This report, published in Q1 2012 is a definitive resource for the Smart Grid Industry, uniquely combining clearly defined market sizing statistics with financial analysis of M&A and Investment.

It is our 1st annual assessment of the world’s Smart Grid business; providing a comprehensive analysis that brings together all the factors influencing this industries future. This includes technology, finance and the capability to deliver products & services that will drive more ROI out of investment whilst meeting the challenges of a low carbon economy in the 21st century.

The survey establishes valuable statistics about the business size, together with its structure and shape, forecasting demand to 2016. The electrical power transmission and distribution business is a very mature 100 year plus industry. Transforming it into a Smart Grid to meet the new challenges of a low carbon economy is a major undertaking. This can only be achieved if some radical changes are made to both the supply and demand side; and the addition of new technology to the industry in the form of advanced control, communications and enterprise software. Without this, the grid will not be able to accept renewable power sources and the mission to achieve a low carbon economy will be thwarted. The need to reduce CO2 emissions within the existing electrical grid will drive the future growth of this business. In order to do this, the grid must incorporate renewable electricity from a multitude of distributed sources and be capable of matching the supply of electricity with demand at the point of usage.

Within its 182 pages and over 23 charts and tables, the report sieves out the facts and draws conclusions, as to what is shaping the future of the Smart Grid industry;

> We estimate that to achieve full penetration of the world’s existing grid together with future extensions to 2030; will require an investment of some $2 trillion on pure Smart Grid equipment at installed prices.

> There are currently at least 1,700 companies in the world manufacturing hardware and software products for the electrical transmission and distribution market which have annual sales of over $5 million per annum. Of these, companies having annual sales of over a $1 billion account for 65% of the business but only 1% by number.

> Total spend on power transmission & distribution equipment in 2010 was some $106 billion and is forecast to rise 5.3% per year through 2013 to $124 billion.

> We estimate that the sales of Smart Grid systems were $16 billion in 2010 and this clearly shows that the business is still in its embryonic stages. It is also very unbalanced because the current share taken by smart meters is running at over 30% of the market.

> In the space of 5 years mergers and acquisitions have grown from $134 million in 2007 to $10.6 billion in 2011. Both the growth and now scale indicate the supply side is gearing up to meet the requirements of new technology and forecast demand for pure Smart Grid products and systems.

> VC Companies invested some $1 billion per year in 2010 and 2011 in Smart Grid supplier companies. They have recouped some investments through 3 major IPO’s during that time. So far most other private equity investors have stayed away from the acquisition dealing tables.

For only USD $999 for a single user license or USD $1,499 for a company license, this report provides valuable information into how Smart Grid companies might develop their business through merger, acquisition and alliance.

Who Needs This Information?

The information contained in this report will be of value to all those engaged in managing, operating and investing in Smart Grid companies (and their advisors) around the world. It is specifically aimed at sales, marketing and strategic planning professionals who want to understand the part being played by merger, acquisition and alliance in the market. It will also be useful to investors who need information on the impact of technology on the structure of the business and those players in the market who want to identify growth sectors and investment opportunities.

Single User License - USD $999 | Company License - USD $1,499

Table of Contents

Preface

Executive Summary

1.    Introduction

Part 1 - What You Need to Know About Smart Grid & Its Future

2.    Size, Structure & Shape of the Business
2.1    Structure & Shape of the Business
2.2    State of the Market

3    Market Size - Electrical Generation, Transmission & Distribution Equipment
3.1    A Global Market
3.1.1    World Generation Capacity - Identifying the Largest Potential Markets
3.1.2    World Renewable Power Capacity - Identifying the Best Potential Markets
3.1.3    World Power Transmission & Distribution Equipment Sales 2010

4    Pure Smart Grid World Market Size 2010 & Potential Size to 2030
4.1    Total Potential World Investment at Full Penetration
4.1.1    Potential Size of Smart Grid World Market by Country
4.1.2    Potential Size of the Smart Grid Market by Country & Product Grouping
4.1.3    Innovation is the Key to Smart Grid Growth
4.1.4    Government Support Initiatives - Carrot or Stick?
4.2    Market Size by Product & Country, Forecast to 2030
4.2.1    Market Size - Transmission Systems
4.2.2    Market Size - Distribution Systems
4.2.3    Market Size - Advanced Metering & Infrastructure Networks
4.2.4    Market Size - Consumer Interfaces, HAN, EMS, Storage & EV's
4.2.5    Market Size - Communication Networks
4.2.6    Market Size - Analytics, Enterprise & Security Software
4.2.7    Smart Grid Cyber Security Expenditure

5    Strategy - Business Models & Routes to Market
5.1    Strategy & Business Models
5.2    Routes to Market
5.2.1    Expect Changes to Traditional Trading Practices & Channels of Distribution

6    Drivers, Barriers and the Implementation of New Technologies
6.1    Smart Grid Drivers
6.1.1    Now must be the Time to Focus on Bringing it all Together
6.1.2    Trouble with Nuclear Power Reinforces the Need for Smart Grid
6.1.3    Can Current Technology Deliver a Smart Grid?
6.1.4    Regional Variations
6.2    Road Blocks that will slow down Smart Grid Development
6.2.1    Stuck between a Financial Rock and an Economic Hard Place
6.2.2 Smart Grid Strategy needs better Balance & a Rethink on Priorities
6.3    Regulatory Bodies & Policy Frameworks
6.4    Smart Grid Communications - Analytical & Security Software
6.4.1    Communications
6.4.2    Security
6.5    Accommodating Renewables & the Importance of Storage
6.6    Distributed Energy - Micro-Grids & Micro-Generation
6.7    Interfacing Smart Grid & Micro-Grid with Energy Management Systems & HAN
6.7.1    Home Area Networks (HAN)
6.7.2    Energy Management Systems (EMS)

Part 2 - The Case for Consolidation through Merger, Acquisition and Alliance

7    M&A Performance & Valuations in 2011 & Forecast to 2016
7.1    The Progress of Consolidation & Outlook to 2016
7.1.1    Consolidation in 2011 Outperformed Any Previous Year
7.1.2    Forecast of Merger & Acquisition Business to 2016
7.2    Valuation - Exit Multiples 2005 to 2011
7.2.1    Performance of Exit Multiples 2005 to 2011

8    Analyzing M&A Strategy
8.1    Consolidation is Critical for the Development of Smart Grid
8.2    How did Consolidation Shape Up in 2010 & 2011?
8.2.1    Reviewing the Top 5 Acquisitions in 2010 & 2011
8.2.2    The Top 5 Acquisitive Companies of 2010 & 2011
8.2.3    M&A Analyzed by Business Segment 2010 & 2011
8.2.4    Internal Strategic Buys
8.2.5    External Strategic Buys
8.2.6    IPO's & Private Equity

9    The Investment Market
9.1    The State of the Investment Business & Exposure to the Smart Grid Industry
9.1.1    Impact on the Smart Grid Industry
9.2    Investors in the Smart Grid Industry & Recipients
9.3    Government Assistance & Stimulus Grants
9.3.1    Government Funding - An Important Driver of Growth

10    Identifying Potential Merger & Acquisition Targets & Entry through Alliance
10.1    Potential Acquisition Targets
10.2    Alliance - The Precursor of Merger & Acquisition

Appendix
A 1.1 - Venture Capital Investment in Smart Grid Companies
A 1.2 - M&A Activity & Deals Involving Smart Grid Companies
A 1.3 - Potential Acquisition Targets 2011
A 1.4 - The World’s Major Smart Grid Companies

List of Charts and Figures

Fig 2.1 – Average Revenue for Group A, B & C Companies ($m)
Fig 2.2 – Distribution of Sales by Major Grouping by Value
Fig 2.3 – Distribution of Sales by Major Grouping by Number of Companies

Fig 3.1 – Electrical Power Generating Capacity by Country (Gigawatts) 2008
Fig 3.2 – Worlds Largest Producers of Electricity through Wind Power 2009 / 2010
Fig 3.2 – World Electric Power Transmission & Distribution Equipment 2010 ($b)

Fig 4.1 – Smart Grid World Investment at Full Potential ($ bn)
Fig 4.2 – World Investment in Smart Grid to Achieve Full Penetration by 2030
Fig 4.3 - Smart Grid Investment Potential by Country and Product Sector at Installed Prices ($ mn)
Fig 4.4 - Pure Smart Grid Sales by Country 2010 & Forecast to 2030
Fig 4.5 - World Smart Grid Sales for the Transmission Networks 2010 and Forecast to 2030
Fig 4.6 - World Smart Grid Sales for the Distribution Network 2010 and Forecast to 2030
Fig 4.7 - World Smart Grid Sales for AMI 2010 and Forecast to 2030
Fig 4.8 - World Smart Meter Installations by Region 2011 & Forecast to 2016
Fig 4.9 - World Smart Grid Sales for Consumer Interface 2010 & Forecast to 2030

Fig 7.1 – Smart Grid Deals Completed from 2007 to 2011
Fig 7.2a - Smart Grid Deals by Value & Forecast to 2016
Fig 7.2b - Smart Grid Deals by Volume & Forecast to 2016
Fig 7.3 - Acquisition Valuation Benchmarks 2006 - 2012

Fig 8.1 – Acquisitions by Product Group 2010 / 2011

Fig 9.1 - VC Funding in Smart Grid

List of Tables

A 1.1 - Venture Capital Investment in Smart Grid Companies
A 1.2 - M&A Activity & Deals Involving Smart Grid Companies
A 1.3 - Potential Acquisition Targets 2011
A 1.4 - The World’s Major Smart Grid Companies

Single User License - USD $999 | Company License - USD $1,499