Ken Research - ICT Investment Trends in the Energy Sector

Price Fluctuations and Geopolitical Instability, Energy Companies Are Obliged To Reinvent
Themselves by Investing In ICT to Increase Efficiency: Ken Research
Energy sector (oil and gas companies) has been the biggest sector in terms of dollar value and it
currently contributes a significant amount towards the national GDP of any country. However,
plummeting oil prices and mounting climatic concerns have pushed the sector to look for advanced
technological solutions in order to achieve sustainable growth. Report titled “ICT Investment Trends
in the Energy Sector: Digital transformation and disruption will impact ICT investment strategies”
discuss global market environment detailing Network and communications equipment, software
licenses, application services, and network services are primarily attracting a major proportion of the
budget allocations in their respective domains of hardware, software, IT services, and
telecommunications.
Energy companies are also making considerable investments in data center facilities, network, and
service desk functionality.
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Expenditure on data center facilities is primarily driven by the requirement to devise better
data storage, data recovery, and business continuity plans, while service desk functionality
enable the integration of business processes into the service management infrastructure, to
maintain the flow of business critical services.
IT investments relating to planning & project management are considered important, with the
highest proportion of energy companies considering this business area as one of their top IT
priorities.
Meanwhile, technologies such as Internet of Things (IoT) and cloud computing are finding pervasive
adoption among energy companies who are increasingly deploying these disruptive forces of
transformation to attain a competitive advantage in the sector. Therefore, ICT vendors offering
products and services in these domains clearly have good growth opportunities in this market.