1. ©2015 Continental Automated Buildings Association (CABA). Notice: No material in this publication may be reproduced, stored in a retrieval system, or transmitted by any means, in whole or in part, without the express written permission of CABA. INTELLIGENT BUILDINGS AND BIG DATA CONTINENTAL AUTOMATED BUILDINGS ASSOCIATION (CABA) GREG WALKER, RESEARCH DIRECTOR RON ZIMMER, PRESIDENT & CEO

2. 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. 2

3. Overview of CABA

4. » 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 www.caba.org About CABA ©2015 Continental Automated Buildings Association. All rights reserved. 4

5. CABA Board of Directors ©2015 Continental Automated Buildings Association. All rights reserved. 5

6. “CABA accelerates growth in the connected home and intelligent buildings sectors.” CABA Vision ©2015 Continental Automated Buildings Association. All rights reserved. 6

7. What are Intelligent Buildings 7 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 Breakdown Maintenance Traffic Performance SECURITY Doors PIR Integration LIGHTING Schedules Occupancy Sensing W G E COMMUNICATIONS Voice/Video/Data

8. Size of the Market

9. “Intelligent Buildings Market Sizing North America” Research ©2015 Continental Automated Buildings Association. All rights reserved. 9

10. Non-Residential Building Stock – North America (USA & Canada) ©2015 Continental Automated Buildings Association. All rights reserved. 10 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. TOTAL 6.5 Million Buildings

11. BACS and Fire are mature markets Lighting Controls market smallest but booming Security systems market growing strongly – led by CCTV Total Market Size ©2015 Continental Automated Buildings Association. All rights reserved. 11 Source: Market Sizing for North America – Intelligent Buildings

12. » 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) Trends and Drivers 12

13. 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 Trends and Drivers ©2015 Continental Automated Buildings Association. All rights reserved. 13 American Society of Heating, Refrigerating and Air-Conditioning Engineers U.S. Department of Energy U.S. Green Building Council

14. 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 Trends and Drivers 14 Source: International Association of Fire and Rescue Services, and BSRIA

15. Trends and Drivers ©2015 Continental Automated Buildings Association. All rights reserved. 15 Source: International Association of Fire and Rescue Services, and BSRIA

16. Trends and Drivers Source: International Association of Fire and Rescue Services, and BSRIA

17. IT/Horizontal Convergence 17 Source: International Association of Fire and Rescue Services, and BSRIA

18. 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. Services Converged and Integrated 18 Source: International Association of Fire and Rescue Services, and BSRIA

19. Big Data and Intelligent Buildings

20. » 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 ended February, 2015 About this Project 20

21. Sponsors ©2015 Continental Automated Buildings Association. All rights reserved. 21 Emerald Sponsors Diamond Sponsors

22. Sponsors Cont’d. ©2015 Continental Automated Buildings Association. All rights reserved. 22 Ruby Sponsors

23. » 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? Purpose of Project ©2015 Continental Automated Buildings Association. All rights reserved. 23

24. Research Methodology ©2015 Continental Automated Buildings Association. All rights reserved. 24 INFORMATION COLLECTION Supply Side Demand Side MARKET ANALYSIS Primary ResearchSecondary 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 QualitativeQuantitative 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

25. » 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 Defining Big Data in Intelligent Buildings ©2015 Continental Automated Buildings Association. All rights reserved. 25

26. » Most decision makers do not know how to define big data or understand the potential benefits Survey Findings 26 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)

27. » Survey respondents were primarily concerned with cost Survey Findings 27 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)

28. » Security and privacy are the biggest issues Survey Findings 28 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)

29. » 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. Major Findings ©2015 Continental Automated Buildings Association. All rights reserved. 29

30. » 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. Major Findings ©2015 Continental Automated Buildings Association. All rights reserved. 30

31. Big Data in Intelligent Buildings Market ©2015 Continental Automated Buildings Association. All rights reserved. 31 Big Data in Intelligent Buildings Revenue, North America: 2015-2020 $512 $171

32. A Half a Billion Dollar Market, So What? ©2015 Continental Automated Buildings Association. All rights reserved. 32 $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? Getting to Big Data in Intelligent Buildings

33. » The supply side of the market is ahead of the curve » Only innovative customers have adopted the solutions entering the market Market Dynamics: What needs to change? 33 Market Dynamics for Big Data in Intelligent Buildings Bridge the Gap

34. » Most decision makers do not know how to define big data or understand the potential benefits Market Maturity: How Can Provider Prepare 34 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) Time to Educate

35. » Big data analytics is an extension of the analytics that have brought new insight to investment and operational management changes Big Data Solutions: What are the Solutions? 35 Big Data Solution Offerings for Intelligent Buildings Build Off Smart Solutions

36. » Next-generation offerings provide the most sophisticated analytics to deliver insight and direct action Solutions Offerings: How will Big Data become part of the Intelligent Building? ©2015 Continental Automated Buildings Association. All rights reserved. 36 Big Data Solutions and the Convergence of Facilities, Business, and Energy Management Create Roadmaps

37. » 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 Business Case: How will Big Data Change Intelligent Buildings? 37 Clarify the Message

38. » 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 Role of Big Data in Energy Efficiency: How will Big Data Change Intelligent Buildings? 38 Create Actionable Solutions

39. Value Propositions for Big Data Adoption: How will Big Data Change Intelligent Buildings? ©2015 Continental Automated Buildings Association. All rights reserved. 39 Customer Value Propositions for Big Data Solution Offerings Customize the Message

40. » 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 Case Study: Eco Opera ©2015 Continental Automated Buildings Association. All rights reserved. 40 Vancouver Coastal Health Authority

41. » 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: Schneider Electric ©2015 Continental Automated Buildings Association. All rights reserved. 41 Seneca Manufacturing Facility

42. Key Take-Aways ©2015 Continental Automated Buildings Association. All rights reserved. 42 Bridge the Gap Customize the Message Create Actionable Solutions Clarify the Message Create Roadmaps Build Off Smart Solutions Time to Educate Engage the Early Adopters Develop Market Awareness Start with Intelligent Solutions in the Market Today Illustrate the Process Focus on the Evolution of the Task at Hand Address Specific Customer Challenges Address Segment-Specific Pain Point

43. Summary and Future for Buildings

44. Global IoT Market is Poised for Explosive Growth 44 Source: Jabil, www.jabil.com

45. The Internet of Everything ©2015 Continental Automated Buildings Association. All rights reserved. 45

46. CABA’s Connected Consumer Roadmap: Driven by the Internet of Things ©2015 Continental Automated Buildings Association. All rights reserved. 46 CURRENT SPONSORS

47. Zero Net Energy Buildings: Building Intelligent Controls Driving Success ©2015 Continental Automated Buildings Association. All rights reserved. 47 CURRENT SPONSORS

48. » This research project will provide a detailed look at: the state of the cybersecurity and intelligent buildings industry, how to prevent cybersecurity attacks, how to deal with and manage cybersecurity attacks, the future direction of cybersecurity in intelligent buildings and specific recommendations going forward. A number of industry expert interviews and stakeholder surveys will be conducted in this large comprehensive research project. New CABA Landmark Research “Intelligent Buildings and Cybersecurity” ©2015 Continental Automated Buildings Association. All rights reserved. 48

49. Next Steps and Contact Information ©2015 Continental Automated Buildings Association. All rights reserved. 49 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 Greg Walker, CABA Research Director Email: walker@caba.orgwalker@caba.org Phone: 613.686.1814 x227 Ron Zimmer, CABA President & CEO Email: zimmer@caba.orgzimmer@caba.org Phone: 613.686.1814 x230