The UK’s market for emissions reduction-related IT will be worth $9.74 billion by 2020 – the result of 11 percent compound growth over current levels – and grow 3.5 times faster than the wider UK IT market, according to a new Cambium study.
Analysts say UK government targets will spur this growth. The UK government has said it wants to reduce the country’s GHG emissions 34 percent by 2020, using a 1990 baseline. Beginning in April 2013, all firms listed on the London Stock Exchange will be required to report their GHG emissions. The rest of the UK economy must follow these requirements by 2015.
Cambium’s research shows that IT will play a critical role in helping the country achieve the necessary cuts by driving measurement, monitoring, management and planning systems, as well as developing new ways for business to operate and become more energy efficient.
The study used a proprietary modelling methodology to determine the amount of IT investment required to reduce GHG emissions, Cambium said.
A Verdantix study published last month says tech service companies will reap the benefits as large US firms spend $2.5 billion annually by 2015 on technology consulting and systems integration relating to their energy and sustainability initiatives. The forecast spending reflects a 47 percent increase from $1.7 billion in 2011, and a compound annual growth rate of 11 percent over the 2011-2015 period.
Additionally, an April report by Pike Research forecasts that the global smart grid software and related IT services market will reach more than $8.6 billion by 2017, and IDC Energy Insights predicted that in North America, widely deployed advanced metering infrastructure and smart meter investment will lead to increased demand response for 2014.