For Immediate Release
HOUSTON—June 8, 2006—UtiliPoint® International, Inc. (UtiliPoint) announced the release of it Energy Trading, Transaction and Risk Management North American Market Sizing report. The repost is available for purchase at http://www.utilipoint.com/rci/details.asp?ProductID=1137. The UtiliPoint study utilized both top-down and bottom-up proprietary analysis techniques to establish the North American market size for ETRM software license sales in 2006 for all commodities, front office, scheduling, risk management and back office. The final report details the ETRM market size by a number of parameters.
The size of the North American market for ETRM software ranges between $78-93 million in 2006 according to UtiliPoint's model and estimates. This estimate is for the entire market and breaks out into an annual "virgin" market component of approximately $64 million, approximately $24 million in the replacement market component and approximately $3 million in the ASP component for 2006.
Strong demand growth in 2005 was fueled by a variety of factors including regulations such as Sarbanes-Oxley and entry into energy markets by new players particularly financial companies. This growth has continued through early 2006 and demand levels remain strong. New growth is expected to occur amongst end user markets (commercial & industrial companies) as well to keep demand levels high. UtiliPoint expects to see some slowing of growth in 2008 but markets will remain strong barring any unforeseen industry events.
"UtiliPoint has now provided the industry with a market sizing metric for ETRM software license sales in North America," said Dr. Gary M. Vasey, Vice President, Macroenergy Analysis at UtiliPoint. "To our knowledge, this is the first independent assessment of its kind."
The study was sponsored by Allegro, KPMG Advisory Services, RiskAdvisory (A division of SAS), Sakonnet Technology and TradeCapture. Supporters of the study included Global Energy and SunGard Energy.
About UtiliPoint International, Inc.
UtiliPoint is a leader in providing analysis and consulting services to the energy and utility industry. Our 73-year history and over 100 clients worldwide have led us to currently operate as an energy and utility consulting and issues analysis firm. Our staff is comprised of leading utility and energy experts with diverse backgrounds in utility generation, transmission & distribution, retail markets, mergers and acquisitions, new technologies, venture capital, information technology, outsourcing, renewable energy, regulatory affairs, and international issues.
