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1 Building Controls Zoltan Karpathy Senior Manager Intelligent Building & Home Controls BSRIA WMI 11 th June 2015 Dublin
2 Trends for Buildings Controls on plant Cloud connected homes IoT Analytics / Cloud / Cybersecurity Decentralisation / Integration Wearables Mobility / Apps Wireless Communicating Controls 2 LEDs Modular / Offsite construction
3 Home Automation Evolution: Past Present and Future The Home market has reached a critical mass from where it seems set to break-through to the mass-market. Internet connectivity and standard, multifunctional, elements present an opportunity that is being seized by Telecoms and Utilities to offer a range of connected home solutions. HOME AUTOMATION HOME AUTOMATION HOME AUTOMATION With the Internet of Things the market will move to the ubiquitous Home - where sophisticated systems learn user behaviour / lifestyle and respond accordingly. Source: BSRIA 3
4 Europe - 500m Home Market 2012 Source: BSRIA Homes Report
5 System Integration in Residential and in Commercial BEMS HEMS Room Control Gas CHP Storage Fire & Security 5
6 US$21bn World BACS* Product Market Brazil 5% Rest of World 18% Europe 36% China 57% Russia 23% India 15% 2012 Saudi, UAE & Turkey 4% BRIC 9% 2013 Japan & Australia 8% CAGR 3.0% CAGR 4.3% North America 25% * Building Automation and Control Systems 6
7 Threats and Opportunities in BACS* Market Multiple technologies / companies moving into the BACS space * Building Automation and Controls Systems ** Energy Management Systems 7
8 US$3.2bn World BEMS* Market growing at 14% CAGR Rest of World 20% Million US Dollars EU 47% USA 33% * Building Energy Management Systems 8
9 Access to Resources BEMS Suppliers Core Areas Crowded market for BEMS solutions New players emerging & Regular M&As. Global BEMS Leaders Proportion of Leading BEMS Platforms offering key Functionality and Features Challengers IBM Schneider Electric Honeywell Analytics 100% Cofely / Jones Lang Ecova, Inc Lasalle Johnson Controls Siemens Software as a Service 75% CA Technologies SAP On-going Commissioning 70% BuildingIQ esightenergy Leaders Metering 55% YARDI/ Enerliance C3 Energy Elster Group Demand Response Scalable Versions 45% 40% Pulse Energy Niche Players SkyFoundry Optimum Energy Cimetrics Gridpoint EnerNOC Potential Acquisitions Supplier Management Vertical Solutions 25% 25% Breadth of BEMS Offering 9
10 Evolution: A Dynamically Interconnected World Buildings Devices Cities / Government HVAC Homes Security Appliances Telecoms Government Building En gy Management Building Automation Fire Devices Publ. Security Education Grid Distr. Energy Health DR Demand Response Grid Management Energy Storage + Renewables Metering Transport 10
11 Devices 25 Companies with Significant Presence in World Appliances M2M Comms Devices Appliances Building Automat'n M2M Comms Homes Building Automat'n Homes HVAC HVAC Building Energy Building Energy Grid Manage't Grid Manage't Demand Response Metering Demand Response Telecoms Transport Metering Health Telecoms Education Governm't Transport Public Sec District E'gy Health Autom'tive Capability Education Web Technology Facilities Manageme Governm't Data C'tre Capability Public Sec Consultative Cap'l'ty Advanced Analytics Rank District E'gy KEY Leader Devices Major Significant Company Insignificant Devices Buildings Buildings Grid Management Grid Management Cities / Government General Capabilities Cities / Government Siemens Schneider Electric IBM Johnson Controls Microsoft Honeywell ABB Samsung LG Google Vodafone Fujitsu Hitachi NEC Panasonic Trane e.on SAP UTC (Carrier/ALC) Dalkia - Veolia Honda Jones Lang Lasalle Verizon Apple Building IQ These companies benefit from the broad range of competencies. Much of this has been driven by strategic M&As. 11
12 Breadth of Competency Technology Convergence and Reach Who are the leaders? Wide Potential Leaders Leaders Google Microsoft IBM Schneider Electric Siemens Honeywell Johnson Controls Narrow Building IQ Jones Lang Lasalle ABB SAP Fujitsu Honda Dalkia - Veolia LG Samsung Apple NEC Hitachi Trane UTC (Carrier/ALC) Panasonic Cofely (GDF Suez) Vodafone Verizon e.on Narrow Breadth of Services Wide 12
13 All heading for the cloud? 35% 30% Assumes 10-11% CAGR up to % 20% 15% 10% 5% BEMS/BACS Monitoring & Management - in the Cloud Penetration Cyber security 0% Source: BSRIA Estimates The Cloud 24 hr Universal Access OPEX not CAPEX 13
14 The Security Risk to Automated Buildings Basic key services in a building are potentially vulnerable to attack. Source: securityaffairs.co 14
15 Building cyber security some key considerations Building systems vulnerable - typically not controlled by IT homes more exposed The Internet of Things, and smart cities mean buildings face potential points of weakness in all directions Trends towards open systems opens up new vulnerabilities functionality / interconnectivity central to 21 st century life / economics people will do what it takes to protect systems to best of their ability Cost and complexity of smart buildings increases Opportunity to upgrade older building automation systems - more vulnerable to attacks. 15
16 Building cyber security build robust processes and procedures Ensure involvement and support of IT dept. Rigorous password & authentication policy Regular review of access rights Separate servers by firewalls Regular and ideally automated process for applying patches Run analytics to look for abnormal patterns / events Regular security audits 16
17 Cyber Security in Building Automation the Response The industry is recognising the potential vulnerability of building automation systems Activity focusses both on provision of solutions, and on best practices: Alliance between InsideIQ And Cylance to Promote Cybersecurity Honeywell foundation of process control network (PCN) security services: Firewall Management / Vulnerability Scanning / Intrusion Detection / Prevention / Anti-Virus Updates etc. Schneider Electric / McAfee Alliance Johnson Controls leading a Cyber Security for Infrastructure Task Force Siemens Managed Security Service LYNX CyberPRO Cyber Security Solution for Building and Energy Management Systems 17
18 Key Advancing Technologies Devices Appliances Building Automation Building Energy Management Homes A Converged World Meters Grid Energy Storage Cities Government 18
19 Competition in Connected Homes is Heating Up! April 2013: Honda USA launched Home US, including Energy Management and direct charging of vehicles from photovoltaic power. March 2014: US Home Showcase opens. January 2014: Google s Acquisition of Nest Labs marks potential new entry into Homes March 2014 Apple announce Siri Home application January 2015 Facebook acquires speech-recognition start-up Wit.ai 19
20 More than 75% of Buildings have no Intelligent Controls % % Before % 20
21 New Skills Needed 21
22 Thank you! More information at Zoltan Karpathy Senior Manager Intelligent Building and Home Controls Old Bracknell Lane West, Bracknell, Berkshire, UK, RG12 7AH D : +44 (0) F : +44 (0) E : zoltan.karpathy@bsria.co.uk W : 22
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