Convergence - Status of the
World Market and Contrasts
with North America
Jeremy Towler
At LonMark Training
Session
31st January 2011
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Established as the global source for knowledge for the building industry, serving the whole
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More than 50 years of experience in independent , authoritative technical research, product
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Some 160 people with depth of expertise across all industry sectors and unique blend of
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North American Research
BSRIA Proplan have conducted regular
Intelligent Buildings market research for more
than a decade and in North America for over a
decade
Conducted CABA Market Sizing North
America 2009/10
– Sponsored by 26 leading organisations
– Many more submitted data.
– Encompassed: Environmental Controls -
Lighting Controls - Security Systems - Fire
Detection Systems - IT Convergence
Available to purchase
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World Study - (IT) Convergence in Buildings
Detailed Multi-client study 2010 covering world’s major and
emerging markets for BMS and IT Convergence - i.e.
Convergence of different systems over a common
communication platform
Benefits from ongoing research programme and our 2005 &
2009 studies of N.American Convergence market
Draws on status of Convergence in 12 of world’s most
important building markets, highlighting unique characteristics
of these, to report on 4 principal geographic regions, for each:
– What services are typically converged and to what extent
– If services on separate infrastructure or on the IT network (both
Ethernet)
– What is driving convergence?
– The barriers
– Who is driving it?
– The IT suppliers’ role in this market place
– Who undertakes the installation of the converged offerings
Word deliverable
Available to purchase
BMS structureIT network/
backbone
Network = Ethernet Cat 5/5e/6 and/or fibre
…the bringing together of autonomous systems onto a
common communication platform within the business
enterprise to create a single unified solution
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Integration and Convergence
IT-Networks
Technical Infrastructures (HVAC/Lighting/Security/Fire etc.).
IT-Convergen
ce
Integration
IT-Networks
Technical Infrastructures (HVAC/Lighting/Security/Fire etc.).
IT-Convergen
ceIT-Convergen
ce
IntegrationIntegration
Integration is to add value by joining
or linking different building service
products/applications
Network = Ethernet Cat 5/5e/6 and/or fibre
BMS StructureIT
Network/Backbone
• Convergence will ideally use a single network, a single
communications protocol and a single user-interface
• However, separate networks are often designed only
inked at the management level and in some cases at the
control layer.
• Data is transferred in both directions.
• Different levels of convergence.
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Development of Integrated Building
Management Systems (IBMS)
Integrate with sub-systems Integrate with other BAS
Integrate with other systems Integrate with other enterprises systems
Open Standards Enabling Convergence
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Market Size 2009
2%
Inte
gra
ted o
nly
21% 13%
BMS structureIT network/
backbone
8%
Converg
ed (
IT)
only
34% Integrated and
Converged56% = Stand-alone
Of total $20bn system market in North America (BMS, Security, Lighting control, Fire) alarm)
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BMS
$5.7 billion market
55% integrated and/or converged
– Of which 55% on separate BMS network (Ethernet), 45% linked to IT backbone
BMS suppliers and SIs install the BMS, lighting and often access controls
0% 5% 10% 15% 20% 25% 30% 35%
Metering
Lighting
Electrical mgt
CCTV
Access control
Intrusion
Audio and video
Fire and safety
Smoke extract
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Lighting
$900 million market
Limited integration and convergence (89% sold as stand-alone solutions)
Nearly all installed by BMS suppliers/SIs
Lighting is integrated with BMS solutions (63%) and access controls (16%)
0% 10% 20% 30% 40% 50% 60% 70%
BMS
Metering
Electrical mgt
Access control
Intrusion
Audio and video
Fire and safety
Smoke extract
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Security
$10 billion market
High integration and convergence of the three security products
Installed by CCTV, access controls and intrusion specialist installers,
but also BMS suppliers/SIs and IT SIs
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CCTV Access control Intrusion
CCTV Access control Intrusion Other
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Fire & Safety
$2.7 billion market of mainly sold alone solutions (88%)
Convergence negligible due to regulation, 11% of the market integrated
Mainly integrated with BMS (60%), access and audio
0% 10% 20% 30% 40% 50% 60% 70%
BMS
Metering
Lighting
Electrical mgt
CCTV
Access control
Intrusion
Audio and video
Smoke extract
En. Mgt Software
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Proportion Stand-alone vs. Integrated and
Converged
- Converged BMS
- Convergence IT
Integrated only
Stand alone
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 2012 2013
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Trends
Intelligence in buildings not a new topic, but now much greater attention to:
Energy usage
Increased building performance
Cost reduction
Increased efficiencies
Increased security
Increased safety
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Trends
Corporations increasingly taking centralised decisions - need more and better information
Government wants to reduce CO2 emissions and energy consumption
Technology advancements are key drivers e.g. IP, wireless, PoE
IT barriers (lack of bandwidth, security) eroding
Scope and expertise increasing, integration/convergence of products
A number of companies can now take on the role of Master SI (the outcome however still depending on the person in charge)
Data centres are becoming more intelligent
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Barriers
Resistance from FM and from IT to converge (stick to
own areas of expertise and competence)
Lack of training and skills
Construction process uses traditional route with main
contractor and sub-contractors
Long-term outsourcing contracts
Historic objections relating to the IT infrastructure e.g.
security, downtime, bandwidth
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How Quickly will Integration Grow?N
um
be
r o
f P
roje
cts
Time
Hurdles:
• Too much
customization
• Lack of standard
applications
• Ability to demonstrate
and convince the
clients on ROI
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Drivers convergence
Energy and building performance
Energy savings and efficiency
Improve building performance (better decisions)
Reduce maintenance costs
Increase the value of the building/rental revenues
Security
Higher level of security (physical
and IT security converged)
Efficient data sharing
Remote access
Bandwidth and storage
optimisation
Access cards a requirement
Link data sharing between
departments (e.g. ANPR +
Parking + AC + HR + Payroll +
Cashless payment)
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Drivers – uptake of IP products
Penetration of IP, 2009, % share by volume
0% 10% 20% 30% 40% 50% 60% 70%
BMS
Lighting (controls)
CCTV
Access control
Intrusion
Fire and safety
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Who is driving convergence?
BMS
IT
Security
• Ubiquitous Ethernet in large building projects
enables majority to be converged at
management level
• But IT Convergence not perceived a benefit by
many BMS suppliers
• IT suppliers keen to drive IT convergence
• Cisco: Sales of hardware (switches) and Mediator
• IBM: software, consultancy and Master SI
• Oracle, HP, Plexus etc. offer software/advice
• Raised security- linking access requests and
intrusion with video
• Cost reduction and efficiency improvement
• Enabled by IT (hardware, cabling suppliers /
channel)
• Security SI/installers high end drive it
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Who is driving convergence?
Energy
rating
schemes
Political/
economic
factors
End-users
• Most converged buildings in US are
LEED silver/gold/platinum accredited
• Buildings consume 70% of electricity
and 40% of primary energy
• International pressure to reduce CO2
• Government stimulus
• Pressure from society / corporate social
responsibility for green profile
• Reduce energy costs
• Improve building performance and
management
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Key Players
Honeywell is big in integrated Building Management
Systems (IBMS) market
JCI and Siemens also prominent
Main companies driving convergence are the IT players
– Cisco works on the top layer with Mediator system
– IBM
– Wipro is active on the control layer
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Convergence – Status Quo
Feedback from some major systems integrators (SI’s)
suggests convergence still not very clear at the moment
Some pilot projects being executed but little concrete data
to quantify convergence at present
Frequency of convergence highest in IT/ ITES, Pharma,
High-end Residential, Industries (manufacturing) Airports,
other transport buildings and hotels
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Barriers
Design: Putting multiple systems on IP
Execution: Expertise in putting the systems together
Price is holding back investment
Bandwidth often perceived a major issue for joining IT + FM
End-users having multiple decision points (cost/benefit/ROI)
Consultants staying in comfort zone / lack of knowledge
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Further Comments on Integration/
Convergence
Integration growing at a rapid rate as customers want
simplified systems and to manage buildings from a remote
location
Convergence is low but will grow as India is an IT savvy
country and new technology acceptance is high - Customers
prefer installing latest systems, no longer legacy systems
IT software companies driving the convergence market -
acting as super system integrator and providing consulting to
deliver end-to-end solutions
System Integrators argue that the IT systems are ready to
absorb the bandwidth issues and make systems work
efficiently
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Further Comments on Integration/
Convergence
In video surveillance & access control IP is taking over
Datacenters look for integration and convergence +
Green Building management layer
Open protocols are becoming the norm:
– LonWorks and BACnet are preferred option in India
– ModBus popularity rising
Consultants are key – majority of building projects are
driven by them in the Indian market:
– Play a major role in new projects
– Old projects are mainly done by the existing vendors.
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Pressure to cut energy consumption (example UK)
The UK is committed to a 20% reduction in CO2 emissions by 2020 compared to 1990 levels. The CRC is being administered by the Environment Agency
The buildings we work in account for nearly a fifth of the UK’s total carbon emissions.
Large organisations that have used more than 6,000 MWh of electricity in 2008 (roughly equating to £500K spend) will have to purchase and surrender allowances each year to cover their CO2 emissions
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Overview UK
The most advanced market in Europe is the UK with a
number of large projects over the last 5 years
Retail: Westfield Shopping Centre, London and Stratford
(planned), Union Square, Leeds Trinity, Highcross
Leicester
Sports facilities: Ascot Racecourse, Twickenham, football
stadiums
Education: Bristol university, University of Sussex
Health: Hammersmith hospital
Finance and professional services: Bank of England,
Deloitte
Data centres
A number of players are active in this space.
– e.g. Arup, CDC, Bailey, Dimension Data, Redstone,
Honeywell etc.
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Continental Europe (not UK)
Few new build projects with different levels of
integration and convergence
Awareness and uptake relatively low
The norm is separate networks for IT & security
and HVAC services – no communication
between the networks
Germany most advanced in Continental EU for
energy management and building integration
BMS suppliers increasingly add lighting
controls and blinds controls to the HVAC
services offered, but not IT and security
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Typical services included in
new build vs. retrofit
New Build
HVAC (+ energy
management/metering)
CCTV
Access controls
Water metering
Lighting (increasingly)
Audio & video
Access tracking (retail)
Fire, life and safety systems
Retrofit
CCTV
Access control
Most projects are new build
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Key factors in convergence project
The consultant/SI needs to be involved from the
beginning to spec the IT requirement and scope
Holistic approach
Right procurement route
See IT broadly – IT is a business tool/service
Often gap exists between concept and finale
deliverables.
– The project/investment is not necessarily cheaper (only
the cabling part)
– but potential saving because of better coordination
– Savings on operational cost
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Integration and
Convergence
Benefits
• Prolong lifespan of investments
• Optimise occupancy rates
• Informed building management &
investment decisions (which
buildings to use)
• Reduce utility costs over time
• Manage choice of energy suppliers
• Improve productivity and working
practises
• Customer attraction - satisfaction -
retention
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BSRIA Contact Information
Jeremy Towler
Principal Consultant
Intelligent Building Technology
BSRIA HQ
Old Bracknell Lane West
Bracknell - RG12 7AH
England - UK
[+ 44] 1344 465 573
www.bsria.co.uk
Alex Detre
VP Business Development
BSRIA North America
Ottawa, ON
Phone 613.218.8849