Trends and Challenges in Building Automation

April 15-16, 2010Rakvere, Estonia

Ron Zimmer, President & CEOContinental Automated Buildings Association

(CABA)

Smart House and Intelligent Building Conference

1.1. Bell Canada – Chairman Martin Cullum Bell Canada – Chairman Martin Cullum

2.2. Tridel Corporation – Vice-Chair Leo DelZotto Tridel Corporation – Vice-Chair Leo DelZotto

3.3. Honeywell International – Vice-Chair Roy Kolasa Honeywell International – Vice-Chair Roy Kolasa

4.4. Alcatel-Lucent - Lindsay Ellis Alcatel-Lucent - Lindsay Ellis

5.5. BAE Systems - Steve TeubnerBAE Systems - Steve Teubner

6.6. Convia, A Herman Miller Company – Randy StorchConvia, A Herman Miller Company – Randy Storch

7.7. Direct Energy LP - David Dollihite Direct Energy LP - David Dollihite

8.8. Hydro One Networks Inc. - Tom Semler Hydro One Networks Inc. - Tom Semler

9.9. Ingersoll Rand - Randy AmbornIngersoll Rand - Randy Amborn

10.10. Institute for Research in Construction, NRC - Morad AtifInstitute for Research in Construction, NRC - Morad Atif

CABA Board of Directors

11.11. Intel Corporation – Shahram MehrabanIntel Corporation – Shahram Mehraban

12.12. Microsoft Corporation - Jonathan ClutsMicrosoft Corporation - Jonathan Cluts

13.13. Monster Cable Products Inc. - Noel LeeMonster Cable Products Inc. - Noel Lee

14.14. Philips - Dr. Satyen Mukherjee Philips - Dr. Satyen Mukherjee

15.15. Procter & Gamble - Orly CoccoProcter & Gamble - Orly Cocco

16.16. Siemens Building Technologies, Inc. – Brad Haeberle Siemens Building Technologies, Inc. – Brad Haeberle

17.17. Vantage/Legrand - Andrew Wale Vantage/Legrand - Andrew Wale

18.18. Whirlpool Corporation – Joseph LuiWhirlpool Corporation – Joseph Lui

19.19. CABA - President & CEO – Ron ZimmerCABA - 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

Tec

hn

olog

ies

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

converged34% 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

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