Transcript Document

Market Sizing North America
Intelligent & Integrated Technologies
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Market Sizing North America
Intelligent & Integrated Technologies
Executive Summary
Presentation
Jeremy Towler
Jan. 13, 2010
52669
Agenda
Subject
Speaker
Introduction
Executive Overview: Methodology & Key
findings
IT-Convergence
Building Controls
Short Break
Lighting
Fire
Security
Key conclusions & strategic recommendations
Discussion / Questions / Answers
Closing statements
Close
Ron Zimmer CABA
Andrew Giles / Jeremy Towler
BSRIA
Lone Hansen BSRIA
Gambi Chiang BSRIA
Excellence in Market Intelligence
Sukant Rout BSRIA
Jeremy Towler BSRIA
Ianire Cobeaga BSRIA
Jeremy Towler BSRIA
All
Ron Zimmer CABA
Time
(EST)
11:00 am
11:05
11:30
12:00 pm
12:25
12:30
12:50
13:00
13:20
13:30
13:55
12:00
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World Class Sponsors
Level 1 sponsors
Level 2 sponsors
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Project Team
Andrew Giles, MA
General Manager
BSRIA - World Market
Intelligence (WMI)
Jeremy Towler, BBA, HTEC,
dipl. Oek. Senior Manager
Intelligent Building Technology
Lone Hansen
Senior Manager
I.T. Cabling and
Associated Technologies
Gambi Chiang, MSc, BEng, MCIM,
Charter Marketer
Senior Manager Special Projects
Sukant Rout, BEng(Telecom), MBA
Senior Market Research Consultant:
Intelligent Building Controls / IT
Cabling & Associated Technologies
Ianire Cobeaga, MBA
Market Research Consultant
Intelligent Building Technology
Allan McHale, CEng, MIMechE,
MIst Energy, MBIM.
Independent Consultant
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Market Sizing North America
Intelligent & Integrated Technologies
Purpose
 To provide a detailed assessment of the current and future markets around
intelligence in non-domestic buildings in North America
 Quantitative assessment of the market, supported by qualitative description and
explanation where required
 Size the principle markets by application and evaluate the size of the market for
integrated and IT-converged solutions
Scope
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IT Convergence
Environmental Controls
Lighting Controls
Security Systems
Fire Detection Systems
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Project Timetable
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Project start – June 4th 2009
Project planning - July
Desk research and Set-up interviews - August
Field Research – September through November
Report Writing - October through November
Delivery – End November
Presentations – Dec. 9th 2009 / Jan. 13th 2010
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Structure of Reports
 Introduction
 Market Structure and Form
–
–
–
–
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Market model
Growth
Product segmentation
System segmentation
Supplier Analysis
Trading Practices and Procedures
Industry Dynamics and Growth Prospects
Forecast
Integration
– By application
– Integration by vertical market
 Construction Overview
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Key Findings
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Each of these markets offers real growth opportunity
Each exhibits its own dynamic
Fragmented market, particularly for converged solutions
High end integration in the hands of a few multi-nationals
56% Stand-alone systems
44% Integrated and Converged
Nearly all integrated solutions are also converged - at least at
management level - many also at control level

Convergence - bringing together autonomous systems onto a common
communication platform within the business enterprise to create a single unified
solution
Integration - adding value by joining or linking different building services products
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Key Findings
Environmental (HVAC) Building Controls
 The market will compete in applying BAS to tackle climate change issues
 Companies need to acquire both controls and IT knowledge
Lighting Controls
 Huge potential, consolidation of Lighting Controls business with Acuity/ Philips/
Cooper Controls acquiring companies to provide total lighting solutions and more
integration
 Although LED lighting is a growing market, controls still required for better efficiency
Security Systems
 CCTV / Video surveillance continues to set the pace
 Strong movement towards IP systems and the integration of security systems
Fire Detection and Alarm
 Robust, growing market, driven (and constrained) by codes & regulations
 Demand for better evacuation solutions will drive integration of nascent mass
notification / voice evacuation market
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$20 Billion Systems* Market 2009
Intruder Alarm
Lighting Control
$2,053
$906
11%
5%
BMS
$5,733
29%
Access Control
$2,535
13%
Fire Detection &
Alarm
$2,751
14%
*
CCTV/Video
$5,475
28%
Systems = Product + Value Add (Engineering, Commissioning, Installation)
excluding maintenance
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$8.5 Billion Market for Products* (incl.
cable & cabinets) 2009
Intruder Alarm
$924
11%
Lighting Control
$736
8%
CCTV/Video
$2,457
29%
Access
Control
$1,092
13%
Fire Detection &
Alarm
$1,133
13%
*
BMS
$2,196
26%
Products = Hardware, Software, Cable and Cabinets
at first point of distribution prices
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VM Segmentation 2008/9
Banking/ Finance/ Insurance
Offices
Hotels/ Catering
Retail
Entertain/ Leisure
Transport Buildings
Other Commercial
Education
Health
Central & Local Government
Other public
High tech Industry
Life Science
Industrial Assembly
Communications & Computers
Warehouses
Other Industrial
High end multi-occupancy residential
4.4%
12.4%
3.8%
6.3%
1.9%
4.4%
2.6%
12.9%
8.7%
10.7%
6.9%
2.8%
5.3%
5.5%
2.6%
3.7%
3.4%
1.5%
0
500
1000
1500
2000
2500
US$ Millions
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Project Type Segmentation 2008/9
New Construction
46%
Reburbishment
29%
Replacement
25%
0
1000 2000 3000 4000 5000 6000 7000 8000 9000 10000
US$ Millions
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Building Sector Segmentation 2008/9
Commercial
45%
Public
32%
Industrial
23%
0
1000 2000 3000 4000 5000 6000 7000 8000 9000 10000
US$ Millions
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Open Standards Enabling Convergence
Web Browser
Server
Workstation
Workstation
Management
level
(Mostly IP)
Ethernet / IP
LON to BACnet Router
3rd party Integrator
Automation Level Controller
Operator Terminal
Automation /
Control layer
(Open Standards
and proprietary)
Field Bus: LONWORK/BACnet/Proprietary
3rd
Field Level Controller
LON controller
Intruder
Alarm
Third Party Systems
Plant Controller
Security
Room
Controllers
Sensors
Chillers
Sensors
Environmental
(HVAC) Controls
Room Controllers
Fan coil
Valves and
Actuators
VAV Controller
VAV Box
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Field layer (Controls /
sensors / actuators)
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Recession has slowed market

However, IBC* markets
have outperformed
GDP (in US$ Billion)
15200
GDP Growth Rate (%)
5.0%
USA
Depressed economy, lack
of credit, increasing
building vacancies
2.0%
2.0%
15000

Inflation (CPI, %)
4.0%
2.0%
14800
3.0%
2.4%
2.4%
2.5%
1.6%
14600
2.0%
1.8%
14400
1.0%
0.7%
0.5%
14200

0.0%
14000
Fall in new construction,
delayed refurbishment
and retrofit
-1.0%
0.2%
13800
13600
-2.0%
-2.9%
-3.0%
Canada
13400
-4.0%
2008
Population (Million)
GDP (in US$ Billion)
GDP Growth Rate (%)
Inflation (CPI, %)
2009
2010
2008
303.9
14441.4
0.5%
2.4%
2009
309
14022.6
-2.9%
0.2%
* Intelligent Building Controls
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2011
2010
314
14120.8
0.7%
1.6%
2012
2011
318.3
14374.9
1.8%
2.0%
2013
2012
322.6
14719.9
2.4%
2.0%
2013
327
15087.9
2.5%
2.0%
Source: Economist/ US Census Bureau
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IBC Markets will Rebound
Construction Output
Growth Rate (%)
1,800,000

1,600,000
Economic stimulus will
help boost demand –
particularly public sector
10%
1,400,000
15%
USA
13%
10%
9%
1,200,000
6%
6%
1,000,000
5%
4%
800,000
IBC* markets expected to
return to growth late
2010/early 2011
0%
600,000
400,000
US$ Bn.

5% 5%
200,000
Construction
Output
-7%
-5%
Growth Rate
Source: Economist/ US Census Bureau
350,000 -
-10%
7.0%
Canada
6.5%
300,000
6.0%
250,000
5.0%
4.2% 4.2%
200,000
3.1%
150,000
2.3%
100,000
1.0%
Source: StatCan
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3.0%
2.6%
2.3%
2.0%
1.5%
50,000
* Intelligent Building Controls
4.0%
0.0%
2009f 2010f 2011f 2012f 2013f 2014f 2015f 2016f 2017f
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Integration / Convergence Drivers
 Two Primary drivers:
– Energy (energy usage and building performance)
– Security (security / safety of people and assets)
 Secondary drivers
–
–
–
–
Political
The economy
Construction output (new / refurbishment)
Retrofit / replacement
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The future
 In recent years several new master SIs have emerged
 Partnerships between best-in-class suppliers
 IT companies augmenting their offering to include new
applications.
– e.g. CISCO: Facility management with Mediator, EnergyWise and a
security offering
 IBM have Maximo and Tivoli
– are cooperating with the BMS co.s
– and operate as a master SI
 There will be more solution providers
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The Main Systems Integrators
CISCO
IBM
IBC(e)
IBC(l)
IBC(s)
IBC(f)
Honeywell
Honeywell
Diebold
Honeywell
Johnson Controls
Johnson Controls
Convergint
Siemens
Schneider Electric
Schneider Electric
Honeywell
Tyco
Siemens
Siemens
Johnson Controls
UTC? (GE Security)
UTC
UTC
Niscayah
Siemens
Schneider Electric
Tyco
UTC
Oracle
HP
Others, Accenture,
Plexus, Wipro etc.
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Key conclusions & strategic
recommendations
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More retrofit now, more new build in future
Communicate ROI to end user
Train the channel on IT as well as FM
Raise awareness within the construction industry
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