SMART GRID INSIGHTS
FEBRUARY 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:
FEBRUARY 2013
Table of Contents
Executive Summary ................................................................. 2
Methodology .......................................................................... 2
March 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 2013 Smart Grid Budget/Expenditures....................... 11
U.S. Utility Customer Education and Awareness ................. 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 | February 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 four percentage points
in February. Utility sentiment increased for the fourth month
in row, up by twelve percentage points, while vendor
sentiment increased by nine percentage points. Half of all
respondents said they expect Smart Grid hiring to increase
over the next 12 months. Forty-four percent of the vendors
surveyed closed a new deal last month, while 70% of
utilities expect to submit new Smart Grid proposals for
budget approval over the next 12 months. Surprisingly,
52% of executives did not believe that U.S. utilities were
adequately educating customers about the Smart Grid.
Twelve utilities reported their estimated 2013 Smart Grid
budgets. Among this group, the median budget was $4
million. However, three utilities reported an estimated
budget of $50 million or more.
Methodology
This study was conducted by Zpryme and FierceSmartGrid
by surveying 220 Smart Grid executives from February 3rd
to February 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
(58% of sample), utilities (15% of sample), and total sample.
March Survey
March’s survey will be fielded from March 1st to March 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.
February 2013 Smart Grid Index Results
Overall Sentiment
71% currently have a positive view of the Smart
Grid, a 4 percentage point increase from last
month.
Expected Utility Investments
35% expect utility Smart Grid related investments
to significantly increase over the next 12 months,
a 4 percentage point increase from last month.
Current Sales/Expenditures
64% said their Smart Grid related sales or
expenditures have increased over the last 12
months, a 6 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, a 2 percentage point increase from last
month.
Hiring
50% expect the number of staff in Smart Grid
related roles to increase over the next 12
months, a 1 percentage point decrease from
last month.
Deals Closed
44% of vendor respondents said they closed
new Smart Grid related deals last month, a 2
percentage point decrease from last month.
New Proposals
70% of utility respondents plan to submit new
Smart Grid proposals for budget approval over
the next 12 months, a 9 percentage point
increase from last month.
Smart Grid Index | February 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 February 2013 Smart Grid Index Survey)
Nov
12
Dec
12
Jan
13
Feb
13
Net
percentage
point change
All Respondents
71%
66%
67%
71%
4%
Utilities
60%
67%
71%
83%
12%
Vendors
78%
70%
68%
77%
9%
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%
4%
Utilities
25%
30%
39%
40%
1%
Vendors
33%
33%
28%
34%
6%
All Respondents
60%
61%
58%
64%
6%
Utilities
61%
48%
82%
64%
-18%
Vendors
65%
65%
49%
51%
3%
All Respondents
71%
67%
66%
68%
2%
Utilities
68%
53%
59%
52%
-7%
Vendors
74%
76%
69%
74%
5%
All Respondents
56%
54%
51%
50%
-1%
Utilities
47%
44%
29%
37%
8%
Vendors
60%
57%
54%
50%
-4%
+
-
45%
45%
46%
44%
-2%
-
75%
73%
61%
70%
9%
+
% 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 | February 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Smart Grid Sentiment
Seventy-one percent of respondents were positive about the global Smart Grid industry, with utilities more positive (83%)
than vendors (77%). Only 8% of all respondents and utilities had a negative view (vs. 11% last month). Compared to last
month, respondents with a positive view of the Smart Grid increased by 4 percentage points among all respondents, by 12
percentage points among utilities, and by 9 percentage points among vendors.
What is your current view of the global Smart Grid industry?
100%
90%
80%
70%
20%
13%
3%
8%
16%
7%
Neutral
Negative
60%
50%
40%
30%
71%
83%
Positive
77%
20%
10%
0%
All Respondents
Utilities
Vendors
(figure 1, source: Zpryme/FierceSmartGrid February 2013 Smart Grid Index Survey)
4 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | February 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 40% of utilities said
they expect investments to increase significantly over the next 12 months (vs. 34% for vendors). Compared to last month, the
percent of respondents who expect expenditures to increase rose by 4 percentage points among all respondents (35%), by
1 percentage point among utilities, and by 6 percentage points among vendors.
Over the next 12 months, global utility investments or
expenditures on Smart Grid Technologies are expected to:
100%
90%
80%
2%
7%
3%
10%
12%
2%
6%
13%
17%
Decrease a
little
70%
60%
44%
50%
30%
45%
40%
Stay the same
Increase a
little
30%
20%
Decrease
significantly
35%
40%
34%
Increase
significantly
10%
0%
All Respondents
Utilities
Vendors
(figure 2, source: Zpryme/FierceSmartGrid February 2013 Smart Grid Index Survey)
5 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | February 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.
Fourteen percent of both the total sample and utilities reported decreases, while only 8% of vendors reported a decrease.
Compared to last month, the percent of respondents who increased their sales or expenditures increased by 6 percentage
points among all respondents, and by 3 percentage points among vendors. However, this figure decreased by 18
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%
14%
14%
21%
21%
8%
41%
60%
Decreased
50%
Stayed the
same
40%
Increased
30%
64%
64%
51%
20%
10%
0%
All Respondents
Utilities
Vendors
(figure 3, source: Zpryme/FierceSmartGrid February 2013 Smart Grid Index Survey)
6 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | February 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.
However, vendors were more optimistic than utilities and the total sample (68%). Compared to last month, respondents who
expect sales or expenditures to increase rose by 2 percentage points among all respondents and by 5 percentage points
among vendors. However, this figure decreased by 7 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%
7%
90%
80%
17%
21%
25%
70%
5%
Decrease
31%
60%
Stay the same
50%
40%
30%
74%
68%
Increase
52%
20%
10%
0%
All Respondents
Utilities
Vendors
(figure 4, source: Zpryme/FierceSmartGrid February 2013 Smart Grid Index Survey)
7 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | February 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Expected Staff/Jobs over the Next 12 Months
Over the next 12 months, 50% of respondents expect hiring to increase, while 27% of utilities and 8% of vendors project a
decrease in hiring. Compared to last month, respondents who expect hiring to increase fell by 1 percentage point among
all respondents and by 4 percentage points among vendors. This figure increased by 8 percentage points among utilities.
Over the next 12 months, the number of
staff/jobs in Smart Grid related roles are expected to:
100%
90%
8%
10%
27%
80%
70%
42%
40%
60%
Decrease
37%
50%
Stay the same
40%
30%
20%
50%
37%
50%
Increase
10%
0%
All Respondents
Utilities
Vendors
(figure 5, source: Zpryme/FierceSmartGrid February 2013 Smart Grid Index Survey)
8 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | February 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
New Deals Closed Last Month
Forty-four percent of vendors surveyed said that they had closed new deals last month, a two percentage point decrease
from last month.
Last month, did your company close any new Smart Grid
related deals (sales, partnerships, investments, aquisitions, etc.)?*
Yes, 44%
No, 56%
(figure 6, source: Zpryme/FierceSmartGrid February 2013 Smart Grid Index Survey)
*Fifty-eight 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 | February 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Expected Proposals Submitted over the Next 12 Months
A majority of utilities (70%) expect to submit new Smart Grid proposals over the next 12 months. This represents a 9
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, 30%
Yes, 70%
(figure 7, source: Zpryme/FierceSmartGrid February 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 | February 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Utility 2013 Smart Grid Budget/Expenditures
A small sample of utilities (12) reported their estimated 2013 Smart Grid expenditures. Among this group, the median 2013
utility Smart Grid budget was $4 million. Three utilities reported an estimated budget of $50 million or more. Eight of the
utilities had a budget between $1 million to $10 million.
In 2013, what is your utility's estimated budget/expenditures for Smart Grid technologies?
Count of responses by Budget Amount (n = 12)
10
8
8
6
4
3
2
1
0
Below $1M
$1M to $10M
$50M and above
(figure 8, source: Zpryme/FierceSmartGrid February 2013 Smart Grid Index Survey)
*12 utilities provided estimated 2013 Smart Grid budgets. Use caution when reading the data due to the small sample size.
11 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | February 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
U.S. Utility Customer Education and Awareness
Fifty-two percent of executives did not believe that U.S. utilities were adequately educating customers about the Smart Grid
and/or smart meters. Twenty-eight percent said they were, but utilities needed to invest more resources in this area. Only 6%
said U.S. utilities were doing a great job of educating their customers.
In your opinion, do you believe utilities in the U.S. are adequately addressing customer
education and awareness about the Smart Grid (and/or smart meters)?
No
14%
6%
Yes, but they need to
invest more resources in
this area
52%
28%
Yes, they are doing a
great job of customer
education
Not sure
(figure 9, source: Zpryme/FierceSmartGrid February 2013 Smart Grid Index Survey)
12 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | February 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 58%
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 27% 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,
5%
State/federal
government,
3%
Education
institution, 6%
Utility, 15%
Other, 10%
Power
generation, 4%
Technology
vendor or
integrator, 26%
Manufacturer
of power
products or
systems, 8%
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),
24%
(figure 10, source: Zpryme/FierceSmartGrid February 2013 Smart Grid
Index Survey)
13 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | February 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 | February 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