IDC estimates that overall IT spending in the Western European transportation industry will reach $7.7 billion by 2009

MILAN, ITALY – 3 February, 2006 – IDC estimates that overall IT spending in the transportation industry will reach approximately $6.4 billion in 2005. IDC foresees a CAGR over the forecast period 2005-2009 of 4.7%, to reach an overall market value of approximately $7.7 billion by 2009.

IT products and services will experience different levels of demand.

Software continues to be the fastest growing segment overall and is now expected to grow even more strongly compared to the May 2005 forecast.

IDC anticipates a CAGR for software spending in transportation of 6.2% for 2005-2009. IT services spending is expected to achieve a CAGR of 5.4% over the forecast period, with particular opportunities in operational services.

Hardware is expected to show the slowest growth over the forecast period, while still attaining a 2005-2009 CAGR of 2.4%.

In line with previous expectations, transportation sub-verticals that will offer particular opportunities over the forecast period include air transport (a CAGR of 5.0%) and land transport (a CAGR of 4.9%).

The security and safety of services is one of the major challenges for the transportation industry, driving IT investments in security technologies, real-time advanced asset management, operation planning, and MRO solutions.

Going forward into 2006, IDC expects that field trials of new technologies such as biometrics and innovative explosive detection systems will increasingly take place.

"Transport and logistics organizations need the ability to react and adapt faster to changing market conditions in order to effectively counteract business threats. In this respect achieving flexible, adaptive, and scalable operations will be crucial. Integration of new industry-specific applications providing advanced capabilities and standardization of the information flow among different IT platforms will be critical to supporting the transportation industry's evolution," said Ivano Ortis, program manager with IDC's European Vertical Markets.

The IDC document Western European Transportation Industry 2005-2009 IT Spending Forecast Update (Doc #PT56M, December 2005) is an update of the study Western Europe Transportation 2004-2009 IT Spending Forecast (Doc #PT02M, July 2005), and provides new data and analysis of IT spending trends among Western European transportation companies for the period 2004 to 2009.

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