INTELLIGENT BUILDINGS AND BIG DATA CABA RON ZIMMER

INTELLIGENT BUILDINGS AND BIG DATA CABA RON ZIMMER, PRESIDENT GREG WALKER, RESEARCH DIRECTOR NAVIGANT RESEARCH NOAH GOLDSTEIN, RESEARCH DIRECTOR

PRESENTATION OVERVIEW Section 1 » Overview of CABA Section 2 » Size of the Market Section 3 » Big Data and Intelligent Buildings 2

OVERVIEW OF CABA

ABOUT CABA • The Continental Automated Buildings Association (CABA) is an international not-for-profit industry association dedicated to the advancement of connected home and building technologies. The organization is supported by an international membership of over 300 organizations involved in the design, manufacture, installation and retailing of products relating to home automation and building automation. www. caba. org 4 © 2015 CONTINENTAL AUTOMATED BUILDINGS ASSOCIATION. ALL RIGHTS RESERVED.

CABA BOARD OF DIRECTORS 5 © 2015 Continental Automated Buildings Association. All rights reserved.

CABA VISION “CABA accelerates growth in the connected home and intelligent buildings sectors. ”

WHAT ARE INTELLIGENT BUILDINGS LIGHTING FIRE Schedules Occupancy Sensing Functionality checks Detector service Fire, Life, Safety LIFTS Breakdown Maintenance Traffic Performance SECURITY Doors PIR Integration COMMUNICATIONS Voice/Video/Data ACCESS Doors Buildings Occupancy Feed Forward 24/7 Monitoring Breakdown Plant Tuning Conditioned Monitoring Car Park Utilisation ENERGY HVAC Utility Monitoring (Elec/Water/Gas/Oil) Tenant Building Air/Water Heat Lighting Back-up Generation 7 Air-Handling Unit, Boilers Pumps, Fans, Energy Control, Variable Air Volume, Air Quality E G W

SOME CABA MEMBERS AT LIGHTFAIR • • 3 M Company • • Acuity Brands, Inc. • • Advanced Power • Control, Inc. • BACnet International • • Eaton's Cooper • Controls Business • • Creston Electronics, Inc. • • CSA Group • • Daintree Networks, Inc. • • EMerge Alliance En. Ocean Alliance Inc. Intermatic, Inc. LG Electronics, US Inc. Lutron Electronics Co. , Inc. LUXUL Mecho. Systems, Inc. Panasonic Corporation Philips PLC Multipoint, Inc. Juno Lighting Group by Schneider Electric

CABA RESEARCH PROJECT: INTELLIGENT BUILDING MARKET SIZING NORTH AMERICA SIZE OF THE MARKET

“INTELLIGENT BUILDINGS MARKET SIZING NORTH AMERICA” RESEARCH 10 © 2015 Continental Automated Buildings Association.

NON-RESIDENTIAL BUILDING STOCK – NORTH AMERICA (USA & CANADA) TOTAL 6. 5 Million Buildings

NETWORKED LIGHTING CONTROLS PRODUCT MARKET BY WIRED AND WIRELESS 12

LIGHTING CONTROL PRODUCT SALES BREAKDOWN BY NEW CONSTRUCTION, REFURBISHMENT AND RETROFIT 13

LIGHTING CONTROLS PRODUCT MARKET SHARES 14 © 2015 Continental Automated Buildings Association. All rights

LIGHTING CONTROLS SYSTEMS MARKET INSTALLATION BREAKDOWN 15 © 2015 Continental Automated Buildings Association. All

NORTH AMERICAN LED* DRIVER MARKET FORECAST 16

CABA RESEARCH PROJECT: BIG DATA AND INTELLIGENT BUILDINGS

ABOUT THIS PROJECT • CABA commissioned Navigant Research to lead this study with a collaborative framework that engaged sponsors from a cross-section of building technology solution providers. • Research Objective: Examine new tools and resources emerging in the market to help companies filter, analyze, and use Big Data collected from their intelligent and integrated buildings. 18 © 2015 Continental Automated Buildings Association. All rights reserved.

SPONSORS Diamond Sponsors 19 Emerald Sponsors © 2015 Continental Automated Buildings Association. All rights

SPONSORS CONT’D. Ruby Sponsors 20 © 2015 Continental Automated Buildings Association. All rights reserved.

ABOUT NAVIGANT RESEARCH PROVIDES IN-DEPTH ANALYSIS OF GLOBAL CLEAN TECHNOLOGY MARKETS. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Energy Ecosystem. 21 © 2015 Continental Automated Buildings Association. All rights reserved.

PURPOSE OF PROJECT • Big Data has the potential to have a profound impact on intelligent buildings – What is Big Data with regards to intelligent buildings? – What do customers think? – How big of a market will this be? – What are the opportunities? – What is really happening in the market? 22 © 2015 Continental Automated Buildings Association. All rights reserved.

DEFINING BIG DATA IN INTELLIGENT BUILDINGS • Big data in intelligent buildings is defined as: – The next generation in business and operational intelligence derived from the analysis of data integrated across multiple streams or sources for the purposes of overall system understanding, performance, and optimization • The term big data encompasses both the solution architecture and associated analytics 23 © 2015 Continental Automated Buildings Association. All rights reserved.

SURVEY FINDINGS On a scale of 1 to 5, where 1 is not knowledgeable at all and 5 is extremely knowledgeable, how do you rate your knowledge about the concept of big data and the application of big data to buildings? (n=400) 24 © 2015 Continental Automated Buildings Association. All rights reserved.

SURVEY FINDINGS On a scale of 1 to 5 where 1 is not important at all and 5 is extremely important, please rate how important the following factors are when making improvements to your building. (n=400) 25 © 2015 Continental Automated Buildings Association. All rights reserved.

SURVEY FINDINGS On a scale of 1 to 5, where 1 is not concerned at all and 5 is extremely concerned, how concerned are you about the following issues as it relates to data collected in your building? (n=400, 1 is not important at all and 5 is extremely important) 26 © 2015 Continental Automated Buildings Association. All rights reserved.

BIG DATA IN INTELLIGENT BUILDINGS MARKET Big Data in Intelligent Buildings Revenue, North America:

MARKET DYNAMICS: WHAT NEEDS TO CHANGE? Market Dynamics for Big Data in Intelligent Buildings

MARKET MATURITY: HOW CAN PROVIDER PREPARE Time to Educate On a scale of 1 to 5, where 1 is not knowledgeable at all and 5 is extremely knowledgeable, how do you rate your knowledge about the concept of big data and the application of big data to buildings? (n=400) 29 © 2015 Continental Automated Buildings Association. All rights reserved.

SOLUTIONS OFFERINGS: HOW WILL BIG DATA BECOME PART OF THE INTELLIGENT BUILDING? Build Off Smart Big Data Solutions and the Convergence of Facilities, Business, and Energy Management Solutions 30 © 2015 Continental Automated Buildings Association. All rights reserved. Create Roadmaps

VALUE PROPOSITIONS FOR BIG DATA ADOPTION: Customize HOW WILL BIG DATA CHANGE INTELLIGENT the BUILDINGS? Message Customer Value Propositions for Big Data Solution Offerings 31 © 2015 Continental Automated Buildings Association. All rights reserved.

VANCOUVER COASTAL HEALTH AUTHORITY CASE STUDY: ECO OPERA • Showcases the benefits of the Eco Opera’s Eco. CEO platform to optimize the building systems operation process Vancouver Coastal Health Authority – Combination of ongoing commissioning and a performance measurement and verification (M&V) process – Weekly reports for systems performance validation and/or systems fault detection – Monthly reports offering detailed trend analysis – Time-balanced commitment • 5 -minute review of the weekly reports • 1 -hour review of the monthly reports 32 © 2015 Continental Automated Buildings Association. All rights reserved.

SENECA MANUFACTURING FACILITY: SCHNEIDER ELECTRIC • Showcases Schneider Electric’s Building Analytics service to diagnose system inefficiencies, save energy, and cut costs Seneca Manufacturing Facility – Building Analytics service automatically analyzed the plant’s performance, comfort levels, energy, and maintenance – Pre-designed daily diagnostic reports – A complete ROI is typically achieved within 18 months using the service 33 © 2015 Continental Automated Buildings Association. All rights reserved.

MAJOR FINDINGS 1. Big data in intelligent buildings represents a pinnacle in energy and operational management 2. Market for big data in intelligent buildings is nascent 3. Chasm between the technology and end-user readiness for big data in intelligent buildings 4. Customers prioritize investment on the economic impacts over all other benefits. 34 5. The majority of decision makers in the intelligent buildings market do not know how to define big data or understand the potential benefits of these new solutions. © 2015 Continental Automated Buildings Association. All rights reserved.

MAJOR FINDINGS CONTINUTED 6. Data security is a major concern for customers, and technology providers have an opportunity to demonstrate how standards and procedures can protect businesses investing in big data solutions. 7. Those interested in big data require transparency in the ROI of building and operational improvements. 8. There is a lot of low-hanging fruit in building and operational improvements – many customers can still benefit from periodic reporting and analytics on existing building systems, and, as a result, many customers are not ready to adopt fully integrated big data solutions. 35 © 2015 Continental Automated Buildings Association. All rights reserved.

CABA’S CONNECTED CONSUMER ROADMAP: DRIVEN BY THE INTERNET OF THINGS CURRENT SPONSORS 36

ZERO NET ENERGY BUILDINGS: BUILDING INTELLIGENT CONTROLS DRIVING SUCCESS CURRENT SPONSORS 37

NEW CABA LANDMARK RESEARCH “INTELLIGENT BUILDINGS AND CYBERSECURITY” • This research project will provide a detailed look at: the state of the cybersecurity and intelligent buildings industry, how to prevent cybersecurity attacks, how to deal with and manage cybersecurity attacks, the future direction of cybersecurity in intelligent buildings and specific recommendations going forward. A number of industry expert interviews and stakeholder surveys will be conducted in this large comprehensive research project. 38

Next Steps and Contact Information Noah Goldstein, Navigant Research Director Email: Noah. Goldstein@Navigant. com Phone: 415. 399. 2131 Greg Walker, CABA Research Director Email: walker@caba. org Phone: 613. 686. 1814 x 227 Ron Zimmer, CABA President & CEO Email: zimmer@caba. org Phone: 613. 686. 1814 x 230 39