Smart Grid Managed Services - Pike Research

Infrastructure, Application, and Business Process Outsourcing for Smart Grid

Utilities: Market Analysis and Forecasts

Utilities in many parts of the world – especially in the United States – are experiencing radical operational change as they update their decades-old infrastructure to be replaced by an Internet-enabled grid that will provide high-quality, reliable, and real-time information to both utilities and consumers. To meet this challenge, many utilities will seek consulting and implementation services from service vendors to help them with their smart grid deployments. In addition, because they often lack the resources and skills to manage a smart grid program on an ongoing basis on their own, they are also likely to turn to an external service provider to manage it or certain aspects thereof.

Because smart grid managed services is an emerging and nascent market, it is relatively small with an estimated worldwide spending of $470 million in 2010. It is, however, growing very rapidly so that by 2011, Pike Research forecasts that the smart grid managed services market will reach $821 million, a 75% growth rate over 2010. Growth is forecast to continue to be strong and this market will eventually become a multi-billion market opportunity for managed service providers by 2015.

There are multiple market forces fueling a growing demand among utilities for smart grid technology and smart grid-related service offerings, such as managed services. Although they tend to vary by country and region, there are some market factors that are common across the globe. Pike Research has grouped them into four major drivers –Economic, Environmental, Social and Technological. The economic factor tends to be one of the strongest drivers. In this case, utilities are motivated to deploy smart grid technology in order to reduce their operating costs through improved process and technology efficiency and mobile workforce management. Other driving factors are regulatory requirements to meet certain environmental policies and rules, brand image, and technological advancement that enables utilities to effectively and efficiently undertake smart grid deployment.

This Pike Research report examines global and regional smart grid managed services trends, and forecasts market size and growth prospects by region and managed services segment from 2009 through 2015. In addition, Pike Research assesses the competitive landscape, including a detailed competitive analysis of major smart grid managed service vendors.

Key questions addressed:

What is the size of the total smart grid managed services market on a year by year basis – worldwide and regionally – through 2015?
What are the growth trends and prospects in the smart grid managed services market on a global and regional basis?
What are the various market forces driving and inhibiting growth in smart grid managed services?
Which managed services segments offer the most promising opportunities and growth prospects?
Who are the key vendors in the smart grid managed services market? What are their capabilities and strategic plans?
What kind of competition are smart grid managed service vendors facing in this market?

Who needs this report?

IT service vendors
Telecom equipment and service providers
Product vendors
Utilities
Government agencies
Investor community

Table of Contents

1. Executive Summary
1.1 Introduction to Smart Grid Managed Services

1.2 Market Opportunities

1.3 Market Forces

1.4 The Competitive Landscape

2. Market Issues
2.1 Introduction and Background

2.2 The Smart Grid Market

2.2.1 Market Drivers

2.2.1.1 Economic – Cost Savings and Financial Incentives

2.2.1.2 Environmental

2.2.1.3 Social

2.2.1.4 Technological

2.2.2 Market Inhibitors

2.2.2.1 Financial Distress

2.2.2.2 Regulatory Environment

2.2.2.3 Lack of Standards and Best Practices

2.2.2.4 Shortage of Skills and Talent

2.2.2.5 Grid Security and Privacy Concerns

2.2.3 Market Adoption of Smart Grid

2.2.3.1 The Americas

2.2.3.1.1 United States

2.2.3.1.2 Canada

2.2.3.1.3 Latin America

2.2.3.2 Europe and Asia Pacific

2.2.3.1.1 Western Europe

2.2.3.1.2 Asia Pacific

2.3 Smart Grid Services

2.3.1 Smart Grid Service Offerings

2.3.1.1 Consulting Services

2.3.1.2 Implementation Services

2.3.1.3 Managed Services

2.3.1.4 Bundled Services

2.4 Smart Grid Managed Services Market – Current and Future Outlook

3. Competitive Landscape
3.1 A Converging Competitive Landscape

3.1.1 A Mix of Players

3.1.2 Partner Ecosystems

3.2 A Winning Value Proposition

3.3 Services and Technology Vendor Profiles

3.3.1 Accenture

3.3.2 Alcatel-Lucent

3.3.3 AT&T

3.3.4 Capgemini

3.3.5 CSC

3.3.6 EnerNOC

3.3.7 Ericsson

3.3.8 FirstCarbon Solutions

3.3.9 GE Energy

3.3.10 HCL Technologies

3.3.11 IBM

3.3.12 Infosys

3.3.13 Itron

3.3.14 KEMA

3.3.15 Lockheed Martin

3.3.16 SAIC

3.3.17 Siemens

3.3.18 Tendril

3.3.19 Trilliant

3.3.20 Verizon

3.3.21 Wipro

4. Market Forecasts
4.1 Forecast Introduction

4.2 Assumptions and Observations Determining This Forecast

4.3 Worldwide Smart Grid Managed Services Spending

5. Company Directory
6. Acronym and Abbreviation List
7. Table of Contents
8. Table of Charts and Figures
9. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures
Smart Grid Managed Services External Spending by Region, World Markets: 2009-2015
Smart Grid Managed Services Revenue Share by Vendor Category, World Markets: 2010
Smart Grid Managed Services External Spending by Region, World Markets: 2009-2015
Smart Grid Managed Services Spending by Segment, World Markets: 2010
Smart Grid Managed Services Spending by Segment, World Markets: 2015

List of Tables
Smart Grid Managed Services External Spending by Region, World Markets: 2009-2015
Smart Grid Managed Services External Spending Share by Region, World Markets: 2009-2015
Smart Grid Managed Services External Spending by Services Segment, World Markets: 2009-2015
Smart Grid Managed Services External Spending Growth by Services Segment, World Markets: 2009-2015
Smart Grid Managed Services Spending Share by Services Segment, World Markets: 2009-2015