SMART GRID INSIGHTS
MAY 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:
MAY 2013
Table of Contents
Executive Summary ................................................................. 2
Methodology .......................................................................... 2
June Survey ............................................................................. 2
Monthly Key Metric Trend Analysis....................................... 3
Smart Grid Sentiment............................................................... 4
Expected Utility Investments over the Next 12 Months ........ 5
Sales/Expenditures over the Past 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
Value of Deals Closed ........................................................... 10
Expected Proposals Submitted over the Next 12 Months .. 11
Expected Utility Spending on Analytics............................... 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 | May 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Executive Summary
May 2013 Smart Grid Index Results
In May, overall Smart Grid sentiment increased by one
percentage point, to 72%. However, only 23% of
executives surveyed expect utility Smart Grid investments
to significantly increase over the next 12 months. Fortyfour percent of all respondents said they expect Smart
Grid hiring to increase over the next 12 months. Twentyeight percent of the vendors surveyed closed a new deal
last month, while 88% of utilities expect to submit new
Smart Grid proposals for budget approval.
Overall Sentiment
72% currently have a positive view of the Smart
Grid, a 1 percentage point increase from last
month.
The amount of vendors who indicated they closed a deal
in the previous month has decreased for four consecutive
months. The average sales volume among vendors who
closed deals last month was $11.03 million.
Current Sales/Expenditures
58% said their Smart Grid related sales or
expenditures have increased over the last 12
months, a 2 percentage point increase from last
month.
When it comes to analytics, utilities expect to spend an
average of $2.2 million over the next 12 months.
Expected Sales/Expenditures
72% expect their Smart Grid related sales or
expenditures to increase over the next 12
months, a 7 percentage point increase from last
month.
Methodology
This study was conducted by Zpryme and FierceSmartGrid
by surveying 212 Smart Grid executives from May 1st to
May 20th 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
(57% of sample), utilities (24% of sample), and total sample.
June Survey
June’s survey will be fielded from June 1st to June 16th 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.
Expected Utility Investments
23% expect utility Smart Grid related investments
to significantly increase over the next 12 months,
a 10 percentage point decrease from last
month.
Hiring
44% expect the number of staff in Smart Grid
related roles to increase over the next 12
months, a 2 percentage point decrease from
last month.
Deals Closed
28% of vendors said they closed new Smart Grid
related deals last month, an 8 percentage point
decrease from last month.
New Proposals
88% of utilities said they plan to submit new
Smart Grid proposals for budget approval over
the next 12 months, a 21 percentage point
increase from last month.
Smart Grid Index | May 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 May 2013 Smart Grid Index Survey)
Nov
12
Dec
12
Jan
13
Feb
13
March
13
April
13
May
13
Percentage
point
change
All Respondents
71%
66%
67%
71%
72%
71%
72%
1%
Utilities
60%
67%
71%
83%
72%
79%
63%
-16%
Vendors
78%
70%
68%
77%
74%
73%
77%
4%
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%
33%
23%
-10%
Utilities
25%
30%
39%
40%
33%
21%
19%
-2%
Vendors
33%
33%
28%
34%
41%
30%
21%
-9%
All Respondents
60%
61%
58%
64%
52%
56%
58%
2%
Utilities
61%
48%
82%
64%
72%
71%
60%
-11%
Vendors
65%
65%
49%
51%
48%
50%
55%
5%
All Respondents
71%
67%
66%
68%
68%
65%
72%
7%
Utilities
68%
53%
59%
52%
67%
65%
80%
15%
Vendors
74%
76%
69%
74%
68%
65%
69%
4%
All Respondents
56%
54%
51%
50%
52%
46%
44%
-2%
Utilities
47%
44%
29%
37%
37%
52%
50%
-2%
Vendors
60%
57%
54%
50%
59%
41%
44%
3%
+
45%
45%
46%
44%
41%
36%
28%
-8%
-
61%
70%
75%
67%
88%
21%
+
% 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 © 2013 Zpryme Research & Consulting, LLC All rights reserved.
75%
73%
Smart Grid Index | May 2013
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Smart Grid Sentiment
Seventy-two percent of respondents had a positive view about the global Smart Grid industry, with vendors being more
positive (77%) than utilities (63%). About one out of 10 of all respondents and 6% of utilities had a negative view. Compared
to last month, those with a positive view increased by one percentage point among all respondents and by 4 percentage
points among vendors. Among utilities, this figure fell by 16 percentage points in May.
What is your current view of the global Smart Grid industry?
100%
90%
80%
70%
20%
13%
31%
9%
10%
Neutral
6%
60%
Negative
50%
40%
30%
Positive
72%
77%
63%
20%
10%
0%
All Respondents
Utilities
Vendors
(figure 1, source: Zpryme/FierceSmartGrid May 2013 Smart Grid Index Survey)
4 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | May 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Expected Utility Investments/Expenditures over the Next 12 Months
Vendors were slightly more optimistic than utilities about global utility expenditures on Smart Grid technologies, as 21% of
vendors said they expect investments to increase significantly over the next 12 months (vs. 19% for utilities). Compared to
last month, the percent of respondents who expect expenditures to increase fell by 10 percentage points among all
respondents, by 2 percentage points among vendors, and by 9 percentage points among utilities.
Over the next 12 months, global utility investments or
expenditures on Smart Grid Technologies are expected to:
100%
90%
1%
5%
14%
8%
25%
8%
80%
Decrease a
little
70%
60%
50%
57%
56%
64%
40%
Stay the same
Increase a
little
30%
Increase
significantly
20%
10%
Decrease
significantly
23%
19%
21%
All Respondents
Utilities
Vendors
0%
(figure 2, source: Zpryme/FierceSmartGrid May 2013 Smart Grid Index Survey)
5 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | May 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Sales/Expenditures over the Past 12 Months
Over the past 12 months, 58% of all respondents increased their Smart Grid sales and/or expenditures. Just over half (55%) of
the vendors and 60% of utilities indicated that their sales and/or expenditures increased over the past 12 months. Thirteen
percent of the total sample, 13% of utilities, and 15% of vendors reported a decrease. Compared to last month, those who
increased their sales or expenditures increased by 2 percentage points among all respondents and by 5 percentage points
among vendors. This figure decreased by 11 percentage points among utilities in May.
Over the past 12 months, my company's Smart Grid
related sales and/or investments (or expenditures) have:
100%
90%
13%
13%
29%
27%
15%
80%
70%
30%
60%
Decreased
50%
Stayed the
same
40%
Increased
30%
58%
60%
All Respondents
Utilities
55%
20%
10%
0%
Vendors
(figure 3, source: Zpryme/FierceSmartGrid May 2013 Smart Grid Index Survey)
6 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | May 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Sales/Expenditures over the Next 12 Months
Over the next 12 months, 72% of respondents of all respondents expect Smart Grid sales and/or expenditures to increase.
Compared to last month, those who expect sales or expenditures to increase rose in all three groups, by 7 percentage
points among all respondents, by 15 percentage points among utilities, and by 4 percentage points among vendors.
Over the next 12 months, my company's Smart Grid
related sales and/or investments (or expenditures) are expected to:
100%
7%
90%
80%
22%
7%
13%
6%
25%
70%
Decrease
60%
Stay the same
50%
40%
30%
72%
80%
69%
Increase
20%
10%
0%
All Respondents
Utilities
Vendors
(figure 4, source: Zpryme/FierceSmartGrid May 2013 Smart Grid Index Survey)
7 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | May 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Expected Staff/Jobs over the Next 12 Months
Over the next 12 months, 44% of respondents expect hiring to increase, while 13% of utilities and 4% of vendors project a
decrease in hiring. Compared to last month, those who expect an increase in hiring fell by 2 percentage points among all
respondents and utilities. Among vendors, this figure increased by 3 percentage points.
Over the next 12 months, the number of
staff/jobs in Smart Grid related roles are expected to:
100%
6%
90%
13%
3%
80%
70%
50%
38%
53%
Decrease
60%
50%
Stay the same
40%
30%
20%
44%
50%
Increase
44%
10%
0%
All Respondents
Utilities
Vendors
(figure 5, source: Zpryme/FierceSmartGrid May 2013 Smart Grid Index Survey)
8 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | May 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
New Deals Closed Last Month
Only twenty-eight percent of vendors surveyed said that they had closed new deals last month, an 8 percentage point
decrease from last month. This is the fourth month in row that this figure has decreased.
Last month, did your company close any new Smart Grid
related deals (sales, partnerships, investments, aquisitions, etc.)?*
Yes, 28%
No, 72%
(figure 6, source: Zpryme/FierceSmartGrid May 2013 Smart Grid Index Survey)
*Fifty-seven 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 | May 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Value of Deals Closed
Among the vendors who closed a deal (or deals) last month, 30% of them closed deals over $10.0 million. The weighted
average of the deals closed last month was $11.03 million.
What was the estimated total volume of sales/deals that your
company closed last month? *
35%
30%
30%
25%
20%
20%
15%
10%
10%
10%
10%
10%
10%
$1,000,001 to
$5,000,000
$10,000,001 to
$20,000,000
$30,000,001 to
$40,000,000
Over
$50,000,000
5%
0%
Less than
$100,000
$100,001 to
$500,000
$500,001 to
$1,000,000
(figure 7, source: Zpryme/FierceSmartGrid May 2013 Smart Grid Index Survey)
*Fifty-seven 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.
10 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | May 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Expected Proposals Submitted over the Next 12 Months
Nearly nine out of ten utilities (88%) expect to submit new Smart Grid proposals over the next 12 months. This represents a 21
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, 13%
Yes, 88%
(figure 8, source: Zpryme/FierceSmartGrid May 2013 Smart Grid Index Survey)
*Twenty-four 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 | May 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Expected Utility Spending on Analytics over the Next 12 Months
Over the next 12 months, 38% of utilities surveyed said they expect to spend $1.0 million or more on analytics software or
systems. The weighted average expected spending on analytics was $2.20 million.
Over the next 12 months, how much does your utility plan to spend on data
analytics software and/or systems?*
30%
25%
25%
25%
20%
15%
13%
13%
10%
6%
6%
6%
6%
5%
0%
Less than
$5,000
$5,000 to
$50,000
$50,001 to
$100,000
$100,001 to
$500,000
$500,001 to
$1,000,000
$1,000,001 to $5,000,001 to
$5,000,000
$10,000,000
Over
$10,000,000
(figure 9, source: Zpryme/FierceSmartGrid May 2013 Smart Grid Index Survey)
*Twenty-four percent of the sample was made up of utilities.
12 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | May 2013
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Respondent Industry Representation
About The Smart Grid Index
Twenty-four percent of respondents were utilities, while
57% 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
19% were from the education, nonprofit, 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,
6%
State/federal
government,
3%
Education
institution, 3%
Other, 7%
Utility, 24%
Technology
vendor or
integrator, 10%
Manufacturer
of power
products or
systems, 24%
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 May 2013 Smart Grid Index
Survey)
13 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index | May 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
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SMART GRID INSIGHTS
YEAR
REPORTS
DATASETS
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