SMART GRID INSIGHTS
JANUARY 2013
SMARTGRIDRESEARCH.ORG
INTELLIGENT RESEARCH FOR AN INTELLIGENT MARKETTM
SMART GRID INDEX
INTELLIGENCE BY ZPRYME | ZPRYME.COM
© 2013 ZPRYME RESEARCH & CONSULTING, LLC. ALL RIGHTS RESERVED.
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
1 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | January 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
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
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
months, a 1 percentage point decrease from
last month.
Hiring
51% expect the number of staff in Smart Grid
related roles to increase over the next 12
months, a 3 percentage point decrease from
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.
The SGI is developed by Zpryme’s Smart Grid Insights and FierceSmartGrid.
2 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | January 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Monthly Key Metric Trend Analysis by Respondent Type
(table 1, source: Zpryme/FierceSmartGrid November 2012 through January 2013 Smart Grid Index Survey)
Nov-12
Dec-12
Jan-13
Net
percentage
point change
All Respondents
71%
66%
67%
1%
Utilities
60%
67%
71%
4%
Vendors
78%
70%
68%
-2%
Metric
Trend (+/-)
% Who have a positive view of the Smart Grid industry
+
+
-
% 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%
All Respondents
60%
61%
58%
-3%
Utilities
61%
48%
82%
34%
Vendors
65%
65%
49%
-16%
All Respondents
71%
67%
66%
-1%
Utilities
68%
53%
59%
6%
Vendors
74%
76%
69%
-7%
All Respondents
56%
54%
51%
-3%
Utilities
47%
44%
29%
-15%
Vendors
60%
57%
54%
-3%
-
45%
45%
46%
1%
+
75%
73%
61%
-12%
-
% Who have increased Smart Grid sales or expenditures over the past 12 months
+
-
% Who expect to increase Smart Grid sales or expenditures over the next 12 months
+
-
% Who expect to increase Smart Grid staff over the next 12 months
% Who closed a new Smart Grid deal last month
Vendors
% Who expect to submit new Smart Grid proposals for budget approval over the next 12 months
Utilities
3 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | January 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
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.
What is your current view of the global Smart Grid industry?
100%
90%
23%
80%
70%
11%
18%
11%
26%
7%
Neutral
Negative
60%
50%
Positive
40%
30%
67%
71%
68%
Utilities
Vendors
20%
10%
0%
All Respondents
(figure 1, source: Zpryme/FierceSmartGrid January 2013 Smart Grid Index Survey)
4 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | January 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
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.
Over the next 12 months, global utility investments or
expenditures on Smart Grid Technologies are expected to:
100%
90%
80%
4%
5%
16%
4%
4%
11%
5%
7%
14%
Decrease a
little
70%
43%
60%
50%
45%
47%
40%
10%
Stay the same
Increase a
little
30%
20%
Decrease
significantly
31%
39%
28%
Increase
significantly
0%
All Respondents
Utilities
Vendors
(figure 2, source: Zpryme/FierceSmartGrid January 2013 Smart Grid Index Survey)
5 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | January 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
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.
Over the past 12 months, my company's Smart Grid
related sales and/or investments (or expenditures) have:
100%
90%
80%
70%
9%
18%
33%
12%
38%
60%
Stayed the
same
50%
82%
40%
30%
Decreased
58%
Increased
49%
20%
10%
0%
All Respondents
Utilities
Vendors
(figure 3, source: Zpryme/FierceSmartGrid January 2013 Smart Grid Index Survey)
6 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | January 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
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.
Over the next 12 months, my company's Smart Grid
related sales and/or investments (or expenditures) are expected to:
100%
90%
80%
11%
9%
22%
22%
23%
70%
Decrease
19%
60%
Stay the same
50%
40%
30%
66%
59%
69%
Increase
20%
10%
0%
All Respondents
Utilities
Vendors
(figure 4, source: Zpryme/FierceSmartGrid January 2013 Smart Grid Index Survey)
7 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | January 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
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.
Over the next 12 months, the number of
staff/jobs in Smart Grid related roles are expected to:
100%
90%
11%
14%
11%
80%
70%
35%
39%
60%
Decrease
57%
50%
Stay the same
40%
30%
20%
54%
51%
Increase
29%
10%
0%
All Respondents
Utilities
Vendors
(figure 5, source: Zpryme/FierceSmartGrid January 2013 Smart Grid Index Survey)
8 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | January 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
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.
Last month, did your company close any new Smart Grid
related deals (sales, partnerships, investments, aquisitions, etc.)?*
Yes, 46%
No, 54%
(figure 6, source: Zpryme/FierceSmartGrid January 2013 Smart Grid Index Survey)
*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.
9 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | January 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
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.
Over the next 12 months, does your utility plan to submit any
new Smart Grid proposals, plans or pilots for budget approval?*
No, 39%
Yes, 61%
(figure 7, source: Zpryme/FierceSmartGrid January 2013 Smart Grid Index Survey)
*Fifteen percent of the sample was made up of utilities.
10 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | January 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
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.
Currently, what are your major concerns when deploying or implementing Smart
Grid technology?*
Integration of systems or
networks that used to be silos
55%
Lack of funding
50%
Change management
50%
Making the business case for
Smart Grid related expenditures
50%
Interoperability
50%
40%
Lack of trained personnel
35%
Standards
25%
Customer backlash
Retrofitting/refurbishing
equipment
10%
0%
10%
20%
30%
40%
50%
60%
(figure 8, source: Zpryme/FierceSmartGrid January 2013 Smart Grid Index Survey)
*Fifteen percent of the sample was made up of utilities.
11 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | January 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
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.
Over the next 12 months, which region offers the best opportunity for Smart Grid/Utility
information and communication technologies (ICTs)?
10%
2%
3%
North America
41%
19%
Asia-Pacific
Europe
South America
Africa
Middle East
24%
(figure 9, source: Zpryme/FierceSmartGrid January 2013 Smart Grid Index Survey)
12 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | January 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Respondent Industry Representation
About The Smart Grid Index
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.
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.
Industry Representation of Respondents
Nonprofit
organization,
7%
State/federal
government,
3%
Education
institution, 8%
Utility, 15%
Technology
vendor or
integrator, 17%
Manufacturer
of power
products or
systems, 12%
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.
Other, 13%
Consultant
(business,
technical, or
engineering),
26%
Power
generation, 1%
(figure 10, source: Zpryme/FierceSmartGrid January 2013 Smart Grid
Index Survey)
13 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | January 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
About Zpryme Smart Grid Insights Practice:
Zpyme Credits
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.
Research Manager
Roger Alford, Ph.D.
Zpryme Smart Grid Insights Contact:
smart.grid@zpryme.com | +1 888.ZPRYME.1 (+1 888.977.9631)
www.smartgridresearch.org (Zpryme Smart Grid Insights)
Sr. Research Analysts
Megan Dean
Paula Smith
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14 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | January 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
SMART GRID INSIGHTS
INTELLIGENT RESEARCH FOR
AN INTELLIGENT MARKET
INTELLIGENCE BY ZPRYME | ZPRYME.COM
© 2012 ZPRYME RESEARCH & CONSULTING, LLC. ALL RIGHTS RESERVED.
SMARTGRIDRESEARCH.ORG