The Future of Building Energy Management
Next Generation Solutions Driven by the Convergence of Technology and Competition: The Role of Smart Buildings
John Raspin, PartnerEnergy & Environment
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Today’s Presenter
• Over 15 years with Frost & Sullivan in Energy & Environment and related industries
• Multiple publications in the Building Technologies and Services industry, including energy efficiency, smart buildings, fire & safety and facility management
• Leadership of consulting engagements with global tier 1 players• Trusted advisor to many of the world’s leading Building Technologies and
Services firms
John Raspin, Partner, Frost & Sullivan
Follow me on: (Connect with social media)
http://www.linkedin.com/groups/Future-Energy-4727266?trk=myg_ugrp_ovr
Focus Points
• Growing Importance of Energy Management• Progression Towards Smart Solutions• Convergence of Technology, Services and Competition• Examples of Growth Markets• The Current Killer Questions• Key Conclusions• Three Big Predictions
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Energy & EnvironmentTop 10 Technologies and Markets to Watch for in 2020
Energy Recovery from Waste
Energy Efficiency and SMART Buildings
LED Lighting Revolution
Top 10 Markets
of the Future
Source: Frost & Sullivan
Advanced Batteries and Energy StorageSolar PV
Gas-Fired Power & Shale Gas Exploitation
Small Scale Distributed Generation
Smart Water Networks
Energy Harvesting SMART Grid &
SMART Energy
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A question for you to start with …..
Poll Question: Which of the following will have the biggest transforming impact on the building energy management industry in the next 5 years?
1. New business models and the role of FM companies in service delivery
2. Energy efficiency regulations and legislation
3. Advancements in software and data analytics
4. Advancements in control and automation technology
5. Convergence of BEM into overall business efficiency
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Building Energy ManagementProgression Towards Smart Solutions
1980 20001990
Evolution of Energy Management Markets
2010 2020
SystemsIntegration
BuildingManagement& Control
BuildingAutomation
GreenBuildings
ITConvergenceFunctional
Controllers
HomeAutomation
Building Control
Building Automation
Smart Buildings
EnergyControl
Construction& OperationalEfficiency
Building Performance
IntegratedNetworking
EnergyManagement
EnhancedManagement
IntelligentBuildingsHVAC Control
Energy Storage
SmartCitiesLow Energy
Lighting
Micro-Renewables
Micro-Generation
SmartGrids
SmartHomes
1980 20001990 2010 2020
Emergence of Smart & Intelligent Technology
AdvancedMeteringInfrastructure (AMI)
SmartMetering
PowerLine Carriers
Smart Cities/Towns
SystemsAutomation
Virtual power plants
EnergyManagement
Automated Meter Reading (AMR)
Source: Frost & Sullivan
Home Area Network (HAN)
VirtualConsumers
ITConvergence
Micro-Renewables
2013
HEMS & BEMS
Home Energy Monitoring
IndustrialAutomation
Growth in Renewables
Electric Vehicles Asset
Management Solutions
Active Energy Management
Big Data
Demand Response
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Smart Concepts and the Key Enablers for Growth
Building
UtilitySystem
Cities• Fully automated
‘digital’ buildings• Continuous 2-
way communication
• Micro-generation• Demand
response• Smart materials• Fully integrated
building controls
Key Features
• Open architecture• Advanced
building design• Software tools• Analysis &
reporting• Connectivity of
devices• Networks of
ubiquitous sensors
Growth Enablers
Smart Building
Smart Grid
SmartCity
• Inter-connectivity between buildings and communities
• Virtual consumers
• Shared efficiency gains
• Smart service delivery (safety, health, education etc.)
Key Features
• IP networks and affordable broadband
• Real-time network visualisation
• Inter-connected advanced metering infrastructure
• Buy-in from city leaders
Growth Enablers
• Optimised use of capacity
• Advanced metering infrastructure
• Integrating renewables
• Digital intelligence• Remote control• Micro grids• Virtual power plants
Key Features
• Smart metering• Drive from utilities• Regulation• Energy price
signals• Energy storage• Integrated
communications• Sensing &
measurement
Growth Enablers
1
2
3
Source: Frost & Sullivan
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Building Energy ManagementMultiple Convergence of Technology, Services and Competition
HEMS, BEMS &
FEMS
Asset Management
Software
Facility Management/ Performance Contracting
Building Automation Data Analytics
Micro-generation, renewable energy etc.
Smart Metering
Communication M2M etc.
Cloud Services
Building Energy Management
Source: Frost & Sullivan
Controls & Devices
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Building Energy Management Examples of growth in European Market Segments
Source: Frost & Sullivan
Performance Contracting• High growth market• Customer preferred business model• Partnerships and alliances are key trends
for offering end to end solution• FM companies see the opportunity to
lead
BEMS• Mid-range systems gaining momentum
and the market is rapidly heading toward mainstream commercialization
• Data interpretation rather than data analytics is a key priority for end users
• New business models are being introduced combining BEMs with EMS
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Building Energy Management Examples of growth in European Market Segments (Cont.)
Building Automation• Building automation systems (BAS) are
still the essential platform for managing performance of buildings
• Market is buoyant and large but is mature and growth is modest at 3% CAGR
• Open architecture and cloud based solutions are taking hold and likely to have a significant impact in the 2015 to 2020 timeframe
Smart Metering• Focus of utilities on smart grid
implementation is driving strong growth• Strong regulatory and legislative drivers• Meter companies, network companies,
M2M system vendors and key market participants work in partnerships to address interoperability challenges
• Competition becoming increasingly fierce
Source: Frost & Sullivan
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Building Energy Management Examples of growth in European Market Segments (Cont.)
Home Automation• Historically a luxury market, but mass
market segment is growing strongly• New entrants and acceleration of new
product launches following technology advancements in adjacent sectors
• Opportunity expanding with growth in smart devices (HVAC, windows, fridges, lighting etc.)
HEMS• Next generation solution after home
energy monitoring• Slow due to recession and poor
residential construction, but acceleration expected post-2014
• Future business models and channels to market will dictate success levels
Source: Frost & Sullivan
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The Current Killer Questions in the Market
For the Market:
1. What are the true benefits to the customer?
2. What are the long-term benefits to the energy supplier? What can they leverage to generate real added value?
3. What are customers really willing to pay for?
4. Does more data always mean more efficiency?
5. What is the winning business model for the next 10 years?
For Suppliers:
6. Who do you want to be your customer?
7. What is the winning value proposition?
8. How to leverage ICT infrastructure to generate a BEM offering?
9. What partnerships are required to integrate the offering?
10. Which geographies and verticals are the most attractive entry point?Source: Frost & Sullivan
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Key Conclusions
Source: Frost & Sullivan analysis.
2Green and smart are converging to deliver a new generation of solutions for both homes and commercial buildings
3Integration and connectivity are driving sustainability by allowing buildings to be managed by actionable data
4Successful suppliers will be those that combine green performance with smart functionality
5The key challenge for suppliers is to innovate with customer-centric business models
1Energy will never be cheap again. Energy efficiency will stay at the heart of building management
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Three Big Predictions
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Performance contracting will become customers’ preferred business model and suppliers will need to develop service capabilities or partner with FM companies or energy service providers in order to play in the most dynamic part of the market.
3
Smart buildings and homes will become a mainstream reality in 2 to 3 years, driven by the convergence of green and smart technology and the arrival of a wave of new market entrants. Cloud-based services with a strong focus on data interpretation will be the key enablers for a new generation of intelligent buildings.
1Rising energy costs and an increasing focus on environmental performance of buildings will combine to make energy management the most dynamic segment of the building technologies and services industry.
Source: Frost & Sullivan analysis.
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For Additional Information
Chiara CarellaCorporate Communications+44 20 7343 8314 [email protected]
John RaspinPartnerEnergy & Environment+44 20 7915 [email protected]