A frequently asked question from analysts and writers of business plans is ‘how much is the whole sector worth.’ A study by Cambridge MA based Daratech suggests that for the engineering, construction and operations (ECO) market the overall Information Technology spend is a remarkably small proportion of revenues. Daratech estimates the overall size of the ECO market as around $3.6 trillion in 2000. The need for investment in IT support for internal and semi-public collaboration sites has created a $500 million market in 2000 for generalists such as i2 Technologies, Ariba, Inc and Commerce One as well as vertical technology suppliers such as Industria Solutions, Bricsnet, Buzzsaw.com, Citadon, e-Builder, Primavera and Bentley.
$ 1 billion
Daratech estimates that this market will grow to around $1 billion by 2004. Rapid technological and economic change has led to a new breed of technology vendor - providing the enabling technology for ‘web-hosted, standards-based, component-level design and project collaboration.’ The traditional dispersed model of asset creation is giving way to a more integrated model ‘in which a network of companies and individuals pools their economic and intellectual resources to maximize profit over an asset’s life.’ Daratech projects that the global ECO economy will grow to $5 trillion by 2004, over 10% of the world’s GDP.
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