9 July 2013

The Future of Building Energy ManagementNext generation solutions driven by the convergence of technology and

competition

The role of smart buildings insustainable procurement

Mega Trend:

Smart is the NewGreen

2

Smart CitiesSmart

TechnologySmart

InfrastructureSmart

Energy

SmartWindows

SmartClouds

SmartMobility

SmartBuildings

SmartFactory

SmartMeters

SmartBandages

SmartMaterials

3

EnergyRecovery from

Waste

Energy Efficiency andSMART Buildings

LED LightingRevolution

Top 10 Marketsof the Future

Source: Frost & Sullivan

Energy & EnvironmentTop 10 Technologies and Markets to Watch for in 2020

Advanced Batteriesand Energy StorageSolar PV

Gas-Fired Power& Shale GasExploitation

Small ScaleDistributedGeneration

Smart Water Networks

EnergyHarvesting

SMART Grid &SMART Energy

The Smart Building Spectrum

Source: Frost & Sullivan

Smart Concepts and the Key Enablers for GrowthSmart Technology within Buildings, Grids and Cities

Building

UtilitySystem

Cities• Fully automated‘digital’ buildings• Continuous 2-waycommunication• Micro-generation• Demand response• Smart materials• Fully integratedbuilding controls

Key Features• Open architecture• Advanced buildingdesign• Software tools• Analysis & reporting• Connectivity ofdevices• Networks ofubiquitous sensors

Growth Enablers

Smart Building

Smart Grid

SmartCity

• Inter-connectivitybetween buildingsand communities• Virtual consumers• Shared efficiencygains• Smart servicedelivery (safety,health, educationetc.)

Key Features• IP networks andaffordablebroadband• Real-time networkvisualisation• Inter-connectedadvanced meteringinfrastructure• Buy-in from cityleaders

Growth Enablers

• Optimised use ofcapacity• Advanced meteringinfrastructure• Integratingrenewables• Digital intelligence• Remote control• Micro grids• Virtual power plants

Key Features• Smart metering• Drive from utilities• Regulation• Energy price signals• Energy storage• Integratedcommunications• Sensing &measurement

Growth Enablers

1

2

3

Source: Frost &Sullivan.

Energy Management:Progression Towards Smart Solutions

1980 20001990

Evolution ofEnergyManagementMarkets

2010 2020

SystemsIntegration

BuildingManagement& Control

BuildingAutomation

GreenBuildings

ITConvergenceFunctional

Controllers

HomeAutomation

BuildingControl

BuildingAutomation

SmartBuildings

EnergyControl

Construction& OperationalEfficiency

BuildingPerformance

IntegratedNetworking

EnergyManagement

EnhancedManagement

IntelligentBuildingsHVAC Control

EnergyStorage

SmartCitiesLow Energy

Lighting

Micro-Renewables

Micro-Generation

SmartGrids

SmartHomes

1980 20001990 2010 2020

Emergence ofSmart &IntelligentTechnology

AdvancedMeteringInfrastructure (AMI)

SmartMetering

PowerLineCarriers

SmartCities/Towns

SystemsAutomation

VirtualpowerplantsEnergy

Management

AutomatedMeterReading(AMR)

Source: Frost & Sullivan

Home AreaNetwork(HAN)

VirtualConsumers

ITConvergence

Micro-Renewables

2013

HEMS & BEMSHomeEnergyMonitoring

IndustrialAutomation

Growth in Renewables

ElectricVehicles Asset

ManagementSolutions

Active EnergyManagement

Big Data

Building Energy Management ..... Multiple Convergence

HEMS,BEMS &FEMS

Asset ManagementSoftware

Facility Management/PerformanceContracting

Building AutomationData Analytics

Micro-generation,renewable energy

etc.

SmartMetering

Communication M2Metc.

CloudServices

Building EnergyManagement

Source: Frost & Sullivan

Controls & Devices

Building Energy ManagementExamples of growth in European Market Segments

Source: Frost & Sullivan2008200920102011201220132014201520162017201820082008

20092009

20102010

20112011

20122012

20132013

20142014

20152015

20162016

20172017

20182018

04008001,2001,6002,0000

0

400

400

800

800

1,200

1,200

1,600

1,600

2,000

2,000

BEMS: Revenue Forecast�Europe, 2008–2018�CAGR = 15.3%BEMS: Revenue Forecast�Europe, 2008–2018�CAGR = 15.3%

BEMS: Revenue Forecast�Europe, 2008–2018�CAGR = 15.3%

Performance Contracting• High growth market• Customer preferred business model• Partnerships and alliances are key trendsfor offering end to end solution• FM companies see the opportunity to lead

BEMS• Mid-range systems gaining momentumand the market is rapidly heading towardmainstream commercialization• Data interpretation rather than dataanalytics is a key priority for end users• New business models are being introducedcombining BEMs with EMS

200920102011201220132014201520162017201820092009

20102010

20112011

20122012

20132013

20142014

20152015

20162016

20172017

20182018

02,0004,0006,0008,0000

0

2,000

2,000

4,000

4,000

6,000

6,000

8,000

8,000

European Energy Saving Contract & Performance Contracting Markets : Revenue Forecasts (Europe), 2009-2018European Energy Saving Contract & Performance Contracting Markets : Revenue Forecasts (Europe), 2009-2018

European Energy Saving Contract & Performance Contracting Markets : Revenue Forecasts (Europe), 2009-2018

Building Technologies: Key Areas to Get Smart

CommercialApplications

BuildingManagement

FunctionalEquipment

EmergencyLighting Notification

& AlarmFire & Safety

HVACLighting

SolarThermal

SolarBIPV

WindowTreatment

HomeAutomation

ResidentialApplications

Metering Heat Pumps

Facilities M’ment

Services

PerformanceContracting

eEfficiency ConsultingBundled services

Conclusions

Source: Frost & Sullivan analysis.

2Sustainable procurement is more relevantthan ever – Green and smart areconverging

3Integration and connectivity are drivingsustainability by allowing buildings to bemanaged by actionable data

4Successful suppliers will be those thatcombine green performance with smartfunctionality

5The key challenge for suppliers is toinnovate with business models – Customercan drive this

1 Energy will never be cheap again