SMART GRID INSIGHTS
NOVEMBER 2012
SMARTGRIDRESEARCH.ORG
INTELLIGENT RESEARCH FOR AN INTELLIGENT MARKETTM
SMART GRID INDEX
INTELLIGENCE BY ZPRYME | ZPRYME.COM
© 2012 ZPRYME RESEARCH & CONSULTING, LLC. ALL RIGHTS RESERVED.
SGI: NOVEMBER
Table of Contents
Executive Summary ................................................................. 2
Methodology .......................................................................... 2
Smart Grid Sentiment............................................................... 3
Expected Utility Expenditures over the Next 12 Months....... 4
Sales/Expenditures over the Last 12 Months ......................... 5
Sales/Expenditures over the Next 12 Months........................ 6
Expected Staff/Jobs over the Next 12 Months ...................... 7
New Deals Closed Last Month ................................................ 8
Expected Proposals Submitted over the Next 12 Months .... 9
Hurricane Sandy: Smart Grid Impact on Outages ............. 10
Respondent Industry Representation ................................... 11
About The Smart Grid Index ................................................. 11
1 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index| November 2012
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Executive Summary
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.1
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.
Methodology
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.
December’s Survey
December’s survey will be fielded from December 3rd to
December 10th of 2012. The results will be released on
December 13th. Utilities and Smart Grid vendors are
encouraged to participate. If you would like to take the
monthly survey please send an email to sgi@zpryme.com.
1
November 2012 Smart Grid Index Results
Overall Sentiment
71% currently have a positive view of the Smart
Grid.
Expected Utility Investments
31% expect utility Smart Grid related investments
to significantly increase over the next 12 months.
Current Sales/Expenditures
60% said their Smart Grid related sales or
expenditures have increased over the last 12
months.
Expected Sales/Expenditures
71% expect their Smart Grid related sales or
expenditures to increase over the next 12
months.
Hiring
56% expect the number of staff in Smart Grid
related roles to increase over the next 12
months.
Deals Closed
45% of vendor respondents said they closed
new Smart Grid related deals last month.
New Proposals
75% of utility respondents plan to submit new
Smart Grid proposals for budget approval over
the next 12 months.
The SGI is developed by Zpryme’s Smart Grid Insights and FierceSmartGrid.
2 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index| November 2012
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Smart Grid Sentiment
Seventy-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%
80%
70%
21%
16%
30%
7%
6%
10%
60%
Neutral
Negative
50%
40%
30%
71%
Positive
78%
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
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index| November 2012
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Expected Utility Investments/Expenditures over the Next 12 Months
Compared to utilities, vendors are more optimistic about global utility expenditures on Smart Grid technologies as 33% of
vendors said they expect investments to increase significantly over the next 12 months (vs. 25% for utilities). However, almost
half 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%
90%
80%
6%
14%
15%
5%
12%
Decrease
significantly
10%
Decrease a
little
70%
60%
50%
46%
49%
Stay the same
50%
40%
Increase a little
30%
20%
10%
31%
25%
Increase
significantly
33%
0%
All Respondents
Utilities
Vendors
(figure 2, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)
4 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index| November 2012
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 (both at only 6%), while utilities reported no decrease in Smart Grid related
expenditures.
Over the past 12 months, my company's Smart Grid
related sales and/or investments (or expenditures) have:
100%
6%
6%
90%
80%
34%
39%
29%
Decreased
70%
60%
50%
Stayed the
same
40%
Increased
30%
60%
61%
65%
All Respondents
Utilities
Vendors
20%
10%
0%
(figure 3, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)
5 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index| November 2012
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 (68% increase) than the total sample (71%) or vendors (74%).
Over the next 12 months, my company's Smart Grid
related sales and/or investments (or expenditures) are expected to:
100%
6%
90%
80%
23%
11%
21%
5%
21%
70%
Decrease
60%
Stay the same
50%
40%
30%
71%
68%
All Respondents
Utilities
74%
Increase
20%
10%
0%
Vendors
(figure 4, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)
6 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index| November 2012
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Expected Staff/Jobs over the Next 12 Months
Over 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%
7%
8%
90%
80%
70%
37%
53%
33%
Decrease
60%
50%
Stay the same
40%
30%
56%
20%
47%
60%
Increase
10%
0%
All Respondents
Utilities
Vendors
(figure 5, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)
7 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index| November 2012
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
New Deals Closed Last Month
Almost 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 or
systems, technology vendors or integrators, and business, technical, and/or engineering consultants.
8 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index| November 2012
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Expected Proposals Submitted over the Next 12 Months
An 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
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index| November 2012
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Hurricane Sandy: Smart Grid Technologies Impact on Outage Response Times
Seventy-nine percent of respondents reported that Smart Grid technologies could have helped restore power faster after
Hurricane Sandy hit the Northeast U.S. Utilities were less favorable concerning Smart Grid technology’s benefit. On the other
hand, 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%
16%
21%
80%
44%
70%
No
60%
50%
40%
30%
Yes
84%
79%
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
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index| November 2012
www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com
Respondent Industry Representation
About The Smart Grid Index
Ten percent of respondents were utilities, while 70% 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 20% 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
Education
institution, 5%
Nonprofit
organization,
2%
Utility, 10%
Other,
5%
Power
generation, 5%
State/federal
government,
2%
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.
Technology
vendor or
integrator, 27%
Manufacturer
of power
products or
systems, 13%
Consultant
(business,
technical, or
engineering),
30%
(figure 9, source: Zpryme/FierceSmartGrid November 2012 Smart Grid
Index Survey)
11 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index| November 2012
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
Disclaimer:
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 of
such subject(s). Accordingly, the information in these materials is not intended to constitute accounting, tax, legal,
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 any
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 no
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,
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 to
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 any
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 infrastructure
decision-makers, FierceSmartGrid covers the latest business and
technology news surrounding network intelligence, home networking,
smart meters, and other key issues pertinent to the efficient delivery of
economic, reliable, and sustainable energy services.
In addition to a free weekly email newsletter to keep up with this
evolving marketplace, thousands of energy and telecom industry
insiders who already subscribe to FierceSmartGrid also receive access
to unique special reports, eBooks, webinars, events, and whitepapers.
Join FierceSmartGrid today to get an edge in the energy delivery
industry.
FierceSmartGrid Contact:
editors@fiercesmartgrid.com
www.fiercesmartgrid.com
12 [SGI] ZPRYME SMART GRID INSIGHTS
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Smart Grid Index| November 2012
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