This IDC study focuses on the utilities sector in Australia, providing a map of where short- and longer-term opportunities can be found, and highlighting purchasing patterns for products and services by market. This study is part of a series of reports focusing on specific vertical markets. Provided are actual IDC market sizing and IT market share for 2010, along with forecasts for 2011–2015, including compound annual growth rates (CAGRs). This study aims to provide insights into the future areas of opportunity in the utilities sector, highlighting areas of growth and decline and analysing the factors influencing the decision-making processes of Australian ICT spenders.
"Instead of increasing the capacity of electricity networks, IDC believes that rolling out the smart grids is the long-term solution to control the rise in electricity prices, and this trend of "smart-plating" the network is emerging at the expense of "gold-plating" them. As such, we believe that ICT vendors can ride on this new wave of expansionary capex generated by the utility companies, says David So, head of Vertical Markets, IDC Australia Vertical Markets Research.
"There are three industry changes in the electricity network distribution sector that are major catalysts for a new wave of ICT spending. In addition to the merger of the NSW electricity distributors and the rollout of smart grids, the changes in the network pricing rules will not only control the rise in electricity prices but will also present business opportunities for ICT vendors. Specifically, the regulator is realising that the return on capital approach in determining revenue for the electricity distributors may not work well when retail electricity prices have risen by 18% since the introduction of the carbon tax. The amendments in this rule could potentially result in higher operating expenditure on cloud computing and also drive the formation of partnerships with mobile operators for the rollout of the smart grids."