2 Excellence in Market Intelligence
Some Mega-Trends for a Smart
Buildings Future
2
Intelligent materials / LEDs /
customizable walls
Shift of Power -
China building
36 smart cities
Mobility
Offsite
intelligent
construction
Modular / compact /
reconfigurable
Buildings –
The new
power stations
Triangulate
position
Analytics - Cloud - Big Data
Social Networks -
Integrated energy
and Transportation
3 Excellence in Market Intelligence
Energy - Smart Technologies –
Intelligent Buildings Universe
3
Non-Residential Buildings
BACS (BMS)
Residential Buildings
Smart Home
Low Voltage (up to 1000V)
Smart Metering
Lighting Controls
Energy Management Services (Demand Response, ESCO, Energy Performance Contracts, Efficiency Consultancy, Retrofit, Certification, Supply, Procurement etc.)
Smart Cities
Home Energy Management
Intelligent Res. Environmental Controls
Electric Vehicles
Energy Storage
Cloud Services
Net Zero Energy Buildings
Energy Infrastructure
Centralised Energy Generation
Energy Transmission / Smart Transmission Grid
Energy Distribution /Smart Distribution Grid
Transport
BEMS Software / Sub-metering
Communications & Networks
Distributed Generation / Micro-Networks / Micro-Grids (Heat / Cool / Electricity)
Fire Detection & Alarm / Life Safety / Emergency Lighting
Fire Suppression
Security Systems (CCTV/Video – Access - Intruder
Gas / Other carbon fuels Batteries
Phase Change Materials
.
.
.
Water
.
Excellence in Market Intelligence
Intelligent Building Controls are….
Controls Intruder
Alarm
Controls
Microprocessor based
Communicating
Complex control
sequences
Integratable
Interoperable
Share data
IBC(e) IBC(s):
IBC(a) (c) (i)
IBC(f) IBC(l)
Excellence in Market Intelligence
Key Market Trends
Energy saving applications
Open systems
Integration and IT convergence
Increase in energy retrofit
Continued market consolidation
– target niche players
Products become commoditized
- compete on building
knowledge and customised
applications
Controls contractors migrate to
system integrators
Demand for user friendly
Products
Government stimulus Technology
Player Strategy
Consolidation
Alliance
Specialisation
Price Pressure /
Supply Structure
Communications
& Standards
Environmental
(HVAC) Control
Systems
Fire
Detection
& Alarm
Fire
Extinguishing
Smoke
Extract
M.I.S.
Business
Continuity
Issues
Management
Information
System / ERP
Network
Management
Personnel
Management
Services
Planned
Maintenance
Fire & Life Safety
Management BMS & Power
Management
Building Services
Communications
Evacuation
Systems
Tracking
Systems
CCTV
Surveillance
Intruder
Alarms
Access Control /
Time & Attendance
Power
Distribution
System
Alarms
Lighting
Control
Energy
Management
Standby
Generator &
UPS Alarms
Source: i&i proplan
Patient Records /
Scanned Images /
Drugs Admin.
PATIENT & ADMINISTRATION CARE
MEDICAL ENGINEERING SYSTEMS CARE
BUILDING SERVICE INFRASTRUCTURES FOR CARE
Special
Medical
Equipment Medical
Gases
Electrical Network
Management
Staff
Communications:
Public Address / Paging
Digital Cordless
Telephony
Staff Protection
Systems
Image
Management
& Recording
Patient
Communications:
Nurse Call
& Entertainment
Structured Cabling Systems
Gas Detection
Card
Systems for Identity
/ Payment / Parking
Fuel & Water
Services / Availability
Consumption /
Leaks / Alarms
Security
Management
Remote
Monitoring
& Management
Services
IT Convergence Energy Directives /
Regulations
0
20
40
60
80
100
120
1985 1990 1995 2000 2004 2007
Year
% o
f In
sta
lled C
ontr
act
& R
ela
tive
C
ost
Instal & Panels
Eng & Comm
Products
50%
25%
25%
45%
25%
30%
40%
20%
40%
42%
30%
28%
Source: BSRIA Proplan
43%
25%
32%
27%
37%
36%
Information – Analytics –
Big Data
luciddesigngroup.com
Demand Management Smartgrid
7 Excellence in Market Intelligence
Home
automation
RESIDENTIAL NON RESIDENTIAL
SOFTWARE
Chillers for
building
applications
Commercial
boilers
CHP
Solar -
Thermal
Combi-heating
Under-floor
heating
Domestic boilers
Splits
VRF
Mini-chillers
Ventilation /
heat recovery
Micro &
mini CHP
GS & AW
heat pumps
Commercial
Controls,
Fire &
security
Airside
applications
World markets for A/C, heating and controls:
products getting messy
Water
heaters
Building
Energy Mgt.
Systems
HARDWARE
HARDWARE NON-
RESIDENTIAL
Industrial
refrigeration
Excellence in Market Intelligence
Smart home / home automation
9
Automation of homes, housework,
household activity providing increased
quality of life for families, elderly, disabled
through improved convenience, comfort,
energy efficiency, security
Centralized control and integration of
Lighting, HVAC, appliances, and other
systems
Connect devices through a PC network -
may allow remote internet access - can
also use existing power wiring, radio, or
infrared
Network sockets may be installed in every
room like AC power sockets
Best fitted to new homes during
construction – or wireless in existing
homes
Environmental
control
Smart
appliances
Consumer
electronics
Lighting
control
Building
component
control
Security
system
Safety
alarm
Individual System Control
Level
Home Energy
Management
Smart Home
10 Excellence in Market Intelligence
System Integration
a
a
a
.
a
Multivalent HVAC systems
Intelligent multivalent
HVAC systems
On-site energy production /
energy storage
+ xx%
Mono- valent HVAC systems
Smart Grid
Boiler
Intelligent Heating Control HEMS/Smart meter Smart
HVAC systems
Wind
Micro CHP
PV
11 Excellence in Market Intelligence
Smart Home Evolution: What is Next?
Source: BSRIA
In 2011-2012, after decades of niche existence and several false starts, the
“classical smart home” system “as we know it” reached a new break-through
opportunity. Internet connection and standardised multifunctional plug&play
toolkit provides best chance yet to put the industry on a mass-consumer track,
moving – at the same time - home automation to the ultimate long-term goal –
“ubiquitous home”.
HOME AUTOMATION
EVOLUTION IN ESSENCE:
SMART HOME – a home
automation system with a
particular focus on “lifestyle”
(lighting & entertainment); in-
house control only.
CONNECTED HOME – a
complex home automation
system that integrates “lifestyle”,
security/safety, and energy
management functions;
controllable from anywhere in the
world where there is Internet
UBIQUITOUS HOME – a
complex home automation
system that integrates all the
functions above and is designed
to recognise, predict, and
respond to the needs, lifestyles,
and habits of inhabitants (so-
called ambient intelligence).
Source: BSRIA
HOME AUTOMATION EVOLUTION: PAST & FUTURE
Excellence in Market Intelligence
Smart Automation – Visualization -
Interaction
12
Tado – no built-in screen, instead
iPhone and Android apps and is
geolocation-based - so knows when
each smartphone carrying resident
is close to home to adjust heating
accordingly. Being Internet-
connected, it takes into account
local weather reports, too.
Nest self learning thermostat -
created by iPod godfather Tony Fadell.
Smart, attractive, notes each time you
turn dial up/down to build detailed
schedule based on your preferences.
Can also set timers for limited periods
of time and control it via a mobile app,
saving energy if you forget to alter the
temperature before leaving the house.
Nest Leaf™ appears when you're
saving energy. Changing temperature
just one degree can cut energy use up
to 5%.
Excellence in Market Intelligence
Integration and Convergence
IT-Networks
Technical Infrastructures (HVAC/Lighting/Security/Fire etc.).
IT-C
on
verg
en
ce
Integration
IT-Networks
Technical Infrastructures (HVAC/Lighting/Security/Fire etc.).
IT-C
on
verg
en
ceIT
-Co
nve
rge
nce
IntegrationIntegration
Integration is to add value by joining
or linking different building service
products/applications
Network = Ethernet Cat 5/5e/6 and/or fibre
BMS Structure IT
Network/Backbone
• Convergence will ideally use a single network, a single
communications protocol and a single user-interface
• However, separate networks are often designed only
linked at the management level and in a few cases at the
control layer.
• Data is transferred in both directions.
• Different levels of convergence.
Excellence in Market Intelligence
Integration and
Convergence
Benefits
• Prolong lifespan of investments
• Optimise occupancy rates
• Informed building management &
investment decisions (which
buildings to use)
• Reduce utility costs over time
• Manage choice of energy suppliers
• Improve productivity and working
practises
• Customer attraction - satisfaction -
retention
Excellence in Market Intelligence
Simplification decade
Wholesale removal of proprietary protocols
“App” replaces the hardware buttons
Everything becomes connected
Seamless connectivity between:
– Entertainment systems - new market entrants
– Environmental systems - connect or die?
– Communications systems – home, office all the same
17 Excellence in Market Intelligence 17
Prop-rietary 26%
BACnet 48%
Lon- Works 17%
Modbus 3%
KNX 4%
CAN Bus 1%
Other 1%
Prop-rietary 19%
BACnet 59%
Lon 20%
Modbus 2% KNX 0%
North America World
Main Wireless
Protocols
Zigbee
Z-Wave
EnOcean
KNX has over 70% of European Smart
Home products market – and over 60% is
used in Commercial Buildings!
Prop-rietary 38%
BACnet 43%
Lon 14%
Modbus 1%
KNX/EIB 3% CAN Bus
0%
Other 1%
Germany
Communication Protocols: Strong BACnet Momentum in Non-residential
18 Excellence in Market Intelligence
The Evolution of Open Standard Communications Protocols
18
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Pro
po
rtio
n o
f N
ew
Sa
les
Communications Protocol Evolution (Non-Residential Buildings)
Proprietary
Open Standard
19 Excellence in Market Intelligence
Valves and Actuators Evolution and
Disruptive Factors
VRF market replacing chiller / AHU market so reducing opportunity to sell water
based valve/actuator assemblies and the inclusion of controls manufactured by
VRF manufacturers taking away opportunity to sell “traditional controls”.
Valve / Damper Actuators with embedded sensors/controls expected to become
more prolific
More bus-enabled actuators
Wireless-controlled actuators
Intelligent Pump Solutions
PICVs becoming more common
19
20 Excellence in Market Intelligence
Overview – Potential Challenges to BACS*
* Building Automation and Controls Systems
** Energy Management Systems
With The BACS
market
predicted to go
on growing,
multiple
technologies
and companies
are expected to
move into this
space.
LG
Samsung
Daikin
Mitsubishi
etc.
ABB Busch-
Jaeger
Gira
Siemens
Hager/Berker
Jung
Schneider
etc.
Deutsche
Telekom
Swisscom
ADT
Comcast
etc.
Johnson
Controls
Honeywell
BuildingIQ
eSight Energy
etc.
Johnson
Controls
Dalkia (Veolia
environment)
CBRE
Jones Lang
Lasalle
etc.
IBM
Microsoft
Oracle
Numerous
other 3rd
parties
20
Alpha Innotec
Buderus
BT Junkers
Danfoss
Siemens
Viessmann
etc.
Schneider
Electric
Honeywell
Carrier
LG
Samsung
Hitachi
Mitsubishi
Daikin
21 Excellence in Market Intelligence
BACS Penetration Only about 1/5 buildings have a BACS – even fewer have BEMS
21
Commercial
buildings
= 83% of all
non-
residential
buildings
Of building stock:
Of floor space:
0.5%
11%
0.2%
11%
1.5%
14%
3.0%
14%
94.8%
50%
• BACS are
comparatively
rare in buildings of
under 100,000 sq.
ft. (c. 10,000 m2)
• Represents latent
opportunity.
• Not competing at
the lower end can
allow new
entrants
* Source: BSRIA Research
5.4 million
buildings
22 Excellence in Market Intelligence
Market Briefing study: Smart Evolution: Many new suppliers will enter this market
22
Generation Transmission Substations Distribution Consumption
Services
23 Excellence in Market Intelligence 23
Heating manufacturers are coming out with
ever more sophisticated controls and controllers
and may try at some point to enter part of the
HEMS/smart home market. In response Controls
manufacturers are increasing their OEM offer.
They are developing a special internet software
to be added to their traditional control systems.
Siemens and eQ-3 are creating holistic remote
heating control systems and offering the
integration of heating controls into more
complex home automation systems.
Remote Smart Heating
Controls
Boilers Heat Pumps
Alpha Innotec - +
BT Junkers + -
BT Buderus + -
Dimplex - +
Nibe - +
Ochsner - +
Stiebel - +
Viessmann + +
Vaillant + +
Waterkotte - +
The introduction of mobile phone applications by leading heating brands – Junkers and
Buderus (both belonging to Bosch Thermotechnik) - is great progress in promoting smart
remote controls in the sector of domestic boilers, which is regarded as one of the most
conservative.
Despite the progress, the market still lacks mass consumer solutions, whereas most
products are aimed at either higher income households or the commercial segment.
Remote smart heating controls from
leading heating manufacturers
Market Overview of Heating Controllers
24
BT Junkers
Profile
Smart Heating Control Solutions
Junkers offers two remote solutions (Ferndatenmanagement):
• Junkers Home (mobile application)
• Netcom 100 (internet and phone connection)
Part of Bosch Thermotechnik (BT)
One of the leading domestic boiler brands in Germany, with a
market share of 9% (2010)
The 8th largest manufacturer of heat pumps, with ~5% market
share (2010)
Netcom 100
Junkers Home
Junkers Home: • LAN – WLAN Router
• MB LAN Gateway
• iPhone/iPad/iPod touch
as user interface
• Apple App Junkers home
(available to download
from App Store)
Netcom 100: • Regulation over touch phone
• Temperature control;
temperature regimes
• Supportive language menu
25 Excellence in Market Intelligence
Communicating Room Controllers fill the gap
Electrical Channel
• Electricians
Mechanical Channel
• Controls Contractors
Smart Home Systems
Building Automation and Control
Systems (BACS)
Communicating
Room
Controllers
Prestigious & Large
Commercial
Buildings >10,000m2
Medium-Sized
Commercial
Buildings <10,000m2
Small Commercial
Buildings <2,000m2
Residential
Buildings
Mixed M&E
Contractors
• Systems
Integrators
VRF +BACS sold via specialist
air conditioning installers
Heating controllers sold via specialist
heating installers and wholesalers
25
Features of VRF (Variable Refrigerant Flow)
Systems
• Compete against chillers which usually work with a BACS control solution
• Generally offered by similar players to commercial minisplits
• Effectively a giant minisplit with each outdoor unit connected with up to 20 indoor units
• Outdoor units up to 67kw in Europe, multiple outdoor units for systems up to 1 MW
26 26
VRFs with BACS and Energy Management
Energy management module offers:
• peak cut operation
• outdoor unit capacity save
• indoor unit rotation operation
• tenant electricity charge calculation
Source: Samsung
Source: LG
Outdoor unit capacity save
Source: Fujitsu
28 Excellence in Market Intelligence
Global BACS and BEMS market size
28
BEMS
BACS
Global market size
= USD 4.7 billion
Global market size
= USD 21.4 billion
Including product + software + value add + service
30 Excellence in Market Intelligence
Building Energy Management System
(BEMS)
30 30
STAND-
ALONE
SOLUTION
(SOFTWARE
& SERVICE) BACS
EXTENSION
SEPARATE
OVERLAY
Smart home
Smart building
31 Excellence in Market Intelligence
BEMS Market Drivers
31
Push
Overriding legislative
and regulatory factors
Rising fuel prices
Energy supply unable to
keep up with demand
Suppliers promoting
their BEMS solutions
Pull
Client-side targets for:
– Energy
conservation
– Carbon footprint
reduction
Proactively promote
their corporate social
responsibility
Reduce building
operational costs –
raise asset value –
improve client retention
32 Excellence in Market Intelligence
Complex Business Model
32
BEMS
BACS
provider
Comprehensive
Energy Solution
provider
Enterprise
system provider
FM provider
Standalone
with M&T
service
Demand
response
Remote
audit
Inte
rmed
iatio
n b
etw
een
utilitie
s a
nd
cu
sto
mer
33 Excellence in Market Intelligence
Smart Cities – From Supply Side to Demand Side
Through Information Technology
33
• eMeter a Siemens Acquisition in the USA
offering Metering and Energy Analytics Software
now also in Japan
• Offering also from IBM and Oracle
• Hitachi solution described above
• All Major Japanese Manufacturers
Preparing Smart City Solutions
Grid IT infrastructure Demand
homes/buildings
34 Excellence in Market Intelligence
Diverse Battery Technologies being
Commercialised
34
General Electric molten sodium-metal
halide battery with a 20-year lifetime.
LG Electronics group's, LS Mtron Ultra-
capacitors next-generation core energy
storage device for future-type vehicles and
industrial power supply systems
UltraBattery’s Lithium-Ion (Li-
Ion) battery for smart grid wind
and solar power
Homes/buildings Vehicles Grid