[Smart Grid Market Research] Smart Grid Index: November 2012 - Zpryme Smart Grid Insights

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The first month’s results of the Smart Grid Index (SGI) show that Smart Grid industry executives have a very positive view of future opportunities for Smart Grid technologies. Utilities were less …

The first month’s results of the Smart Grid Index (SGI) show that Smart Grid industry executives have a very positive view of future opportunities for Smart Grid technologies. Utilities were less pessimistic than those in the total sample both for total expenditures and the hiring of new personnel. Almost half of the vendors surveyed closed a new deal last month, while 75% of utilities expect to submit new Smart Grid proposals for budget approval over the next 12 months. Additionally, 79% of respondents believed that Smart Grid technologies could have helped restore power faster after Hurricane Sandy hit the Northeast U.S.

This study was conducted by Zpryme and FierceSmartGrid by surveying 240 smart grid executives from November 1st to November 7th of 2012. 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 (70% of sample), utilities (10% of sample), and total sample. The data are presented in figures 1 through 9 in this report.

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  • 1. SMART GRID INSIGHTS NOVEMBER 2012 SMARTGRIDRESEARCH.ORG INTELLIGENT RESEARCH FOR AN INTELLIGENT MARKETTM SMART GRID INDEXINTELLIGENCE BY ZPRYME | ZPRYME.COM© 2012 ZPRYME RESEARCH & CONSULTING, LLC. ALL RIGHTS RESERVED. SGI: NOVEMBER
  • 2. Table of ContentsExecutive Summary ................................................................. 2 Methodology .......................................................................... 2Smart Grid Sentiment............................................................... 3Expected Utility Expenditures over the Next 12 Months....... 4Sales/Expenditures over the Last 12 Months ......................... 5Sales/Expenditures over the Next 12 Months........................ 6Expected Staff/Jobs over the Next 12 Months ...................... 7New Deals Closed Last Month ................................................ 8Expected Proposals Submitted over the Next 12 Months .... 9Hurricane Sandy: Smart Grid Impact on Outages ............. 10Respondent Industry Representation ................................... 11About The Smart Grid Index ................................................. 111 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
  • 3. Executive Summary November 2012 Smart Grid Index ResultsThe first month’s results of the Smart Grid Index (SGI) showthat Smart Grid industry executives have a very positive Overall Sentiment 71% currently have a positive view of the Smartview of future opportunities for Smart Grid technologies.1 Grid.Utilities were less pessimistic than those in the total sampleboth for total expenditures and the hiring of newpersonnel. Almost half of the vendors surveyed closed a Expected Utility Investmentsnew deal last month, while 75% of utilities expect to submit 31% expect utility Smart Grid related investmentsnew Smart Grid proposals for budget approval over the to significantly increase over the next 12 months.next 12 months. Additionally, 79% of respondents believedthat Smart Grid technologies could have helped restore Current Sales/Expenditurespower faster after Hurricane Sandy hit the Northeast U.S. 60% said their Smart Grid related sales or expenditures have increased over the last 12Methodology months.This study was conducted by Zpryme and FierceSmartGrid Expected Sales/Expendituresby surveying 240 smart grid executives from November 1st 71% expect their Smart Grid related sales orto November 7th of 2012. The survey was conducted expenditures to increase over the next 12online. Please note that percentages may not add up to months.100 due to rounding. Three groups were used to inspect fordifferences: vendors (70% of sample), utilities (10% of Hiringsample), and total sample. The data are presented in 56% expect the number of staff in Smart Grid related roles to increase over the next 12figures 1 through 9 in this report. months.December’s Survey Deals Closed 45% of vendor respondents said they closedDecember’s survey will be fielded from December 3rd to new Smart Grid related deals last month.December 10th of 2012. The results will be released onDecember 13th. Utilities and Smart Grid vendors areencouraged to participate. If you would like to take the New Proposalsmonthly survey please send an email to sgi@zpryme.com. 75% of utility respondents plan to submit new Smart Grid proposals for budget approval over the next 12 months.1 The SGI is developed by Zpryme’s Smart Grid Insights and FierceSmartGrid.2 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
  • 4. Smart Grid SentimentSeventy-one percent of the total sample were positive about the global Smart Grid industry, with vendors more positive(78%) than utilities (60%). However, only small percentages across all three groups were negative (ranging 6% to 10%). What is your current view of the global Smart Grid industry? 100% 90% 21% 16% 30% 80% 6% 7% 70% 10% Neutral 60% Negative 50% 40% Positive 78% 71% 30% 60% 20% 10% 0% All Respondents Utilities Vendors (figure 1, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)3 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
  • 5. Expected Utility Investments/Expenditures over the Next 12 MonthsCompared to utilities, vendors are more optimistic about global utility expenditures on Smart Grid technologies as 33% ofvendors said they expect investments to increase significantly over the next 12 months (vs. 25% for utilities). However, almosthalf of all respondents, utilities, and vendors, expect utility expenditures to increase at least a little over the next 12 months. Over the next 12 months, global utility investments or expenditures on Smart Grid Technologies are expected to: 100% 6% 5% 90% 15% 12% Decrease 14% significantly 80% 10% 70% Decrease a little 60% 49% 46% Stay the same 50% 50% 40% Increase a little 30% 20% Increase 31% 33% significantly 10% 25% 0% All Respondents Utilities Vendors(figure 2, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)4 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
  • 6. Sales/Expenditures over the Last 12 MonthsOver the past 12 months, the majority of all three groups had increased their Smart Grid sales and/or expenditures. The totalsample and vendors reported small decreases (both at only 6%), while utilities reported no decrease in Smart Grid relatedexpenditures. Over the past 12 months, my companys Smart Grid related sales and/or investments (or expenditures) have: 100% 6% 6% 90% 80% 39% 29% 34% Decreased 70% 60% Stayed the 50% same 40% Increased 30% 60% 61% 65% 20% 10% 0% All Respondents Utilities Vendors(figure 3, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)5 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
  • 7. Sales/Expenditures over the Next 12 MonthsOver the next 12 months, most respondents in all three groups expect Smart Grid sales and/or expenditures to increase, withutilities being more conservative (68% increase) than the total sample (71%) or vendors (74%). Over the next 12 months, my companys Smart Grid related sales and/or investments (or expenditures) are expected to: 100% 6% 5% 11% 90% 23% 21% 80% 21% 70% Decrease 60% 50% Stay the same 40% 71% 74% 68% Increase 30% 20% 10% 0% All Respondents Utilities Vendors(figure 4, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)6 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
  • 8. Expected Staff/Jobs over the Next 12 MonthsOver the next 12 months, most respondents expect hiring to increase. However, a few of the total sample (8%) and vendors(7%) project a decrease in hiring. Utilities, on the other hand, do not expect hiring to decrease. Over the next 12 months, the number of staff/jobs in Smart Grid related roles are expected to: 100% 8% 7% 90% 80% 37% 33% 53% 70% Decrease 60% 50% Stay the same 40% 30% 56% 60% Increase 47% 20% 10% 0% All Respondents Utilities Vendors(figure 5, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)7 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
  • 9. New Deals Closed Last MonthAlmost half of the vendors (45%) surveyed said that they had closed new deals last month. Last month, did your company close any new Smart Grid related deals (sales, partnerships, investments, aquisitions, etc.)?* Yes, 45% No, 55%(figure 6, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)*Seventy percent of the sample was made up of vendors. Vendor industries are those respondents identified as manufacturers of power products orsystems, technology vendors or integrators, and business, technical, and/or engineering consultants.8 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
  • 10. Expected Proposals Submitted over the Next 12 MonthsAn overwhelming majority of utilities (75%) expect to submit new Smart Grid proposals over the next 12 months. Over the next 12 months, does your utility plan to submit any new Smart Grid proposals, plans or pilots for budget approval?* No, 25% Yes, 75%(figure 7, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)*Ten percent of the sample was made up of utilities.9 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
  • 11. Hurricane Sandy: Smart Grid Technologies Impact on Outage Response TimesSeventy-nine percent of respondents reported that Smart Grid technologies could have helped restore power faster afterHurricane Sandy hit the Northeast U.S. Utilities were less favorable concerning Smart Grid technology’s benefit. On the otherhand, vendors proved to be significantly more optimistic than utilities about Smart Grid technology’s benefit. Given the massive damage and power outages caused by the storm (Sandy) that just hit the Northeast United States, do you think that Smart Grid technologies could have helped utilities restore power faster had they been fully deployed? 100% 90% 21% 16% 80% 44% 70% No 60% 50% 84% Yes 40% 79% 30% 56% 20% 10% 0% All Respondents Utilities Vendors(figure 8, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)10 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
  • 12. Respondent Industry Representation About The Smart Grid IndexTen percent of respondents were utilities, while 70% were The SGI is developed by Zpryme’s Smart Grid Insights andvendors. Vendor industries are those respondents FierceSmartGrid. The monthly Smart Grid Index is anidentified as manufacturer of power products or systems, objective and unbiased market indicator that capturestechnology vendor or integrators, and business, technical, the real-time industry sentiment, outlook, andand/or engineering consultants. The remaining 20% were performance.from the educational, nonprofit, power generation,government, and other industries. Government data and statistics are usually 1 to 2 years behind. Additionally, major industry announcements and Industry Representation of Respondents deals only capture a small fraction of market activity. Such lack of data can lead to poor investment decision criteria Education for utilities and technology vendors operating (or seeking institution, 5% Nonprofit organization, to enter) in the Smart Grid space. Thus, the goal of the 2% monthly Smart Grid Index is to provide credible, reliable, Utility, 10% and timely market information for utilities and Smart Grid Other, Power 5% generation, 5% executives so they can better assess their performance versus their peers, and decrease the risk associated with State/federal Smart Grid related investments. government, 2% Technology vendor or integrator, 27% Consultant (business, technical, or Manufacturer engineering), of power 30% products or systems, 13%(figure 9, source: Zpryme/FierceSmartGrid November 2012 Smart GridIndex Survey)11 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
  • 13. About Zpryme Smart Grid Insights Practice: Zpyme CreditsZpryme-powered Smart Grid Insights Publication, Practice and Research Manager Sr. Research AnalystsAdvisory Board help organizations understand their business Roger Alford, Ph.D. Megan Deanenvironment, engage consumers, inspire innovation, and take action. Paula SmithZpryme Smart Grid Insights represents an evolution beyond traditionalmarket research and consulting: combining sound fundamentals, Disclaimer:innovative tools and methodologies, industry experience, and These materials and the information contained herein are provided by Zpryme Research & Consulting, LLC and are intended to provide general information on a particular subject or subjects and is not an exhaustive treatment ofcreative marketing savvy to supercharge clients’ success. At Zpryme, such subject(s). Accordingly, the information in these materials is not intended to constitute accounting, tax, legal,we don’t produce tables and charts; we deliver opportunity-focused, investment, consulting or other professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business. Before making any decision or taking anyactionable insight that is both engaging and easy-to-digest. For more action that might affect your personal finances or business, you should consult a qualified professional adviser. These materials and the information contained herein is provided as is, and Zpryme Research & Consulting, LLC makes noinformation regarding our custom research, visit: www.zpryme.com. express or implied representations or warranties regarding these materials and the information herein. Without limiting the foregoing, Zpryme Research & Consulting, LLC does not warrant that the materials or information contained herein will be error-free or will meet any particular criteria of performance or quality. Zpryme Research & Consulting,Zpryme Smart Grid Insights Contact: LLC expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, noninfringement, compatibility, security, and accuracy. Prediction of future events is inherently subject to both known and unknown risks, uncertainties and other factors that may cause actual results tosmart.grid@zpryme.com | +1 888.ZPRYME.1 (+1 888.977.9631) vary materially. Your use of these and the information contained herein is at your own risk and you assume full responsibility and risk of loss resulting from the use thereof. Zpryme Research & Consulting, LLC will not be liable for anywww.smartgridresearch.org (Zpryme Smart Grid Insights) special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials and the information contained herein.About FierceSmartGrid:Written with a focus on industry CTOs and technical infrastructuredecision-makers, FierceSmartGrid covers the latest business andtechnology news surrounding network intelligence, home networking,smart meters, and other key issues pertinent to the efficient delivery ofeconomic, reliable, and sustainable energy services.In addition to a free weekly email newsletter to keep up with thisevolving marketplace, thousands of energy and telecom industryinsiders who already subscribe to FierceSmartGrid also receive accessto unique special reports, eBooks, webinars, events, and whitepapers.Join FierceSmartGrid today to get an edge in the energy deliveryindustry.FierceSmartGrid Contact:editors@fiercesmartgrid.comwww.fiercesmartgrid.com12 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
  • 14. SMART GRID INSIGHTS SMARTGRIDRESEARCH.ORG INTELLIGENT RESEARCH FOR AN INTELLIGENT MARKETINTELLIGENCE BY ZPRYME | ZPRYME.COM© 2012 ZPRYME RESEARCH & CONSULTING, LLC. ALL RIGHTS RESERVED.