Making Buildings Bright and Intelligent Internet of Things: Making Buildings Bright and Intelligent   InterLumi 2017 June 29-30, 2017  Panama Ron Zimmer CABA President & CEO www.CABA.org Connect to what’s next™

CABA Board of Directors & Mission CABA enables organizations and individuals to make informed decisions about the integration of technology, ecosystems and connected lifestyles in homes and buildings. 2

Smart Buildings Networked. Intelligent. Adaptable. 3

State of the Industry Revenues are forecast to grow through 2018 as more high-priced LED lamps are sold despite their longer lifetimes (i.e. lower replacement rates). From 2019, as the installed base becomes saturated with lamps with longer lifetimes, revenues will start to decline, amplified by a significant decline in the price of LED lamps. LED lamp revenues are forecast to make up 82% of total market revenues in 2023. 4

State of the Industry Global lamp shipments will decline as LED lamps with longer lifetimes are increasingly adopted, replacing incandescent and halogen technologies. Longer LED lamp lifetimes mean fewer replacement unit are required; additionally, LED integrated luminaires without replaceable lamps will start to gain traction. An exception will be for global LED lamp shipments, which will increase in terms of unit shipments from 1.3 billion in 2015 to 5.7 billion in 2023 (at a CAGR of just under 20%). 5

The History of the Term “ Internet of Things” Source: CABA Intelligent Buildings and the Impact of IoT 6

Internet of Things Hierarchy Source: CABA Intelligent Buildings and the Impact of IoT 7

Hierarchy of Connected Devices Source: CABA Intelligent Buildings and the Impact of IoT 8

Key Trends in IoT and Commercial Building Technology Markets Near-term effects of the sluggish global macroeconomic environment due to a slow housing market and constrained CapEx Development of appropriate business models (for each market subsector) Consumer acceptance and decreasing costs of connected devices IPV6 implementation Long-term evolution (LTE network upgrades) Advances in processor technologies. 9 Source: CABA Intelligent Buildings and the Impact of IoT

Smart lighting and connected lighting controls Industry-wide market trends Lighting in Internet of Things “LEDification” Energy savings Source: IHS Markit 10

Smart lighting and connected lighting controls Defining smart lighting and connected lighting controls Commercial Control panels Central controllers Connected ballasts and wireless adapters Connected switches Environmental / Light level sensors Occupancy sensors Keypad and HMI screens RF luminaires Residential Connected switches and keypads RF enabled LED lamps RF enabled LED luminaires RF enabled lamp and luminaire controllers Outdoor and street Segment controllers and gateways Connected luminaires Retrofit luminaire controllers 11 Source: IHS Markit

World Market for Connected Lighting Figure 1.7 presents an overview of the world market for connected lighting in commercial applications. The key points to note are: IHS estimates that the world market for connected lighting in commercial applications is forecast to be worth $4.1 billion in 2016. This figure excludes central controllers and gateways as gateways help “bridge” desperate systems or communication protocols but typically do not control a system. The construction market and economic conditions are perhaps the two most important factors for the market for smart lighting and lighting controls, particularly in commercial applications. EMEA leads the world in the deployment of connected street lights, with nearly half of the global spending, with Americas trailing slighting and Asia lagging current spending, although it is expected to make significant investments in the future. Source: CABA Intelligent Buildings and the Impact of IoT 12

Smart lighting and connected lighting controls 2015 2020 CAGR $1.1bn $4.0bn 30.5% Residential Source: IHS Markit 13

Smart lighting and connected lighting controls 2015 2020 CAGR $4.6bn $10.2bn 17.3% Commercial Source: IHS Markit 14

Smart lighting and connected lighting controls 2015 2020 CAGR $4.6bn $10.2bn 17.3% Commercial Residential $1.1bn $4.0bn 30.5% Outdoor and street $0.4bn $1.5bn 30.5% Source: IHS Markit 15

Smart lighting and connected lighting controls 2015 2020 CAGR $4.6bn $10.2bn 17.3% Commercial Source: IHS Markit 16

What is All This Stuff Going Source: CABA Intelligent Buildings and the Impact of IoT 17

Smart lighting and connected lighting controls Application specific market trends Legislation Building certifications Adoption of smart home Aesthetics and status Customer awareness and trust Adoption of smart cities Government initiatives IoT / Energy savings / LEDification 18 Source: IHS Markit

Opportunity Stretches Across Building Types & Systems Source: CABA Intelligent Buildings and the Impact of IoT 19

World's Greenest Office Building Is Dutch – The Edge 20

Connect to what’s next™ CONTACT CABA Continental Automated Buildings Association (CABA) 1173 Cyrville Road, Suite 210 Ottawa, ON K1J 7S6 613.686.1814 Toll free: 888.798.CABA (2222) Fax: 613.744.7833 caba@caba.org www.CABA.org www.twitter.com/caba_news www.linkedin.com/groups?gid=2121884 Connect to what’s next™ 21