IDC Expects IT Spending in the Western European Automotive Industry to Reach Close to $7.4 Billion in 2005

MILAN, ITALY – February 3, 2006 – IDC expects total Western European automotive IT spending to reach close to $7.4 billion in 2005. IDC's forecast for hardware spending in the Western European automotive industry has been revised down from the previous forecast issued in June 2005. Expectations for year-on-year growth of hardware spending in the industry in 2005 is now negative at -0.3%, representing a value of approximately $2.3 billion. Over the forecast period IDC expects growth to pick back up, albeit slowly, and anticipates a CAGR of 1.3%.

IDC's forecast for packaged software spending in the Western European automotive industry has not changed considerably since the last one released in June 2005. On a more positive note when compared with hardware investments, IDC anticipates that growth of software spending will be slightly higher than anticipated and reach 4.2% in 2005 with a market value of approximately $1.8 billion. The software market will remain a mix of slow-growth and high-growth segments, with the latter beginning to dominate during the forecast period.

There has been no significant change in IDC's IT services spending expectations in the Western European automotive industry since the previous forecast and IDC anticipates that spending will pick up over the forecast period with a 2005-2009 CAGR of 4.0%.

"Automotive organizations across Western Europe will continue to invest in IT to support business transformation, automation of business processes, and growth," said Jennifer Thomson, program manager with IDC's European Vertical Markets.

The IDC document Western Europe, Automotive, IT Spending Forecast Update, 2004-2009 (Doc #AS52M, December 2005) is an update of the study Western Europe, Automotive IT Spending Forecast, 2004-2009 (Doc #AS01M, June 2005), and provides new data and analysis on IT spending trends among Western European automotive companies for the period 2004-2009.

To purchase this document, please contact your local IDC office or visit http://www.idc.com.

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IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.

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