Intelligent and Integrated Building Technologies

Ken Gallinger Marketing Director

Market Size in North America 2010Ken Gallinger, Marketing Director

Continental Automated Buildings Association (CABA)(CABA)

CABA Board of DirectorsCABA Board of Directors

1. Bell Canada – Chairman Martin Cullum

CABA Board of Directors CABA Board of Directors

2. Tridel Corporation – Vice-Chair Leo DelZotto

3. Honeywell International – Vice-Chair Roy Kolasa

4. Alcatel-Lucent - Lindsay Ellis

5. BAE Systems - Steve Teubner

6. Convia, A Herman Miller Company – Randy Storch

7. Direct Energy LP - David Dollihite

8. Hydro One Networks Inc. - Tom Semler

9. Ingersoll Rand - Randy Amborn

10 Institute for Research in Construction NRC Morad Atif10. Institute for Research in Construction, NRC - Morad Atif

CABA Board of Directors

11. Intel Corporation – Shahram Mehraban

CABA Board of Directors

12. Microsoft Corporation - Jonathan Cluts

13. Monster Cable Products Inc. - Noel Lee

14. Philips - Dr. Satyen Mukherjee

15. Procter & Gamble - Orly Cocco

16. Siemens Building Technologies, Inc. – Brad Haeberle

17. Vantage/Legrand - Andrew Wale

18. Whirlpool Corporation – Joseph Lui

19. CABA - President & CEO – Ron Zimmer

CABA Vision

“The knowledge based forum for

CABA Vision

The knowledge-based forum forindustry leaders who advance the use of technology and integrated systems in thetechnology and integrated systems in the global home and building industry.”

Intelligent and Integrated Building Technologiesg g g gMarket Size in North America 2010

Research completed by

Sponsors

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K Fi diKey Findings

E i t l (HVAC) B ildi C t lEnvironmental (HVAC) Building Controls• The market will compete in applying BAS to tackle climate change issues• Companies need to obtain and disseminate both controls and IT knowledgeLi hti C t lLighting Controls• Huge savings and market potential• Consolidation to provide total lighting solutions and more integration

LED li hti i i k t b t t l i d f b tt ffi i• LED lighting is a growing market but controls required for better efficiencySecurity Systems• CCTV / Video surveillance setting the pace, followed by access control

S f• Strong movement towards IP systems and integration of security systemsFire Detection and Alarm• Robust, growing market, driven (and constrained) by codes and regulations• Demand for better evacuation solutions will drive integration of nascent mass

notification / voice evacuation market

$20 Billion Systems* Market 2009$20 Billion Systems Market 2009BMS

$5,73329%

Intruder Alarm$2,053

11%

Lighting Control$9065%

29%Access Control

$2,53513%

Fire Detection & Alarm$2 751

CCTV/Video$5,475

28%

$2,75114%

* Systems = Product + Value Add (Engineering, Commissioning, Installation) excluding maintenance

$8.5 Billion Market for Products* (incl. cable & cabinets) 2009

) g* Products = Hardware, Software, Cable and Cabinets at first point of

distribution prices

End-User Sectors

Top vertical markets:- Education 13%- Offices

- Central / Local Government12%

11%- Health 9%

IBC Markets Will Rebound

13%

15%

1,600,000

1,800,000

Construction Output Growth Rate (%)• Depressed economy, lack of credit, increasing building USA

10% 9%

6% 6% 5% 4% 5%

0%

5%

10%

800,000

1,000,000

1,200,000

1,400,000

, ,increasing building vacancies

• Fall in new construction, delayed

USA

-7%

-10%

-5%

0%

-

200,000

400,000

600,000

6.5%7.0%350,000 U

S$

Bn.

Source: Economist/ US Census Bureau

, yrefurbishment and retrofit

• However, IBC* k t h 6.5%

4.2% 4.2% 4.0%

5.0%

6.0%

200,000

250,000

300,000 markets have outperformed

• Economic stimulus will help boost demand –

Canada

1.5%

2.3%

3.1%

2.3% 2.6%

1.0%

2.0%

3.0%

50,000

100,000

150,000

Source: StatCan

help boost demand particularly public sector

• IBC* markets expected 0.0%-

2009f 2010f 2011f 2012f 2013f 2014f 2015f 2016f 2017fto return to growth late 2010/early 2011

* Intelligent Building Controls

Definition of ConvergenceDefinition of Convergence

Convergence is to bring together autonomousConvergence is to bring together autonomous systems onto a common communication platform

within the business enterprise and t i l ifi d l ticreate a single unified solution

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

BMS structure IT network/backbone

Definition of IntegrationDefinition of Integration

Integration is to add value by joining or linking different building

i d t

However nearly all integrated solutions are also converged at least at management levelservices products least at management level

- many also at control level

Service layer ( d )

IT-Networks

erge

nce

IT-Networks

erge

nce

erge

nce

(IP provider)

Management level (Mostly IP)

IT-C

onve

Integration

IT-C

onve

IT-C

onve

IntegrationIntegration

Automation/control layer(IP/BACnet/LON/proprietary)

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

Integration

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

IntegrationIntegration

Automation/control layer(IP/BACnet/LON/proprietary)

Total System MarketTotal System Market$20 Billion

• 56% = stand-alone56% stand alone• 44% = integrated

and/or converged34%

integrated and

d

8% converged (IT) only

2% integrated

onlyconverged

BMS IT

21% on a separate BMS infrastructure

13% on the IT network/backbone

Stand-Alone vs. Integration/Convergence by Product Area, US$ Million, 2009

7,000

4,000

5,000

6,000

1,000

2,000

3,000

0

,

BMS Lighting(controls )

CCTV Acces scontrol

Intrus ion Fire ands afety

• Stand alone is high for lighting, intrusion and fire (~90%)• IT convergence only – 25% for CCTV, 6% access

Stand alone Integration Convergence (IT) Convergence (BMS)

g y ,• Integration and convergence high for BMS (54%) and access (45%)

Forecast 2009 – 2013 % Split by Stand-Alone vs. Integrated and Convergedg g

80%

90%

100%

Stand alone

50%

60%

70%

80%

- Convergence IT

Integrated only

30%

40%

50%

- Converged BMS

0%

10%

20%

2009 2010 2011 2012 2013

TrendsTrends

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

Many corporations increasingly take centralised decisions and need more and better informationmore and better information

Government wants to reduce CO2 emissions and energy consumption

Technology advancements are key drivers e g IP wireless PoE 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 Scope and expertise increasing, integration/convergence of products

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

Data centers are becoming more intelligent

Smart Grid - Definition

• An intelligent electricity system that connects all supply grid (utilities) and g y y pp y g ( )demand elements (end-users) through an intelligent communication system

Two Main Drivers of ConvergenceTwo Main Drivers of Convergence

S itEnergy and building performance

Security Higher level of security (physical

and IT security converged)

1 2

Energy savings and efficiency

Improve building performance (b tt d i i )

Efficient data sharing

(better decisions)

Reduce maintenance costs

Remote access

Improving storage

Increase the value of the building/rental revenues Access cards a requirement

Link data sharing between departments

Who Is Driving Convergence?Who Is Driving Convergence?

- Large projects 90%-100% converged at management BMSlevel (Ethernet)

- IT convergence not perceived a benefit by many BMS suppliers

- IT suppliers keen to drive IT convergence:- Cisco: Mediator and hardware

IBM ft lt d M t SI

IT

- IBM: software, consultancy and Master SI- Oracle, HP, Plexus, etc. offer software/advice

Security - Integrated in BMS offering- Driven by IT (hardware, cabling suppliers/channel)

S i SI/i ll hi h d d i i- Security SI/installers high end drive it

Who Is Driving Convergence?Who Is Driving Convergence?

- Most converged buildings are in USEnergy rating schemes

- Most converged buildings are in US - LEED silver/gold/platinum

Political/economic f t

- International pressure to reduce CO2- Government funded projects

Buildings consume 70% of electricity and 40%factors - Buildings consume 70% of electricity and 40% of primary energy

- Pressure from society and clients to have a

End-users

Pressure from society and clients to have a green profile

- Reduce energy costs- Improve building performance and managementp g p g

A driver for convergence, but not necessarily IT convergence

Building Controls Product TrendsBuilding Controls Product Trends

S B tt t ti t l iSensor Better automatic control require more sensors Demand for smart sensor Demand in CO2 sensor

D d f ll i Demand for all-in-one sensor

Controller 42% are web-enabled controllers, mainly automation level controllers

End-users demand for standard protocol controllers Multi-protocol controllers

Wireless Still a very small market mainly for sensors < 5%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 transmission capacity Key issues: energy demand, data transmission capacity

Development of IntegratedB ildi M t S tBuilding Management Systems

(IBMS)

Integrate with sub-systems Integrate with other BAS

Integrate with other systemsIntegrate with other enterprises systems

Open Standards Enabling Convergence

Development of IBMSDevelopment of IBMS

I t ti ith b t i th• Integration with sub-systems is the norm• Centralized monitoring and control more common• Integrated systems are mostly IT convergedIntegrated systems are mostly IT converged• Share information to improve building and enterprise

performanceIntegrate for the purpose of energy saving• Integrate for the purpose of energy saving

• Driven by end-users and ROI is the critical factor• Better recognition of the benefits of integration in:g g

– Banking, transportation, education, health, high-tech manufacturing, life science, communication and data center sectorscenter sectors

How Quickly Will Integration Grow?How Quickly Will Integration Grow?Pr

ojec

ts Hurdles:• Too much

Num

bero

f P customization

• Lack of standard applications

• Ability to demonstrate and convince the clients on ROI

Time

Key Market Drivers and TrendsKey Market Drivers and Trends

Current drivers:1. Energy management

– More function to reduce energy consumption– Data visualization software and enterprise dashboardsData visualization software and enterprise dashboards– Integrate smart meters– Energy monitoring, reporting and analysis service

2 LEED and Energy Star Label2. LEED and Energy Star Label3. Energy Legislation and codes4. Government stimulusLong term driver:Long term driver:5. Smart grid development

– Monitor consumption and track min. and peaksAutomatic demand response and demand modeling– Automatic demand response and demand modeling

Key Market Drivers and TrendsKey Market Drivers and Trends

• Energy saving applicationsEnergy saving applications• Open system• Integration and IT convergenceIntegration and IT convergence• Increase in energy retrofit• Consolidation will continue• Consolidation will continue• Compete in the knowledge in buildings and

BAS applicationsBAS applications• Controls contractors migrate to system

integratorsintegrators

Typical Building Cost OverTypical Building Cost Over

A 40 Year Life Cycle

Construction11%

Financing14%

Operation50%

Alterations25%

Commercial Buildings Energy Use

Office Equipment, 15.5%

Other, 5.3%

Space Heating, 25.0%

Cooking, 1.1%

Refrigeration, 0.4%

Space Cooling, 9.4%

Ventilation, 5.3%

Water Heating, 9.0%

Lighting, 28.9%

Source: 2008 Department of Energy Buildings Energy Databook

Better Tenant and Common Area Experience

High Speed Internet / Wireless

Audio – Video Conf

Ambient Music / TV

s

Voice Communications

Audio Video Conf

Tech

nolo

gies

Interactive media

Visitor management

rvic

esan

d T

Interactive media

Digital signage

Se

Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved.

Facilities Management

Reducing Building CostLighting

Reducing Building Cost

24/7 Monitor

Elevator

Serv

HVAC

vices and Tec

Video surveillance

Fire

chnologies

Access

Energy

Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved.

Smarter Building / Property

High Speed Internet / Wireless

Smarter Building / Property

Lighting

Audio – Video Conf

Ambient Music / TV

24/7 Monitor

Elevator

IP Telephony

Audio Video Conf

HVAC

24/7 Monitor

Interactive media

Visitor management

Video surveillance

Fire

Interactive media

Digital signage

Video surveillance

Access

Future Applications Energy

Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved.

Intelligent Buildingsg g

YOUR INFORMATION SOURCE FOR HOME & BUILDING AUTOMATIONHOME & BUILDING AUTOMATION

C ti t l A t t d B ildi A i tiContinental Automated Buildings Association1173 Cyrville Road Suite 210Ott ON C d K1J 7S6Ottawa ON Canada K1J 7S6caba@caba.org

bwww.caba.orgPhone: 613.686.1814 F 613 744 7833Fax: 613.744.7833