The Commercial Building Automation Market – 2nd Edition

The Commercial Building Automation Market is the secondreport from Berg Insight analysing the latest developments on thesmart buildings market in Europe and North America.

This report in the IoT Research Series provides you with 200pages of unique business intelligence including 5-year industryforecasts and expert commentary on which to base yourbusiness decisions.

Highlights from this report:

Insights from 30 executive interviews with market leadingcompanies.
360-degree overview of the smart building & building automationecosystem.
Summary of industry trends in key vertical market segments.
Statistical data on adoption of building automation systems inEurope and North America.
New market forecasts lasting until 2024.
Detailed reviews of the latest initiatives launched by industryplayers.
Updated profiles of 60 key vendors in this market.

This report answers the following questions:

Which are the main verticals within smart buildings and buildingautomation?
What are the main drivers behind growth in this market?
What are the challenges and roadblocks towards widespreadadoption?
What are the business models and channels-to-market for smartbuilding solutions?
Which are the leading building management system (BMS)vendors?
How are product OEMs and BMS vendors positioningthemselves?
What connectivity technologies are smart building systemvendors betting on?
What is the potential market size for cellular IoT in buildingautomation?
How will the smart building market evolve in the next five years?


Executive summary

Building automation systems include a wide range of solutions for controlling, monitoring andautomating functions in buildings such as commercial office spaces, retail stores, hotels,schools, hospitals and industrial buildings. These systems can be controlled in various ways,ranging from simple local controls and user interfaces to cloud-based Building ManagementSystem (BMS) that offer remote and centralized control of several building functions acrossmultiple sites. In this report, building automation systems are grouped into six primarycategories: HVAC and energy management; lighting and window control; fire safety, securityand access control; elevator and escalator management; audio, video and entertainment;and water management.

Berg insight’s definition of a connected building is one that includes one or several buildingautomation systems that can be controlled and monitored from remote through a web portalor Internet-connected management system. A smart building is furthermore one that includesa system that combines and aggregates data from various building functions to provideinsights on the overall building performance. In a smart building, the various systems areaware of each other and exchange data to optimize building operations and occupancycomfort. For example, the HVAC system can control the level of ventilation in a room orcertain area of the building based on data from occupancy sensors or the access controlsystem which knows who and how many people that enter the building.

Building automation has been around for many decades but there is a new urgency due tofactors such as energy conservation as well as mandates for green construction. IoT offersthe technologies for building owners to easily measure and conserve energy. A major changeis starting to happen now especially in new construction, where the primary driver ischanging from cost reduction to features that enhance the user experience and change howusers and buildings interact. New use-cases are emerging which leverage the Internet ofThings, sensors and connectivity. The technology enables customization of spaces in officesand conference rooms based on occupancy levels and occupant preferences as well asprovide location and navigation throughout a building to help occupants find conferencerooms and available work desks.

Berg Insight estimates that 3.23 million connected building automation systems were shippedin Europe and North America in 2019. Note that by connected systems we mean systems thatare connected to the Internet and send data to a backoffice platform. Systems that can onlybe viewed and controlled locally on-premise is therefore not included. Shipments includeinstallations in new constructions as well as in incumbent buildings. The total installed base ofconnected systems in Europe and North America reached an estimated 20.5 million systemsin 2019. Berg Insight forecasts that the installed base will grow at a CAGR of 11.0 percent inthe two regions to reach 34.4 million connected building automation systems in 2024. BergInsight furthermore estimates that the building automation market in Europe and NorthAmerica generated revenues of close to € 29.5 billion in 2019. The market will grow at aCAGR of 10.4 percent to € 48.4 billion in 2024. Developments within connectivity,interoperability, artificial intelligence and machine learning enabling new and improvedservices are expected to create growth in the marketplace. Due to the COVID-19 pandemic,revenues in 2020 are expected to be slightly lower compared to the previous year. In 2021,revenues are however expected to bounce back and exceed the 2019 figures.

The building automation market is served by a range of different actors, spanning from smallstart-ups to major corporations that operate globally in various industry sectors. The leadingBMS providers include large companies such as ABB, Honeywell, Siemens, JohnsonControls and Schneider Electric. These players are also the leading actors in one or severalof the building automation categories in this report. Leading providers of HVAC controlproducts include Delta Controls, Distech Controls, KMC Controls and Danfoss. Major lightingand window control solution providers include Signify, Acuity Brands, Lutron and Somfy. Thefire safety, security and access control market is led by Assa Abloy, Axis, Carrier and Tyco.The elevator and escalator management market is dominated by KONE, Otis, Schindler andThyssenKrupp while the audio, video and entertainment segment is served by AMX/Harman,Crestron, Elan Home Systems and Extron. Water management is a smaller segment andincludes market players such as Apana and Banyan Water.

Executive summary
1 Introduction to smart buildings
1.1 Introduction
1.1.1 Definitions and brief history of commercial building automation
1.1.2 From building automation to smart buildings
1.1.3 Smart buildings are an integral part of smart cities
1.2 Types of commercial building automation
1.2.1 HVAC and energy management systems
1.2.2 Lighting and window control systems
1.2.3 Fire safety, security and access control
1.2.4 Elevator and escalator management
1.2.5 Audio, video and entertainment
1.2.6 Water management
1.2.7 Other types of building automation
1.2.8 Building management systems
1.3 Building automation market segments
1.3.1 Government buildings
1.3.2 Healthcare buildings and hospitals
1.3.3 Hospitality buildings and hotels
1.3.4 Office buildings
1.3.5 Production buildings and factories
1.3.6 Retail outlets
1.3.7 Commercial building stock by region
1.3.8 New buildings versus existing buildings
1.4 Macro trends
1.4.1 Global population growth and urbanisation
1.4.2 Sustainability
1.4.3 Increasing energy demands
1.5 Market drivers
1.5.1 Energy consumption of commercial buildings
1.5.2 Optimising energy consumption in commercial buildings
1.5.3 The next frontier – zero energy buildings
1.5.4 Operational efficiency
1.5.5 Occupancy comfort and productivity
1.5.6 Space optimisation
1.5.7 Regulations and standards
1.5.8 Grants, loans, rebates and deductions
1.6 Technology drivers
1.6.1 Big data and data analytics
1.6.2 Cloud and edge computing
1.6.3 Deep learning and artificial intelligence
1.6.4 Wireless connectivity
1.7 Market barriers
1.7.1 Lack of clarity on return on investment
1.7.2 Competitive markets versus oligopolies
1.7.3 Proprietary solutions and lack of interoperability
1.7.4 Security and privacy concerns
1.8 Industry consortiums, certifications and standards
2 Networks and communications technologies
2.1 Overview
2.1.1 Integration in building automation
2.1.2 Approaches to establishing interoperability
2.1.3 Network protocols and topologies
2.1.4 Technology choices of product OEMs
2.1.5 Combine IT networks and building automation networks or keep them apart? . 62
2.2 Building automation protocols
2.2.1 BACnet
2.2.2 DALI
2.2.3 KNX
2.2.4 LonWorks
2.2.5 M-Bus
2.2.6 Modbus
2.2.7 OpenTherm
2.2.8 SNMP
2.3 Networking technologies
2.3.1 Bluetooth
2.3.2 EnOcean
2.3.3 Li-Fi
2.3.4 LPWAN
2.3.5 Power over Ethernet
2.3.6 Thread
2.3.7 Wi-Fi
2.3.8 ZigBee
2.3.9 Z-Wave
2.4 Wireless versus wired communications
3 Technology providers and OEMs
3.1 Market overview
3.2 HVAC and energy management
3.2.1 75F
3.2.2 Autani
3.2.3 Automated Logic (Carrier)
3.2.4 BuildingIQ
3.2.5 Cimetrics
3.2.6 Danfoss
3.2.7 Delta Controls (Delta Electronics)
3.2.8 Distech Controls (Acuity Brands)
3.2.9 Entouch Controls
3.2.10 KMC Controls
3.2.11 KGS Buildings
3.2.12 Lynxspring
3.2.13 Regin
3.2.14 Senseware
3.2.15 Telkonet
3.2.16 Verdigris Technologies
3.3 Lighting and window control
3.3.1 Acuity Brands
3.3.2 Cree Lighting (IDEAL Industries)
3.3.3 Digital Lumens (Osram)
3.3.4 Enlighted (Siemens)
3.3.5 Legrand
3.3.6 Leviton
3.3.7 Lutron Electronics
3.3.8 Silvair
3.3.9 Signify
3.3.10 Somfy
3.3.11 View
3.4 Fire safety, security and access control
3.4.1 AMAG Technology (G4S)
3.4.2 Assa Abloy
3.4.3 Axis Communications (Canon)
3.4.4 Carrier
3.4.5 Motorola Solutions
3.4.6 Nortek Security & Control
3.4.7 Tyco (Johnson Controls)
3.4.8 Zaplox
3.5 Elevator and escalator management
3.5.1 KONE
3.5.2 Otis
3.5.3 Schindler
3.5.4 ThyssenKrupp
3.6 Audio, video and entertainment
3.6.1 AMX/Harman (Samsung)
3.6.2 Crestron Electronics
3.6.3 Elan Home Systems (Nortek Security & Control)
3.6.4 Extron
3.7 Water management
3.7.1 Apana
3.7.2 Banyan Water
3.7.3 Hydropoint Data Systems
4 Building management system and application vendors
4.1 Market overview
4.1.1 Go-to-market strategies
4.1.2 Return-on-Investment
4.2 Building management system vendors
4.2.1 ABB
4.2.2 Bosch
4.2.3 Honeywell
4.2.4 Johnson Controls
4.2.5 Kieback&Peter
4.2.6 Sauter
4.2.7 Schneider Electric
4.2.8 Siemens
4.3 Building automation application providers
4.3.1 bGrid
4.3.2 Facilio
4.3.3 J2 Innovations (Siemens)
4.3.4 Metrikus
4.3.5 SkyFoundry
4.3.6 Switch Automation
5 Market forecasts and conclusions
5.1 Market trends and analysis
5.1.1 Market penetration of building automation
5.1.2 New value proposition for building occupants
5.1.3 The covid-19 pandemic creates opportunities for new building applications
5.1.4 BIoT enables integration of different building functions
5.1.5 The impact of 5G on the building automation market
5.1.6 Regional differences continue to be important
5.1.7 Building automation systems increasingly being targeted for cyberattacks
5.1.8 When is the right time for building owners to engage?
5.1.9 Mergers and acquisitions
5.2 Europe
5.2.1 Shipments
5.2.2 Installed base
5.3 North America
5.3.1 Shipments
5.3.2 Installed base
5.4 Rest of World outlook
5.5 Cellular IoT device shipments and connections
Glossary
Index
List of Figures
Figure 1.1: Schematic overview of building automation
Figure 1.2: Building automation timeline
Figure 1.3: Benefits of smart buildings
Figure 1.4: The Distech Controls Eclypse HVAC controller
Figure 1.5: Signify Interact gateway, sensor and lamps
Figure 1.6: Examples of a fire protection system and a video surveillance system
Figure 1.7: Overview of Building Management System (BMS) architecture
Figure 1.8: Commercial building stock (US 2017)
Figure 1.9: Commercial building stock (EU28+2 2017)
Figure 1.10: Commercial building types in EU28+2
Figure 1.11: Global population growth segmented by continent (World 2019–2100)
Figure 1.12: Urban population, % of total (World 1960–2018)
Figure 1.13: Number of major cities worldwide
Figure 1.14: Countries with the largest number of major cities (World 2018)
Figure 1.15: Energy consumption by commercial building type (USA 2012)
Figure 1.16: Energy use in US commercial buildings by end uses (USA 2012)
Figure 1.17: Building size vs energy used (USA 2012)
Figure 1.18: Total Cost of Ownership of a building
Figure 1.19: Building lifecycle cost over 40 years, including costs of retrofit
Figure 1.20: Environmental factors that enhance employee productivity
Figure 1.21: Pendulum shift in expertise required to run buildings
Figure 2.1: Building protocols market share (North America 2019)
Figure 2.2: Building protocols market share (Europe 2019)
Figure 2.3: Examples of technology choices by product OEMs
Figure 2.4: Comparison of wired vs. wireless for building automation
Figure 3.1: The 75F Central Control unit and Smart Node
Figure 3.2: The WebCTRL interface
Figure 3.3: 5i Intelligent Energy Platform
Figure 3.4: The NovoCon digital actuator on top of the AB-QM 4.0 PICV
Figure 3.5: The Entouch dashboard
Figure 3.6: The KMC Commander IoT platform
Figure 3.7: Senseware devices
Figure 3.8: An example of a Telkonet EcoSmart installation
Figure 3.9: Signify Interact
Figure 3.10: Animeo range overview
Figure 3.11: The Kidde Fire Systems IntelliSite Remote Monitoring System
Figure 3.12: Avigilon H4 Multisensor camera featuring self-learning video analytics
Figure 3.13: ThyssenKrupp’s MAX portal
Figure 3.14: The AMX Enova DVX-3266-4K presentation switcher
Figure 3.15: The Crestron Flex MM tabletop video conferencing system
Figure 3.16: Apana sensor
Figure 3.17: Banyan Water’s water management system
Figure 4.1: Building Management System vendors (North America and Europe 2019)
Figure 4.2: Metasys system architecture
Figure 4.3: The Metasys UI on different devices
Figure 4.4: The Qanteon BMS
Figure 4.5: The Sauter Modulo 6
Figure 4.6: Example of an EcoStruxure Building architecture
Figure 4.7: Siemens’ Desigo building automation system and components
Figure 4.8: The Switch Platform dashboard
Figure 5.1: BA shipments, installed base and revenues (Europe and NA 2019–2024)
Figure 5.2: M&As in the building automation space (World 2004–2018)
Figure 5.3: M&As in the building automation space (World 2018–2020)
Figure 5.4: Connected system shipments by application area (EU28+2 2019–2024)
Figure 5.5: Installed base by application area (EU28+2 2019–2024)
Figure 5.6: Connected system shipments by application area (N. America 2019–2024) .. 191
Figure 5.7: Installed base by application area (North America 2019–2024)
Figure 5.8: Cellular connections (Europe and North America 2019–2024)

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