Smart Infrastructure & Smart Cities American Council of Engineering Companies Environment & Energy Committee
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1 Smart Infrastructure & Smart Cities American Council of Engineering Companies Environment & Energy Committee Dr. Stuart Cowan, Chief Scientist Smart Cities Council
2 Why Smart Cities Benefits & Applications Sample Use Case Market Why the Smart Cities Council? 2
3 53% of world population 85% of carbon emissions Aging infrastructure Growing pollution Cities are our greatest challenge Energy shortages Vulnerable to climate change Falling budgets Water shortages At risk for terrorism & crime Increasing congestion 5 million people move to cities every month New York loses $13 billion per year to traffic congestion 3
4 75% of GDP Innovation hubs Access to jobs Access to health care Cities are our greatest opportunity Culture and entertainment Economies of scale $1.56 trillion smart city market by 2020 Mobility and mass transit The most significant shift in the earth s economic center of gravity in history. Frost & Sullivan McKinsey 4
5 Benefits of smart, sustainable infrastructure and cities Jobs Energy Savings Water Consumption Crime Rates Traffic 30%+ 50%+ ~30% 30%+ Education Healthcare A safer, healthier environment where people are happier and more productive
6 Barcelona: $3.6 billion value creation as of 2014 Smart Lighting Smart Buses Smart Water Smart Bus Stops Smart Parking Smart Water 1,500 New Companies 56,000 New Jobs Mobile Collaboration: $1.6B Telework: $199M Smart Parking: $67M Smart Citizens Smart Water: $58M Smart Lighting: $47M Revenue Citizen Experiences Jobs Productivity Cost Avoidance
7 The global demand for Smart City solutions will drastically increase due to urbanization and digitalization creating a $1.5 trillion market towards 2020 Global urbanization Digitalization 0,04 0, Oceania 0,38 0, Number of people living in cities (Billion) 1 North America 0,58 0,55 Europe 0,70 0,29 Latin America 1,34 0,47 Africa 3,30 2,08 Asia Number of connected devices in cities globally (Billions of Units) $1.5 trillion Smart City solution market 3 1 Source: United Nations World Urbanization Prospects: The 2014 Revision 2 Source: Gartner, March Source: Frost & Sullivan, 2014
8 Using digital technology to improve community livability, workability and sustainability
9 Triple Bottom Line 9
10 Why Smart Cities Benefits & Applications Sample Use Case Market Why the Smart Cities Council? 10
11 City Residents Deliver city services digitally Spend less (over time) to make the city more livable, workable, sustainable Happier for less City Employees Spend less (over time) to make employees more productive Better use of city assets buildings, fleets, public works Key Beneficiaries More productive for less City Businesses Provide the foundation to be regionally, nationally, globally competitive in the digital economy The Disadvantaged Spend less to provide better assistance Narrow the digital divide 11
12 Using integrated, cross-cutting digital technology to improve community life
13 Instrumentation: Sensors collect Switches operate
14 Streets tell us if they are congested
15 Buildings tell us their conditions
16 Phones are both a delivery platform and a sensor platform Sensors on a Samsung GS4: GPS, microphone, thermometer, gyroscope, light sensor, magnetometer, camera, barometer, accelerometer, hygrometer
17 Citywide connectivity a digital overlay Stadium Municipal Command & Control Center Smart Grid Cloud & Services Hospital Optimization Factory Optimization Traffic Flow Home Optimization Energy Management Logistics Optimization SMART CITY Intelligent Medical Devices Connected Ambulances SMART HOSPITAL Comms Network Optimization Intelligent Digital Signage SMART HIGHWAY Automated Car System SMART FACTORY Traffic Cameras
18 Using digital technology to improve community life via situational intelligence, real-time optimization, predictive analytics
19 Descriptive, Prescriptive, Predictive 1. Situational intelligence Descriptive What s going on, everywhere and anywhere 2. Real-time optimization Prescriptive Key Applications How can we make things as good as possible, adjusting moment-by-moment 3. Predictive analytics Predictive How can we predict problems and opportunities in time to do something about it 19
20 Situational intelligence in Rio 30 departments in one control center
21 Real-time traffic optimization in Dallas
22 Predictive Analytics find problems before they occur
23 Why Smart Cities Benefits & Applications Sample Use Case Market Why the Smart Cities Council? 23
24 Smart street light has nothing to do with light!
25 Business Case for Smart Street Lights 60-90m 75% 20-50% 3 bn 50-75% 1.9 bn 2.6 mm Estimated nos. streetlights across Europe Percentage of streetlights over 25yrs old Proportion of city s energy bill from streetlights Approx. annual street lighting energy cost Energy saving potential thru LED Annual energy saving from LED GHG equivalent in removing #cars from EU roads GOAL 10 Million Smart Lampposts across EU Cities VISION Bootstrap the Smart City An open affordable component-based city lighting solution that enables other smart city initiatives; delivered collaboratively between cities & Industry to speed integrated valuable delivery
26 Demand-side: city-cluster Pace-Setter network SCA 7 Cities 100k 4 of Finnis h 6- EIP Humble Lamppost Initiative Hub 287k 200k Paris 100k 250k 7+ NL cities 100k SW DE pack 100k Whole of Estoni a 200k Madrid 100k Liguri a Fruili 100k Note: committed city-clusters. Dec 2104 ~1.5 million addressable lighting points
27 Supply-side: develop (national-specific) ecosystems Helping to bring multiple segments together to collaborate, innovate, and develop more common solutions Lighting Pole Manufacturers Electro-technical Systems CMS Smart equipment Connectivity Data Brokers Operations & Maintenance Power & Utilities Standards Development Organisation taking a growing interest
28 Why Smart Cities Benefits & Applications Sample Use Case Market Why the Smart Cities Council? 28
29 Markets & Markets: $1.13 trillion by 2019 A massive and growing market Frost & Sullivan: $1.56 trillion by 2020 Global Commission on Energy & Climate: $22 trillion in city savings by
30 Vancouver Greenest City Toronto Montreal Scandinavia Royal Seaport Copenhagen Germany Hamburg Wolfsburg China 300+ pilots A global Amsterdam Smart Amsterdam Spain & Portugal Barcelona Santander Porto Living PlanIT Korea Songdo Jeju Island Japan Japan Smart Community Alliance market Latin America Bogota Curitiba Medellin Africa Gabon South Africa India 100 smart cities Middle East Dubai Masdar Economic cities Australia $100 million Smart Grid - Smart City 30
31 For those of us living in cities, we need to make sure they are smart cities. Nothing else makes sense. And nothing else is such a world-wide economic opportunity. Neelie Kroes Vice President European Commission
32 Priorities vary by region Urban influx New residents need new infrastructure. Build it dumb or build it smart? Combat climate change Market Drivers Smart grid, energy efficiency, distributed renewables, energy storage, smart mobility, smart buildings, industrial IoT Resilience Against natural and man-made disasters Better government Digital citizen services Transparency and accountability Participatory democracy More with less 32
33 Technology What should we do? Biggest request: Help me understand how it all works together in a cross-cutting fashion Great fears around privacy and cybersecurity Financing How do we pay for it? Growing consensus worldwide around public/private partnerships Market Barriers Policy and mindset barriers Policy How do we regulate it? What do we need to change to unleash the opportunities while safeguarding citizens? Stakeholder engagement How do we partner? Must have early engagement with citizens, business, advocacy Governance How do we organize for success? Who leads? Who owns and manages which pieces? How do we get all the departments working together? 33
34 Tipping point September 2015 announcement of White House national smart cities initiative Focus areas North America Transportation Smart grid and distributed renewables Resilience Citizen services Smart buildings (energy efficiency and beyond) Early wins Smart street lights (with communications) Smart parking (grows revenue) Open data Challenges Haphazard, one-department-at-a-time approach Funding (PPP fear and loathing) Lack of national standards, frameworks, platforms to let cities use applications built elsewhere Policy changes (utility business model, procurement, privacy) 34
35 Strong central support European Innovation Partnership on Smart Cities and Communities integrated smart city solutions Drivers EU 20/20/20 climate mandates Clean energy Europe Aging infrastructure in need of renewal Innovation and economic development Challenges Scalable common platform to share projects between cities Funding Leaders Barcelona, Amsterdam, Vienna, Copenhagen, Stockholm, Valencia, Hamburg, many others 35
36 Challenge: Cities work in silos Every department makes investments independently: No sharing of infrastructure and IT costs No sharing of intelligence/information, e.g., video feeds, data from sensors, analytics Waste and duplication of investment and effort Difficulty in scaling infrastructure management Traffic management Public safety City lighting Pollution/ environment Waste management Parking optimisation Ineffective. Inefficient. Uneconomical. Challenge: This fragmented Cities approach is traditionally inefficient, has limited effectiveness address and is issues not economical in
37 Opportunity: Smart Infrastructure can be integrated Comprehensive, integrated approach to smart infrastructure projects: Well-coordinated sharing of infrastructure and IT costs Sharing of intelligence/information Focused and optimized investment and effort Connects to infrastructure management at larger scales Traffic management Public safety City lighting Pollution/ environment Waste management Parking optimisation Effective. Efficient. Unlocks Value. Challenge: This fragmented Cities approach is traditionally inefficient, has limited effectiveness address and is issues not economical in
38 Why Smart Cities Benefits & Applications Sample Use Case Market Why the Smart Cities Council? 38
39 Assemble the world s top experts The 120+ member and advisor organizations employing Smart Cities Council: 1.5 million+ people generating Joining forces to help cities $2.7 trillion+ in annual revenues that have worked on 5,000+ smart city projects past and present
40 A framework for smartness
41 1. Activate the local ecosystem 4 activities to accelerate the 2. Grow regional capacity 3. Expand global influence market 4. Showcase global leadership 41
42 We help cities build a roadmap to a better future Readiness Guide for India to be published on 9 February 2016 Global Readiness Guide published as online resource as of 1 February 2016
43 Internet s largest collection of free smart city resources, case studies, news, tools 43
44
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