SMART GRID INSIGHTS
MARCH 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:
MARCH 2013
Table of Contents
Executive Summary ................................................................. 2
Methodology .......................................................................... 2
April Survey .............................................................................. 2
Monthly Key Metric Trend Analysis....................................... 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
Utility Understanding for Data from Smart Grid Tech .......... 11
Respondent Industry Representation ................................... 12
About The Smart Grid Index ................................................. 12
1 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | March 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 increased by one percentage point
in March, to 72%, which is the highest it’s been since the
survey began in November of 2012. However, both utility
and vendor sentiment decreased this month. Fifty-two
percent of all respondents said they expect Smart Grid
hiring to increase over the next 12 months. Forty-one
percent 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 year.
As data management and analytics take center stage in
2013, we asked executives if utilities were prepared to
handle the volumes of data that will be produced from
Smart Grid enabled devices. Fifty-eight percent said
utilities were not prepared, 28% percent said they were,
while the remaining 14% were not sure (see figure 8).
Methodology
This study was conducted by Zpryme and FierceSmartGrid
by surveying 218 Smart Grid executives from March 1st to
March 18th of 2013. The survey was conducted online.
Percentages may not add up to 100 due to rounding.
Three groups were used to inspect for differences: vendors
(59% of sample), utilities (18% of sample), and total sample.
April Survey
April’s survey will be fielded from April 1st to April 17th of
2013. Utilities and Smart Grid vendors are encouraged to
participate.
2 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
March 2013 Smart Grid Index Results
Overall Sentiment
72% currently have a positive view of the Smart
Grid, a 1 percentage point increase from last
month.
Expected Utility Investments
37% expect utility Smart Grid related investments
to significantly increase over the next 12 months,
a 2 percentage point increase from last month.
Current Sales/Expenditures
72% said their Smart Grid related sales or
expenditures have increased over the last 12
months, an 8 percentage point increase from
last month.
Expected Sales/Expenditures
68% expect their Smart Grid related sales or
expenditures to increase over the next 12
months. There was no change from the previous
month.
Hiring
52% expect the number of staff in Smart Grid
related roles to increase over the next 12
months, a 2 percentage point increase from last
month.
Deals Closed
41% of vendor respondents said they closed
new Smart Grid related deals last month, a 3
percentage point decrease from last month.
New Proposals
75% of utility respondents plan to submit new
Smart Grid proposals for budget approval over
the next 12 months, a 5 percentage point
increase from last month.
Smart Grid Index | March 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 March 2013 Smart Grid Index Survey)
Nov
12
Dec
12
Jan
13
Feb
13
March
13
Percentage
point
change
All Respondents
71%
66%
67%
71%
72%
1%
Utilities
60%
67%
71%
83%
72%
-11%
Vendors
78%
70%
68%
77%
74%
-3%
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%
35%
37%
2%
Utilities
25%
30%
39%
40%
33%
-7%
Vendors
33%
33%
28%
34%
41%
7%
All Respondents
60%
61%
58%
64%
72%
8%
Utilities
61%
48%
82%
64%
72%
8%
Vendors
65%
65%
49%
51%
48%
-3%
All Respondents
71%
67%
66%
68%
68%
0%
Utilities
68%
53%
59%
52%
67%
15%
Vendors
74%
76%
69%
74%
68%
-6%
+
-
All Respondents
56%
54%
51%
50%
52%
2%
+
Utilities
47%
44%
29%
37%
37%
0%
Vendors
60%
57%
54%
50%
59%
9%
+
45%
45%
46%
44%
41%
-3%
-
73%
61%
70%
75%
5%
+
% 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.
75%
Smart Grid Index | March 2013
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Smart Grid Sentiment
Seventy-two percent of respondents had a positive about the global Smart Grid industry, with vendors more positive (74%)
than utilities (72%). Only 8% of all respondents and 6% of utilities had a negative view. Compared to last month, respondents
with a positive view of the Smart Grid increased by one percentage point among all respondents, but actually decreased
by 11 percentage points among utilities and by 3 percentage points among vendors.
What is your current view of the global Smart Grid industry?
100%
90%
80%
70%
20%
22%
8%
6%
17%
9%
Neutral
Negative
60%
50%
40%
Positive
72%
72%
74%
All Respondents
Utilities
Vendors
30%
20%
10%
0%
(figure 1, source: Zpryme/FierceSmartGrid March 2013 Smart Grid Index Survey)
4 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | March 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Expected Utility Investments/Expenditures over the Next 12 Months
In March, vendors were more optimistic than utilities about global utility expenditures on Smart Grid technologies, as 41% of
vendors said they expect investments to increase significantly over the next 12 months (vs. 33% for utilities). Compared to
last month, the percent of respondents who expect expenditures to increase rose by two percentage points among all
respondents and by 7 percentage point among vendors. This figure decreased by 7 percentage points among utilities.
Over the next 12 months, global utility investments or
expenditures on Smart Grid Technologies are expected to:
100%
90%
1%
2%
12%
8%
2%
1%
10%
17%
80%
70%
60%
48%
50%
46%
Decrease a
little
Stay the same
42%
40%
Increase a
little
30%
20%
Decrease
significantly
37%
33%
All Respondents
Utilities
41%
Increase
significantly
10%
0%
Vendors
(figure 2, source: Zpryme/FierceSmartGrid March 2013 Smart Grid Index Survey)
5 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | March 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Sales/Expenditures over the Past 12 Months
Over the past 12 months, 72% of both respondents and vendors increased their Smart Grid sales and/or expenditures. Nearly
half of vendors indicated that their sales increased over the past 12 months. Six percent of both the total sample and
utilities reported decreases, while 15% of vendors reported a decrease. Compared to last month, the percent of
respondents who increased their sales or expenditures increased by 8 percentage points among all respondents and
utilities. However, this figure decreased by three percentage points among vendors.
Over the past 12 months, my company's Smart Grid
related sales and/or investments (or expenditures) have:
100%
6%
6%
22%
22%
90%
80%
15%
Decreased
70%
37%
60%
Stayed the
same
50%
40%
30%
72%
Increased
72%
48%
20%
10%
0%
All Respondents
Utilities
Vendors
(figure 3, source: Zpryme/FierceSmartGrid March 2013 Smart Grid Index Survey)
6 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | March 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.
Compared to last month, respondents who expect sales or expenditures to increase remained unchanged among all
respondents. In March, this figure increased by 15 percentage points among vendors and decreased by 6 percentage
points among utilities.
Over the next 12 months, my company's Smart Grid
related sales and/or investments (or expenditures) are expected to:
100%
6%
90%
80%
26%
70%
15%
18%
4%
28%
Decrease
60%
Stay the same
50%
40%
30%
68%
67%
68%
All Respondents
Utilities
Vendors
Increase
20%
10%
0%
(figure 4, source: Zpryme/FierceSmartGrid March 2013 Smart Grid Index Survey)
7 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | March 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Expected Staff/Jobs over the Next 12 Months
Over the next 12 months, 52% of respondents expect hiring to increase, while 9% of utilities and 5% of vendors project a
decrease in hiring. Compared to last month, respondents who expect hiring to increase rose by two percentage points
among all respondents and by 9 percentage points among vendors. Among utilities, this figure remained the same as last
month.
Over the next 12 months, the number of
staff/jobs in Smart Grid related roles are expected to:
100%
6%
90%
9%
80%
70%
5%
36%
43%
Decrease
54%
60%
50%
Stay the same
40%
30%
20%
59%
52%
Increase
37%
10%
0%
All Respondents
Utilities
Vendors
(figure 5, source: Zpryme/FierceSmartGrid March 2013 Smart Grid Index Survey)
8 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | March 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
New Deals Closed Last Month
Forty-one percent of vendors surveyed said that they had closed new deals last month, a three percentage point decrease
from last month.
Last month, did your company close any new Smart Grid
related deals (sales, partnerships, investments, aquisitions, etc.)?*
Yes, 41%
No, 59%
(figure 6, source: Zpryme/FierceSmartGrid March 2013 Smart Grid Index Survey)
*Fifty-nine 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 | March 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Expected Proposals Submitted over the Next 12 Months
Three out of four utilities (75%) expect to submit new Smart Grid proposals over the next 12 months. This represents a 5
percentage point increase 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, 25%
Yes, 75%
(figure 7, source: Zpryme/FierceSmartGrid March 2013 Smart Grid Index Survey)
*Eighteen 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 | March 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Utility Understanding for Data Explosion from Smart Grid Tech
Fifty-eight percent of executives did not believe that utilities were prepared to handle the volumes of data that will be
produced from smart grid enabled devices such as sensors, smart meters, and distribution line monitoring systems. Twentyeight percent said they were, while the remaining 14% were not sure.
Do you believe that utilities are prepared for or understand the volumes of data that will be
produced from smart grid enabled devices (sensors, smart meters, feeder and substation
monitors, etc.)?
14%
No
Yes
28%
58%
Not sure
(figure 8, source: Zpryme/FierceSmartGrid March 2013 Smart Grid Index Survey)
11 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | March 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Respondent Industry Representation
About The Smart Grid Index
Eighteen percent of respondents were utilities, while 59%
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 23% 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,
3%
State/federal
government,
3%
Education
institution, 5%
Other, 7%
Utility, 18%
Power
generation, 5%
Technology
vendor or
integrator, 23%
Manufacturer
of power
products or
systems, 10%
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.
Consultant
(business,
technical, or
engineering),
26%
(figure 9, source: Zpryme/FierceSmartGrid March 2013 Smart Grid
Index Survey)
12 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | March 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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13 [SGI] ZPRYME SMART GRID INSIGHTS
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