Smart grid index_zpryme_fierce_smartgrid_sgi_january_2013(1)

SMART GRID INDEX

INTELLIGENCE BY ZPRYME | ZPRYME.COM© 2013 ZPRYME RESEARCH & CONSULTING, LLC. ALL RIGHTS RESERVED.

SMARTGRIDRESEARCH.ORG INTELLIGENT RESEARCH FOR AN INTELLIGENT MARKETTMSMART GRID INSIGHTS

JANUARY 2013

SMART GRID INDEX:JANUARY 2013

1 [SGI] ZPRYME SMART GRID INSIGHTS

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com

Smart Grid Index | January 2013

Table of Contents

Executive Summary ................................................................. 2

Methodology .......................................................................... 2

February’s Survey .................................................................... 2

Monthly Key Metric Trend Analysis by Respondent Type . 3

Smart Grid Sentiment ............................................................... 4

Expected Utility Expenditures over the Next 12 Months....... 5

Sales/Expenditures over the Last 12 Months ......................... 6

Sales/Expenditures over the Next 12 Months........................ 7

Expected Staff/Jobs over the Next 12 Months ...................... 8

New Deals Closed Last Month ................................................ 9

Expected Proposals over the Next 12 Months .................... 10

Major concerns when deploying Smart Grid technology . 11

Region that offers the best opportunity for ICTs .................. 12

Respondent Industry Representation ................................... 13

About The Smart Grid Index ................................................. 13




Executive Summary

This month’s Smart Grid Index (SGI) results show that overall

Smart Grid sentiment edged up slightly in January.1 Utility

sentiment increased for the second month in row, up by 4

percentage points in January. Over the next 12 months,

forty-one percent of respondents indicated that North

America represented the best opportunity for utility related

information and communication technologies (ICTs).

Almost half of the vendors surveyed closed a new deal last

month, while 61% of utilities expect to submit new Smart

Grid proposals for budget approval over the next 12

months. Utilities surveyed said that their biggest concern in

deploying Smart Grid technologies was the integration of

systems or networks that used to be silos (55%).

Methodology This study was conducted by Zpryme and FierceSmartGrid

by surveying 212 Smart Grid executives from January 3rd to

January 15th of 2013. The survey was conducted online.

Please note that percentages may not add up to 100 due

to rounding. Three groups were used to inspect for

differences: vendors (61% of sample), utilities (15% of

sample), and total sample. The data are presented in

figures 1 through 10 in this report.

February’s Survey February’s survey will be fielded from February 1st to

February 14th of 2013. Utilities and Smart Grid vendors are

encouraged to participate.

1 The SGI is developed by Zpryme’s Smart Grid Insights and FierceSmartGrid.

January 2013 Smart Grid Index Results

Overall Sentiment

67% currently have a positive view of the Smart

Grid, a 1 percentage point increase from last

month.

Expected Utility Investments

31% expect utility Smart Grid related investments

to significantly increase over the next 12 months,

a 1 percentage point increase from last month.

Current Sales/Expenditures

58% said their Smart Grid related sales or

expenditures have increased over the last 12

months, a 3 percentage point decrease from

last month.

Expected Sales/Expenditures

66% expect their Smart Grid related sales or

expenditures to increase over the next 12


last month.

Hiring

51% expect the number of staff in Smart Grid

related roles to increase over the next 12


last month.

Deals Closed

46% of vendor respondents said they closed

new Smart Grid related deals last month, a 1

percentage point increase from last month.

New Proposals

61% of utility respondents plan to submit new

Smart Grid proposals for budget approval over

the next 12 months, a 12 percentage point

decrease from last month.




Monthly Key Metric Trend Analysis by Respondent Type (table 1, source: Zpryme/FierceSmartGrid November 2012 through January 2013 Smart Grid Index Survey)

Metric Nov-12 Dec-12 Jan-13

Net

percentage

point change

Trend (+/-)

% Who have a positive view of the Smart Grid industry

All Respondents 71% 66% 67% 1% + Utilities 60% 67% 71% 4% + Vendors 78% 70% 68% -2% -

% Who expect global utility investments on Smart Grid technologies to increase significantly over the next 12 months

All Respondents 31% 30% 31% 1% + Utilities 25% 30% 39% 9% + Vendors 33% 33% 28% -5% -

% Who have increased Smart Grid sales or expenditures over the past 12 months

All Respondents 60% 61% 58% -3% - Utilities 61% 48% 82% 34% + Vendors 65% 65% 49% -16% -

% Who expect to increase Smart Grid sales or expenditures over the next 12 months

All Respondents 71% 67% 66% -1% - Utilities 68% 53% 59% 6% + Vendors 74% 76% 69% -7% -

% Who expect to increase Smart Grid staff over the next 12 months

All Respondents 56% 54% 51% -3% -

Utilities 47% 44% 29% -15% -

Vendors 60% 57% 54% -3% -

% Who closed a new Smart Grid deal last month

Vendors 45% 45% 46% 1% +

% Who expect to submit new Smart Grid proposals for budget approval over the next 12 months

Utilities 75% 73% 61% -12% -

http://smartgridresearch.org/category/smart-grid-index




Smart Grid Sentiment

Sixty-seven percent of respondents were positive about the global Smart Grid industry, with utilities more positive (71%) than

vendors (68%). However, 11% of all respondents and utilities had a negative view. Compared to last month, respondents

with a positive view of the Smart Grid increased by 1 percentage point among all respondents, and by 4 percentage points

among utilities. However, this figure decreased by 2 percentage points among vendors.

(figure 1, source: Zpryme/FierceSmartGrid January 2013 Smart Grid Index Survey)

67% 71% 68%

11% 11%

7%

23% 18% 26%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All Respondents Utilities Vendors

What is your current view of the global Smart Grid industry?

Neutral

Negative

Positive




Expected Utility Investments/Expenditures over the Next 12 Months Utilities are more optimistic than vendors about global utility expenditures on Smart Grid technologies as 39% of vendors said

they expect investments to increase significantly over the next 12 months (vs. 28% for vendors). However, almost half of all

three groups expect utility expenditures to increase at least a little over the next 12 months. Compared to last month, the

percent of respondents who expect expenditures to increase increased by 1 percentage point among all respondents, and

increased by 9 percentage points among utilities. However, this figure decreased by 5 percentage points among vendors.


31% 39%

28%

45%

43%

47%

16% 11%

14%

5% 4% 7%

4% 4% 5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Over the next 12 months, global utility investments or

expenditures on Smart Grid Technologies are expected to:

Decrease

significantly

Decrease a

little

Stay the same

Increase a

little

Increase

significantly




Sales/Expenditures over the Last 12 Months Over the past 12 months, the majority of all three groups had increased their Smart Grid sales and/or expenditures. The total

sample and vendors reported small decreases (9% and 12%, respectively), while no utilities said their Smart Grid related

expenditures decreased. Compared to last month, the percent of respondents who increased their sales or expenditures

decreased by 3 percentage points among all respondents, and by 16 percentage points among vendors. However, this

figure increased by 34 percentage points among utilities.


58%

82%

49%

33%

18%

38%

9% 12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Over the past 12 months, my company's Smart Grid

related sales and/or investments (or expenditures) have:

Decreased

Stayed the

same

Increased




Sales/Expenditures over the Next 12 Months Over the next 12 months, most respondents in all three groups expect Smart Grid sales and/or expenditures to increase, with

utilities being more conservative (59% increase) than the total sample (66%) or vendors (69%). Compared to last month,

respondents who expect sales or expenditures to increase fell by 1 percentage point among all respondents, and by 7

percentage points among vendors. However, this figure increased among utilities by 6 percentage points.


66% 59%

69%

23%

19%

22%

11% 22%

9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Over the next 12 months, my company's Smart Grid

related sales and/or investments (or expenditures) are expected to:

Decrease

Stay the same

Increase




Expected Staff/Jobs over the Next 12 Months

Over the next 12 months, 51% of respondents expect hiring to increase, while 14% of utilities and 11% of vendors project a

decrease in hiring. Compared to last month, respondents who expect hiring to increase fell by 3 percentage points among

all respondents, 15 percentage points among utilities, and by 3 percentage points among vendors.


51%

29%

54%

39%

57%

35%

11% 14% 11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Over the next 12 months, the number of

staff/jobs in Smart Grid related roles are expected to:

Decrease

Stay the same

Increase




New Deals Closed Last Month

Almost half of the vendors (46%) surveyed said that they had closed new deals last month, a one percentage point

increase over last month.


*Fifty-four percent of the sample was made up of vendors. Vendor industries are those respondents identified as manufacturers of power products or

systems, technology vendors or integrators, and business, technical, and/or engineering consultants.

Yes, 46%

No, 54%

Last month, did your company close any new Smart Grid

related deals (sales, partnerships, investments, aquisitions, etc.)?*




Expected Proposals Submitted over the Next 12 Months

A majority of utilities (61%) expect to submit new Smart Grid proposals over the next 12 months. This represents a 12

percentage point decrease from last month.


*Fifteen percent of the sample was made up of utilities.

Yes, 61%

No, 39%

Over the next 12 months, does your utility plan to submit any

new Smart Grid proposals, plans or pilots for budget approval?*




Major concerns when deploying or implementing Smart Grid technology

Utilities surveyed said that their biggest concern in deploying Smart Grid technologies was the integration of systems or

networks that used to be silos (55%). There was a 4-way tie for the second biggest concern, between lack of funding,

change management, making the business case for Smart Grid expenditures, and interoperability.


*Fifteen percent of the sample was made up of utilities.

10%

25%

35%

40%

50%

50%

50%

50%

55%

Retrofitting/refurbishing

equipment

Customer backlash

Standards

Lack of trained personnel

Interoperability

Making the business case for

Smart Grid related expenditures

Change management

Lack of funding

Integration of systems or

networks that used to be silos

0% 10% 20% 30% 40% 50% 60%

Currently, what are your major concerns when deploying or implementing Smart

Grid technology?*




Region that offers the best opportunity for Smart Grid information and communication technologies

Over the next 12 months, forty-one percent of respondents indicated that North America represented the best opportunity

for Smart Grid related information and communication technologies (ICTs). Asia (24%) and Europe (19%) were ranked 2nd

and 3rd, respectively.


41%

24%

19%

10% 3%

2%

Over the next 12 months, which region offers the best opportunity for Smart Grid/Utility

information and communication technologies (ICTs)?

North America

Asia-Pacific

Europe

South America

Africa

Middle East




Respondent Industry Representation

Fifteen percent of respondents were utilities, while 54%

were vendors. Vendor industries are those respondents

identified as manufacturer of power products or systems,

technology vendor or integrators, and business, technical,

and/or engineering consultants. The remaining 31% were

from the educational, nonprofit, power generation,

government, and other industries.

(figure 10, source: Zpryme/FierceSmartGrid January 2013 Smart Grid

Index Survey)

About The Smart Grid Index The SGI is developed by Zpryme’s Smart Grid Insights and

FierceSmartGrid. The monthly Smart Grid Index is an

objective and unbiased market indicator that captures

the real-time industry sentiment, outlook, and

performance.

Government data and statistics are usually 1 to 2 years

behind. Additionally, major industry announcements and

deals only capture a small fraction of market activity. Such

lack of data can lead to poor investment decision criteria

for utilities and technology vendors operating (or seeking

to enter) in the Smart Grid space. Thus, the goal of the

monthly Smart Grid Index is to provide credible, reliable,

and timely market information for utilities and Smart Grid

executives so they can better assess their performance

versus their peers, and decrease the risk associated with

Smart Grid related investments.

Nonprofit

organization,

7% State/federal

government,

3%

Education

institution, 8%

Other, 13%

Power

generation, 1% Consultant

(business,

technical, or

engineering),

26%

Manufacturer

of power

products or

systems, 12%

Technology

vendor or

integrator, 17%

Utility, 15%

Industry Representation of Respondents




About Zpryme Smart Grid Insights Practice:

Zpryme-powered Smart Grid Insights Publication, Practice and

Advisory Board help organizations understand their business

environment, engage consumers, inspire innovation, and take action.

Zpryme Smart Grid Insights represents an evolution beyond traditional

market research and consulting: combining sound fundamentals,

innovative tools and methodologies, industry experience, and

creative marketing savvy to supercharge clients’ success. At Zpryme,

we don’t produce tables and charts; we deliver opportunity-focused,

actionable insight that is both engaging and easy-to-digest. For more

information regarding our custom research, visit: www.zpryme.com.

Zpryme Smart Grid Insights Contact:

[email protected] | +1 888.ZPRYME.1 (+1 888.977.9631)

www.smartgridresearch.org (Zpryme Smart Grid Insights)

About FierceSmartGrid:

Written with a focus on industry CTOs and technical infrastructure

decision-makers, FierceSmartGrid covers the latest business and

technology news surrounding network intelligence, home networking,

smart meters, and other key issues pertinent to the efficient delivery of

economic, reliable, and sustainable energy services.

In addition to a free weekly email newsletter to keep up with this

evolving marketplace, thousands of energy and telecom industry

insiders who already subscribe to FierceSmartGrid also receive access

to unique special reports, eBooks, webinars, events, and whitepapers.

Join FierceSmartGrid today to get an edge in the energy delivery

industry.

FierceSmartGrid Contact:

[email protected]

www.fiercesmartgrid.com

Zpyme Credits

Research Manager

Roger Alford, Ph.D.

Sr. Research Analysts

Megan Dean

Paula Smith

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INTELLIGENCE BY ZPRYME | ZPRYME.COM© 2012 ZPRYME RESEARCH & CONSULTING, LLC. ALL RIGHTS RESERVED.

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