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Market Sizing North America
Intelligent & Integrated Technologies

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Market Sizing North America
Intelligent & Integrated Technologies

Overview for CABA
IIBC at AHR2010
Jan. 25, 2010


Market Sizing North America
Intelligent & Integrated Technologies

Level 1 sponsors

Level 2 sponsors

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Experienced Project Team

Andrew Giles, MA
General Manager
BSRIA - World Market
Intelligence (WMI)
Jeremy Towler, BBA, HTEC,
dipl. Oek. Senior Manager
Intelligent Building Technology

Lone Hansen
Senior Manager
I.T. Cabling and
Associated Technologies

Gambi Chiang, MSc, BEng, MCIM,
Charter Marketer
Senior Manager Special Projects

Sukant Rout, BEng(Telecom), MBA
Senior Market Research Consultant:
Intelligent Building Controls / IT
Cabling & Associated Technologies

Ianire Cobeaga, MBA
Market Research Consultant
Intelligent Building Technology
Allan McHale, CEng, MIMechE,
MIst Energy, MBIM.
Independent Consultant

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Study Objectives
Purpose


Detailed assessment of current and future markets around
intelligence in non-domestic buildings in North America



Quantitative and qualitative market assessment, segmentation,
competitor analysis, routes to market



Size markets for principle applications plus integrated and ITconverged solutions

Scope
1.
2.
3.
4.
5.

IT Convergence
Environmental Controls

Lighting Controls
Security Systems
Fire Detection Systems

Timetable


June – Dec 2009

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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 & regulations

 Demand for better evacuation solutions will drive integration of nascent
mass notification / voice evacuation market

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$20 Billion Systems* Market 2009

$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

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End-user Sectors
 Top vertical markets:
Education

13%

Offices

12%

Central / Local Government

11%

Health

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9%

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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

USA

US$ Bn.



Source: Economist/ US Census Bureau

Canada

Source: StatCan

* Intelligent Building Controls

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Definition 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 fibre

IT network/
backbone

BMS structure
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Definition integration
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)

IT-Networks

IT-Convergence

Management level
(Mostly IP)

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

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

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

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Total system market $20 billion
8%
converged

(IT) only

34%
integrated
and
converged

BMS
21% on a separate
BMS infrastructure

• 56% = stand-alone
• 44% = integrated
and/or converged

2%
integrated
only

IT
13% on the IT network/backbone

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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

Integration

Access
control

Convergence (IT)

Intrusion

Fire and
safety

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%)

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Forecast 2009 – 2013, % split by stand-alone
vs. integrated and converged
100%
90%
80%
Stand alone

70%
60%
50%

Integrated only

40%

- Convergence IT

30%
20%

- Converged BMS

10%
0%
2009

2010

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2011

2012

2013

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Trends
 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 information
 Government wants to reduce CO2 emissions and energy
consumption
 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
 A number of companies can now take on the role of Master SI
(the outcome however still depending on the person in charge)
 Data centres are becoming more intelligent

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Smart Grid - Definition

 An intelligent electricity system that connects all
supply grid (utilities) and demand elements (endusers) through an intelligent communication system
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Barriers
 Resistance from FM and from IT to converge
(stick to own areas of expertise and competence)
 Lack of training and skills
 Construction process uses traditional route with
main contractor and sub-contractors
 Long-term outsourcing contracts
 Historic objections relating to the IT
infrastructure e.g. security, downtime, bandwidth

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2 Main Drivers of Convergence
1

Energy and building
performance

2

Energy savings and
efficiency
Improve building
performance (better
decisions)

Security
 Higher level of security
(physical and IT security
converged)
 Efficient data sharing
 Remote access

Reduce maintenance
costs

 Improving storage

Increase the value of the
building/rental revenues

 Access cards a
requirement
 Link data sharing
between departments

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Who is driving convergence?
BMS

IT

Securi
ty

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 (hardw, cabling
suppliers/channel)
- Security SI/installers high end drive it

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Who is driving convergence?
Energy
rating
schemes
Political/
economic
factors

Endusers

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
management

A driver for convergence, but not necessarily IT convergence
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The Main Systems Integrators

IBM

IBC(e)

IBC(l)

IBC(s)

IBC(f)

Honeywell

Honeywell

Diebold

Honeywell

Johnson Controls

Johnson Controls

Convergint

Siemens

Schneider Electric

Schneider Electric

Honeywell

Tyco

Siemens

Siemens

Johnson Controls

UTC? (GE Security)

UTC

UTC

Niscayah

CISCO

Siemens
Schneider Electric
Tyco
UTC

Oracle

HP

Others, Accenture,
Plexus, Wipro etc.

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Building Controls Product Trends
Sensor







Better automatic control require more sensors
Demand for smart sensor
Demand in CO2 sensor
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%
Industry sees the potential in room solution
Standards: Zigbee, 805.12.4, 6LoWPAN, EnOcean
Key issues: energy demand, data transmission
capacity

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Trends in the Installed Building Controls
System Market
 Growing demand for integration of various
building controls system to a centralized one
 Increased share of smaller scaled contract
 Reduced contract size due to OEM packaged
supply
 BACnet will continue to challenge LON’s share
 Proprietary system will continue to diminish
 Penetration of LON in smart meters

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Development of Integrated Building
Management Systems (IBMS)
Integrate with sub-systems

Integrate with other systems

Integrate with other BAS

Integrate with other enterprises systems

Open Standards Enabling Convergence

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Development of IBMS
Integration with sub-systems is the norm
Centralized monitoring and control more common
Integrated systems are mostly IT converged
Share information to improve building and
enterprise performance
 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:





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

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