Trends & Forces Segmentation Smart Buildings Brief
Transcript of Trends & Forces Segmentation Smart Buildings Brief
1 Smart SystemsDesign Research
Smart Buildings Brief:Multi-Unit Dwellings
Technology Research Business Strategy Services Design+ +
Trends & Forces
Segmentation
Profit Map
Forecast
Business Models
Ecosystem
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Buildings Market Trends and Forces
Integrated technologies and low-cost wireless technologies continue to gain significant traction as the connected Building market seeks to optimize energy costs and equipment performance. The confluence of forces point towards a large and growing opportunity
Technology
Socioeconomic
• Building occupants and managers are adopting building automation technologies to hedge against volatile energy prices and meet energy efficiency requirements. Global estimates put building usage at roughly 30-40% of total energy use.
• Governments are responding to climate change, energy prices, pollution, and other concerns by increasing their involvement in the market. Regulatory activity is intensifying, driven by political and social concerns about energy dependence and environmental impacts.
• Even as standards have narrowed to protocols such as BACnet and IP-based building systems, integration problems persist as new protocols, players and technologies push back on traditional proprietary systems.
• The convergence between low-cost wireless communications, web-enabled IT systems and all other building automation systems is fueling system development
• Increased communication between IT and buildings networks as well as third party service providers has opened the door to cyber attacks.
• Smart grid and smart building integration is in its early stages, but future developments will tightly tie the building and energy markets together.
Customers
Competitive
• Companies are struggling to adjust their business models and portfolios as services become more central. Open protocols and lower barriers to entry have encouraged the successful emergence of smaller and more innovative startups.
• As smart buildings become more complex, offering a truly “end-to-end” solution is nearly impossible to achieve alone. Near-constant technological advances and the breadth of the buildings market require that companies expand through acquisitions or partnerships.
• End users are moving beyond historical HVAC automation into more complex applications. Lighting has emerged as the next “baseline” application, with more extensive energy management, security, and other applications on the horizon.
• Traditional point solutions (heating, air-conditioning, and lighting) are now converging onto a common IT infrastructure, driving integrated Building Energy Management (BEM) solutions.
• Cost savings and high performance are key end user considerations. Mission critical buildings are more likely to adopt the latest wireless and integrated technologies.
Large & Growing Smart Buildings Opportunity
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Smart Buildings Market Segmentation
While the device segments across each customer sub-segment are similar, the customer sub-segments themselves are defined by the function of the building, or what the building is being used for. This user context is critical to the technologies and suppliers in each
•Appliances•Utility Metering• Lighting Components• Intrusion, Detection & Alarms
•Appliances•Utility Metering•HVAC Systems• Lighting Components• Fire Detection Equipment
•HVAC Systems• Lighting Components•Metering Electrical Power
Distribution• People Moving
•HVAC Systems• Lighting Components• Electrical Power
Distribution• People Moving
Smart Infrastructure
Homes
Single Tenant Multi Tenant (MDUs)
Buildings
Commercial & Institutional Industrial
Buildings and Facilities
Sector
Venue
Customer Segment
CustomerSub-Segment
DeviceSegment
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Many Suppliers Coming At Smart Buildings Market From Many Angles
Box Stores• Lowes• Home Depot
Equipment & Product OEMs• Schneider Electric• Johnson Controls• General Electric• Honeywell International;• Emerson• UTC• Samsung• Whirlpool • Nest
Demand Response Platforms• Opower• C3 Energy• Comverge• EnergyHub• Energate
IT Behemoths• Apple• Google• Cisco• Amazon
Carriers and Network/Data Services Providers• AT&T• Verizon• Rogers• ADT• Swisscom• Orange• Comcast
Silicon Players• Freescale• Texas Instruments• Intel• Gainspan
Utilities• British Gas• Enel• NV Energy• OG&E• PG&E• SMUD• SDG&E• SSE
IoT Software Platforms• Smart Things• Ayla Networks• ThingWorx• Alarm.com• Tendril• Analytica
Solar/Inverter• SolarCity• Vivint.Solar• Sunpower• Enphase
Energy
The Supplier Ecosystem is Fragmented…
• Traditional building management and automation offerings are not well suited for smaller commercial or residential buildings
• Occupant comfort and convenience focused offerings have struggled to find relevance in larger commercial, retail and multifamily residential buildings
• Suppliers have struggled to develop successful horizontal offerings due to the diverse needs of stakeholders across commercial and residential buildings
• Platforms enabling both building automation and control systems and occupant comfort and convenience solutions are well position for rapid growth across building sub-segments
SmartBuildings
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Smart Buildings Market Opportunity Scale
While Commercial buildings represent the largest current opportunity, Residential is almost as large and is not well served today. This is especially true for Multi-Dwelling Units where commercial technologies and consumer technologies have not naturally coalesced
2016 Buildings Smart Systems Revenue by Building Type and Device Segment ($32,398M)
IndustrialCommercial & Institutional
Lighting
Residential
Life Safety, Surveillance & Security
HVAC & Large Appliances
Other
Electrical Power Distribution & Quality
$3,835$958
$14,921M $2,708M
$289$2,006
$14,768M
$1,696
$1,743
$221
$2,682
$2,108
$412
$5,769
$2,879
$828
$1,256
$5,717
Multi Tenant
Security Management
Supply Chain Management
Single Tenant
Customer Support
Energy Management
Database & Analytics
Asset Management
Mobile & Cloud Services
$1,087M
$97
$247
$256
$199
$191
$1,401M
$333
$259
$143$185
$104
$115
$75
$134
$149
Residential Smart Systems Market 2016by Value Added Application
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Smart Buildings Player and Profit Map
If the opportunity scale across the range of building devices equals approximately 6X the value of base products in networked smart services potential, then the market opportunity in the smart buildings arena equates to almost a trillion dollars in value added services
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Multi-Dwelling Units As A Testbed For User-Focused Innovation
Multi-dwelling units (MDUs) sit at the intersection of residential homes and commercial buildings, having characteristics of both. The size of MDUs and the multiple stakeholder groups results in more potential suppliers of equipment, devices, technologies and systems to these buildings, and thus serve as testbeds for technology innovation that meets needs of both occupants and owners/operators
TraditionalCommercial
TraditionalResidential
Multi-Dwelling
Units
ResidentialTechnology in residential settings has always focused on two applications: comfort & convenience and safety & security. As such, traditional suppliers have tended to target a specific application. While the line between the two groups of suppliers is blurring, these consumer-oriented companies are rarely geared towards commercial applications.
Due to the fragmented user-base and fickle nature of consumers, new entrants are coming from all angles and some are experiencing mild success as the race for consumer acceptance (and data) continues.
Multi-Dwelling UnitsMDUs are characterized by two groups of stakeholders: occupants and owner/operators. The structures themselves are closer to commercial buildings in terms of size and more centralized systems, however, the needs of individual unit occupants must be considered.
With characteristics of both commercial and residential buildings, MDUs serve as a testbed for innovative technology solutions that serve the needs of all parties involved.
Safety &Security
Energy Management /
Comfort
Comfort & Convenience
Operations Visibility &
Optimization
Safety &Security
CommercialTechnology in commercial buildings has traditionally focused on operations visibility and optimization and safety and security. These buildings are characterized by more centralized systems, and due to the size of these buildings, they incur high operations costs (e.g. energy, maintenance, etc.).
Larger IT companies and equipment manufacturers have controlled much of this market in the past. These traditional suppliers have acquired new software and application platforms to provide better services to their customers, and are entrenched in their market-leading positions.
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Business Models Addressing This Market Are Varied
Supplier business models are largely dependent on their legacy, however, traditional approaches will not result in a winning position in this market. To effectively serve all MDU stakeholders, collaboration between and amongst multiple suppliers will be critical
SmartMulti-Dwelling
Units
Application Enablement Platforms
Provide OEMs with a platform to connect consumer end products
Gateway/Aggregators
Offer hardware, software and/or services to coordinate across devices and systems
Building System Automation
Provide automation, monitoring and services for large, centralized building systems such as HVAC and electrical power distribution
Home Automation Solutions
Provide more complete coverage of multiple applications, including security, energy, lighting, etc.
Bundled Services
Offer home network services, often leveraging “bundles” home automation software/platforms from other providers
Utility-Energy Management
Provide energy-related hardware, software and services for improved customer usage & efficiency
B2B - UtilityB2C
Consumer Devices
Offer personal assistant and other consumer electronic devices to be the home-based center of a consumer’s “smart life”
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Have Your Say: Participate In Harbor’s 2017 Smart Buildings Market Survey
Harbor Research is currently conducting a market study of both adopters (building owners, managers, developers, engineers and architects) and suppliers (equipment, technology and service providers) of smart, connected devices and services.
After investigating the challenges and opportunities for IoT technologies identified by business and thought leaders, we’ll be sharing the findings with every survey participant. Everyone that completes the survey will also be entered into the drawingfor a $250 Amazon gift card.
Owners, Operators & Developers
Take the Survey Here
• Building Owners• Building Managers/
Operators• Developers• Builders• Engineers & Architects
TechnologySuppliers
Take the Survey Here
• Technology hardware (e.g. gateways, hubs, smartphones) providers
• IT software and services providers
• Network enablement hardware manufacturers
• Network service providers• Telecommunication equipment
and service providers• Cloud storage and computing
infrastructure providers• Internet of Things software
platform providers• Value-added application (e.g.
analytics, orchestration) developers or providers
Original Equipment Manufacturers
Take the Survey Here
• Climate control equipment
• In-home display equipment
• Security and access equipment
• Energy and power distribution equipment
• Personal healthcare devices
• Fire/life safety equipment• Appliances• Lighting & Lighting
Fixtures• Smart outlets and plugs
ServiceProviders
Take the Survey Here
• Electric and water utilities
• Maintenance professionals
• Network and IT systems integrators
• Device installers• Insurance providers• Security service
providers• Government
organizations
IndustryExperts
Take the Survey Here
• Consultants• Analysts • Researchers
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Our clients want to make sure it fully benefits from its capabilities by pursuing large, validated opportunities. In the past, commonly available market research might have sufficed to supply needed market, competitor and customer information. However, given the rapidly changing IoT environment and the need to look beyond the surface drives a need for much greater specificity. Hence, our Smart Systems Research Service is specially configured across three basic dimensions:
Market Intelligence Tracking, Insights and Reviews
Research Briefs &Configured Research
Marketing Visibility &Community Forums
o On-Going Queries
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o Player Analysis and Database
o 2017 Smart Systems Forecast and Report
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The goal of this service is to act as an extension of your team. To that end, Harbor Research will dedicate an analyst to facilitating and supporting your team with market intelligence, configured research and on-going strategy feedback.
o Webinar/Panel Moderation
o Content and White Papers
o Speaking Engagements
o Market and Ecosystem
Development
o Access to community webinars
o Access to Smart Systems forum
Our research service is organized into three main areas
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Industrial Energy & Infrastructure Consumer Healthcare Buildings Transportation
Harbor’s client mix affords a unique perspective on market development – we have actively worked to foster a community of interest for smart systems and the Internet of Things
Harbor Research Clients and Community
12 Smart SystemsDesign Research
Alex [email protected]: 303-786-9000 x25M: 314-374- 8656@Aglaser_IoT
Harry PascarellaConsultant
[email protected]: 303-786-9000 x36M: 207-632-1780@HSPascarella