13:45 Convergence – IoT in commercial buildingsLone Hansen, BSRIA

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Convergence – IoT in Commercial Buildings

Lone HansenSenior Manager

IT Cabling, BACS & Associated Technologies

Smart Building ShowLondon 8th of November, 2018

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Agenda

• Convergence – IoT in Commercial buildings

• Drivers for growth

• Obstacles and barriers

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Expected growth in IoT

Gartner estimates that 20 billion Internet of Things (IoT) devices will be connected by 2020 of which 63% is related to consumer.

Source: Gartner

McKinsey estimates the IoT market in 2020 will be worth $581bn for ICT based spending alone.

IoT market to reach $267bn by 2020.Source: Boston Consulting Group

Smart Cities, connected industry and connected buildings are the top three IoTprojects in progress.

Source: IoT Analytics

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Building Services in Commercial buildings

Mechanical & Electrical Services

• Building automation and controls

• HVAC• Infrastructure/network• Security• Lighting• Fire safety• Parking• Lifts & Elevators• AV, digital signage, room

booking etc.

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Converged network

• xxxx

HVAC Security & Access

Supervisory Controller

Water Management

Audio Visual Lifts

Lighting EnergyFire Life Safety

Landscaping irrigation

Digital Signage

Voice & Data

Data Normalisation

Network Security

Standard, Secure Enterprise IP Network (Structured & Wireless)

DISPARATE BUILDING SYSTEMS

THIRD PARTY APPS & SERVICES

Demand response, outsourcing of services

Data Analytics Reporting

Business Process

Automation

• Many devices today are IP and a growing number are connected to one to a physical network

• Some verticals integrate all services on the network• Other verticals keep Data & Security separate from

Facilities• Smart HVAC, connection to Cloud

Parking

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Data, WAPs and IoTOutlets/nodes/links, Data, WAPs and IoT, US, million units, 2015 – 2021

Source: Convergence and Digitalisation of buildings, US. May 2017

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Data, WAPs and IoTData, WAPs, IoT and total outlets/links, growth rates, US 2015 - 2021

Source: Convergence and Digitalisation of buildings, US. May 2017

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IoT, US million units/connections, 2015 - 2021

• IoT increasing by 20-25% per year from 2018

• Growth from a low base

• New connections/drops not retrofit

Source: BSRIA survey and modelling May 2017

Other: Lighting, digital signage, point of sales/card readers, white boards, smoke detection, room booking, blinds

www.bsria.co.uk11/27/18 NBASE-T AllianceSM © 2018 10

• Surveillance cameras- networked/IP- large share is retrofit (network not upgraded)

• Access control- networked/IP

• Intruder alarms/detection- networked/IP

Security

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BACS

• Est. value USD 7 bn.

• Moderate growth for controllers and field devices

• Significant growth expected for software

• Most BACS are HVAC only. ~10% integrate other productsHardware

Software

Field devicesControllers

USD million

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BACS Market tends to grow exponentially with GDP

• BACS spending follows economic growth

• Some BACS markets (e.g. India and Brazil are less developed than they could be based on GDP

• Others, Japan, UK Germany are more mature.

Source: BSRIA World BACS Study 2017

United States

China

Japan

GermanyUnited Kingdom

France

India

Italy

Brazil

Russia

South Korea

Spain

Australia

Mexico

NetherlandsTurkey

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000$0

$1

$10

$100

Average GDP per Capita (USD)

Spen

d on

BAC

S -p

er C

apita

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Trends in BACS

Intelligent field devices/ Smart HVAC o Built-in controlso Built-in sensors

Software (no need for hardware, low cost upgrades!)

More intelligent controllers- No need for gateways

Artificial intelligence - Predict and prevent

Wireless technologies

Individual usercontrol

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Convergence – Verticals

• Transport

• Retail

• Hotels

• Education

• Healthcare

• Mixed use

• High-end offices

• Data centres

• Manufacturing

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Drivers

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Looking for opportunities

11/27/18 NBASE-T AllianceSM © 2018 16

• Commoditisation

• Acquisitions & mergers

• Future growth – looking at new revenues

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Uptake IP – field and room controllers

• IP enabled field controllers continue to increase

• Just over half are IP

IP

Non-IP

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Cloud

• The majority of software is still install on premises

• Cloud based software is small but increasing

• SaaS – offered by some suppliers

Cloud based software

5% SaaS (Cloud based subscription

model)2%

Non-cloud based software installed

on premisses93%

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Energy uses

12

13

14

15

16

17

18

19

48

19

51

19

54

19

57

19

61

19

64

19

67

19

70

19

74

19

77

19

80

19

83

19

87

19

90

19

93

19

96

20

00

20

03

20

06

20

09

20

13

20

16

12 M

onth

Ave

rage

Max

imum

Tem

pera

ture

Average Maximum Temperatures at Heathrow 1948 - 2018

Catering

3%

Computing

21%

Cooling and

Ventilation

12%

Hot Water

5%

Heating

41%

Lighting

9%

Other

9%

Energy usage in UK offices, 2017

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Focus on Comfort and Personalisation

• Most cost related to employees cost

• A small proportion to rental cost

• Cost related to energy is minimal

Source: UK Green Building Council

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Off site Monitoring & Maintenance

…..Continuous Monitoring…..

IP con-nectionPredictive

Analytics

Fault Report

Performance Data

Preventative Maintenance

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FM – Outsourcing

• Most FM companies follow traditional model

• Some are innovative – new business models

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Residential 64%

Non Residential

36%

Smart Homes Appeals to Light Commercial

Source: BSRIASource: EiA

Commercial buildings by number of workers (main shift), US

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Alliances and partnerships

• BACS/BEMS

• Controls

• FMS• Communication

• Microgeneration

• HVAC• Renewables

• Energy storage

• Connectivity

• Demand/response

• Smart metering

• Data analytics

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Younger generation

Voice control

Quick

Smart products

Shopping

Mobility & apps

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Agenda

• Obstacles and Barriers

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Too many protocols and standards

• Most products are connectable, but need interfaces and drivers

• Few platforms (if any) available that integrate all products and services without hassle!

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Old buildings and networks

Number of commercial buildings by age in USA (year constructed), in thousands

Source: EIA

The age of the cabling systems?

BSRIA Survey, US 2016. Q7: How old are your originally installed cabling systems?

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Construction practice

• Main contractors are cost focused

• Value added engineering is removed

Developer/client

Consultants/ Engineers

Architect Mechanical/ Plumbing

Specialist

Specialist

Electrical

Main Contractor

Sub-contractor Sub-contractor

Sub-sub-contractor

Sub-sub-contractor

Sub-sub-contractor

Sub-contractor

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Many stakeholders

Design

Build

Operation

Repair

Renovate

New construction marketRetrofit market

Designers/Architects/ Consultants

End client/Owner/Developer

Contractors/ Sub- Contractors

System Integrators

Contractors

FM

ESCo.

End client/ Owner/Occupier

End client/Owner/ Occupier/FM/ESCO

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“We sometimes incorporate the BMS within our smart building packages. There is massive change going on in the BMS market as they are dragged kicking and screaming into the world of IP convergence”.

Source: SI London (Dec. 2017)

“50-60% of our structured cabling projects include WAPs and security,

mostly surveillance cameras”.

Source: Key channel player UK, Jan. 2018

Education, training & attitude

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Conclusions

• An increasing number of devices are intelligent and IP connected

• New players are entering the “building” market

• Convergence – IoT is happening, but NOT at speed

The Surface is fairly calm…..

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Thank you

Lone HansenManager – IT Cabling, BACS & Associated Technologies Worldwide Market Intelligence

Old Bracknell Lane West, Bracknell, Berkshire RG12 7AHD : +44 (0)1344 465643 M : +44 (0)7725 278 639

E : loneh@bsria.co.uk W : www.bsria.co.uk