ARRA Bill to Stimulate $77.6B in Energy Industry according to IDC study
Industry Research Identifies High-Priority Initiatives and Related Technology
FRAMINGHAM, Ma., March 17, 2009 In a newly released study, IDC's
Industry Insights, a series of industry-specific research and advisory business
units, has examined the implications of the U.S. economic stimulus plan, the
American Recovery and Reinvestment Act (ARRA), and quantified the
technology spending that may be stimulated from initiatives to be deployed in
the three vertical markets of energy, Government and healthcare.
company estimates that approximately $101.2 billion in technology spend will
be generated over the next five years. The estimate includes both
information technology (IT) spend – traditionally the focus of IDC's market
research – as well as non-IT technology in these sectors, such as smart
meters, in-home display devices, energy management systems, and
renewable energy technologies surrounding wind and solar power. The ARRA
will fund some of this spend directly, but additional technology spending will
be stimulated as the legislation provides incentives and tax rebates for the
projects it promotes. Data on Industry Insights' analysis of the ARRA can be
found in the report, Business Strategy: Capturing Your Share of the American
Recovery and Reinvestment Act (Document # 217404), currently available at
"While the ARRA does not provide detailed information about the exact
amount of technology spending that will be allocated, the Industry Insights
companies performed an extensive review of the legislation and held
discussions with industry technology buyers, to estimate the amount of
technology spending that is likely to be generated as a result of the ARRA's
key initiatives in energy, healthcare and Government," said Meredith Whalen,
Group Vice President/General Manager, Vertical Market Business Units at IDC.
IDC's Industry Insights anticipates that the over-$40 billion investment the
ARRA targets for the energy industry will stimulate approximately $77.6 billion
in technology spending. The energy initiatives that will experience the most
growth will be related to intelligent grid, renewable energy, and energy
The healthcare industry is expected to see $21.1 billion in technology
spending, with the largest portion concentrated on promoting deployment and
usage of electronic medical and electronic health records, including incentive
payments to physicians who implement and use these tools. Additional funds
will be steered to technology solutions that measure the comparative
effectiveness of programs and clinical intelligence solutions.
Within the Government sector, the ARRA will provide approximately $2.5 billion
in technology funding to Federal agencies for new and existing programs,
including allocations for the Social Security Administration, the Department of
State, and the Department of Homeland Security. Industry Insights' research
identifies 12 different government technology opportunities that are
anticipated to be supported by the new legislation.
In addition to spending for improving the infrastructures necessary to support
the management of the ARRA funds, the Government also plays a second role
in the ARRA scenario – that of the gatekeeper of funds. Industry Insights
provides guidance on how technology suppliers can best engage with the
Government and plan the best business strategies to pursue new revenues
from this significant opportunity. One key strategy will be the ability to
demonstrate results that are achieved in line with the ARRA's promise of
The IDC Industry Insights companies that focus on the vertical markets
highlighted by this research have conducted in-depth analysis on many of the
technology initiatives that are expected to see the greatest opportunities
from the ARRA. Energy Insights provides coverage of the intelligent grid,
distributed and renewable energy, and energy efficiency. Health Industry
Insights provides perspectives on the healthcare provider, healthcare payer,
and drug discovery markets. Government Insights research will cover both the
IT spending that government will make for its own internal operations and well
as the best approaches for navigating through the buying cycle.
For additional information about Industry Insights' analysis of how the
American Recovery and Reinvestment Act will affect technology spending, or
to set up a one-on-one briefing with an Industry Insights analyst, please
contact Sarah Murray, 781-794-3214, or email Sarah at
email@example.com. Reports are available to qualified members of
the media. For information on purchasing reports, contact firstname.lastname@example.org.
About IDC's Industry Insights Companies
IDC's Industry Insights companies provide industry executives with research-
based advisory and consulting services that enable information technology
(IT) and business executives to maximize the business value of their
technology investments. Industry Insights covers the industry value chain for
energy, financial services, government, health, retail and manufacturing.
Staffed by senior analysts with extensive experience in these industries,
Industry Insights provides a portfolio of offerings that are relevant to both IT
and business needs.
IDC is the premier global provider of market intelligence, advisory services,
and events for the information technology and telecommunications industries.
IDC is a subsidiary of IDG, the world's leading technology media, research,
and events company. For more information about IDC and its Industry
Insights Companies, please go to www.idc.com.