Global IT Spending in Energy Sector 2016-2020
About IT Spending in Energy Sector
IT spending comprises the spending of the enterprise on the procurement of IT solutions and services in the energy sector. Energy firms like the oil and gas companies along with the power companies require IT solutions such as on-premises of cloud-based software solutions, networking devices, equipment, and IT support services.
Technavio’s analysts forecast the global IT spending in energy sector to grow at a CAGR of 3.18% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global IT spending in energy sector for 2016-2020. To calculate the market size, the report considers the revenue generated by vendors providing IT products, solutions, and services for energy firms operating businesses in the oil and gas and the power sectors.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global IT Spending in Energy Sector 2016-2020
Technavio recognizes the following companies as the key players in the global IT spending in energy sector: Dell, IBM, Infosys, and SAP.
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.
Commenting on the report, an analyst from Technavio’s team said: “One of latest trends in the market is emergence of cloud computing. The shift from CAPEX to OPEX model is the primary reason driving the increasing adoption of cloud computing solutions in several industry verticals. The key benefit of implementing cloud-based solutions is the pay-per-use pricing model, i.e. clients have to pay for what they use. The cloud-based solutions are also flexible in terms of deployment models as the cloud services are available in three deployment models - IaaS, PaaS, and SaaS. This allows clients to build their cloud-based infrastructure as per business requirements. The industrial clients can select a range of cloud computing services depending on their IT budgets and business requirements. There is no fixed upfront cost required, which is in sharp contrast to on-premises IT infrastructure. Moreover, it makes the cloud computing technologies attractive to manufacturers.”
According to the report, one of the primary drivers in the market is need to comply with regulations and guidelines. The oil and gas industry has to comply with many governments and industry regulations and guidelines. Operators also have to win compliance with environmental standards enforced inside national boundaries. For instance, the industry in the UK is regulated by a number of statutory bodies, including the Department of Energy and Climate Change (DECC), Environment Agency (EA) in England, Natural Resources Wales (NRW) in Wales, Health and Safety Executive (HSE), and the Scottish Environment Protection Agency (SEPA) in Scotland. Any violations can result in legal issues and penalties for operators.
Further, the report states that one major challenge in the market is data privacy and security risks. Data privacy and security risks hinder the adoption of IoT solutions. Data collected through connected devices need to be stored on a secured database and storage systems to protect the data from external cyber-attacks. Data security concerns remain a major challenge for organizations due to the presence of many connected devices and the use of private and public networks.
GE Oil and Gas, Hitachi, Huawei Technologies, HCL Technologies, Oracle, Siemens, TCS.