IDC predicts USD6.4bn IT spending in transportation industry

Telecomworldwire, Feb 6, 2006

TELECOMWORLDWIRE-6 February 2006-IDC predicts USD6.4bn IT spending in transportation industry(C)1994-2006 M2 COMMUNICATIONS LTD http://www.m2.com

Overall IT spending in the transportation industry is expected to have reached around USD6.4bn in 2005, according to the 'Western European Transportation Industry 2005-2009 IT Spending Forecast Update' report from IDC, a global market intelligence and advisory company.

IDC's December update said a CAGR of 4.7% is expected over the 2005-2009 forecast period, with an overall USD7.7bn overall market value predicted by 2009. It said IT products and services will see different demand levels, with software expected to grow more strongly in comparison to the May 2005 forecast, and continue as the fastest growing segment overall.

A 6.2% CAGR for software spending in transportation is expected for 2005-2009, while IT services spending is predicted to reach 5.4% CAGR over the forecast period. Hardware spending is expected to attain 2.4% CAGR during the period, generating the slowest growth.

The security and safety of services is likely to represent one of the main challenges for the industry, pushing IT investments in security technologies, operation planning, MRO solutions and real-time advanced asset management.

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