Energy Insights™ Finds Energy Trading On The Uptick High Prices And Volatility Driving Increase
FRAMINGHAM, MA – MAY 17, 2006 – A new study by Energy Insights, an IDC Company, predicts moderate growth (6.57% compound annual growth rate) for the global energy trading and risk management (ETRM) software market, currently valued at more than $570 million. The report examines ETRM markets and provides forecasts for various regions worldwide, including North America, Western Europe, Latin America, Asia/Pacific, Japan and CEMA (Central/Eastern Europe, the Middle East and Africa). The study also provides guidance for market watchers on what conditions are likely to increase levels of ETRM investment in each region.
“After the fallout from Enron and the misreporting of gas prices, the energy industry retreated from heavy spending activity,” says report author Jill Feblowitz, Program Director of Energy Wholesale Strategies at Energy Insights. “Now, trading volumes have rebounded and we’re seeing a major uptick in investment in ETRM across the board. And looking ahead, we expect the emerging, energy-rich markets, like CEMA, Latin-America and Asia/Pacific, to really start driving ETRM investments even more.”
In her report, entitled “Growth and Change – Forecasting the Global Market for Energy Trading and Risk Management” (Doc# EI201571), Feblowitz focuses on how high energy prices and volatility, on a global scale, are driving the increase in energy trading and the investment in information technology.
Adds Feblowitz, “High energy prices and volatility have driven an increase in energy trading worldwide. When energy trading activity goes up, it creates a positive climate for increase investments in ETRM.”
The Energy Insights’ market-sizing and forecast report also specifies anticipated growth rates for the oil and gas (O&G) and utilities sectors. The study reveals a CAGR of 7% for utilities with a projected total ETRM spending of $363.2 million by 2009, and an estimated 6.3% CAGR for O&G, with spending peaking at $426.7 million in three years.
The full report and findings are available on http://www.idc.com.
About Energy Insights, an IDC Company
Energy Insights, an IDC Company, provides energy industry executives with research-based advisory and consulting services that enable energy companies to maximize the business value of their technology investments, minimize technology risk through accurate planning, benchmark themselves against industry peers, adopt industry best practices for business/technology alignment, make more informed technology decisions and drive technology-enabled business innovation. Energy Insights provides full coverage of the energy industry value chain from upstream to retail activities. Staffed by senior analysts with significant technology experience in the energy industry, Energy Insights provides a portfolio of offerings that are relevant to both IT and business needs.
Founded in January 2005, Energy Insights is headquartered in Framingham, Mass. Visit http://www.energy-insights.com for more information.
IDC is a subsidiary of IDG, the world's leading IT media, research, and exposition company.