U.S. Energy Industry to Increase IT Spending to $25 Billion by 2007, IDC Reveals
FRAMINGHAM, MA – JUNE 11, 2003 – Despite the volatility of the past several years, the U.S. energy industry has proved to be resilient and continues to be a healthy market for technology providers. According to new research from IDC, IT spending by the U.S. energy industry is expected to grow from $18.9 billion in 2002 to more than $25 billion in 2007, representing a five-year compound annual growth rate (CAGR) of 5.9%.
"In just a few short years, the energy industry has gone from promises of great growth to picking up the pieces with the collapse of energy trading markets, the uncertainty of deregulation, and the war with Iraq," commented Christopher Boone, program manager of U.S. Vertical Industry Research, Energy/Utilities at IDC. "Nevertheless, IT vendors with energy industry expertise continue to gain from increases in oil and gas exploration investments by leading players and the need toconsolidate IT systems in the aftermath of mergers and acquisitions. These efforts will sustain IT spending growth in the near term."
As energy companies ride through the storm, IDC provides IT vendors targeting this industry with the following recommendations to take advantage of opportunities:
Provide IT products and services that cater to consolidation in the industry.
Be prepared for and help energy companies manage volatility.
Embed security into all IT initiatives aimed at the energy industry.
IDC's new study, U.S. Energy IT Spending Forecast, 2003-2007: A First Look at the Year Ahead, (IDC #29467), presents the 2003-2007 IT spending forecast for the U.S. energy industry combining select sub-industries from the mining, manufacturing, utilities, transportation, wholesale, and retail industries. This study includes a detailed summary of assumptions and their impact on the forecast, and offers recommendations to IT vendors that target the energy
industry to help them take advantage of IT opportunities.
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IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.
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