Intelligent and Integrated Building Technologies
Market Size in North America 2010
Ken Gallinger, Marketing Director Continental Automated Buildings Association (CABA)
**
CABA Board of Directors
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Bell Canada Chairman Martin Cullum Tridel Corporation Vice-Chair Leo DelZotto Honeywell International Vice-Chair Roy Kolasa Alcatel-Lucent - Lindsay Ellis BAE Systems - Steve Teubner Convia, A Herman Miller Company Randy Storch Direct Energy LP - David Dollihite Hydro One Networks Inc. - Tom Semler Ingersoll Rand - Randy Amborn Institute for Research in Construction, NRC - Morad Atif
CABA Board of Directors
11. 12. 13. 14. 15. 16. 17. 18. 19. Intel Corporation Shahram Mehraban Microsoft Corporation - Jonathan Cluts Monster Cable Products Inc. - Noel Lee Philips - Dr. Satyen Mukherjee Procter & Gamble - Orly Cocco Siemens Building Technologies, Inc. Brad Haeberle Vantage/Legrand - Andrew Wale Whirlpool Corporation Joseph Lui CABA - President & CEO Ron Zimmer
CABA Vision The knowledge-based forum for industry leaders who advance the use of technology and integrated systems in the global home and building industry.
Intelligent and Integrated Building Technologies Market Size in North America 2010
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Better Tenant and Common Area Experience
High Speed Internet / Wireless
Ambient Music / TV
Services and Technologies
Audio Video Conf
Voice Communications
Visitor management
Interactive media
Digital signage
Facilities Management
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Reducing Building Cost
Lighting Elevator
Services and Technologies
24/7 Monitor
HVAC
Fire
Video surveillance
Access Energy Copyright 2007 The Fourth Utility, LLC All Rights Reserved.
Smarter Building / Property
High Speed Internet / Wireless
Lighting
Ambient Music / TV
Elevator
Audio Video Conf
24/7 Monitor
IP Telephony
HVAC
Visitor management
Fire
Interactive media
Video surveillance
Digital signage
Access
Future Applications
Energy
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Commercial Buildings Energy Use
Other, 5.3% Office Equipment, 15.5% Space Heating, 25.0%
Refrigeration, 0.4% Cooking, 1.1%
Space Cooling, 9.4%
Ventilation, 5.3% Lighting, 28.9% Water Heating, 9.0%
Source: 2008 Department of Energy Buildings Energy Databook
Typical Building Cost Over
A 40 Year Life Cycle
Construction 11% Financing 14%
Operation 50% Alterations 25%
$20 Billion Systems* Market 2009
Intruder Alarm Lighting Control $2,053 $906 11% 5%
Access Control $2,535 13%
BMS $5,733 29%
Fire Detection & Alarm $2,751 14%
CCTV/Video $5,475 28%
$8.5 Billion Market for Products* (incl. cable & cabinets) 2009
* *
Systems = Product + Value Add (Engineering, Commissioning, Installation) excluding maintenance Products = Hardware, Software, Cable and Cabinets at first point of distribution prices
Definition of Convergence
Convergence is to bring together autonomous systems onto a common communication platform within the business enterprise and create a single unified solution
Network = Ethernet Cat 5/5e/6 and/or fiber
BMS structure
IT network/ backbone
Two Main Drivers of Convergence
1
Energy and building performance
Energy savings and efficiency
Security
Higher level of security (physical and IT security converged) Efficient data sharing
Improve building performance (better decisions)
Reduce maintenance costs
Remote access Improving storage Access cards a requirement Link data sharing between departments
Increase the value of the building/rental revenues
Who Is Driving Convergence?
BMS - Large projects 90%-100% converged at management level (Ethernet) - IT convergence not perceived a benefit by many BMS suppliers - IT suppliers keen to drive IT convergence: - Cisco: Mediator and hardware - IBM: software, consultancy and Master SI - Oracle, HP, Plexus, etc. offer software/advice
IT
Security - Integrated in BMS offering
- Driven by IT (hardware, cabling suppliers/channel) - Security SI/installers high end drive it
Who Is Driving Convergence?
Energy rating schemes - Most converged buildings are in US - LEED silver/gold/platinum
Political/ economic factors
- International pressure to reduce CO2 - Government funded projects - Buildings consume 70% of electricity and 40% of primary energy - Pressure from society and clients to have a green profile - Reduce energy costs - Improve building performance and management
End-users
A driver for convergence, but not necessarily IT convergence
Definition of Integration
However nearly all integrated solutions are also converged at least at management level
- many also at control level
IT-Networks
IT-Convergence
Integration is to add value by joining or linking different building services products
Service layer (IP provider)
Management level (Mostly IP)
Automation/control layer (IP/BACnet/LON/proprietary)
Integration Technical Infrastructures (HVAC/Lighting/Security/Fire etc.).
Automation/control layer (IP/BACnet/LON/proprietary)
Development of Integrated Building Management Systems (IBMS)
Integrate with sub-systems Integrate with other BAS
Integrate with other enterprises systems Integrate with other systems
Open Standards Enabling Convergence
How Quickly Will Integration Grow?
Hurdles:
Too much customization Lack of standard applications Ability to demonstrate and convince the clients on ROI
Number of Projects
Time
Total System Market $20 Billion
8% converged (IT) only
34% integrated and converged
2% integrated only
56% = stand-alone 44% = integrated and/or converged
BMS
21% on a separate BMS infrastructure
IT
13% on the IT network/backbone
Stand-Alone vs. Integration/Convergence by Product Area, US$ Million, 2009
7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 BMS Lighting (controls) Stand alone CCTV Access control Intrusion Fire and safety
Integration
Convergence (IT)
Convergence (BMS)
Stand alone is high for lighting, intrusion and fire (~90%) IT convergence only 25% for CCTV, 6% access Integration and convergence high for BMS (54%) and access (45%)
Forecast 2009 2013 % Split by Stand-Alone vs. Integrated and Converged
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2009 2010 - Converged BMS 2011 2012 2013 - Convergence IT Integrated only Stand alone
Key Market Drivers and Trends
Energy saving applications Open system Integration and IT convergence Increase in energy retrofit Consolidation will continue Compete in the knowledge in buildings and BAS applications Controls contractors migrate to system integrators
Key Market Drivers and Trends
Current drivers: 1. Energy management More function to reduce energy consumption Data visualization software and enterprise dashboards Integrate smart meters Energy monitoring, reporting and analysis service 2. LEED and Energy Star Label 3. Energy Legislation and codes 4. Government stimulus Long term driver: 5. Smart grid development Monitor consumption and track min. and peaks Automatic demand response and demand modeling
Smart Grid - Definition
An intelligent electricity system that connects all supply grid (utilities) and demand elements (end-users) through an intelligent communication system
IBC Markets Will Rebound
Depressed economy, lack of credit, increasing building vacancies Fall in new construction, delayed refurbishment and retrofit However, IBC* markets have outperformed Economic stimulus will help boost demand particularly public sector IBC* markets expected to return to growth late 2010/early 2011
Construction Output Growth Rate (%)
1,800,000
1,600,000 1,400,000 1,200,000 1,000,000
10% 13% 9% 6% 6% 5%
15%
USA
10%
4% 5% 5%
800,000
600,000
US$ Bn.
0%
400,000 200,000
Construction Output -7%
6.5%
Rate Source: Growth Economist/ US Census Bureau
-5%
-10% 7.0%
350,000 300,000 250,000 200,000 150,000 100,000 50,000 2009f 2010f 2011f 2012f 2013f 2014f 2015f 2016f 2017f 1.5%
Source: StatCan
6.0%
Canada
4.2% 4.2% 3.1% 2.3%
5.0% 4.0% 3.0% 2.6% 2.3% 2.0% 1.0% 0.0%
* Intelligent Building Controls
Key Findings
Environmental (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 knowledge Lighting Controls Huge savings and market potential Consolidation to provide total lighting solutions and more integration LED lighting is a growing market but controls required for better efficiency Security Systems CCTV / Video surveillance setting the pace, followed by access control Strong movement towards IP systems and integration of security systems Fire 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
End-User Sectors
Top vertical markets:
- Education - Offices - Central / Local Government - Health
13%
12% 11%
9%
Intelligent Buildings
YOUR INFORMATION SOURCE FOR HOME & BUILDING AUTOMATION Continental Automated Buildings Association 1173 Cyrville Road Suite 210 Ottawa ON Canada K1J 7S6 [email protected] www.caba.org Phone: 613.686.1814 Fax: 613.744.7833
