Intelligent Buildings: Big Data and Trends in Market Size Continental Automated Buildings Association (CABA) RaWLSON O’Neil KING, COMMUNICATIONS DIRECTOR

Presentation Overview Section 1 » Overview of CABA Section 2 » Size of the Market Section 3 » Big Data and Intelligent Buildings Section 4 » Summary and Future for Buildings ©2015 Continental Automated Buildings Association. All rights reserved.

overview of CABA

About CABA The Continental Automated Buildings Association (CABA) is an international not-for profit industry association dedicated to the advancement of connected home and building technologies. The organization is supported by an international membership of over 300 organizations involved in the design, manufacturing, installation and retailing of products relating to the Internet of Things for connected homes and intelligent buildings. www.caba.org ©2015 Continental Automated Buildings Association. All rights reserved.

“CABA accelerates growth in the connected home CABA Vision “CABA accelerates growth in the connected home and intelligent buildings sectors.” ©2015 Continental Automated Buildings Association. All rights reserved.

What are Intelligent Buildings 24/7 Monitoring Breakdown Plant Tuning Conditioned Monitoring Car Park Utilisation FIRE Functionality checks Detector service Fire, Life, Safety ACCESS Doors Buildings Occupancy Feed Forward ENERGY Utility Monitoring (Elec/Water/Gas/Oil) Tenant Building Air/Water Heat Lighting Back-up Generation HVAC Air-Handling Unit Boilers Pumps Fans Energy Control Variable Air Volume Air Quality LIFTS Maintenance Traffic Performance SECURITY PIR Integration LIGHTING Schedules Occupancy Sensing W G E COMMUNICATIONS Voice/Video/Data ©2015 Continental Automated Buildings Association. All rights reserved.

Size of the Market

“Intelligent Buildings Market Sizing North America” Research ©2015 Continental Automated Buildings Association. All rights reserved.

Non-Residential Building Stock – North America (USA & Canada) TOTAL 6.5 Million Buildings Source: Various including U.S. Energy Information Administration, National Resources Canada, US DOE, Department of Defense Base Structure Report FY 2009 Baseline (Note: Excludes 26% Department of Defense buildings Which are used for housing, or troop housing and mess facilities), and BSRIA estimates. ©2015 Continental Automated Buildings Association. All rights reserved.

Total Market Size BACS and Fire are mature markets Lighting Controls market smallest but booming Security systems market growing strongly – led by CCTV Source: Market Sizing for North America – Intelligent Buildings ©2015 Continental Automated Buildings Association. All rights reserved.

Uptake of Building Energy Management Systems (BEMS) Trends and Drivers Uptake of Building Energy Management Systems (BEMS) Uptake of energy usage data analytics and ‘Big Data’ Concerns about energy efficiency Legislative requirements (e.g. Indoor Air Quality Standard) Uptake of ‘Internet of Things’ Cyber security Connectivity and interoperability between BACS and other systems Impact of Automated Demand Response (ADR) ©2015 Continental Automated Buildings Association. All rights reserved.

Market Drivers for Lighting Controls include: Trends and Drivers Market Drivers for Lighting Controls include: Need to reduce energy costs Necessity to comply with energy codes Need to promote sustainability Need to increase occupant comfort and productivity U.S. Green Building Council U.S. Department of Energy American Society of Heating, Refrigerating and Air-Conditioning Engineers ©2015 Continental Automated Buildings Association. All rights reserved.

1. Fire codes and Regulations Trends and Drivers 1. Fire codes and Regulations Process required to meet codes demands time and money. Militates against change. Implementation varies from state to state and from city to city. This encourages a fragmented services sector 2. Maintenance/Testing worth more than the product 3. The USA is about average in terms of fire deaths in advanced countries Figures coming down, but gradually Room for improvement 4. When construction is depressed, retrofit gains importance. 5. Some trend to integration with other key systems, e.g. security Vital not to compromise integrity of fire systems Source: International Association of Fire and Rescue Services, and BSRIA ©2015 Continental Automated Buildings Association. All rights reserved.

Trends and Drivers Source: International Association of Fire and Rescue Services, and BSRIA ©2015 Continental Automated Buildings Association. All rights reserved.

Trends and Drivers Source: International Association of Fire and Rescue Services, and BSRIA ©2015 Continental Automated Buildings Association. All rights reserved.

IT/Horizontal Convergence Source: International Association of Fire and Rescue Services, and BSRIA ©2015 Continental Automated Buildings Association. All rights reserved.

Services Converged and Integrated 1. Products integrated and converged will be IP - some IP products are installed as stand-alone systems. 2. Applications integrated / converged with BACS are energy management, demand response, sub-metering, lighting controls and security. 3. Lighting controls typically integrated or converged with building automation/HVAC controls. 4. Most security products integrated / converged with other security products - but only small proportion with BACS. 5. Fire and alarm detection systems are typically integrated with smoke detection/extraction, security or BACS. Source: International Association of Fire and Rescue Services, and BSRIA ©2015 Continental Automated Buildings Association. All rights reserved.

Big data and intelligent buildings

Project kicked off August, 2014 and wrapped in February, 2015 About this Project CABA commissioned Navigant Research to lead this study with a collaborative framework that engaged sponsors from a cross-section of building technology solution providers. Research Objective: Examine new tools and resources emerging in the market to help companies filter, analyze, and use Big Data collected from their intelligent and integrated buildings. Project kicked off August, 2014 and wrapped in February, 2015 ©2015 Continental Automated Buildings Association. All rights reserved.

Diamond Sponsors Emerald Sponsors Sponsors ©2015 Continental Automated Buildings Association. All rights reserved.

Ruby Sponsors Sponsors Cont’d. ©2015 Continental Automated Buildings Association. All rights reserved.

Purpose of Project Big Data has the potential to have a profound impact on intelligent buildings What is Big Data with regards to intelligent buildings? What do customers think? How big of a market will this be? What are the opportunities? What is really happening in the market? ©2015 Continental Automated Buildings Association. All rights reserved.

INFORMATION COLLECTION Research Methodology INFORMATION COLLECTION Primary Research Secondary Research Executive Interviews Vendor Briefings Product Demos and Tours Company News & Financials Technology & Product Specs Government Data Economic, Demographic Data Consumer Surveys Business Leader Surveys Case Studies Reference Customers Supply Side Demand Side MARKET ANALYSIS Qualitative Quantitative Business Models & Trends Technology Issues Policy & Regulatory Factors Competitive Landscape Profiles of Key Players Market Sizing Segmentation by Technology, Geography, Application, etc. Market Share Analysis Forecasts by Segment ©2015 Continental Automated Buildings Association. All rights reserved.

Defining Big Data in Intelligent Buildings Big data in intelligent buildings is defined as: The next generation in business and operational intelligence derived from the analysis of data integrated across multiple streams or sources for the purposes of overall system understanding, performance, and optimization The term big data encompasses both the solution architecture and associated analytics ©2015 Continental Automated Buildings Association. All rights reserved.

Survey Findings Most decision makers do not know how to define big data or understand the potential benefits On a scale of 1 to 5, where 1 is not knowledgeable at all and 5 is extremely knowledgeable, how do you rate your knowledge about the concept of big data and the application of big data to buildings? (n=400) ©2015 Continental Automated Buildings Association. All rights reserved.

Survey respondents were primarily concerned with cost Survey Findings Survey respondents were primarily concerned with cost On a scale of 1 to 5 where 1 is not important at all and 5 is extremely important, please rate how important the following factors are when making improvements to your building. (n=400) ©2015 Continental Automated Buildings Association. All rights reserved.

Security and privacy are the biggest issues Survey Findings Security and privacy are the biggest issues On a scale of 1 to 5, where 1 is not concerned at all and 5 is extremely concerned, how concerned are you about the following issues as it relates to data collected in your building? (n=400, 1 is not important at all and 5 is extremely important) ©2015 Continental Automated Buildings Association. All rights reserved.

Market for big data in intelligent buildings is nascent Major Findings Big data in intelligent buildings represents a pinnacle in energy and operational management Market for big data in intelligent buildings is nascent Chasm between the technology and end-user readiness for big data in intelligent buildings Customers prioritize investment on the economic impacts over all other benefits. The majority of decision makers in the intelligent buildings market do not know how to define big data or understand the potential benefits of these new solutions. ©2015 Continental Automated Buildings Association. All rights reserved.

Major Findings Data security is a major concern for customers, and technology providers have an opportunity to demonstrate how standards and procedures can protect businesses investing in big data solutions. Those interested in big data require transparency in the ROI of building and operational improvements. There is a lot of low-hanging fruit in building and operational improvements – many customers can still benefit from periodic reporting and analytics on existing building systems, and, as a result, many customers are not ready to adopt fully integrated big data solutions. ©2015 Continental Automated Buildings Association. All rights reserved.

Big Data in Intelligent Buildings Market Big Data in Intelligent Buildings Revenue, North America: 2015-2020 $512 $171 ©2015 Continental Automated Buildings Association. All rights reserved.

A Half a Billion Dollar Market, So What? Getting to Big Data in Intelligent Buildings $512 million dollars in 2020? What needs to change to make this forecast a reality? How can big data solution providers prepare? What are the solutions that are going to generate this kind of revenue? How will Big Data Become a Part of the Intelligent Building? How will Big Data change Intelligent Buildings? ©2015 Continental Automated Buildings Association. All rights reserved.

Market Dynamics: What needs to change? The supply side of the market is ahead of the curve Only innovative customers have adopted the solutions entering the market Market Dynamics for Big Data in Intelligent Buildings Bridge the Gap ©2015 Continental Automated Buildings Association. All rights reserved.

Market Maturity: How Can Provider Prepare Most decision makers do not know how to define big data or understand the potential benefits Time to Educate On a scale of 1 to 5, where 1 is not knowledgeable at all and 5 is extremely knowledgeable, how do you rate your knowledge about the concept of big data and the application of big data to buildings? (n=400) ©2015 Continental Automated Buildings Association. All rights reserved.

Big Data Solutions: What are the Solutions? Big data analytics is an extension of the analytics that have brought new insight to investment and operational management changes Big Data Solution Offerings for Intelligent Buildings Build Off Smart Solutions ©2015 Continental Automated Buildings Association. All rights reserved.

Solutions Offerings: How will Big Data become part of the Intelligent Building? Next-generation offerings provide the most sophisticated analytics to deliver insight and direct action Big Data Solutions and the Convergence of Facilities, Business, and Energy Management Create Roadmaps ©2015 Continental Automated Buildings Association. All rights reserved.

Business Case: How will Big Data Change Intelligent Buildings? Big data solutions change the paradigm for managing: Facilities Energy consumption Business operations Solutions are shifting the architecture of building systems More distributed platform with hybrid and predictive control Based on multiple inputs and outputs from multiple systems Clarify the Message ©2015 Continental Automated Buildings Association. All rights reserved.

Create Actionable Solutions Role of Big Data in Energy Efficiency: How will Big Data Change Intelligent Buildings? A big data solution for energy efficiency must provide continuous tracking and benchmarking Building profiles must be up to date A buildings’ physical systems evolve and external factors like weather and utility prices change Constantly maintaining this data allows for a complete understanding of the impact of energy efficiency upgrades Also allows for an assessment of which future improvements will yield the best results Create Actionable Solutions ©2015 Continental Automated Buildings Association. All rights reserved.

Customer Value Propositions for Big Data Solution Offerings Value Propositions for Big Data Adoption: How will Big Data Change Intelligent Buildings? Customize the Message Customer Value Propositions for Big Data Solution Offerings ©2015 Continental Automated Buildings Association. All rights reserved.

Vancouver Coastal Health Authority Case Study: Eco Opera Showcases the benefits of the Eco Opera’s EcoCEO platform to optimize the building systems operation process Combination of ongoing commissioning and a performance measurement and verification (M&V) process Weekly reports for systems performance validation and/or systems fault detection Monthly reports offering detailed trend analysis Time-balanced commitment 5-minute review of the weekly reports 1-hour review of the monthly reports Vancouver Coastal Health Authority ©2015 Continental Automated Buildings Association. All rights reserved.

Seneca Manufacturing Facility: Schneider Electric Showcases Schneider Electric’s Building Analytics service to diagnose system inefficiencies, save energy, and cut costs Building Analytics service automatically analyzed the plant’s performance, comfort levels, energy, and maintenance Pre-designed daily diagnostic reports A complete ROI is typically achieved within 18 months using the service Seneca Manufacturing Facility ©2015 Continental Automated Buildings Association. All rights reserved.

Build Off Smart Solutions Create Actionable Solutions Key Take-Aways Bridge the Gap Time to Educate Build Off Smart Solutions Create Roadmaps Engage the Early Adopters Develop Market Awareness Start with Intelligent Solutions in the Market Today Illustrate the Process Clarify the Message Create Actionable Solutions Customize the Message Focus on the Evolution of the Task at Hand Address Specific Customer Challenges Address Segment-Specific Pain Point ©2015 Continental Automated Buildings Association. All rights reserved.

Summary and future of buildings

Global IoT Market is Poised for Explosive Growth Source: Jabil, www.jabil.com ©2015 Continental Automated Buildings Association. All rights reserved.

The Internet of Everything ©2015 Continental Automated Buildings Association. All rights reserved.

Contact Information Continental Automated Buildings Association (CABA) 1173 Cyrville Road, Suite 210 Ottawa, ON K1J 7S6 Toll free: 888.798.CABA (2222) CABA@CABA.org http://www.CABA.org Rawlson O’Neil King, CABA Communications Director Email: king@caba.org Phone: 613.686.1814 x225 ©2015 Continental Automated Buildings Association. All rights reserved.