European utilities IT spending to reach $10 billion in 2014, with an estimated 2009–2014 CAGR of 3.2%.

* Electricity's IT spending is already the most substantial in 2010, and this sub-industry is not expected to decrease its spending any time soon, as it will have the fastest-growing above-average CAGR between 2009 and 2014.

* The Western European water sector is the third-largest spender in IT among utility companies, spending around 80% of what gas companies spend and 20% of what electricity companies spend.

* The U.K. is the country with the largest IT spending in electricity, followed by France and Germany. Both Italy's and Spain's 2009-2014 CAGRs are below the Western European electricity average CAGR, with 2.32% and 2.29% CAGR in the forecast period, respectively.

* IT services makes up 63.7% of total IT spending for utilities in 2010. Following IT services are packaged software and hardware, which make up 19.6% and 16.7% of IT spending respectively.

More details and a pivot table can be found in this IDC Energy Insights study, Western Europe, Utilities Industry, IT Spending, 2009–2014 Forecast, by Roberta Bigliani and Gaia Gallotti, which details IDC Energy Insights' IT Spending forecasts for the Western European utility industry in the 2009-2014 timeframe.

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