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Aresidential building has various in-house facilities to enable acomfortable lifestyle for itsoccupants. But how does one utilise

these to the best of their ability? A buildingautomation system (BAS) is an automated,computer-controlled intelligent network ofelectronic devices designed to monitor andcontrol various components of a building—heating, ventilation and air conditioning(HVAC), lighting, electric equipment, securitysystems and alarm systems. A BAS helpsconserve energy by optimising the systems andhelping them perform effectively and efficiently.

When a third-party service provider providesremote monitoring and controlling of one ormore BAS, it becomes the Remote MonitoringService (RMS). Using an RMS, a developer canmonitor and control one or more geographicallydispersed buildings from a single remotelocation. There are two types of RMS:

Proactive monitoringReal-time monitoring of ‘pain points’ from aremote location to find and fix any issue beforeany problem arises in the system.

Reactive monitoringReal-time monitoring of pain points from aremote location to provide a solution for an issueafter it arises.

A sneak peek into the IndianRMS marketThe Indian RMS market is in its earlydevelopmental stage. It is a derived marketwhich depends on the BAS market. The BASmarket stood at Rs 200 million in 2009 and is ata growth stage.

At present, there is limited competition inthe RMS market as there are very few companiesthat provide specialised solutions like closed-circuit television (CCTV) monitoring andenergy management. The main reasons behindthe Indian market’s low receptivity to the idea ofRMS are: limited awareness, low penetration ofBAS and the risks involved.

However, growing awareness, greeninitiatives by the government and growth in theconstruction sector helped the BAS marketexperience a compound annual growth rate of12 per cent in 2009. This development is likelyto propel the growth of the RMS market in thefuture, with end users being those with apresence across a large geographical area. Due to Indians’ limited expertise in facility monitoring, there is expected to be aswitch from in-house facility monitoring toservice providers.

Major drivers for RMSThe major factors that affect RMS in more waysthan one are:

RREEAALL TTIIMMEE,, RREEAALL SSAAVVIINNGGSS

As the need for energy efficiencyincreases, building automation and

remote monitoring systems could bea key strategy for the constructionindustry. Ananthmani PA looks atpotential for these systems in India

Technological developmentModem-based technologies with low bandwidthwhich perform detailed diagnostics and remoteremediation have been replaced by BuildingAutomation and Control networks/InternetProtocol (BACnet/IP). The BACnet/IP hasenabled facility managers to control and monitormultiple devices, such as HVAC, lighting, fireand alarms, by running multiple diagnosticapplications using a single remote managementsystem. There is an emerging breed of next-generation remote management solutions thatcan remove all the limitations and securityconcerns imposed by modem-based serviceswhile increasing service levels for customers. Asa consequence of technological advancement,remote management solutions are becomingmore stable and cost-effective, which willincrease the adaptability of the RMS.

OutsourcingRMS helps companies to focus on their corecompetencies and optimise their resources byusing a single facility to monitor multiplelocations. This happens due to the non-

availability of expertise, and also means that there is no need for the company to train employees.

‘Green’ initiatives Buildings in India consume more than 20 percent of the total electricity used and the energyconsumption rate in India is expected to grow at4.3 per cent annually. This growing energyconcern and the impact of greenhouse gases onthe ecosystem influenced the government totake green initiatives for optimum generationand utilisation of energy.

The green initiatives include the enactmentof the Energy Conservation Act, 2001, whichpromotes energy efficiency and conservationdomestically, and authorising the Bureau ofEnergy Efficiency to establish an EnergyConservation Building Code (ECBC).According to the ECBC, buildings or buildingcomplexes that have a connected load of 500kW or a contract demand of 600 kVA,whichever is greater, should address theminimum performance standards for energyefficiency in a building.

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The government took this to the next levelby ensuring that buildings follow the minimumrequirements according to the ECBC and beganusing Leadership in Energy and EnvironmentalDesign (LEED) ratings for buildings. Non-profitorganisations like the Indian Green BuildingCouncil and The Energy and Resources Instituteare actively promoting green buildings in India.These initiatives are leading to an increase in theuse of green building techniques, which have thepotential to save 40–50 per cent of the energyused by a building when incorporated at thedesign stage and 20–25 per cent of energy in anexisting building. Maintaining the energyefficiency of a building for a number of yearsrequires continuous real-time monitoring of thesystem. This will propel the growth of RMS, asend users will eventually shift inexpert in-housefacilities to service providers for efficient andcost-effective maintenance.

Increasing awarenessAwareness about global warming, greenhousegas emissions and the energy crisis is increasing.This awareness is expected to shift thepopulation towards green-oriented and energy-efficient building systems. As the penetrationlevel of building automation increases, the RMSmarket will grow to sustain maintenance of thesystem for several years. Growing awarenessabout environmental issues has influencedinstitutions like schools, universities andhospitals to use building automation, therebyopening up new market segments.

Better telecommunicationTelecommunication forms the backbone ofRMS. The increasing broadband coverage acrossIndia, availability of alternate modes ofcommunication and the introduction of 3G willhelp RMS cover a wider area, resulting in betterservice. This improvement in quality, coverage,and service will propel the growth of RMS in the country.

Challenges for RMSThe greatest obstacle to RMS penetration is lowawareness about its advantages and uses.Receptivity to RMS in the Indian market is lowbecause the penetration of building automationin the country is not significant. Another hurdleis that RMS has a seven to eight per cent higherinitial setup cost compared to conventionalBAS. There is a lack of support from facilitymanagers, as they believe RMS could replace

their roles. Third-party monitoring also brings upextensive security and protocol issues whichmust be dealt with if RMS is to be viable on alarge scale.

Applications of Remote FacilityMonitoring ServicesThere are various ways in which RMSs can beused in various sectors. A few of these sectorsand the application of RMSs are listed below:

Government and Public BodiesRMS has wide scope for application in thegovernment sector. It can be used to monitorand take electricity meter readings of housesfrom a single location. (Additionally, it can helpwith security issues by connecting intrusionalarm and CCTV monitoring to the local

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security force) This can also help otherdepartments of the government to move towardsa better and smarter society.

Residential and commercial buildingsResidential and commercial buildings in Indiaconsume around 25–30 per cent of the totalenergy production. Around 80 per cent of thetotal electricity in commercial buildings isconsumed by HVAC and lighting. Hence,HVAC and lighting are components that needto be monitored in these buildings. RMS cancontinuously monitor and proactively orreactively provide solutions for the problemsarising in these buildings. It is advantageousbecause of the ability to cover wider geographiesand monitor more buildings from a singlelocation. RMS can be used in retail outlets,banks, hotels and malls which have a widergeographical focus, for optimum and efficientmanagement of building resources.

Industrial buildingsIndustries in India consume around 47 per centof the country’s total energy production. UsingRMS, average energy savings of 5–15 per centand maximum savings of up to 30 per cent canbe attained. Besides HVAC and lighting, RMS inindustrial buildings must also perform pressuremonitoring and water level monitoring. RMScan help industrial buildings by covering morepain points using a single system. It can alsoassist in monitoring and controlling multipleindustrial buildings in various locations from asingle location.

The way aheadAt present, RMS is at a nascent stage in India

and there are very few market participants.This is primarily due to low awareness andreadiness in the market. Over the next fewyears, as the market adopts remotemonitoring tools, this segment can lookforward to a bright future. RMS can become amajor outsourcing market thanks to driverslike technological development, theavailability of a skilled workforce and greeninitiatives by the government. Due to the capability to monitor geographicallydispersed buildings and wider applications,RMS can be implemented to monitor and control any kind of facility, such as retail, government, healthcare,manufacturing industries, etc.

The market has immense growth potentialand more participants are likely to enter soon,thereby bringing in huge investments. Theseinvestments will enable technologicaldevelopment and awareness, which will helpthe market overcome challenges such assecurity issues, unavailability of resources, andlack of support from in-house facilitymanagers. These developments will help themarket participants provide an integratedsolution to cover all the pain points in thebuilding, enabling them to offer bothintegrated and specialised solutions based oncustomer needs.

As we move towards a greener and smarterplanet, there is tremendous opportunity in theRMS market, as more users shift from in-housefacilities to service providers for efficient andcost-effective monitoring solutions.

The author is Research Associate, South Asia,

Environment and Building Practice, Frost & Sullivan

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