Western European IT spending by transport industry grew 3.2% in 2005
Western European IT demand is increasing only gradually and remains strictly connected to the business requirements that characterize the different vertical markets, IDC says. The public sector will continue to offer the best short-term growth opportunities. Demand will continue to be stronger at a local level and in healthcare (both expected to achieve growth of 6.8% in 2005), slightly lower (6.0%) in central government, and modest in education (3.2%). Finance is expected to remain an attractive sector in 2005, with all the single verticals (banks, insurance, and other finance) expected to exhibit IT expenditure growth rates close to the total average of 3.8%. IT growth in manufacturing in 2005 will be at a positive but modest level, lower than the general average, in both sub-verticals: discrete manufacturing (2.2%) and process (2.8%). Overall compliance is expected to be a key driver of IT spending in the sector. The UK and Spain are offering the most opportunities. Spending in the transport sector will recover quite well in 2005 compared to the recent past, reaching 3.2% growth in 2005 (close to the average).