Caba Iibc Msna Overview 080410

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Excellence in Market Intelligence 1

Market Sizing North America

Intelligent & Integrated Technologies


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Market Sizing North AmericaIntelligent & Integrated Technologies

Report Overview

April 8th,2010


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Market Sizing North America

Intelligent & Integrated Technologies

Level 1 sponsors

Level 2 sponsors


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Experienced Project Team

Andrew Giles, MAGeneral ManagerBSRIA - World Market

Intelligence (WMI)

Jeremy Towler, BBA, HTEC,dipl. Oek. Senior ManagerIntelligent Building Technology

Sukant Rout, BEng(Telecom), MBA

Senior Market Research Consultant:Intelligent Building Controls / ITCabling & Associated Technologies

Ianire Cobeaga, MBAMarket Research ConsultantIntelligent Building Technology

Lone HansenSenior ManagerI.T. Cabling andAssociated Technologies

Gambi Chiang, MSc, BEng, MCIM,Charter MarketerSenior Manager Special Projects

Allan McHale, CEng, MIMechE,MIst Energy, MBIM.Independent Consultant


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Study Objectives

Purpose Detailed assessment of current and future markets around intelligence in non-domestic

buildings in North America Quantitative and qualitative market assessment, segmentation, competitor analysis,

routes to market

Size markets for principle applications plus integrated and IT-converged solutions

Scope1. IT Convergence

2. Environmental Controls

3. Lighting Controls

4. Security Systems

5. Fire Detection Systems

Timetable June Dec 2009


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Structure of Reports

Introduction

Market Structure and Form

Market model Growth

Product segmentation

System segmentation

Supplier Analysis

Trading Practices and Procedures

Industry Dynamics and Growth Prospects

Forecast

Integration By application

Integration by vertical market

Construction Overview


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Key Findings

Environmental (HVAC) Building Controls

Growth in Corporate Social Responsibility

Compete in applying BAS to tackle climate change issues

Obtain and disseminate both controls and IT knowledge

Lighting Controls

Great savings potential - and big market potential

Consolidation - total lighting solutions and more integration LED lighting is a growing market but controls required for better efficiency

Security Systems

CCTV / Video setting the pace, access control strong, then intruder

Strong movement towards IP systems and integration of security systems

Fire Detection and Alarm

Robust, growing market, driven (and constrained) by codes & regulations

Demand for better evacuation solutions will drive integration of nascent mass

notification / voice evacuation market


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End-user Sectors

Top vertical markets:

Education

Offices

Central / Local Government

Health

Other vertical markets covered:

Banking/ Finance/ Insurance

Hotels/ Catering

Retail

Entertain/ LeisureTransport Buildings

Other Commercial

Other public

High tech Industry

Life Science

Industrial Assembly

Communications & Computers

Warehouses

Other Industrial

High end multi-occupancy residential


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IBC* Markets will Rebound

-7%

10%

13%

9%

6% 6% 5%4% 5%

-10%

-5%

0%

5%

10%

15%

-

200,000

400,000

600,000

800,000

1,000,0001,200,000

1,400,000

1,600,000

1,800,000

Construction Output Growth Rate (%)

6.5%

1.5%

2.3%

4.2% 4.2%

3.1%

2.3%2.6%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2009f 2010f 2011f 2012f 2013f 2014f 2015f 2016f 2017f

Source: StatCan

US

$Bn.

Source: Economist/ US Census Bureau

Depressed economy, credit

squeeze, building vacancies

Construction depressed,

recovery beyond 2010

Refurbishment/Renovation

delayed but more robust

Maintenance market most

recession-proof

Yet, IBC* markets have

outperformed

Economic stimulus boosts

demand particularly public

sector

IBC* markets return to

growth late 2010/early 2011

USA

Canada

* Intelligent Building Controls


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Convergence is..

BMS structureIT network/backbone

Network = Ethernet Cat 5/5e/6 and/or fibre

the bringing together of autonomous systems onto a

common communication platform within the businessenterprise to create a single unified solution


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Integration is..

IT-Networks

Technical Infrastructures

(HVAC/Lighting/Security/Fire etc.).

IT-

Convergence

Integration

IT-Networks

Technical Infrastructures

(HVAC/Lighting/Security/Fire etc.).

IT-

Convergence

IT-

Convergence

IntegrationIntegration

to add value by joining orlinking different building serviceproducts/applications

However nearly all integratedsolutions are also converged- at least at management level

- many also at control level

Service layer (IP

provider)

Management level

(Mostly IP)

Automation/control layer

(IP/BACnet/LON/proprietary)

Field layer (sensors/actuators)(Proprietary))


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Total system market $20 billion

> Half is stand-alone

Integrated

and

converged

Converged

(IT) only

Integrated

only

BMS IT

On a separate BMS

infrastructure

On the IT network/backbone


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Stand-alone vs. integration/convergence by

product area 2009

Report measures for each of the subjects (BMS,

Lighting controls, CCTV, Access Control, Intrusion , Fireand Safety) the value of: Standalone

Integration

Convergence (IT) Convergence (BMS)

Stand alone is highest for lighting, intrusion and fire

IT convergence higher for CCTV than access

Integration and convergence high for BMS and access


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Forecast 2009 2013, % split by stand-alone

vs. integrated and converged

- Converged BMS

- Convergence IT

Integrated only

Stand alone

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013


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Trends

Intelligent buildings not a new topic, but new attention to energy usageand building performance

Many corporations increasingly take centralised decisions and needmore and better information

Government wants to reduce CO2 emissions and energy consumption

Technology advancements are key drivers e.g. IP, wireless, PoE

IT barriers (lack of bandwidth, security) solved!

Scope and expertise increasing, integration/convergence of products

A number of companies can now take on the role of Master SI (theoutcome however still depending on the person in charge)

Data centres are becoming more intelligent


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Barriers

Resistance from FM and from IT to converge (stick to

own areas of expertise and competence)

Lack of training and skills

Construction process uses traditional route with maincontractor and sub-contractors

Long-term outsourcing contracts

Historic objections relating to the IT infrastructure e.g.

security, downtime, bandwidth


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2 Main Drivers of Convergence

Energy and buildingperformance

Energy savings andefficiency

Improve building

performance (betterdecisions)

Reduce maintenance costs

Increase the value of thebuilding/rental revenues

Security

Higher level of security(physical and IT securityconverged)

Efficient data sharing

Remote access

Improving storage

Access cards a requirement

Link data sharing betweendepartments

1 2


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The Master Systems Integrators

IBC(e) IBC(l) IBC(s) IBC(f)

Honeywell Honeywell Diebold Honeywell

Johnson Controls Johnson Controls Convergint Siemens

Schneider Electric Schneider Electric Honeywell Tyco

Siemens Siemens Johnson Controls UTC (GE Security)

UTC UTC Niscayah

Siemens

Schneider Electric

Tyco

UTC

CISCO

IBM

OracleHP

Accenture, Plexus,

Wipro and others


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Smart Grid - Definition

An intelligent electricity system that connects all supply grid (utilities) anddemand elements (end-users) through an intelligent communication system


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Building Controls Product Trends

Sensor Better automatic control require more sensors

Demand for smart sensor

Demand in CO2 sensor Demand for all-in-one sensor

Controller 42% are web-enabled controllers, mainly automationlevel controllers

End-users demand for standard protocol controllers

Multi-protocol controllers

Wireless Still a very small market, mainly for sensors, < 5%

Industry sees the potential in room solution Standards: Zigbee, 805.12.4, 6LoWPAN, EnOcean

Key issues: energy demand, data transmissioncapacity


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Trends in the Installed Building Controls

System Market

Growing demand for integration of various building

controls system to a centralized one Increased share of smaller scaled contract

Reduced contract size due to OEM packaged supply

BACnet will continue to challenge LONs share Proprietary system will continue to diminish

Penetration of LON in smart meters


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Development of Integrated Building

Management Systems (IBMS)Integrate with sub-systems Integrate with other BAS

Integrate with other systems Integrate with other enterprises systems

Open Standards Enabling Convergence


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How Quickly will Integration Grow?

NumberofProjects

Time

Hurdles:

Too muchcustomization

Lack of standardapplications

Ability to demonstrateand convince theclients on ROI


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Lighting Controls Conclusions

Huge potential for lighting controls in the North American market

Integration of lighting controls with other building systems willincrease - lots of push from manufacturers and end users arebeginning to understand the returns

The transition to skilled and trained people with knowledge andunderstanding of energy management products will take time


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Lighting Controls Trends

DOE will play major role in driving control (and LED) standards

Energy regulations through ASHRAE standard is big controls driver Standard open communication protocols is growing trend - mostly driven by

integration with other systems

Integration and IP-Convergence growing but apart from HVAC adoption low

Consolidation Acuity/Philips/Cooper Controls acquiring companies toprovide total lighting solutions

Wireless - ENOCEAN in commercial, Zigbee in residential

Dimming Ballasts ~10% of total ballasts market in North America

LED is growing market - still require controls for better efficiency


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Fire Detection/Alarm Market Penetration

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

GDP

/C

apita

(US$)

Total IBC(f) System Sales / Capita (USD) Sourc es: CIA World Factbook, BSRIA Proplan

Western Europe 7(EU(7))* Average

* Belg ium, France, Germany, Italy, Netherlands, Spain, United Kingdom 2008estimates based on 2007 actual data

UnitedKingdom

Spain

Italy

Belgium

Germany

France

Netherlands

North America


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Fire Detection/Alarm Communications

and Web Enabling Majority of fire systems sold with proprietary protocol

Some BACnet equipped panels but penetration marginal using to

integrate fire panel with the HVAC system

Strict fire codes make fire system integration to non-fire systems rare

However, more end users insisting manufacturers make comms. protocoldetails available to enable integration by independent integrators

IP being used to connect fire panels with mass notification systems


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Security Systems Product Sales

Forecast to 2013

Market opportunities reduced due macroeconomic situation

2009 sales fall, recovering end of 2010

Less feature rich products gain share in short term

Performance will vary by type of sub-system

2007 2008 2009 2010 2011 2012 2013

CCTV / Video surveillance sales

Product sales

Access Control

Intruder Alarm

GAGR 2008-2013

5.0%

6.7%

3.7%

2.0%

Growth 2008-2009

-1.9%

0%

-3%

-5%


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Integration of Security Systems

Increasing interest in holistic security

solutions 1/5 of security systems sold in 2008

were integrated

Open architecture platforms anddevelopment of industry standardswill have a positive impact on sales

However, demonstrable benefits ofintegration and return on investmentare essential

High

LowLowLow


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The future

Increase in energy saving applications and retrofit

More security solutions Open systems, IP, integration, IT convergence

Compete on knowledge of buildings and applications

Controls contractors become system integrators and master SIs

Consolidation / Partnerships between best-in-class suppliers IT and BMS companies augment their offering to include new

applications

There will be more solution providers

Educate, disseminate, prove ROI


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You Can Order Today!

Market Size in North America 2010 (Full Report) CABA Member Price $7,000.00/Non-Member Price $9,000.00

Market Size in North America 2010 (Environmental Controls) CABA Member Price $1,900.00/Non-Member Price $2,500.00

Market Size in North America 2010 (Security Systems) CABA Member Price $1,900.00/Non-Member Price $2,500.00

Market Size in North America 2010 (Lighting Controls) CABA Member Price $1,900.00/Non-Member Price $2,500.00

Market Size in North America 2010 (Fire Detection Systems) CABA Member Price $1,900.00/Non-Member Price $2,500.00

Market Size in North America 2010 (Convergence IT) CABA Member Price for $1,900.00/Non-Member Price for $2,500.00

To Order Contact:Don OConnorCABAs Business Development Manager613.686.1814 or at [email protected]


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Caba Iibc Msna Overview 080410