Zoltan Karpathy gave a presentation on Smart Homes and Buildings. he looks specifically at Energy Efficiency legislation as well as the regional breakdown of world BACS as well as solutions for moving to the cloud.

1. WMI Intelligent Building and Home Controls
Smart Homes and Buildings
Zoltan Karpathy
Senior Manager
Intelligent Building &
Home Controls
October 2014

2. 2
2
Building Automation

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3
Energy Efficiency Legislation and Emerging Markets Driving Market Growth
CAGR 3.0%
CAGR 4.3%
World BACS* Market
US$ Millions
*Building Automation & Control Systems (BACS)
Product 32%
Value-Add 44%
Service & Main- tenance 24%
0
5000
10000
15000
20000
25000
30000
2011
2012
2013
2014
2015
2016
2017
2018
Total BACS Business
Product
Value-Add
Total Installed System
Service

4. 4
Regional breakdown of World BACS* Sales
* Building Automation and Control Systems
BRIC (Brazil, Russia, India, China)
Sales/Capita (US$)
Market Maturity (Total BACS Market)
BACS* Product Market
Europe 36%
North America 25%
Japan & Australia 8%
BRIC 9%
Saudi, UAE & Turkey 4%
Rest of World 18%
0
5
10
15
20
25
Germany
North America
Europe
Japan & Australia
BRIC Countries
Turkey, Saudi, UAE

5. 5
BACS Solutions Moving to the Cloud
Light Applications
Large Scale Applications
Sophistication*
Smaller communicating controllers
HVAC Solutions with Built-in Controls
Growth of VRF Solutions
BACS Potential of Telcos and Other Utilities
Impact of 3rd Party Applications and ‘Big Data’
Facilities Management & Energy Services
Cyber Threat to ‘Smart’ Buildings
Residential Systems Competing with BACS
* “Sophistication” relates to attributes such as range of functions supported, capacity to communicate, analyse, learn and adapt, etc.

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VRF systems sales vs. Chillers
(*) Source BSRIA Air Conditioning

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BACS Penetration USA – only 1/5 buildings have a BACS – similar in Europe
Commercial buildings = 83% of all non- residential buildings
Of building stock:
Of floor space:
0.5%
11%
0.2%
11%
1.5%
14%
3.0%
14%
94.8%
50%
BACS are comparatively rare in US buildings of under 100,000 sq. ft. (equivalent to c. 10,000 m2)
•The situation is similar in Europe, and this could represent a missed opportunity.
•A further risk for the ‘established’ BACS market is that not competing at the lower end could allow new entrants the chance to gain critical mass.
* Source: BSRIA
5.4 million buildings

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BACS vs. BEMS
BACS
BEMS

9. Many BEMS Opportunities Are in Retrofit
Non-Residential Building Stock by Age, EU-27, 2011
Non-Residential Building Stock by Age, USA , 2011
Pre 1960
41%
1960 - 1990
44%
1991 - 2010
Pre 1960
1960 - 1990
1991 - 2010
15%
33%
52%
15%
EU
USA
Buildings built 1960 – 1990 represent big retrofit opportunity….
9

10. 10
Growth in the BEMS Market
Steady growth globally
2013 value c. $3.8 billion.
EU
USA
Rest of
World
20%
18%
42%
BEMS CAGR 2009 - 2013
EU 57%
USA 27%
Rest of World 16%
BEMS Market Share 2013
10

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Connected / Smart Homes

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Home Automation / Connected & Smart Home
Environmental
control
Smart
appliances
Consumer
electronics
Lighting
control
Building
component
control
Security
system
Safety
alarm
Individual System Control Level
Home Energy Management
Smart Home
 ‘Smart Home’: provides integrated
control of two or more sub-systems
at home are regarded as
‘Smart Home Systems’
 ‘Connected Home’ – if home
automation is accessed via the
internet.
Source: BSRIA

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System integration in family homes
Multivalent heating systems
Smart heating systems
Monovalent heating systems
Intelligent multivalent heating systems
Will gain importance after ErP will take effect in 2015
On-site energy production / energy storage

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HOME AUTOMATION
HOME AUTOMATION
HOME AUTOMATION
Home Automation Trends – Towards Ubiquitous Home
Source: BSRIA
Focus on “lifestyle” (lighting & entertainment) in-house control only.
Integrates “lifestyle”, security/safety, and energy. Accessible via Internet.
“Ambient Intelligence”. Designed to recognise, predict, and respond to the needs, lifestyles, and habits of occupants

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Europe End User Segments of Smart Home Market
Source: BSRIA
Luxury villas 24%
Luxury apartments 10%
Mid-range houses 8%
Mid-range apartments 3%
Zero/low energy homes 1%
Assisted homes 4%
Hotels 12%
Other commercial buildings 38%
Smart Homes Europe - €0.5 bn (2012)

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Europe Smart Home Market Size
Germany
France
UK
Belgium
Netherlands
Norway
Austria
Denmark
Finland
Italy
Poland
Spain
Sweden
Switzerland
Others
Total Smart Home Products (2012): €0.5 bn
Source: BSRIA
45%
10%
8%
6%
4%

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-
50.0
100.0
150.0
200.0
250.0
300.0
350.0
2010
2011
2012
2013
2014
2015
Germany Smart Homes
€ millions
€0.3 bn
CAGR (2012-2015): 7%
Source: BSRIA
Electrical Building suppliers (KNX based smart home systems) hold 92% of the high- end segment (73% of the total market)
75% of products installed in light commercial applications
Common standard: VDE started its ‘Certification Programme Smart Home’
Slow progress with smart meters - a major obstacle.

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Key Advancing Technologies
Smart Meters
Smart Cities
Smart Grid
Building Automation
Smart Government
Smart Appliances
Smart Devices
A Converged Smart World
Smart Homes
Smart Energy Storage
Building Energy Management

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Thank you for your attention!
More information at
https://www.bsria.co.uk/market-intelligence/
Zoltan Karpathy
Senior Manager
Intelligent Building and Home Controls
Old Bracknell Lane West, Bracknell, Berkshire, UK, RG12 7AH
D : +44 (0)1344 465637 F : +44 (0)1344 465637
E : zoltan.karpathy@bsria.co.uk
W : www.bsria.co.uk