CABA / BSRIA Market Sizing North America Intelligent and Integrated Technologies

WEBINAR

Wednesday February 11th 2009

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.

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

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

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

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 Automation2. Security Systems (Access Control, CCTV, Intruder Alarm)3. Fire Detection and Alarm4. IT-Convergence5. Lighting Systems6. Water Saving / Control Systems7. Audio Visual and Digital Signage Systems

                    

A

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)

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

North America - Multi-Client ControlsStudies 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

Just some of the clients of BSRIA ProplanWorldwide 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

Research Methodology

Total market size By various segmentation

Germany

Field Installed65%

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

Qua

ntita

tive

Ana

lysi

sQ

ualit

ativ

e A

naly

sis

Trend, Decision making process, Attitude, Customer value, etc.

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

Manufacturer 1

Manufacturer 2

Manufacturer 3

Manufacturer 4

Manufacturer 5

Manufacturer 8

Manufacturer 13

Manufacturer 15

Manufacturer 16

Manufacturer 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 0.0Proprietary 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)

Manufacturer 1

Manufacturer 2

Manufacturer 3

Manufacturer 4

Manufacturer 5

Manufacturer 8

Manufacturer 13

Manufacturer 15

Manufacturer 16

Manufacturer 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

Manufacturer 1

Manufacturer 2

Manufacturer 3

Manufacturer 4

Manufacturer 5

Manufacturer 8

Manufacturer 13

Manufacturer 15

Manufacturer 16

Manufacturer 17

Others Mfrs

Other Third

Parties Total

Total Sales in this country (Reported) (Excluding Exports) 84.00 4.10 75.10 104.00 15.80 49.00 81.00 266.60 12.20 0.63 0.00 834.93

% 10.1% 0.5% 9.0% 12.5% 1.9% 5.9% 9.7% 31.9% 1.5% 0.1% 0.0% 100%

Central Supervisory Computer (CSC) 11.40

Communications Elements (CE) 3.00

Freely Prog DDC (PF) 19.40

>50 points, for main plant 3.00 0.00 0.00 22.75 2.60 3.12 18.20 18.10 0.00 0.00 0.00 115.50

30-50 points (Stand-alone) 2.16 3.22 2.50 0.00 0.00 0.00 0.00 1.00 1.11 0.00 0.00 11.99

20-30 points (Stand-alone) 0.84 0.00 0.00 0.00 0.00 0.00 0.00 0.30 1.11 0.00 0.00 2.25

10-20 points (Stand-alone) 0.00 0.16 5.00 0.00 0.00 0.00 0.00 0.00 3.34 0.00 0.00 8.50

<10 points (Stand-alone) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total 6.00 3.38 7.50 22.75 2.60 3.12 18.20 19.40 5.56 0.00 0.00 138.23

…of which Auto-mation Level 0.00 0.00 5.00 22.75 2.60 3.12 0.00 19.40 0.00 0.00 0.00

…of which Field Level 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Fixed Function DDC (FF) 6.50

"IBC(e) Product" Total 16.50 4.01 11.60 46.55 5.04 11.18 37.24 60.20 9.51 0.32 75.50 345.94

% 4.8% 1.2% 3.4% 13.5% 1.5% 3.2% 10.8% 17.4% 2.7% 0.1% 21.8% 100%

Conventional Controllers (incl. heat meters) 2.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.00

Sensors (incl. Thermostats) 7.70

Motorised Valves & Damper Actuators 14.75 0.02 12.00 1.75 0.05 1.60 4.00 52.20 1.75 0.00 0.00 121.65

Variable Speed Drives (VSD) 1.75 0.06 0.00 1.75 0.00 0.22 0.50 2.20 0.94 0.00 0.00 7.94

Total Product 35.00 4.09 23.60 50.05 5.09 13.00 41.74 114.60 12.20 0.32 75.50 477.53

% 7.3% 0.9% 4.9% 10.5% 1.1% 2.7% 8.7% 24.0% 2.6% 0.1% 15.8% 100%

…of which third party channel 24.000 4.100 5.000 10.000 0.451 4.000 4.000 60.800 10.370 0.000 0.000 164.05

…of which own direct systems business 6.000 0.000 14.000 30.000 4.350 7.200 35.000 61.600 0.000 0.315 0.000 166.47

…of which own maintenance business 8.000 0.000 5.000 10.000 0.285 1.800 2.740 9.200 1.830 0.032 0.000 38.89

Design/Engineering Labour 24.15 0.00 9.00 24.00 1.85 2.75 11.00 30.80 0.00 0.09 0.00 106.26

Commissioning Labour 13.80 0.00 4.00 9.60 2.80 2.75 11.00 35.20 0.00 0.06 0.00 81.83

Panels & Installation Labour 31.05 0.00 13.00 14.40 4.35 3.66 12.00 44.00 0.00 0.14 0.00 126.85

Total Manufacturer's Value Added 69.00 0.00 26.00 48.00 9.00 9.16 34.00 110.00 0.00 0.28 19.00 371.94

Total Direct System Sales 82.84 0.00 47.52 81.53 13.63 16.70 63.38 182.20 1.22 0.60 50.71 623.69

% 7.5% 0.0% 4.3% 7.4% 1.2% 1.5% 5.7% 16.5% 0.1% 0.1% 4.6% 56%

Total Manufacturer's Product & Value added sales (but excluding maintenance labour)104.00 4.09 49.60 98.05 14.09 22.16 75.74 224.60 12.20 0.60 94.50 849.47Total Third Party Value Add (Incl. margin) 467.07 467.07

Total IBC(e) Systems 82.84 0.00 47.52 81.53 13.63 16.70 63.38 182.20 1.22 0.60 50.71 467.07 1090.76

Pro

du

cts

Manufacturer Data

En

d U

ser

Seg

men

ts

Ch

ann

els

/ Gro

wth

/ G

eog

rap

hy

/ C

om

ms.

Pro

toco

ls

% of Total

Numbers for Model

2007

Compound 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% 347Direct Systems: 58% 637.17 2.3% 7.1% 595

Total sales by IBC(e) manufacturers (excl. Maintenance) 849.47 2.4% 7.3% 792Sales 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

Total IBC(e) System Sales

Total IBC(e) Business

IBC(e) Maintenance

Panels, Installation, WiringEngineering & Commissioning

Valves + Actuators

SensorsCentral Supervisory Computer + 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

(Systems Houses) , Systems

Integrators, FM Companies

Direct (System)

Sales

58.5

OEM SalesSales 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

Product28.0

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

Presentation Example - Product Market Segmentation

0 5 10 15 20 25 30 35 40 45 50 55 60

€ Millions

2007

2004

2000

1997

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%

Presentation Example - Communication Protocols

Source: BSRIA Proplan

Proprietary35%

BACnet34%

LON26%

ModBUS1%

KNX/EIB4%

CANbus0%

Others0%

Presentation Example - Vertical Market Segmentation

Bank/Fin./Ins.10%

Offices33%

Hotels/Catering3%

Retail2%

Entertain./Leisure2%

Transport Bldgs.2%

Other Commercial1%

Education9%

Health14%

Government5%

Other Public2%

High Tech Manf.3%

Life Science9%

Industrial Assembly3%

Comms./Computer1%

Other Industrial1%

Source: BSRIA Proplan

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 SuppliersJohnson 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 Novarnegl.

Sauter2%

Trane1%

TAC Schneider4%

Others negl.

Johnson Controls28%Third party suppliers

31%

Honeywell10%

Source: BSRIA Proplan

Siemens Building Technologies

36.7%

Johnson Controls37.1%

Honeywell12.3%

Theben1.1%

Trane1.3%

Danfoss1.1%

Belimonegl.

Sauter3.0%

TAC Schneider2.2%

Novar Trend2.0%

Others 3.2%

Source: BSRIA Proplan

Routes to Market

MechanicalContractor

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%

Integration by Application

0

5

10

15

20

25%

by

Nu

mb

er

of P

roje

cts

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

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

IT Convergence Time Scale

Asset Tracking Fire and Life Safety

Electrical Network

ManagementLighting

Intruder AlarmAccess Control

CCTV Surveillance

Environmental Controls

Energy Management

Audio Visual / Digital Signage

Water Conservation

Time Scale

Pen

etra

tio

n

High

Low

2008

Integration Partnership Model

SUPER SUPER INTEGRATORINTEGRATOR

Consultants /Designers

Consultants /Designers

Construction /Supply ChainConstruction /Supply Chain

SpecialistProcess

Equipment /Software

Hospital / Hoteletc

ITNetwork

ITNetwork

TechnicalInfrastructure

Integrators

TechnicalInfrastructure

Integrators

TechnicalInfrastructure

SuppliersIBC(e,f,l,s)

TechnicalInfrastructure

SuppliersIBC(e,f,l,s)

Fig 8.1 – The Partnership Model

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

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

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

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

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

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.

Estimated Budget

Estimated Budget – ExpensesProject BudgetProject Research Team $233,125IIBC Administration and Project Management $52,375Printing / Travel / Miscellaneous $7,000

Total $292,500______________________________________________________________________

Estimated Budget – Revenue

Project BudgetFifteen (15) Organizations at $19,500 $292,500

Thank you