The Smart Grid Utility Data Market

Dec 1, 2010
142 Pages - Pub ID: SB2496610
Abstract Table of Contents Search Inside Report Related Reports

The volume of Smart Grid data that will have to be managed by utilities over the next few years is going to surge from 10,780 terabytes (TB) of new data created in 2010 to over 75,200 TB in 2015. Managing, analyzing and visualizing that amount of data will be a huge undertaking, creating a global market worth $2.9 billion in 2015.

Even this vast amount of data is just the start of the “data tsunami” that utilities will have to manage as more Smart Grid products are installed on the grid. Growing utility awareness of the need to manage this data will drive sales of Smart Grid data management (DM) software over the next five years. The segment will achieve a compound annual growth rate (CAGR) of over 20% between 2010 and 2015, making it the fastest growing segment in the Smart Grid utility data market.

Many utilities are still struggling to understand how the wealth of data generated by Smart Grid technologies can enhance their business model, and which types of Smart Grid software will provide the best return on their investment. While utilities are showing increasing interest in visualization software and outage management systems, it is distribution management systems (DMS) that are expected to provide the best returns. By 2015, SBI Energy estimates almost twice the number of utilities in the U.S. will have a DMS in place compared to 2010.

Much of the Smart Grid funding available worldwide is still hardware focused, particularly for the installation of smart meters. But advanced meters and other sensors are just the fingers of an emerging smarter electrical grid; it is the data that these devices generate and the backend applications that will manage and use that data that will be the nervous system and brain of an active and fully capable Smart Grid.

The Smart Grid Utility Data Market by SBI Energy defines and discusses the data software tools that will be an absolute necessity for utilities as the Smart Grid gains traction. The analysis will include definitions, current product offerings and market detail on the following segments:

  • Data management and data security software used by the electrical utility market
  • System management tools integrating Smart Grid data with both new and legacy control systems to provide automation and fine control of a utility’s electrical grid
  • Data analysis software tools that aggregates and provides usable information to utilities from raw Smart Grid data

Along with these product segments, the report provides insight into topics such as data integration, cybersecurity, and adoption of standards that are necessary components for any utility looking to develop its Smart Grid.

Report Methodology:

This report contains both primary and secondary data obtained from government sources, trade associations and publications, business journals, scientific papers, company literature, investment reports, and interviews with industry professionals. Statistics for U.S. and global energy use and Smart Grid funding come from sources such as the U.S. Department of Energy and the International Energy Administration.

What You’ll Get in This Report:

The Smart Grid Utility Data Market provides a concise, focused look on the Smart Grid data and back-end software applications market as it exist today, and shows where the market is moving between 2010 and 2015. The report highlights key players in the Smart Grid industry and pinpoints ways that current and prospective competitors can capitalize on recent trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that The Smart Grid Utility Data Market offers. Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

How You’ll Benefit from this Report:

If your company is already doing business related to power generation, data storage or data analysis and management technologies, or is considering making the leap, you will find this report invaluable as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for Smart Grid products related to data collection, storage, management and analysis, as well as projected markets and trends through 2015.

This report will help:

  • Marketing managers identify market opportunities and develop targeted promotion plans for businesses looking to partner with utilities in a Smart Grid implementation program.
  • Research and development professionals stay on top of competitor initiatives and explore demand for utility data management and Smart Grid data management and analytic applications.
  • Advertising agencies working with clients in the banking, retail and power generation industries develop messages and images that compel homeowners, businesses and industries to migrate towards alternative energy plans such as time-of-day pricing and demand response.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.


Additional Information

Market Insights: A Selection From The Report


Smart Grid Data Security

Data and data communications security are such fundamental requirements for the Smart Grid that the Energy Independence and Security Act of 2007 (EISA) mandates comprehensive security for any Smart Grid technologies funded and implemented in the U.S. However, security standards are still nascent, making it difficult to ensure data is properly managed in current Smart Grid implementations. SBI Energy anticipates that third party assurances of security implementations and privacy issues surrounding Smart Grid data are the two key areas where security could have a potential impact on the market growth of the Smart Grid

The Smart Grid Application & Data Market

The Smart Grid application segment is small but robust, encompassing and building on traditional SCADA and utility management systems sales. The Smart Grid data segment is brand new; while electrical utilities have had to manage some SCADA and automation data in the past, it is nothing compared to the amount of data now gathered through smart meters and other products.

SBI Energy places the current world market for Smart Grid software and data management applications at $1.4 billion in 2010, growing to $2.9 billion in...

Smart Grid Software Company Trends
[...]
The combination of these two factors means there have been numerous company acquisitions within the Smart Grid applications and data management space in 2010. The deal most noticeable and which developed the most media was ABB’s acquisition of Smart Grid software provider Ventyx. The billion dollar acquisition puts ABB at the forefront in terms of scope of product offerings within the Smart Grid back-end application space. SBI Energy expects the strong acquisition pace to continue for most of 2011 as there is still significant
consolidation that can happen in the market.

In the News
U.S. Investment in Smart Grid Capabilities Paces Global Industry

New York, December 15, 2010 — Backed by federal stimulus funding and an administration dedicated to the attainment of energy independence, the United States is pacing global investment in smart grid applications and capabilities, according to The Smart Grid Utility Data Market by market research publisher SBI Energy. The report reveals that the most important potential Smart Grid capabilities are centered on self-awareness and automation, managing thousands—or even millions—of inputs to optimize grid functioning.

At least 27 American Recovery and Reinvestment Act (ARRA) projects are being funded from the almost $5 billion allocated to the U.S. Department of Energy (DOE) for grid modernization projects that have some portion of the award going towards data management or back-end Smart Grid applications. Just over half of these projects have described a transmission or distribution management system, confirming survey results from several different sources that utility professionals are seeing distribution management as a key Smart Grid technology to be implemented in the coming years. Much of the remaining money from this group of ARRA projects is going towards end-to-end Smart Grid projects that will include management systems, analytic systems and data management systems.

For fiscal year 2010 the U.S. DOE’s Office of Electricity Delivery and Energy Reliability (OE) Smart Grid research & development budget was $125 million, up from just $83 million in fiscal 2009. The funding request for fiscal 2011 is up almost 16% to $144 million. Additionally, $30 million in funding in fiscal 2011 is set aside for cybersecurity for energy delivery systems.Some of the cybersecurity projects being funded originally come from the visualizations and controls R&D program, but the DOE has now recognized the need for specific cybersecurity funding.

Globally, much of the Smart Grid funding available is still hardware focused, particularly for the installation of smart meters. But advanced meters and other sensors are just the fingers of an emerging smarter electrical grid. Rather it is the data that these devices generate and the backend applications that will manage and use said data that will be the nervous system and brain of an active and fully capable Smart Grid.

While there are sound financial benefits to implementing a fully capable Smart Grid, there is also a huge financial cost as well. The number of new hardware and software systems that must be implemented across all levels of the grid is staggering, with cost estimates ranging from a few hundred billion dollars to over one trillion dollars just to fully upgrade the U.S. electrical grid.

"In the short term, utilities need to justify these costs to regulators and investors and also need to raise the capital to implement Smart Grid programs," says Norman Deschamps, SBI Energy analyst and author of the industry study. "While the (ARRA) stimulus bill of 2009 went a long way towards kick-starting Smart Grid implementations, that money is only the tip of the iceberg for what an entire Smart Grid will cost.

The Smart Grid Utility Data Market defines and discusses the data software tools that will be an absolute necessity for utilities as the Smart Grid gains traction. The analysis includes definitions, current product offerings and market detail on the following segments: 1) data management and data security software used by the electrical utility market, 2) system management tools integrating Smart Grid data with both new and legacy control systems to provide automation and fine control of a utility’s electrical grid, 3) data analysis software tools that aggregates and provides usable information to utilities from raw Smart Grid data.

About SBI Energy
SBI Energy, a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets. SBI Energy also offers a full range of custom research services.

Additional Materials


BLOG: The key to effective Smart Grid data management? Worry about business process, not hardware.

This November, I asked Scott Smith, Vice President of Global Technical Architecture for meter data management company eMeter Corporation how utilities would handle the influx of data coming their way after smart meter installations.

According to Smith, finding the data storage and communications hardware to provide the necessary functions is not the biggest obstacle facing utilities in a smart meter project. The telecommunications industry has already covered the difficulties with high speed data transmission and large data storage requirements far exceeding what is needed.

The challenge, says Smith, is that utilities have to move away from the “historical model” of thinking about Smart Grid implementations from a hardware perspective. Instead, utilities need to be thinking about Smart Grid projects from a marketing (i.e. consumer relations) standpoint and from a business process perspective.

For comparison, let’s look at the smart meter rollouts of Toronto Hydro in Ontario, Canada and Pacific Gas & Electric Co. (PG&E) in California.

Toronto Hydro focused on developing its business plan around customer communication, implementing a time-of-use pricing model and effective use of the Smart Grid data. The strategy won the company three awards, including the Outstanding Achievement in Marketing and Communications Award from the Association for Energy Service Professionals in May 2010 for its smart meter project.

On the other hand, PG&E simply dealt with its smart meter project from the beginning as an infrastructure change. As a result, the lack of customer outreach has caused a customer relations nightmare for the utility. This has resulted in thousands of complaints and even a lawsuit in Bakersfield that claimed the new smart meters were not reliably reporting actual electricity use.

According to Smith, the difference is not that Toronto Hydro implemented a better system technologically, (although to be fair eMeter is the MDM for the Toronto Hydro Smart Grid project). The difference is that Toronto Hydro took pains to ensure that the business process and customer relations were in place to properly handle the transition to implementing its Smart Grid technologies before the first smart meter was even attached to a house.

-By Norman Dechampes, analyst for SBI Energy and author of ‘The Smart Grid Utiltiy Data Market

Additional Materials


BLOG: O Thank Heaven it’s 2011courtesy of earthtechling

SBI Energy Blog

The flurry of predictions made at the end of 2010 for the clean energy sector has created an exciting new buzz for 2011. Significantly advancing the U.S. toward a clean energy economy, 2011 will likely bring a spike in financial investing - now that Wall Street has claimed to have ‘figured out’ clean energy, along with an extension in tax credits that encourage more businesses to adopt 'green' practices and the creation of thousands of 'green' employment opportunities. Meanwhile, the clean energy manufacturing industry can expect to receive an additional $2.5 billion in funding in 2011 from the Recovery Act (ARRA). And, letting the good news roll, the global clean power sector is forecasted to see growth this year and continue its upward trend straight through 2020 - ultimately becoming a $2.3 trillion industry.

In just 18 months the U.S. spent more than $51 billion in public funding on clean energy project initiatives, research science, installations and infrastructure.  Not enough to approach sustainability, but a significant play nonetheless, as many countries have made.

It’s also reported that U.S. is on track for its 2012 goal of doubling its renewable generation capacity.  How old is that goal, anyway?  What are our new goals?  Where are the new clean energy policies and standards businesses need to move forward in their commitments and goals? 

 As the American public, we know a clean economy can't arrive bagged and sterile in a flash while we wait.  Our order requires recipes and ingredients yet to be known.  It will be years in the making, always in the unfolding if we are wise, rather than slacking again to this level of paucity by negligence.  So let’s celebrate what this bright New Year will bring in terms of building blocks for our future.

 SBI Energy believes the power players are in the following sectors:

  • Energy storage
  • Rare earth minerals impact on renewable power generation
  • Industrial equipment manufacturing, components
  • Carbon and coal treatments, technologies
  • Nuclear power applications development
  • Substation automation
  • Smart grid advancement

 2011 is set to advance the clean energy industry. We stake our research on it. Cheers to progress and patience!

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