North America - Slow and North America - Slow and Cautious With NextGen ProjectsCautious With NextGen Projects

Ronald ZimmerRonald Zimmer

CABA President & CEO CABA President & CEO

June 27, 2005June 27, 2005

Definition of Intelligent Building Technologies

“ The use of integrated technological building systems, communications and controls to create a building and its infrastructure which provides the owner, operator and occupant with an environment which is flexible, effective, comfortable and secure.”

Source: Technology Roadmap for Intelligent Buildings Report Complimentary at: www.caba.org/trm

Pneumatic Transmission Electric Controls

Electronic Controls

Mini Computers

Personal Computers

Direct Digital Controls

BACnet/Lon Revolution

Internet/Intranet

Growing Convergence of BAS and IT

Wireless Interfaces and Email Alarms

IT Standardizing Information Presentation Models

Evolution of S

ystems that m

ay Integrate all B

uilding Services on Standard IT

Infra

structure

Copyright Frost & Sullivan 2005

Technological Evolution of Technological Evolution of BASBASIntegration of Security and Fire with BAS: Putting More Information to Effective Use

• Financial impacts/life-cycle costs.• Integrated design/build process.• IBS reliability.• Education and changing practices.• Competing technologies.• Standards/protocols are not interoperable.

Challenges to Facility Owners and Managers

SHOULD FACILITY OWNERS AND SHOULD FACILITY OWNERS AND MANAGERS BE CONCERNED?MANAGERS BE CONCERNED?

• A study of 60 commercial buildings in US found 50% A study of 60 commercial buildings in US found 50% had control problems and 40% had equipment problems.had control problems and 40% had equipment problems.

• A similar study of 51 schools in Canada found that 50 A similar study of 51 schools in Canada found that 50 had either maintenance or systems related problems.had either maintenance or systems related problems.

Intelligent Building Operating Technologies Intelligent Building Operating Technologies May 2004May 2004

Source: www.cladi.orgSource: www.cladi.org

Growing Convergence

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Increasing need for interconnecting facilities and accessing real-time data over

the Internet.

Convergence of enterprise network and the building automation network for data communication and sharing facility wide

data for BAS as well as other organizational needs.

Copyright Frost & Sullivan 2005

BAS and IT ConvergingBAS and IT ConvergingIntegration of Security and Fire with BAS: Putting More Information to Effective Use

• Growing need to interconnect building facilities spread over different geographical locations for remote monitoring/analysis and control.• Use of BAS data for other organizational needs such as facility management.• Increasing machine-to-machine communication.

Moving Towards IP Centric Moving Towards IP Centric PlatformPlatform Integration of Security and Fire with

BAS: Putting

Copyright Frost & Sullivan 2005

• Digital age is ushering in a convergence of voice, data and video.

• “How” the information is stored and retrieved is becoming more important than “Where” it is stored.

• Security providers can use this information to provide additional services:

- Supervision- Email notification- Browser interfaces- Audio/video- Up/download common configuration databases on the network

More Information to Effective Use

MARKET GROWTHMARKET GROWTH

“ “ The global market potential for The global market potential for building management systems (BMS) is building management systems (BMS) is estimated at $37.7 billion in 2004. estimated at $37.7 billion in 2004. Rising at an average growth rate of Rising at an average growth rate of 2.9%, the available market is expected 2.9%, the available market is expected to reach $43.6 billion in 2009.”to reach $43.6 billion in 2009.”

Source: Building Communications Company Inc.Source: Building Communications Company Inc.March 2005March 2005

Audiovisual Industry Forecast Finds Audiovisual Industry Forecast Finds Residential, Retail and Digital Signage Residential, Retail and Digital Signage Top Growth for $19 Billion U.S. AV MarketTop Growth for $19 Billion U.S. AV Market

““Among the most positive trends respondents indicated was Among the most positive trends respondents indicated was the increase use of digital signage, particularly in the retail the increase use of digital signage, particularly in the retail sector, for delivering a message, selling products or simply sector, for delivering a message, selling products or simply providing information. The market for large information providing information. The market for large information displays is growing at a tremendous rate, as increased displays is growing at a tremendous rate, as increased competition leads to lower prices and demand increases from competition leads to lower prices and demand increases from businesses and universities.”businesses and universities.”

Bob O’Donnell, Research VP of Clients, Mobility and Bob O’Donnell, Research VP of Clients, Mobility and Display Technology, IDC.Display Technology, IDC.

“The over-all U.S indoor air quality market (IAQ) was $5.6 billion in 2003 and is expected to rise at an average annual growth rate of 11% to $9.4 billion by 2008.”

POSITIVE EFFORTS TO IMPROVE IAQ

Source: Building Communications Company Inc.Source: Building Communications Company Inc.March 2005March 2005

Card Based Electronic Access Control Systems Market: Revenue Forecasts (North America), 2004 and 2008

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

2004 2008Year

Rev

enu

es (

$ M

illi

on

)

$ Million

Physical Security Equipment Market: Revenue Forecasts (North America), 2004 and 2008

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2004 2008Year

Rev

enu

es (

$ M

illi

on

)

$ Million

NOTE:• The revenue figures indicate the

market size for the perimeter security equipment and the interior security equipment only.

• These figures exclude any revenues for installation, training, or servicing of such equipment.

NOTE:• The revenue figures indicate the market

size for the proximity card, magnetic stripe, smart cards and other card-based access control systems markets only.

• These figures exclude any revenues from sale of any individual component in isolation such as card or reader.

• These figures exclude any revenues for installation, training, or service of such equipment.

Compound Annual Growth Rate (2004-2008): 8.1%

Compound Annual Growth Rate (2004-2008): 12.7%

Market RevenuesMarket Revenues Integration of Security and Fire with

BAS: Putting More Information to Effective Use

Copyright Frost & Sullivan 2005

CABA INTELLIGENT & INTEGRATED BUILDINGS COUNCIL

• Developing a BIQ Rating System for IB with The Appraisal Institute, and EPA Energy Star.

• Building a Life-Cycle Cost Analysis Tool with Reed Construction Data/RSMeans.

• Coordinating National Research Council High Performance/Intelligent Building Demo Project.

• Next IIBCouncil Meeting - June 29, 2005.

Benefits of Integrated Systems for Facility Owners and Managers

• Better building access. • Standardized infrastructure.• Higher building/rental value. • Consumption expenses decrease. • Occupant/tenant control. • Single control point.

FACILITIES AS PROFIT CENTERS

“Today, facilities are viewed as strategic resources... elevating the facility manager to the role of asset manager supporting the organization's overall business goals. ... managing facilities as a true profit center.”

(Book Promotion for Total Productive Facilities Management - By Richard Sievert)

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