frost & sullivan: 2013 european ict energy and utility predictions
DESCRIPTION
ICT in Smart Energy: drivers, market highlights, and four big predictions for 2013TRANSCRIPT
ICT EuropeICT Europe
ICT in Energy/Utilities Predictions for 2013ICT in Energy/Utilities Predictions for 2013
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ICT in Smart EnergyGrowth Drivers, 2012
ICT in Smart
Energy
ICT in Smart
Energy
A changing market that offers
significant ICT
potential.
Vendor ambitions and smart energy value proposition
dictate chances of success.
Insights on Demand
22CAPEX funding is, and
will remain, a challenge
CAPEX funding is, and
will remain, a challenge
33A “show me first”
mentality among
customers
A “show me first”
mentality among
customers
44A visionary few lead the
way ICT-related smart
grid projects
A visionary few lead the
way ICT-related smart
grid projects
55Customer mindshare of
IT/telecoms companies is
a mixed bag
Customer mindshare of
IT/telecoms companies is
a mixed bag
11Legislation remains the
strongest driver for smart
grid investment
Legislation remains the
strongest driver for smart
grid investment
22Project wins through core
expertise and refresh of old
projects
Project wins through core
expertise and refresh of old
projects
33Significant portfolio
development to align with
changing demands
Significant portfolio
development to align with
changing demands
44Strong vendor push on
innovative business models,
but limited uptake
Strong vendor push on
innovative business models,
but limited uptake
55Significant progress with
cross-industry partnerships
Significant progress with
cross-industry partnerships
11Easy wins so far, but
vertical strategy continues
to evolve
Easy wins so far, but
vertical strategy continues
to evolve
Insights on Supply
3
Market Highlights for 2012
• Legislative framework:
• Smart metering (un)certainty
• Renewable Energy Sources (RES) integration & investment incentives
• Slow tariff progress
• Technology adoption:
• Push for new communications networks
• Mobility addition
• Standardisation progress
• Vendor dynamics:
• True industry convergence in Smart Energy
• Customer requirements:
• ‘Show me first’ mentality prevails
• Lacking a holistic view of ICT
• ICT spending in 2012:
• A recovery in ICT spending in 2012 after 2011’s dip
• 2011 – 2016 CAGR = 5.6%
• Legislative framework:
• Smart metering (un)certainty
• Renewable Energy Sources (RES) integration & investment incentives
• Slow tariff progress
• Technology adoption:
• Push for new communications networks
• Mobility addition
• Standardisation progress
• Vendor dynamics:
• True industry convergence in Smart Energy
• Customer requirements:
• ‘Show me first’ mentality prevails
• Lacking a holistic view of ICT
• ICT spending in 2012:
• A recovery in ICT spending in 2012 after 2011’s dip
• 2011 – 2016 CAGR = 5.6%
Key Market HighlightsKey Market Highlights
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Four Big Predictions for ICT in Smart Metering in 2013
22Business models: ICT will step up positioning of cloud computing as a
way to overcome financial funding challenges
Business models: ICT will step up positioning of cloud computing as a
way to overcome financial funding challenges
33Vendor dynamics: More “verticalised” ICT companies enter the market,
with greater partnership alliances to materialise
Vendor dynamics: More “verticalised” ICT companies enter the market,
with greater partnership alliances to materialise
11Technology adoption: Vendor’s push for IP networks to bear fruit in
2013, especially among Generation companies and Distribution System
Operators.
Technology adoption: Vendor’s push for IP networks to bear fruit in
2013, especially among Generation companies and Distribution System
Operators.
Source: Frost & Sullivan analysis
44Customer Preference: Increased demand for discussions around
data/privacy, secure and resilient communications, and interconnected
energy assets
Customer Preference: Increased demand for discussions around
data/privacy, secure and resilient communications, and interconnected
energy assets
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Jean-Noel GeorgesGlobal Program Director
Financial Services
Adrian DrozdResearch Director
ICT Europe
Yiru ZhongTeam Leader
Energy/Utilities
Saverio RomeoTeam Leader
Public Sector