Market Sizing North

America Version 2
(MSNAv2)
Research Proposal
Proposal Date: December 19th 2013 (b)

Prepared for:

Continental Automated
Buildings Association
(CABA)

1173 Cyrville Rd # 210

Ottawa, Ontario K1J 7S6
Canada
 Proposal Background

• BSRIA conducted the original 2010 Market

Sizing North America (MSNA) study (2009 data)
on behalf of the CABA IIBC

• Anyone participating in this project will also

receive a free copy of the original MSNA 2010
study

• BSRIA presented its outline proposal for an

update (MSNAv2) of the 2010 MSNA market BSRIA’s 2009 Market
Sizing North America
sizing study in a CABA IIBC webinar on 22nd (MSNA) study.
August 2013

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 Full MSNAv2

The most votes have been for Option 1- “Full MSNAv2” (Priced US$ 10,000).

• Comprises a full update of the 2010 MSNA study including competitor and supply chain
analysis for:
• Building Automation and Control Systems (BACS)
• Lighting Control Systems
• Fire Detection and Alarm Systems
• Electronic Security Systems (CCTV/Video, Access Control, Intruder Alarm)
• Convergence
• Including Executive Summary

• Additionally, BSRIA also proposes to report on the threats to the BACS business, including:
• New DX AC entrants
• Increasing sophistication of AC and heating controls
• VRF systems equipped with own controls and energy management functionality
• New developments in smart homes and communicating room controllers.

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 Note to Potential Sponsors (1 of 2):
Explanation of Difference between MSNA v2 and BSRIA’s report “Building
Automation and Control Systems (BACS) North America - Nov 2013”

BSRIA’s report “Building Automation and Control Systems (BACS) North America - Nov 2013” was carried out
during 2013 (with estimate of 2013 market size by year end) and is available now. It is a 70 page in-depth
analysis, of just the BACS market. It follows BSRIA’s standard Word template for an in-depth market study
which includes a “deep-dive” of many product and end user market segmentations, each with comparisons to
their size in their last in-depth study (2008) of the NAM BACS market. It also includes market shares of every
player in the market, detailed explanation of market dynamics/trends/drivers, and profiles of the top 12 players.
BSRIA typically repeats studies with this level of detail every 3-4 years.

The MSNAv2 by comparison, comprises the following 5 subject areas and executive summary:

1. Building Automation and Control Systems (BACS) – (this benefits from the fact that BSRIA have completed
the aforementioned “Building Automation and Control Systems (BACS) North America - Nov 2013” study
and will be a light update of the study (to provide actual 2013 market size and selected segmentations at
year end). As such, it is helping us to keep the cost to sponsors lower than it would otherwise have been
had BSRIA not completed the 2013 study. As with the 1st MSNA, it will also include some assessment of
the status of smart grid-ready BACS solutions).
2. Fire Detection and Alarm Systems
3. Electronic Security Systems (CCTV/Video, Access Control, Intruder Alarm)
4. Lighting Control Systems
5. Convergence

6. Executive Summary

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 Note to Potential Sponsors (2 of 2):
Explanation of Difference between MSNA v2 and BSRIA’s report “Building
Automation and Control Systems (BACS) North America - Nov 2013”

BSRIA will also include in MSNA v2 of a Market Review of threats to the BACS business, including:
• New DX AC entrants
• Increasing sophistication of AC and heating controls
• VRF systems equipped with own controls and energy management functionality
• New developments in smart homes and communicating room controllers.

(Note: BSRIA undertakes a quarterly updating service entitled “Threats to the BACS business” and also
“Opportunities in BEMS” where these sorts of issues are covered in a great deal of detail and summaries from
this will be provided.)

Provided the target launch schedule can be kept, anticipated completion will be sometime during the summer
of 2014, this of course assumes that companies sign up promptly otherwise it could be delayed until later in the
year.

Additionally, BSRIA are now running their World BACS study annually. The 2014 edition will be a Market
Review format study of 17 separate countries, as well as a world executive summary, all in PowerPoint, plus a
master excel data sheet from which clients can extract data and create their own analyses if desired. This is
scheduled for completion by June 2014. It is anticipated that the NAM section of this will be very similar to the
BACS section of the MSNA v2. It would of course benefit from the two studies running in parallel, should the
MSNA v2 go ahead in the proposed time frame. However, although very important, North America is only one
of seventeen countries covered in the world study.

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 What are we measuring in BACS?
Total
Business

Service and
Maintenance
(C)
Installed
569
Systems Manufacturers’
Third (A) Value Add
Party
Value Add Manufacturers’ 678
Total Sales Manufacturers’
Value Added
395

“BACS”
Product
342
Total
Product
Total 581
(B)
Product Of
which,
Indirect Direct
Indirect Product Product
Product 298
Direct 283
Product

All figures in Local Currency (millions)

 Proposed scope of the Study /1 of 4
Building Automation and Control Systems (BACS) - Environmental (HVAC)
 Central supervisory computers and Communication elements
 Software
 Freely programmable, Fixed function and dedicated DDC controllers
 Conventional controllers and Programmable logic controllers (PLCs)
 LCD based display panels
 Sensors
 Motorised valves, damper actuators, and variable speed drives
 New addition: Threats to BACS including New DX AC entrants, increasing sophistication of AC and
heating controls, VRF systems equipped with own controls and energy management functionality,
new developments in smart homes and communicating room controllers

Fire Detection and Alarm Systems

 Conventional and Analog Detectors (12 types, including early warning products such as aspirating /
air sampling systems)
 Conventional and Analog Panels
 Network Supervisory elements
 Sounders/Indicators (including alarm flashers, pre-recorded voice alarm devices, fire location
flashing indicators and fire panel location flashing indicators)
 Manual Call Points.
 Annunciators / mimics
 Input/output modules
 Other

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 Proposed scope of the Study /2 of 4
Electronic Security comprising:
Access Control Systems
 Readers (Keypads, Magnetic
stripe/Barcode, Proximity, Smart
cards)
 Biometric Identification (Fingerprint,
Iris, Other (face, voice, handprint,
etc.))
 Analog Door Controllers
 Network Door Controllers
 Communication Elements
 Software
 Entry phones
 Badges / Badge-making equipment
etc.
 Standalone “mechatronic” access
control
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CCTV / Video Surveillance Intruder Alarm Systems
 Cameras (analogue/digital, IP Network,  Intruder Detectors (8 types)
digital still cameras) and Housings /  Control Panels
Mounts, Fixed, PTZ (Point/Tilt/Zoom),  Audio-Visual Signallers (Alarm
Analogue to Digital Converters Indication)
(Encoders)
 Monitors
 Video Recording (Digital Video
Recorders, Network Video Recorders,  Other equipment (Network
Controllers/ Communication
Other recording equipment, Video
servers) Elements, Radio Emitters).
 Network / Communication Elements
(Matrix Switching Systems, Video
Multiplexers, Routers, Quad processors /
splitters, Decoders, Servers, etc.)
 Software
 Monitors
 Encoders
 Other associated equipment
(Illumination, etc.)
 Proposed scope of the Study /3 of 4

Lighting Systems

 Ballasts
 Sensors
 Dimmers
 Switches/Timers/Controls
 Relays
 Occupancy sensors
 Others
 Intelligent Luminaires
 Bus-based Systems
 Stand Alone Systems
 Window Shade Systems
 LED lamps

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 Proposed scope of the Study /4 of 4

Convergence
Convergence is adding value by joining or
linking different building service products and
Update of the following: applications over a common IP network

 Convergence definition and relevance

 Technology status and appreciation
 Present demand drivers & value propositions IT-Networks

 Uptake and removal of roadblocks

IT-Convergence
 Future market potential for convergence
 Identifying priority vertical markets
 Organising for further convergence
 The importance of collaboration and partnership
 Major players in this market Integration

Technical Infrastructures
Big Data - Analytics - Convergence (HVAC/Lighting/Security/Fire etc.).

 These three topics are themselves converging

 The study will provide an overview of the status of this, the drivers and the barriers

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 End-user Sectors

BSRIA proposes to segment the markets by the following verticals during this study:
1. Banking / Finance / Insurance
2. Offices (Commercial offices)
3. Hotels / Restaurants
4. Retail (Commercial shops / Shopping malls / Supermarkets/ Hypermarkets/ Department stores)
5. Entertainment / Leisure / Arts (Cinemas / Theatres / Stadiums/ Sports facilities/ Private museums and galleries)
6. Transport Buildings (Airports / Rail and Bus Stations / Ports etc.)
7. Other Commercial Buildings (any commercial buildings not listed above)
8. Education (Schools/ Colleges/ Universities, including residential quarters of such institutions)
9. Health (Hospitals / Clinics / Doctors surgeries / Dentists etc.)
10. Central / Local Government (Public Administration Buildings)
11. Other Public Buildings (Military, Prisons, Public Galleries and Museums, Churches etc.)
12. High-Tech Manufacture/Assembly Buildings for precision equipment (Computers, Microprocessors etc.)
13. Life Science (Pharmaceutical / Biotechnology)
14. Industrial Manufacture / Assembly (Lower tech plants for brown and white goods)
15. Communications & Computer Buildings (Data centres, Telehotels, Server Farms, Call Centres, Switching Centres etc.)
16. Warehouses (All types of warehouse storage / logistics facilities)
17. Other Industrial Buildings (incl. Utilities, Shipyards, Food Processing, Petro-Chem/ Refineries/ Offshore Oil Platforms/ Marine)
18. High end multi-occupancy residential

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 Study Methodology – “Expert to Expert”

 Stage 1 – Establish project What we collect during interview

structure and base data – Hard data from our sponsors
– Sponsor discussions and key players
– Secondary research
– Questionnaires developed – Iterative process and
– Report template finalised triangulation to:
• Check numbers
• Check trends
• Check market shares
 Stage 2 – Data collection, • Allow for non-respondents
verification and assessment
– Field work: Market experts, in- – Qualitative:
depth country interviews with:
• Drivers
• Manufacturers
• Trends
• Specialist installers & system
integrators • Technologies
• Consultants
– Analysis/report/presentations

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 Timeline

• Attracting sponsors / Finalising scope:

September 2013 – April 2014

• Start research: May 2014

•Project Approval Timeline:
•Develop questionnaires Weeks
Phase 1 •Contact interviewees
1-3

• Research: May 2014 - August 2014

•Face to face interviews Weeks
•Telephone interviews 4-12
Phase 2

• Preliminary deliverables: August/Sept. 2014 Weeks

•Data analysis and report
preparation 13-20
• Final deliverables: Oct. 2014 •Final report delivery
Phase 3

It is anticipated that the Sponsor's Steering Committee will place a very long embargo to general publication.

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 Senior Project Team
Jeremy Towler – Senior Manager Intelligent
Building Technology
Over 3 decades in intelligent building controls, fire
and security systems. Educated in the UK and
Canada, and trained as a building controls engineer
with Honeywell Control Systems in the UK. Several
international sales and marketing roles at Landis &
Gyr (now Siemens Building Technologies) in
Switzerland and then marketing manager for
employee time scheduling/access control systems
at Amano Blick International Ltd (now part of
Stanley Security group). Bachelors degree in
Business Administration. Joined i&i-Proplan in 1999
as a Senior Consultant and managed market
research projects in building controls, fire
detection/alarm, and electronic security systems
until its acquisition in 2008 by BSRIA. Since Mar.
2013 managing the BSRIA Energy and Smart
Technologies team.
Managed and participated extensively in 2 previous
CABA landmark market research projects:
- The 2009 MSNA study
- The 2011 Smart Grid Impact on Intelligent
Buildings (SGIB) study, identifying/sizing the main
business opportunities presented by the growth of
smart grids in relation to intelligent buildings in North
America, including net zero energy buildings.
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Lone Hansen – Senior Manager - IT
Networks and Convergence
Lone has an MA in Business and Marketing and
twenty years experience in international market
research and consultancy covering a range of
product areas, countries and regions. Lone has
been employed by BSRIA since 1996 and has been
responsible for all IT network and cabling projects
since 1998. Lone’s team has undertaken a wide
range of research in structured cabling in local area
networks and data centres. Specific studies were
carried out on data centre networks in the US
(2008) and the UK (2009) and recent projects on
convergence in North America looking at the uptake
of Ethernet in BMS, Security, Lighting and Fire.
Lone is currently working on a global convergence
study covering four regions. Languages: English
and Danish (mother tongue).
Participated extensively in 2 previous CABA
landmark market research projects:
- The 2009 MSNA study
- The 2011 Smart Grid Impact on Intelligent
Buildings study
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Gambi Chiang – Senior Manager Smart Homes
and FM
Gambi is a Chinese and English bilingual who joined
BSRIA in July 2006, bringing many years of
experience in the building and construction industry.
Core research sectors are building controls, security,
and other extra low voltage systems markets,
facilities management, service contracting and
European energy legislation. Prior to BSRIA she
spent 6 years at Johnson Controls Hong Kong as
Marketing Manager in charge of customer
relationship and marketing support, covering
business scope of operation and maintenance
service, FM, BMS, fire and security systems, and air
conditioning products of York. She was also
involved in company business strategy planning and
execution. Prior to this she had a sales role for a
building services ventilation company and thus has
extensive knowledge of the industry. Gambi
graduated from The University of Hong Kong with
Bachelor of Engineering degree. She also has a
Masters degree and a Postgraduate Diploma in
Marketing, is a Chartered Marketer and is a
corporate member of The Chartered Institute of
Marketing in the UK.
Participated extensively in the 2009 CABA MSNA
study
 BSRIA Contact Information
Zoltan Karpathy
Senior Manager – Intelligent Buildings and Homes
Old Bracknell Lane West, Bracknell, Berkshire
RG12 7AH
D : +44 (0)1344 465637 F : +44 (0)1344 465626
M : +44 (0)77 2527 8637 E :
zoltan.karpathy@bsria.co.uk
W : www.bsria.co.uk
www.bsria.co.uk
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Jeremy Towler
BBA (GSBA Zurich).
Betriebsoekonom dipl. oek.
Senior Manager – Energy and Smart Technologies
Old Bracknell Lane West, Bracknell, Berkshire
RG12 7AH
D : +44 (0)1344 465573 F : +44 (0)1344 465626
M : +44 (0)77 2527 8637 E :
jeremy.towler@bsria.co.uk
W : www.bsria.co.uk
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