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SMART GRID INDEX INTELLIGENCE BY ZPRYME | ZPRYME.COM © 2012 ZPRYME RESEARCH & CONSULTING, LLC. ALL RIGHTS RESERVED. SMARTGRIDRESEARCH.ORG INTELLIGENT RESEARCH FOR AN INTELLIGENT MARKET TM SMART GRID INSIGHTS NOVEMBER 2012 SGI: NOVEMBER
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[Smart Grid Market Research] Smart Grid Index: November 2012 - Zpryme Smart Grid Insights

Sep 13, 2014

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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. 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.

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.

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Page 1: [Smart Grid Market Research] Smart Grid Index: November 2012 - Zpryme Smart Grid Insights

SMART GRID INDEX

INTELLIGENCE BY ZPRYME | ZPRYME.COM© 2012 ZPRYME RESEARCH & CONSULTING, LLC. ALL RIGHTS RESERVED.

SMARTGRIDRESEARCH.ORG INTELLIGENT RESEARCH FOR AN INTELLIGENT MARKETTMSMART GRID INSIGHTS

NOVEMBER 2012

SGI: NOVEMBER

Page 2: [Smart Grid Market Research] Smart Grid Index: November 2012 - Zpryme Smart Grid Insights

1 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012

Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com

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

Page 3: [Smart Grid Market Research] Smart Grid Index: November 2012 - Zpryme Smart Grid Insights

2 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012

Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. 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 [email protected].

1 The SGI is developed by Zpryme’s Smart Grid Insights and FierceSmartGrid.

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.

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3 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012

Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. 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%).

(figure 1, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)

71% 60%

78%

7%

10%

6%

21% 30%

16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All Respondents Utilities Vendors

What is your current view of the global Smart Grid industry?

Neutral

Negative

Positive

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4 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012

Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. 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.

(figure 2, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)

31% 25%

33%

46% 50%

49%

14% 10%

12%

6% 15% 5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All Respondents Utilities Vendors

Over the next 12 months, global utility investments or

expenditures on Smart Grid Technologies are expected to:

Decrease

significantly

Decrease a

little

Stay the same

Increase a little

Increase

significantly

Page 6: [Smart Grid Market Research] Smart Grid Index: November 2012 - Zpryme Smart Grid Insights

5 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012

Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. 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.

(figure 3, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)

60% 61% 65%

34% 39% 29%

6% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All Respondents Utilities Vendors

Over the past 12 months, my company's Smart Grid

related sales and/or investments (or expenditures) have:

Decreased

Stayed the

same

Increased

Page 7: [Smart Grid Market Research] Smart Grid Index: November 2012 - Zpryme Smart Grid Insights

6 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012

Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. 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%).

(figure 4, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)

71% 68% 74%

23% 21%

21%

6% 11% 5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All Respondents Utilities Vendors

Over the next 12 months, my company's Smart Grid

related sales and/or investments (or expenditures) are expected to:

Decrease

Stay the same

Increase

Page 8: [Smart Grid Market Research] Smart Grid Index: November 2012 - Zpryme Smart Grid Insights

7 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012

Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. 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.

(figure 5, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)

56% 47%

60%

37% 53% 33%

8% 7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All Respondents Utilities Vendors

Over the next 12 months, the number of

staff/jobs in Smart Grid related roles are expected to:

Decrease

Stay the same

Increase

Page 9: [Smart Grid Market Research] Smart Grid Index: November 2012 - Zpryme Smart Grid Insights

8 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012

Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. 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.

(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.

Yes, 45%

No, 55%

Last month, did your company close any new Smart Grid

related deals (sales, partnerships, investments, aquisitions, etc.)?*

Page 10: [Smart Grid Market Research] Smart Grid Index: November 2012 - Zpryme Smart Grid Insights

9 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012

Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. 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.

(figure 7, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)

*Ten percent of the sample was made up of utilities.

Yes, 75%

No, 25%

Over the next 12 months, does your utility plan to submit any

new Smart Grid proposals, plans or pilots for budget approval?*

Page 11: [Smart Grid Market Research] Smart Grid Index: November 2012 - Zpryme Smart Grid Insights

10 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012

Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. 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.

(figure 8, source: Zpryme/FierceSmartGrid November 2012 Smart Grid Index Survey)

79%

56%

84%

21%

44%

16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All Respondents Utilities Vendors

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?

No

Yes

Page 12: [Smart Grid Market Research] Smart Grid Index: November 2012 - Zpryme Smart Grid Insights

11 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012

Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com

Respondent Industry Representation

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.

(figure 9, source: Zpryme/FierceSmartGrid November 2012 Smart Grid

Index Survey)

About The Smart Grid Index 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.

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.

Education

institution, 5% Nonprofit

organization,

2%

Other,

5%

Power

generation, 5%

State/federal

government,

2%

Consultant

(business,

technical, or

engineering),

30% Manufacturer

of power

products or

systems, 13%

Technology

vendor or

integrator, 27%

Utility, 10%

Industry Representation of Respondents

Page 13: [Smart Grid Market Research] Smart Grid Index: November 2012 - Zpryme Smart Grid Insights

12 [SGI] ZPRYME SMART GRID INSIGHTS Smart Grid Index| November 2012

Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org | www.fiercesmartgrid.com

About Zpryme Smart Grid Insights Practice:

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.

Zpryme Smart Grid Insights Contact:

[email protected] | +1 888.ZPRYME.1 (+1 888.977.9631)

www.smartgridresearch.org (Zpryme Smart Grid Insights)

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:

[email protected]

www.fiercesmartgrid.com

Zpyme Credits

Research Manager

Roger Alford, Ph.D.

Sr. Research Analysts

Megan Dean

Paula Smith

Disclaimer: These materials and the information contained herein are provided by Zpryme Research & Consulting, LLC and are

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Page 14: [Smart Grid Market Research] Smart Grid Index: November 2012 - Zpryme Smart Grid Insights

INTELLIGENCE BY ZPRYME | ZPRYME.COM© 2012 ZPRYME RESEARCH & CONSULTING, LLC. ALL RIGHTS RESERVED.

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INTELLIGENT RESEARCH FORAN INTELLIGENT MARKET