intelligent and integrated buildings technologies market size in north america 2010 march 30, 2010...
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Intelligent and Integrated BuildingsTechnologies
Market Size in North America 2010
March 30, 2010Austin, TX
Ron Zimmer, President & CEOContinental Automated Buildings Association
(CABA)
FIATECH’s TECHNOLOGYCONFERENCE and
SHOWCASE
1. Bell Canada – Chairman Martin Cullum
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 Atif
CABA Board of Directors
11. Intel Corporation – Shahram Mehraban
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 Board of Directors
“The knowledge-based forum forindustry leaders who advance the use of technology and integrated systems in the global home and building industry.”
CABA Vision
Market Sizing North AmericaIntelligent & Integrated
Technologies
Level 1 sponsors
Level 2 sponsors
Research completed by:
To view video: CLICK HERE (http://companyflix.com/videos/play.php?video=v23404)
High Speed Internet / Wireless
Voice Communications
Facilities Management
Interactive media
Visitor management
Audio – Video Conf
Ambient Music / TV
Better Tenant and Common Area Experience
Digital signage
Ser
vice
s an
d T
ech
nol
ogie
s
Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved.
HVAC
24/7 Monitor
Video surveillance
Elevator
Lighting
Fire
Access
Energy
Reducing Building Cost
Services an
d T
echn
ologies
Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved.
High Speed Internet / Wireless
IP Telephony
Future Applications
Interactive media
Visitor management
Audio – Video Conf
Ambient Music / TV
Smarter Building / Property
Digital signage
HVAC
24/7 Monitor
Video surveillance
Elevator
Lighting
Fire
Access
Energy
Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved.
Commercial Buildings Energy Use
Cooking, 1.1%
Refrigeration, 0.4%
Office Equipment, 15.5%
Other, 5.3%
Space Heating, 25.0%
Space Cooling, 9.4%
Ventilation, 5.3%
Water Heating, 9.0%
Lighting, 28.9%
Source: 2008 Department of Energy Buildings Energy Databook
Financing14%
Operation50%
Construction11%
Alterations25%
Typical Building Cost Over A 40 Year Life Cycle
$20 Billion Systems* Market 2009
BMS$5,733
29%
CCTV/Video$5,475
28%
Fire Detection & Alarm$2,751
14%
Access Control$2,535
13%
Intruder Alarm$2,053
11%
Lighting Control$9065%
* Systems = Product + Value Add (Engineering, Commissioning, Installation) excluding maintenance
* Products = Hardware, Software, Cable and Cabinets at first point of distribution prices
$8.5 Billion Market for Products* (incl. cable & cabinets) 2009
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 structureIT network/backbone
Two Main Drivers of Convergence
Energy and building performance
Energy savings and efficiency
Improve building performance (better decisions)
Reduce maintenance costs
Increase the value of the building/rental revenues
Security Higher level of security
(physical and IT security converged)
Efficient data sharing
Remote access
Improving storage
Access cards a requirement
Link data sharing between departments
1 2
Who is driving convergence?
BMS
IT
Security
- 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
- 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
Political/economic factors
End-users
- Most converged buildings are in US - LEED silver/gold/platinum
- 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
managementA driver for convergence, but not necessarily IT convergence
Definition of integration
IT-Networks
Technical Infrastructures (HVAC/Lighting/Security/Fire etc.).
IT-C
onve
rgen
ce
Integration
IT-Networks
Technical Infrastructures (HVAC/Lighting/Security/Fire etc.).
IT-C
onve
rgen
ceIT
-Con
verg
ence
IntegrationIntegration
Integration is to add value by joining or linking different building services products
However nearly all integrated solutions 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)
Automation/control layer(IP/BACnet/LON/proprietary)
Development of IntegratedBuilding Management Systems (IBMS)
Integrate with sub-systems Integrate with other BAS
Integrate with other systemsIntegrate with other enterprises systems
Open Standards Enabling Convergence
How Quickly will Integration Grow?
Nu
mb
er o
f P
roje
cts
Time
Hurdles:• Too much
customization
• Lack of standard applications
• Ability to demonstrate and convince the clients on ROI
Total system market $20 billion
• 56% = stand-alone
• 44% = integrated and/or converged
34% integrated
and converged
8% converged
(IT) only
2% integrated
only
BMS IT
21% on a separate BMS infrastructure
13% on the IT network/backbone
Stand-alone vs. integration/convergence by product area, US$ million, 2009
• 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%)
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
BMS Lighting(controls)
CCTV Accesscontrol
Intrusion Fire andsafety
Stand alone Integration Convergence (IT) Convergence (BMS)
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
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 Label3. Energy Legislation and codes4. Government stimulusLong 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
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
Complimentary Research Report:
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
1,000,000
1,200,000
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
Construction Output Growth Rate
Source: StatCan
US
$ B
n.
Source: Economist/ US Census Bureau
• 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
USA
Canada
* 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
knowledgeLighting 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
efficiencySecurity Systems• CCTV / Video surveillance setting the pace, followed by access control• 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
End-user Sectors
Top vertical markets:
- Education
- Offices
- Central / Local Government
- Health
13%
12%
11%
9%
Intelligent Buildings
YYoouurr IInnffoorrmmaattiioonn SSoouurrccee ffoorr HHoommee && BBuuiillddiinngg AAuuttoommaattiioonn
1173 Cyrville Road, Suite 210 Ottawa, ON K1J 7S6
613.686.1814 888.798.CABA (2222) 613.744.7833
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