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.
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 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
Research completed by
Sponsors
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Better Tenant and Common Area Experience
High Speed Internet / Wireless
Services and Technologies
Ambient Music / TV
Audio – Video Conf
Voice Communications
Visitor management
Interactive media
Digital signage
Facilities Management
Copyright ® 2007 The Fourth Utility,
LLC All Rights Reserved.
Reducing Building Cost
Lighting
Elevator
HVAC
Fire
Video surveillance
Access
Energy
Copyright ® 2007 The Fourth Utility,
LLC All Rights Reserved.
Services and Technologies
24/7 Monitor
Smarter Building / Property
High Speed Internet / Wireless
Lighting
Ambient Music / TV
Elevator
Audio – Video Conf
24/7 Monitor
IP Telephony
HVAC
Fire
Visitor management
Video surveillance
Interactive media
Digital signage
Access
Future Applications
Energy
Copyright ® 2007 The Fourth Utility,
LLC All Rights Reserved.
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%
Fire Detection &
Alarm
$2,751
14%
BMS
$5,733
29%
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
2
Security
 Higher level of security (physical
and IT security converged)
 Energy savings and efficiency
 Efficient data sharing
 Improve building performance
(better decisions)
 Reduce maintenance costs
 Increase the value of the
building/rental revenues
 Remote access
 Improving storage
 Access cards a requirement
 Link data sharing between
departments
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
- IT suppliers keen to drive IT convergence:
- Cisco: Mediator and hardware
- IBM: software, consultancy and Master SI
- Oracle, HP, Plexus, etc. offer software/advice
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
End-users
- 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
Definition of 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
IT-Convergence
IT-Networks
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
Number of Projects
How Quickly Will Integration Grow?
Hurdles:
• Too much
customization
• Lack of standard
applications
• Ability to demonstrate
and convince the clients
on ROI
Time
Total System Market
$20 Billion
8% converged
(IT) only
34%
integrated
and
converged
BMS
21% on a separate
BMS infrastructure
2%
integrated
only
• 56% = stand-alone
• 44% = integrated
and/or converged
IT
13% on the IT network/backbone
Stand-Alone vs. Integration/Convergence
by Product Area, US$ Million, 2009
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
BMS
Lighting
(controls)
Stand alone
CCTV
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%)
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
2011
2012
2013
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
* Intelligent Building Controls
Construction Output
Growth Rate (%)
1,800,000
15%
13%
1,600,000
10%
1,400,000
USA
10%
9%
1,200,000
6%
6%
1,000,000
5%
4%
5% 5%
800,000
0%
600,000
US$ Bn.
•
400,000
200,000
Construction
Output
-7%
Source: Growth
Economist/Rate
US Census Bureau
350,000 -
-5%
-10%
7.0%
6.5%
300,000
6.0%
Canada
250,000
4.2% 4.2%
200,000
4.0%
3.1%
150,000
2.3%
100,000
50,000
5.0%
3.0%
2.6%
2.3%
2.0%
1.5%
1.0%
Source: StatCan
-
0.0%
2009f 2010f 2011f 2012f 2013f 2014f 2015f 2016f 2017f
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
13%
- Offices
12%
- Central / Local Government
11%
- Health
9%
Intelligent Buildings
YOUR INFORMATION SOURCE FOR
HOME & BUILDING AUTOMATION
Continental Automated Buildings Association
1173 Cyrville Road Suite 210
Ottawa ON Canada K1J 7S6
caba@caba.org
www.caba.org
Phone: 613.686.1814
Fax: 613.744.7833