Overview of the global IT spending in energy sector market
Market research analysts at Technavio predict that the global IT spending in energy sector market will grow steadily during the next four years and post a CAGR of more than 3% by 2020. This market research analysis identifies the increased spending in public sector projects as one of the primary growth factors for this market. The focus of several countries such as the US and the UK towards modernizing the energy sector has resulted in increased public sector spending. For instance, to support the modernization of the energy department in various functions including clean energy, nuclear security, and science and innovation, the President’s budget in the US has already sanctioned USD 32.5 billion for FY2017. Similarly, the government of UK has also sanctioned approximately USD 65 million over the next five years towards the implementation of smart technologies for the energy sector.
One of the major trends that will gain traction in this market is the evolution of digital oil field framework. The need to boost production to meet the rising demand, will induce oil and gas companies to automate their workflows and will also create the need for the integration of information technologies to enable better collaboration. This will result in the adoption of digital oil field framework that connects oil fields to office workspaces and helps in ensuring safe and secure operations.
Competitive landscape and key vendors
Due to the presence of a considerable number of vendors, this market appears to be fragmented. The market is highly competitive and is dominated by the major vendors such as Dell, Infosys, IBM, and SAP. With the increase in innovations the market’s competitive environment will intensify further in the coming years. To sustain the competition, vendors have the need to offer cost-effective services such as mobile and web services and should also offer value-added services such as consultancy, solution integration, support and maintenance, and staff training to address opportunities and risks.
The leading vendors in the market are -
The other prominent vendors in the market are ABB, Alcatel-Lucent, Capgemini, Cisco Systems, GE Oil and Gas, Hitachi, Huawei Technologies, HCL Technologies, Oracle, Siemens, and TCS.
Segmentation by technology spending and analysis of the IT spending in energy sector market
- IT services
- Software
- Hardware
This market study estimates that due to the increased demand for system integration, IT support, and cloud-based services from energy firms, the IT services segment accounted for the major shares and dominated this market during 2015. The increased adoption of cloud computing services due to benefits such as easy deployment will aid in the growth of the market segment in the coming years.
Geographical segmentation and analysis of the IT spending in energy sector
This market research analysis estimates that in terms of geographical regions, the Americas was the major revenue contributor to the market during 2015. This mainly attributed to the presence of technology-driven economies such as the US and Canada. Furthermore, the shale oil revolution that led to the tremendous production of oil and natural gas in the region also played a significant role in driving IT spending in the energy sector in the Americas.
Key questions answered in the report include
- What will the market size and the growth rate be of global IT spending in energy sector in 2020?
- What are the key factors driving the global IT spending in energy sector?
- What are the key market trends impacting the growth of the global IT spending in energy sector?
- What are the challenges to market growth?
- Who are the key vendors in the global IT spending in energy sector?
- What are the market opportunities and threats faced by the vendors in the global IT spending in energy sector?
- Trending factors influencing the market shares of the global IT spending in energy sector in the Americas, APAC, and EMEA.
- What are the key outcomes of the five forces analysis of the global IT spending in energy sector?