Cory B. Welch April, 2010

Smart Grid Market Segments Smart Sensors/Tech: equipment for sensing energy using and output IT Hardware/Software: infrastructure, The Grid Communications/Networking: data management and communication Smart Meters Hard/Software: replacing analog meters

U.S. Market and Segments Average 15% growth per year across segments. (Zpryme report 12/09)

Global Market and Segments Average 20% growth rate per year across segments. (Zpryme Report 12/09)

Market Models Largest segment by far is Smart Sensors/Technology. A true Smart Grid will require energy flow sensing at all entry/exit points. The necessary IT infrastructure and data management services will underpin Smart Sensing Technologies. Smallest segment is Smart Meters. These are retrofitted traditional meters providing real- time data on old analog meters. Limited technology that will likely be phased out.

Market Dynamics According to a DOE Smart Grid report, the largest driver of the industry is going to be simple population growth. In a global economy all (mostly) energy is sold on the open market. There is no such thing as national energy independence. Demand for energy is also expected to increase sharply as rapidly developing countries (China, India, Mexico) demand more.

Quadrants Leaders: established smart meter manufacturers and utilities (CenterPoint, NKG Insulators, Echelon) Challengers: similar to leaders except more recently established (Sensus Metering, EnerNoc) Niche: provide peripheral services/products (Altair Nanotech) Visionaries: start-ups in receipt of recent SBIR funding (eMeter, PowerTagging, Electrocon)

Future Developments Real development heavily dependent on new technologies. Will require significant investment by governments. Watch companies funded through the SBIR Phase I & II contracting programs under DOE and NSF. (