The Future of Building Energy Management Solutions

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Next-generation solutions for energy management are being driven by the convergence of technology and competition. Energy will never be cheap again and efficiency will stay at the heart of building management. Meanwhile, integration and connectivity are driving sustainability by allowing buildings to be managed by actionable data. This briefing will investigate the future market landscape and where future growth opportunities will come from.

Why You Should Attend:

- Hear Frost & Sullivan's vision for the future of building energy management
- Identify future competitive dynamics
- Consider future business models for success

Published in: Technology, Business

The Future of Building Energy Management Solutions

  1. 1. The Future of Building Energy Management Next Generation Solutions Driven by the Convergence of Technology and Competition: The Role of Smart Buildings John Raspin, Partner Energy & Environment © 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
  2. 2. 2 Today’s Presenter • Over 15 years with Frost & Sullivan in Energy & Environment and related industries • Multiple publications in the Building Technologies and Services industry, including energy efficiency, smart buildings, fire & safety and facility management • Leadership of consulting engagements with global tier 1 players • Trusted advisor to many of the world‟s leading Building Technologies and Services firms John Raspin, Partner, Frost & Sullivan Follow me on: (Connect with social media) http://www.linkedin.com/groups/Future-Energy-4727266?trk=myg_ugrp_ovr
  3. 3. Focus Points • Growing Importance of Energy Management • Progression Towards Smart Solutions • Convergence of Technology, Services and Competition • Examples of Growth Markets • The Current Killer Questions • Key Conclusions • Three Big Predictions
  4. 4. 4 Energy & Environment Top 10 Technologies and Markets to Watch for in 2020 Energy Recovery from Waste Energy Efficiency and SMART Buildings LED Lighting Revolution Top 10 Markets of the Future Source: Frost & Sullivan Advanced Batteries and Energy StorageSolar PV Gas-Fired Power & Shale Gas Exploitation Small Scale Distributed Generation Smart Water Networks Energy Harvesting SMART Grid & SMART Energy
  5. 5. 5 A question for you to start with ….. Poll Question: Which of the following will have the biggest transforming impact on the building energy management industry in the next 5 years? 1. New business models and the role of FM companies in service delivery 2. Energy efficiency regulations and legislation 3. Advancements in software and data analytics 4. Advancements in control and automation technology 5. Convergence of BEM into overall business efficiency
  6. 6. 6 Building Energy Management Progression Towards Smart Solutions 1980 20001990 Evolution of Energy Management Markets 2010 2020 Systems Integration Building Management & Control Building Automation Green Buildings IT ConvergenceFunctional Controllers Home Automation Building Control Building Automation Smart Buildings Energy Control Construction & Operational Efficiency Building Performance Integrated Networking Energy Management Enhanced Management Intelligent BuildingsHVAC Control Energy Storage Smart CitiesLow Energy Lighting Micro- Renewables Micro- Generation Smart Grids Smart Homes 1980 20001990 2010 2020 Emergence of Smart & Intelligent Technology Advanced Metering Infrastructure (AMI) Smart Metering Power Line Carriers Smart Cities/Towns Systems Automation Virtual power plants Energy Management Automated Meter Reading (AMR) Source: Frost & Sullivan Home Area Network (HAN) Virtual Consumers IT Convergence Micro- Renewables 2013 HEMS & BEMS Home Energy Monitoring Industrial Automation Growth in Renewables Electric Vehicles Asset Management Solutions Active Energy Management Big Data Demand Response
  7. 7. 7 Smart Concepts and the Key Enablers for Growth Building Utility System Cities• Fully automated „digital‟ buildings • Continuous 2-way communication • Micro-generation • Demand response • Smart materials • Fully integrated building controls Key Features • Open architecture • Advanced building design • Software tools • Analysis & reporting • Connectivity of devices • Networks of ubiquitous sensors Growth Enablers Smart Building Smart Grid Smart City • Inter-connectivity between buildings and communities • Virtual consumers • Shared efficiency gains • Smart service delivery (safety, health, education etc.) Key Features • IP networks and affordable broadband • Real-time network visualisation • Inter-connected advanced metering infrastructure • Buy-in from city leaders Growth Enablers • Optimised use of capacity • Advanced metering infrastructure • Integrating renewables • Digital intelligence • Remote control • Micro grids • Virtual power plants Key Features • Smart metering • Drive from utilities • Regulation • Energy price signals • Energy storage • Integrated communications • Sensing & measurement Growth Enablers 1 2 3 Source: Frost & Sullivan
  8. 8. 8 Building Energy Management Multiple Convergence of Technology, Services and Competition HEMS, BEMS & FEMS Asset Management Software Facility Management/ Performance Contracting Building Automation Data Analytics Micro- generation, renewable energy etc. Smart Metering Communication M2M etc. Cloud Services Building Energy Management Source: Frost & Sullivan Controls & Devices
  9. 9. 9 Building Energy Management Examples of growth in European Market Segments Source: Frost & Sullivan Performance Contracting • High growth market • Customer preferred business model • Partnerships and alliances are key trends for offering end to end solution • FM companies see the opportunity to lead BEMS • Mid-range systems gaining momentum and the market is rapidly heading toward mainstream commercialization • Data interpretation rather than data analytics is a key priority for end users • New business models are being introduced combining BEMs with EMS
  10. 10. 10 Building Energy Management Examples of growth in European Market Segments (Cont.) Building Automation • Building automation systems (BAS) are still the essential platform for managing performance of buildings • Market is buoyant and large but is mature and growth is modest at 3% CAGR • Open architecture and cloud based solutions are taking hold and likely to have a significant impact in the 2015 to 2020 timeframe Smart Metering • Focus of utilities on smart grid implementation is driving strong growth • Strong regulatory and legislative drivers • Meter companies, network companies, M2M system vendors and key market participants work in partnerships to address interoperability challenges • Competition becoming increasingly fierce Source: Frost & Sullivan
  11. 11. 11 Building Energy Management Examples of growth in European Market Segments (Cont.) Home Automation • Historically a luxury market, but mass market segment is growing strongly • New entrants and acceleration of new product launches following technology advancements in adjacent sectors • Opportunity expanding with growth in smart devices (HVAC, windows, fridges, lighting etc.) HEMS • Next generation solution after home energy monitoring • Slow due to recession and poor residential construction, but acceleration expected post-2014 • Future business models and channels to market will dictate success levels Source: Frost & Sullivan
  12. 12. 12 The Current Killer Questions in the Market For the Market: 1. What are the true benefits to the customer? 2. What are the long-term benefits to the energy supplier? What can they leverage to generate real added value? 3. What are customers really willing to pay for? 4. Does more data always mean more efficiency? 5. What is the winning business model for the next 10 years? For Suppliers: 1. Who do you want to be your customer? 2. What is the winning value proposition? 3. How to leverage ICT infrastructure to generate a BEM offering? 4. What partnerships are required to integrate the offering? 5. Which geographies and verticals are the most attractive entry point? Source: Frost & Sullivan
  13. 13. 13 Key Conclusions Source: Frost & Sullivan analysis. 2 Green and smart are converging to deliver a new generation of solutions for both homes and commercial buildings 3 Integration and connectivity are driving sustainability by allowing buildings to be managed by actionable data 4 Successful suppliers will be those that combine green performance with smart functionality 5 The key challenge for suppliers is to innovate with customer-centric business models 1 Energy will never be cheap again. Energy efficiency will stay at the heart of building management
  14. 14. 14 Three Big Predictions 2 Performance contracting will become customers‟ preferred business model and suppliers will need to develop service capabilities or partner with FM companies or energy service providers in order to play in the most dynamic part of the market. 3 Smart buildings and homes will become a mainstream reality in 2 to 3 years, driven by the convergence of green and smart technology and the arrival of a wave of new market entrants. Cloud-based services with a strong focus on data interpretation will be the key enablers for a new generation of intelligent buildings. 1 Rising energy costs and an increasing focus on environmental performance of buildings will combine to make energy management the most dynamic segment of the building technologies and services industry. Source: Frost & Sullivan analysis.
  15. 15. 15 Next Steps Develop Your Visionary and Innovative Skills Growth Partnership Service Share your growth thought leadership and ideas or join our GIL Global Community Join our GIL Community Newsletter Keep abreast of innovative growth opportunities Phone: +44 (0) 20 7343 8383 Email: enquiries@frost.com
  16. 16. 16 Your Feedback is Important to Us Growth Forecasts? Competitive Structure? Emerging Trends? Strategic Recommendations? Other? Please inform us by “Rating” this presentation. What would you like to see from Frost & Sullivan?
  17. 17. 17 http://twitter.com/frost_sullivan Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter http://www.facebook.com/FrostandSullivan Search for: The Future of Energy - Frost & Sullivan Group http://www.slideshare.net/FrostandSullivan
  18. 18. 18 For Additional Information Chiara Carella Corporate Communications +44 20 7343 8314 chiara.carella@frost.com John Raspin Partner Energy & Environment +44 20 7915 7814 john.raspin@frost.com

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