NEW YORK--(BUSINESS WIRE)--By 2015, large firms in the US market will spend $2.5 billion annually on technology consulting and systems integration relating to their energy, environment and sustainability initiatives, according to a new report from independent analyst firm Verdantix. The forecasted level of investment reflects a 47% increase from spending of $1.7 billion in 2012 and a compound annual growth rate of 11% over the 2011 to 2015 period. This compares with a total US market size for all energy, environment and sustainability spending of $39.8 billion in 2012 making technology services 4% of the total market.
“Power utilities will account for a whopping 47% of US private sector spend on energy and environment technology services in 2012” commented Stuart Neumann, Verdantix Senior Manager and author of the report. “This reflects the growth in smart grid technology services spend which will reach $503 million in 2012 and the boom in smart meter projects represents $385 million of spend. The $4 billion in US stimulus funds targeted at smart meters has been a key driver. Other growth factors revealed in our analysis include a big push by oil and gas firms to strengthen their environmental management systems, an ongoing focus on energy and carbon data management and data-driven facilities energy efficiency. The roll out of large solar parks and utility-scale wind farms is also creating new IT systems requirements.”
The Verdantix report ‘US Sustainable Technology Services Spend 2011-15’, covers spend by 1,833 firms across 11 different energy, environment and sustainability initiatives. Spending on technology services related to six energy management initiatives dominate the market opportunity representing $1.4 billion of the $1.7 billion total in 2012. Technology services in the environmental management and water stewardship market segments will be worth $218 million in 2012. Strong environmental technology services practices such as Deloitte, ERM, Fujitsu Services and Mahindra Satyam will benefit from this spending. The embryonic market for sustainability technology services – covering climate change, sustainability performance management and low carbon transport – captures just $151 million of corporate IT spending in 2012.
“The size and growth rate of the US market for energy, environment and sustainability technology services is sufficient to generate interest from all major technology services firms” commented David Metcalfe, Verdantix CEO. “The problem is that few IT services firms are making money in this market. The opportunities are fragmented across eleven different categories making market entry problematic. And growth rates for supposedly ‘hot topics’ like water stewardship are just 10% per annum over the 2011 to 2015 period. Headline issues like climate change risk management systems will garner just $30 million in spend in 2012 – less than a medium-sized IT outsourcing deal. Only suppliers with a strong market position in sectors like utilities or oil and gas are making a decent profit. New entrants need smarter strategies.”
|Climate change risk management||$28||$30||$33||$38||$44||12%|
|Sustainability performance management||$51||$55||$61||$68||$78||11%|
|Low carbon transport (premium)||$61||$66||$74||$86||$100||13%|
|Enterprise energy and carbon management||$73||$95||$131||$164||$194||28%|
|Sustainable data centres (premium)||$121||$134||$153||$171||$191||12%|
|Facility energy and carbon management||$115||$145||$191||$234||$275||24%|