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Market Sizing Study

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  • A consultancy, test and research organisation
    Work with construction and building services companies and their clients
    A not-for-profit, member-based association - clients can be assured of our independent approach and authoritative reputation
    Any profits made are invested in our on-going research programme, producing industry recognised best practice guidance.
    Founded in 1955
    Turnover of £10 million in 2007/8
    160 employees at our head office in Bracknell (UK) as well as regionally based air tightness testers in the UK and offices in China, Germany, France, and Spain.
  • This slide simply introduces BSRIA Worldwide Market Intelligence Division (WMI).
    The two main areas are on the left:
    Heating and Renewables
    Air conditioning, Building Controls, Refrigeration
    In recent years we have seen these areas coming together
  • Proplan set up by Allan McHale (circled in red) – 1983
    In last decade, expanded range of subjects covered and geography
    A number of you may know the i&i directors (circled in blue), all specialists in intelligence in buildings:
    - Alan Kell
    - Peter Colebrook
    - Allan McHale
    This picture shows the acquisition signing ceremony between BSRIA and i&i
  • The proposal is to address 7 principal areas representing the main technical infrastructures that comprise Intelligent and Integrated Technologies in buildings, as well as their increasing convergence into the building’s IT infrastructure
    BSRIA has extensive experience in this field as demonstrated by the following slides
  • Firstly, we believe we are the right choice for this project because of our track record of broad and extensive subject experience, in particular in:
    Controls
    Fire
    Security
    Other related subjects
  • We report on markets around the globe
    Proplan has reported on the North American market on 3 occasions (1998, 2000, 2005)
    In 2006 we also produced a North American IT-Convergence study:
    Investigations and case studies showed that at the time the market was very under-developed
    Yet enormous potential
    BSRIA has reported on the North American market on 2 occasions (2007 - Controls, 2008 Security Systems)
    In addition to this, we have carried out ad-hoc private client research here for example in the area of very early warning fire detection.
  • Our regular clients are amongst the global leaders in these industries
    Many of these relationships span several decades
    The Project Director and other members of this research team have been employees of some of them, e.g. - Honeywell - Siemens- JCI
    But not only are they clients, they are active research participants
  • This research will follow the same approach as our previous IN-DEPTH studies
    It will use F2F and telephone interviews to gather primarily QUANTITATIVE info
     supplemented by supportive QUALITATIVE info to give meaning to the data
    It will seek to size the market by VALUE
     And SEGMENT by relevant criteria
  • We will seek the support of a representative sample:
    e.g. large organizations / opinion leaders
    We will have 4-5 expert researchers covering the 7 subjects
    20-30 interviews/subject o/w 10-15 F2F
  • What sets us apart from our competition is our sophisticated, highly detailed model
    Refined over 20 years or more
    An extensive historical database
    The model BALANCES: Sales, market shares, routes to market, value add proportions, growth
    In-depth PRODUCT + END USER segmentation
    Maintained structure OVER TIME GEOGRAPHY
  • We use this comprehensive model structure in all our in-depth studies
    Whatever the subject
  • In the following slides I am going to show you some typical segmentations used in our reports and which will form the basis of this study
    CSC – Central Supervisory Computer
    FP = Freely Programmable  favoured due to flexibility  easily configured with powerful software tools
    FF+D = Fixed Function and Dedicated
     popular with OEM & smaller projects
    LCD = Digital displays  becoming more popular  empowering users
    PLC = Programmable Logic Controllers
    CE = Communication Elements  now more freq integrated  but more decentralised control
  • This happens to be from the GERMANY section of our recently completed European study shows BACNet has grown to market leader ( favoured as an independent standard, developed for BAS, comprehensive functionality, suited to large projects)
  • Some 16-18 BUILDING TYPES
    Important to understand the different characteristics of each VM - in terms of technical infrastructure and - IT-convergence potential
  • This example also comes from our latest European study where we are now reporting market shares on 5 different categories.
    TABULAR & GRAPHICAL PRESENTATION
  • This diagram shows the importance of 6 routes to market from the point of view of the manufacturers sales
    The routes are: (LIST)
    In most mature markets the controls contractor/systems integrator route has become the most important channel (LIKE THE UK EXAMPLE HERE)
  • We will analyse the degree of integration by types of technical infrastructure integrated
    as shown in this example
    …which charts this over 5 reporting periods
  • We will analyse the degree of integration by building type
    In at least 13 different buildings types
  • In our 2006 study on IT-Convergence we assessed the status of where the industry was at in terms of penetration of the different applications and the projected timescale
    We would revisit this in this study to see how the actual and potential markets have moved on
    The diagram shows our estimation of where we are today
    E.g:
    Access control / CCTV security systems most advanced
    Fire and safety least advanced
    Building environmental controls somewhere in between
  • EXAMPLE:
    In our 2006 study we identified the role of a “SUPER-INTEGRATOR” who must interface with at least 6 major stake holders
    “SUPER-INTEGRATOR” = A company that can interface with all TECHNO-COMMERCIAL concerns at the STRATEGIC and OPERATIONAL level to realise converged solutions. (In 2005 the best examples where in the IT business community).
    We will be looking for present-day examples and: sizing their business identifying key factors of success such as their ability to partner
  • We have a highly competent and experienced team ready to start work
  • Transcript

    • 1. CABA / BSRIA Market Sizing North America Intelligent and Integrated Technologies WEBINAR Wednesday February 11th 2009
    • 2. Agenda 1. Introduction 2. Research Consultancy Profile and Project Outline 3. Timetable / Deliverables / Costs 4. Questions and Answers CABA BSRIA CABA All 5 mins. 30 mins. 5 mins. 20 mins.
    • 3. Energy and Environment Testing and Certification Air TightnessMicroClimate Technical publications FM Engineering/ Condition Monitoring Construction Practice WORLDWIDE MARKET INTELLIGENCE (WMI) Building Services Research and Information Association – BSRIA: What we do Instrument Solutions
    • 4. Heating and renewables Air conditioning, Building control systems and refrigeration IT cabling FM and contracting • Turnover £2.1 million ($3.8m), 40% private client, 60% market reports • Research across 94 countries • 30 permanent multi-lingual staff • Offices in France, Spain, Germany, plus partners in other countries • Opened China office 09/07 • Global network of associates Water conservation & Sanitaryware BSRIA Worldwide Market Intelligence
    • 5. Proplan History  1983 First Proplan multi-client Building Automation System (BAS) study  1998 Merged into i&i limited – an intelligent buildings consultancy  1999 Jeremy Towler joins  3/2008 Acquired by BSRIA  9/2008 First BSRIA/Proplan:  Merged European BAS study (Proplan edition 10) published  China BAS/Fire/Security study (Proplan edition 4) begun  European Security Systems study (Proplan edition 3) begun
    • 6. Scope  Project comprises in-depth studies of the following markets by value of products/systems, value add, services, and vertical markets by building type 1. Environmental (HVAC) Controls / Building Automation 2. Security Systems (Access Control, CCTV, Intruder Alarm) 3. Fire Detection and Alarm 4. IT-Convergence 5. Lighting Systems 6. Water Saving / Control Systems 7. Audio Visual and Digital Signage Systems A
    • 7. Proplan Multi-Client Studies Controls Western Europe China India Central Europe Others Fire Detection Security 10th Edition Sept08 3rd Edition Feb08 3rd Edition Feb09 4th Edition Feb09 4th Edition Feb09 3rd Edition Feb09 1st Edition Feb08 1st Edition Feb08 1st Edition Feb08 2005 2005 2005 Lighting, Water Conservation, Variable Speed Drives, Scandinavia, Verticals (Health, Retail, Hotels)
    • 8. 0 500 1000 1500 2000 2500 3000 3500 4000 4500 North America - Multi-Client Controls Studies Completed  US Building Electronic Security  US Market for Building Automation Systems  IT-Convergence in Buildings  Environmental Controls –  The North American Market 2005 - 2010  The North American Market 2000 - 2005  The North American Market 1998 - 2003 Published  06/2008  06/2007  03/2006  11/2005  08/2001  07/1999
    • 9. Just some of the clients of BSRIA Proplan Worldwide Market Intelligence  Apollo  Belden  Belimo  Bosch Security Systems  CommScope  Cisco Systems  Daikin  Delta  GE Security  IBM  Invensys  Johnson Controls  JVC  Honeywell Group (HBS, ECC, Trend, Notifier)  Legrand  Nedap  Nexans  Novar  Priva  Reichle de Massari  Samsung  Siemens Building Technologies  Sauter  Schneider Electric / TAC  Trane  Tyco Security / Tyco Electronics  UTC (Carrier, Automated Logic, Chubb, Kidde)  Xtralis
    • 10. Research Methodology Total market size By various segmentation Germany Field Installed 65% Factory Installed (3rd party) 30% Factory Installed (Ow n) 5% 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2002 2003 2004 2005 2006 2007 2008 2009 Face to Face Interview Telephone Interview QuantitativeAnalysisQualitativeAnalysis Trend, Decision making process, Attitude, Customer value, etc.
    • 11. Our Study Methodology – “Expert to Expert”  Stage 1 – Establish project structure and base data  Sponsor discussions  Secondary research  Questionnaires developed  Report template finalised  Stage 2 – Data collection, verification and assessment  Field work: Market experts, in- depth country interviews with: – Manufacturers – Specialist installers & system integrators – Consultants  Analysis/report/presentations What we collect during interview  Hard data from Proplan / CABA Sponsors, 60%+ coverage  Iterative process and triangulation to: – Check numbers – Check trends – Check market shares – Allow for non-respondents  Understand qualitative / trends / technologies Number of interviews  At least 150 - half face to face
    • 12. Manufact urer 1 Manufact urer 2 Manufact urer 3 Manufact urer 4 Manufact urer 5 Manufact urer 8 Manufact urer 13 Manufact urer 15 Manufact urer 16 Manufact urer 17 Others Mfrs Other Third Parties Total Final Assessme nt % (Manual input) % 12.0% 62.0% 10.0% 31.0% 26.0% 50.0% 51.3% 70.0% 30.0% Value 3.255 0.000 11.706 3.504 1.577 2.366 16.696 46.986 0.000 0.209 22.650 0.000 121.40 % 2.0% 5.0% 6.0% 0.0% 18.0% Value 0.543 0.000 0.000 1.752 0.000 0.546 0.000 0.000 0.000 0.000 13.590 0.000 16.43 % 12.0% 100.0% 4.0% 20.0% 9.0% 29.0% 20.0% 25.0% 89.0% 15.0% Value 3.255 3.067 0.755 7.007 0.458 2.639 6.678 22.920 10.314 0.000 11.325 0.000 92.93 % 52.0% 1.3% 5.0% 7.0% 11.3% 1.0% 10.0% Value 14.105 0.000 0.245 1.752 0.000 0.000 2.337 10.314 0.116 0.000 7.550 0.000 46.42 % 12.0% 1.3% 3.0% 7.0% 5.0% 5.0% 15.0% Value 3.255 0.000 0.245 1.051 0.000 0.637 1.670 4.584 0.000 0.000 11.325 0.000 27.64 % 10.0% 32.0% 57.0% 60.0% 32.0% 18.0% 7.5% 10.0% 30.0% 12.0% Value 2.713 0.000 6.042 19.970 3.052 2.912 6.011 6.876 1.159 0.090 9.060 0.000 74.43 100.0% 100.0% 100.6% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 2004 13.0% 50.0% -6.0% 15.0% 18.0% 2005 120.0% 8.0% 65.0% -3.7% 10.0% 33.7% 2006 -1.5% 62.0% 3.0% 15.0% 75.0% -3.0% 10.0% 108.0% 30.2% 2007 -27.5% 47.0% 5.0% 3.0% 11.0% 100.0% 2.3% 10.0% -2.0% 15.4% 2008 9.0% 45.0% 5.0% 4.0% 8.0% 75.0% 2.9% 30.0% 15.8% 20.0% 2009 8.0% 47.0% 5.0% 4.0% 50.0% 3.2% 30.0% 19.0% 2010 9.0% 45.0% 5.0% 3.0% 50.0% 3.5% 15.0% 16.9% 2011 11.0% 5.0% 3.0% 30.0% 2.2% 15.0% 10.2% 2012 12.0% 5.0% 3.0% 20.0% 2.2% 15.0% 8.9% % 13.0% 10.0% 30.0% 10.0% 18.8% Value 0.05 0.00 0.02 0.15 0.00 0.01 0.00 0.22 0.00 0.00 0.00 0.00 0.45 % 23.7% 10.0% 20.0% 35.0% 13.2% Value 0.08 0.00 0.02 0.10 0.00 0.05 0.00 0.15 0.00 0.00 0.00 0.00 0.40 % 24.0% 10.0% 15.0% 10.0% 15.9% Value 0.08 0.00 0.02 0.08 0.00 0.01 0.00 0.18 0.00 0.00 0.00 0.00 0.38 % 24.7% 45.0% 15.0% 40.0% 31.2% Value 0.09 0.00 0.11 0.08 0.00 0.05 0.00 0.36 0.00 0.00 0.00 0.00 0.68 % 14.6% 25.0% 20.0% 5.0% 21.0% Value 0.05 0.00 0.06 0.10 0.00 0.01 0.00 0.24 0.00 0.00 0.00 0.00 0.46 Communication Protocols 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Proprietary 3.6 0.0 2.5 16.3 1.0 2.6 0.0 7.8 0.0 0.0 0.0 39.8 35.0% BacNet 1.4 0.0 7.0 9.8 0.9 1.6 0.0 13.0 1.5 0.0 0.0 38.6 34.0% Lon 4.1 3.4 0.5 6.5 0.0 0.0 0.0 2.6 5.9 0.0 0.0 31.4 26.0% ModBus 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.1 1.0% KNX/EIB 0.0 0.0 0.0 0.0 0.1 1.0 0.0 2.6 0.0 0.0 0.0 3.8 4.0% NRW Mitte (HS,RH,SL) Süd (BW,B) Ost (MV,B (einschl. Berlin), SA, T, S % of your 2007 DDC sales which were: Annual Sales Growth and Forecast (%) Nord (SH,HH,HB,NS) New Constr/ Refurb Route 1 (Mechanical Contractor) New Constr/ Refurb Route 2 (Energy Serv. or FM Contractor) New Constr/ Refurb Route 3 (CC/Syst.House / SI) New Constr/ Refurb Route 5 (OEM) New Constr/ Refurb Route 6 (End customer / General contractor) New Constr/ Refurb Route 4 (Reseller -Wholesaler / Distributor) Manufact urer 1 Manufact urer 2 Manufact urer 3 Manufact urer 4 Manufact urer 5 Manufact urer 8 Manufact urer 13 Manufact urer 15 Manufact urer 16 Manufact urer 17 Others Mfrs Other Third Parties Total Final Assessme nt % (Manual input) % 55.0% 15.0% 35.0% 30.0% 90.0% 40.0% 35.0% 35.0% 80.0% 80.0% 60.0% 45.0% Value 19.25 0.61 8.26 15.02 4.58 5.20 14.61 40.11 9.76 0.25 45.30 0.00 200.94 % 22.5% 60.0% 45.0% 40.0% 10.0% 30.0% 45.0% 45.0% 15.0% 15.0% 40.0% 39.0% Value 7.88 2.45 10.62 20.02 0.51 3.90 18.78 51.57 1.83 0.05 30.20 0.00 178.21 % 22.5% 25.0% 20.0% 30.0% 30.0% 20.0% 20.0% 5.0% 5.0% 16.0% Value 7.88 1.02 4.72 15.02 0.00 3.90 8.35 22.92 0.61 0.02 0.00 0.00 74.01 % 28.0% 40.0% 50.0% 40.0% 17.0% 40.0% 34.0% 70.0% 40.0% 38.0% Value 9.80 1.64 11.80 20.02 0.86 5.20 0.00 38.96 8.54 0.13 0.00 0.00 96.95 % 60.0% 40.0% 40.0% 40.0% 65.0% 30.0% 36.0% 20.0% 10.0% 40.0% Value 21.00 1.64 9.44 20.02 3.31 3.90 0.00 41.26 2.44 0.03 0.00 0.00 103.03 % 12.0% 20.0% 10.0% 20.0% 18.0% 30.0% 30.0% 10.0% 50.0% 22.0% Value 4.20 0.82 2.36 10.01 0.92 3.90 0.00 34.38 1.22 0.16 0.00 0.00 57.96 % 90.0% 40.0% 40.0% 40.0% 95.0% 60.0% 50.0% 80.0% 90.0% Value 31.50 1.64 9.44 20.02 4.83 7.80 0.00 57.30 9.76 0.28 0.00 0.00 142.57 % 10.0% 40.0% 40.0% 50.0% 5.0% 20.0% 35.0% 15.0% 10.0% Value 3.50 1.64 9.44 25.03 0.25 2.60 0.00 40.11 1.83 0.03 0.00 0.00 84.43 % 20.0% 20.0% 10.0% 20.0% 15.0% 5.0% Value 0.00 0.82 4.72 5.01 0.00 2.60 0.00 17.19 0.61 0.00 0.00 0.00 30.94 % 47.0% 50.0% 10.0% 20.0% 15.0% 29.0% 20.0% Value 16.45 0.00 11.80 5.01 1.02 1.95 0.00 33.23 2.44 0.00 0.00 0.00 71.90 % 13.0% 20.0% 30.0% 30.0% 50.0% 30.0% 21.0% 40.0% Value 4.55 0.82 7.08 15.02 2.54 3.90 0.00 24.07 4.88 0.00 0.00 0.00 62.85 % 33.0% 75.0% 15.0% 40.0% 20.0% 40.0% 32.0% 20.0% 50.0% Value 11.55 3.07 3.54 20.02 1.02 5.20 0.00 36.67 2.44 0.16 0.00 0.00 83.66 % 7.0% 5.0% 5.0% 20.0% 10.0% 15.0% 18.0% 10.0% 50.0% Value 2.45 0.20 1.18 10.01 0.51 1.95 0.00 20.63 1.22 0.16 0.00 0.00 38.31 % 5.7% 7.5% 8.0% 3.0% 10.0% 13.0% Value 2.00 0.00 1.77 4.00 0.15 1.30 0.00 14.90 0.00 0.00 0.00 0.00 24.12 % 15.5% 10.0% 12.0% 10.0% 15.0% 8.0% 30.0% Value 5.43 0.00 2.36 6.01 0.51 1.95 0.00 9.17 3.66 0.00 0.00 0.00 29.08 % 0.2% 2.5% 4.0% 1.0% 2.0% 20.0% Value 0.07 0.00 0.59 2.00 0.05 0.00 0.00 2.29 2.44 0.00 0.00 0.00 7.44 % 5.0% 4.0% 3.0% 3.0% Value 0.00 0.00 1.18 2.00 0.15 0.00 0.00 3.44 0.00 0.00 0.00 0.00 6.77 % 1.0% 5.0% 4.0% 3.0% 10.0% Value 0.35 0.00 1.18 2.00 0.00 0.00 0.00 3.44 1.22 0.00 0.00 0.00 8.19 % 2.8% 15.0% 4.0% 4.0% Value 0.98 0.00 3.54 2.00 0.00 0.00 0.00 4.58 0.00 0.00 0.00 0.00 11.11 Banking/ Finance/ Insurance Offices Hotels/ Catering Retail Entertain/ Leisure Transport Buildings Multiple Buildings on 1 site Multiple Buildings on different sites > €500k (£350k) €140k - 500k (£100k - £350k) €28k - 140k (£20k - £100k) < €28k (£20k) Refurb Retrofit Comm Public Indust Single Buildings New Detailed Market Model Products Manufacturer Data EndUser Segments Channels/Growth /Geography/ Comms.Protocols % of Total Numbers for Model 2007 Compoun d Growth 2004 to 2007 Period Growth 2004 to 2007 Numbers for Model 2004 Total Product: 477.53 2.4% 7.3% 445 Factor 2.20 Indirect Product: 44.5% 212.31 2.5% 7.8% 196.9 44% Factor 2.35 Direct Product: 55.5% 265.22 2.2% 6.9% 248.1 56% Other Indirect Product> #DIV/0! #DIV/0! #DIV/0! Total Manufacturers' Value Added: 371.94 2.3% 7.2% 347 Direct Systems: 58% 637.17 2.3% 7.1% 595 Total sales by IBC(e) manufacturers (excl. Maintenance) 849.47 2.4% 7.3% 792 Sales by 3rds: 42% 467.07 3.8% 11.7% 418 2.122905 Factor: 2.312401 Total Systems Sales: 1104.24 2.9% 9.0% 1013 Maintenance: 14.9% 164.77 3.4% 10.6% 149 14.7% Total Business: 1269.01 3.0% 9.2% 1162 ..refined for over 20 years Segment -ation Much actual data, rest by iteration
    • 13. Total IBC(e) System Sales Total IBC(e) Business IBC(e) Maintenance Panels, Installation, WiringEngineering & Commissioning Valves + Actuators Sensors Central SupervisoryComputer + Comms. Equip.DDC Controllers Total Sales by IBC(e)Manufacturers (Excl.Maintenance) Product + Value Added 70.9 9.8 80.7 49.0 21.9 Sales to Controls Contractors (System s Houses) , System s Integrators, FM Com panies Direct (System) Sales 58.5 OEM Sales Sales attributed to: • Captive OEM • Management Software • Communications • Panels, Installation, Wiring • Field Equipment • Refrigeration (limited) (A) (B) (C) (E) Conventional Controls Total Product 37.5 Of which, Direct Product 28.0 Indirect Product 9.5 Source: BSRIA Proplan IBC(e) Product 26.8 Variable Speed Drives All 3rd Party Channels All Aspects of the Market Presented Service and Maintenance Third Party Value Add Indirect Product Direct Product Manufacturer Value Add Installed Systems
    • 14. Presentation Example - Product Market Segmentation 0 5 10 15 20 25 30 35 40 45 50 55 60 € Millions 2007200420001997 CSC FP FF+D LCD PLC CE OEM SENSORS 16% 50.5% 10% 15% 55% 9% 7% 13% 62% Source: BSRIA Proplan 12% 58% 13% 11% 12% 6.5% 1.5% 3% 1.5% 5 % 3% 0.5% 12% 16.5% 1% 0.5% 3.5 % 1.5% 0.5%
    • 15. Presentation Example - Communication Protocols Source: BSRIA Proplan Proprietary 35% BACnet 34% LON 26% ModBUS 1% KNX/EIB 4% CANbus 0% Others 0%
    • 16. Presentation Example - Vertical Market Segmentation Bank/Fin./Ins. 10% Offices 33% Hotels/Catering 3% Retail 2% Entertain./Leisure 2% Transport Bldgs. 2% Other Commercial 1% Education 9% Health 14% Government 5% Other Public 2% High Tech Manf. 3% Life Science 9% Industrial Assembly 3% Comms./Computer 1% Other Industrial 1% Source: BSRIA Proplan
    • 17. Company IBC(e) Product Total Product Siemens Building Technologies 37% 33% Johnson Controls 37% 33% Honeywell 12% 18% Novar Trend 2% 2% TAC Schneider 2% 2% Sauter 3% 4% Trane 1% 2% Theben 1% 1% Danfoss 1% 1% Belimo negl. 1% Others incl. Saia, ABB etc. 3% 2% Total Euro million € 27 € 38 Source: BSRIA Proplan Market Share Company Installed IBC(e) Systems IBC(e) Maintenance Total IBC(e) Installed Systems and Maintenance A B (A+B) Product Manufacturers / System Suppliers Johnson Controls 28% 24% 28% Siemens Building Technologies 21% 24% 21% Honeywell 10% 11% 10% TAC Schneider 4% 4% 4% Sauter 2% 2% 2% Trane 1% 1% 1% Trend Novar negl. 1% negl. Others incl. Saia, ABB negl. 1% negl. Third party suppliers 31% 30% 31% Total Euro million. € 71 € 10 € 81 Source: BSRIA Proplan Third Party Suppliers (Controls Contractors / System Houses / System Integrators) Market Share Market Shares Siemens Building Technologies 21% Trend Novar negl. Sauter 2% Trane 1% TAC Schneider 4% Others negl. Johnson Controls 28%Third party suppliers 31% Honeywell 10% Source: BSRIA Propla Siemens Building Technologies 36.7% Johnson Controls 37.1% Honeywell 12.3% Theben 1.1% Trane 1.3% Danfoss 1.1% Belimo negl. Sauter 3.0% TAC Schneider 2.2% Novar Trend 2.0% Others 3.2% Source: BSRIA Proplan
    • 18. Routes to Market Mechanical Contractor Architect/ Engineer/ Consultant Energy service Co. Resellers (Wholesaler / Distributors) OEM’s End User / Building Owner Others Direct IBC(e) Product Manufacturer / Supplier Route 1 12% Route 2 1% Route 4 15% Route 5 9% Route 6 6% Controls Contractor (Systems House) / Systems Integrator Route 3 57%
    • 19. Integration by Application 0 5 10 15 20 25 %byNumberofProjects 1995 2000 2007 1995 2000 2007 1995 2000 2007 1995 2000 2007 1995 2000 2007 1995 2000 2007 1995 2000 2007 1995 1997 2000 2004 2007 Lighting CCTV Access Control Fire Detection Smoke Extract Electrical Management Source:BSRIA Proplan Intruder Alarms
    • 20. Integration by Vertical Market 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Integration by percentage of projects % Banking/ Finance/ Insurance Offices Hotels/ Catering Retail Entertainment/ Leisure Transport buildings Educ./ Multi-Occupier Resid. Healthcare Central/ Local Government High tech Industry Life Science (Pharma/Biotech) Assembly Comms./ Computer Buildings Source: BSRIA Proplan
    • 21. IT Convergence Time Scale Asset Tracking Fire and Life Safety Electrical Network Management Lighting Intruder Alarm Access Control CCTV Surveillance Environmental Controls Energy Management Audio Visual / Digital Signage Water Conservation Time Scale Penetration High Low 2008
    • 22. Integration Partnership Model SUPERSUPER INTEGRATORINTEGRATOR Consultants / Designers Consultants / Designers Construction / Supply Chain Construction / Supply Chain Specialist Process Equipment / Software Hospital / Hotel etc IT Network IT Network Technical Infrastructure Integrators Technical Infrastructure Integrators Technical Infrastructure Suppliers IBC(e,f,l,s) Technical Infrastructure Suppliers IBC(e,f,l,s) Fig 8.1 – The Partnership Model
    • 23. The Research Team Gambi Chiang - PRINCIPAL CONSULTANT: (MSc, BEng, MCIM, Charter Marketer), Senior Manager Special Projects – brought her 6-year experience from Johnson Controls to BSRIA. Since 2006, has conducted various studies including building controls, FM and security. Managed private study on energy best practices benchmarking, new project delivery process study and customer satisfaction. Currently studying the impact of European Energy Legislation on the HVAC industry. Co- produced BSRIA’s 2005 US Building Controls study Joanna Soszka SENIOR CONSULTANT:, MSc (Economics), MS in Project Management (Mastere Specialise at the French ESNM-SE), Assoc. Member of the Market Research Society, research experience includes HVAC, Controls, Security, renewables, grey water recycling Allan P. McHale PRINCIPAL CONSULTANT:, CEng, MIMechE, MIst Energy, MBIM. Set up Proplan in 1983, merged with i&i in 1999. Extensive intelligent building Controls experience. Produced i&i Proplan IT-Convergence report in 2006. In March 2008 he and the other i&i directors sold Proplan business to BSRIA. Semi-retired but continues to work as independent consultant Andrew Giles PROJECT ADVISOR: MA, General Manager – World Market Intelligence, BSRIA. 23 years of research experience with WMI and is involved in all areas of work, with particular focus on private consultancy and development of new studies. Has completed a multitude of projects ranging from the first comprehensive study of European building related products in 1990 to global studies covering 90+ country markets. Co- produced BSRIA’s 2005 US Building Controls study Jeremy Towler PROJECT DIRECTOR: Principal Consultant - Intelligent Building Technology BSRIA, Electronics Engineer, BBA (GSBA, Zürich), Educated UK, Canada and Switzerland, M&A Programme INSEAD France, now heads BSRIA Proplan, 30 years in building controls (Honeywell UK, Landis & Gyr, Switzerland), 8 years at i&i limited delivering detailed market research for building environmental controls, fire and security systems, experience includes international technical and sales support, marketing management, strategic planning, corporate transformation and business re-engineering. Marketing Manager, ABI (Europe) Ltd, systems for employee time scheduling and access control
    • 24. Why BSRIA?  BSRIA has proven track record in these subjects around the world and extensive North American experience  BSRIA + Proplan = Merged strength in Products + Solutions market analysis  Project will build on our historical data and proven methodology of face to face interviews and data gathering directly from manufacturers
    • 25. Timetable  Project expected to start around April 2009  Publication around September/October 2009 Activity Anticipated Date(s) Project Approval Weeks 1 - 2 Primary Research Weeks 3 - 12 Data Analysis Weeks 12 - 20 Final Project Due Weeks 20 - 22
    • 26. Deliverables Section 1 - Executive Summary An analysis and comparison of markets including size and structure, supplier shares, trading patterns and procedures and comparison with other developed markets in the world. Technology, compatibility issues, technical standards and code of practice will be analyzed with particular emphasis on the progress made since a similar 2005 study. The role of all those involved in the supply chain and any changes that are taking place because of technology, consolidation and downsizing leading to the subcontracting of facilities management of buildings, together with consolidation and performance contracting issues will be analyzed and their implications discussed. Section 2 – Report and Analysis (expanded on next slide) PART 1 - MARKET ANALYSIS - SUPPLY SIDE PART 2 - DEMAND SIDE ANALYSIS
    • 27. Deliverables (continued) PART 1 - MARKET ANALYSIS - SUPPLY SIDE 1. Market Analysis – 2008 Size, Structure and Form - Will provide a performance review sizing the market for IBC(e) in 7 different product segmentations, total direct and indirect product sales, total value added by manufacturers and by third parties, total installed system sales, total maintenance and total business 2. Market Analysis - Building Type: Commercial, Public , Industrial and 18 vertical markets by building type and will assess future prospects in new construction activity and through existing building stock including the refurbishment and retrofit opportunities: • Market Analysis – Suppliers • Supplier Share - all significant suppliers to the market will be listed together with their market share band for both product and system. • Supplier Profile - all significant suppliers to the market will be profiled including facts about their size, activities product scope and web site details. • Market Analysis - Third Party Suppliers: System Integrators, Energy Management Service Companies, OEMs of HVAC Hardware 3. Trading Practices and Procedures 4. Industry Dynamics and Growth Prospects 5. Market growth: 2003 to 2008 and Forecast to 2013
    • 28. Deliverables (continued) PART 2 - DEMAND SIDE ANALYSIS 1. Forces that Determine Demand 2. Convergence of IT and Intelligent Infrastructures in Buildings 3. Technology The report will be delivered in print and electronic format.
    • 29. Estimated Budget Estimated Budget – Expenses Project Budget Project Research Team $233,125 IIBC Administration and Project Management $52,375 Printing / Travel / Miscellaneous $7,000 Total $292,500 ______________________________________________________________________ Estimated Budget – Revenue Project Budget Fifteen (15) Organizations at $19,500 $292,500
    • 30. Thank you