Researchers Frost & Sullivan predict the market for what it terms 'building management and control systems' in the European Union, along with Norway and Switzerland will be worth $3.73 billion by 2008. The market is lucrative and therefore highly competitive.
A bems usually consists of a network of controllers linked to one or more operator workstations. The controllers can be pneumatic, or more commonly today, based on direct digital control (ddc) technology.
Pneumatic systems are mechanical and rely on compressed air forced to operate and array of switches, meters, actuators, springs, levers etc. The equipment is relatively expensive to install and maintain.
However, ddc technology is now more common. In comparison to pneumatic systems, ddc is more cost-effective and easier to install and maintain.
In recent years, introduction of open protocol systems has encouraged greater competition between bems manufacturers. These protocols include Lonworks from Echelon, which is moving ahead of its rivals with an aggressive marketing strategy. Others are BACnet, EIBus, PROFIBUS, BatiBus and Convergence Bus.
However, the most recent development is a move towards TCP/IP – transmission control protocol/internet protocol. This approach allows users to access information through a web browser.
Open protocols, which enable communication between two or more systems, have given bems suppliers the chance to broaden their offerings into other areas of building management. Thus bems extends beyond simple heating, ventilation and air conditioning, into energy management, fire alarms, access control, lift controls, public address and cctv. This has effectively given rise to the 'intelligent' building.
Building management systems are supplied, engineered and commissioned directly by controls manufacturers or through a well-established network of third party suppliers such as systems integrators, systems houses or overseas distributors.
According to Frost & Sullivan, the European market for these systems is mature, and there is a high degree of saturation. There is also a high level of competitiveness, indicating that not many opportunities exist for companies interested in penetrating this market. In fact, there has been a process of mergers and acquisitions, reducing the number and increasing the size of organisations in the market.
However, clients are keen to shop around for the best deals on bems, and in European terms, a less well known brand is as likely to be selected as a well-established counterpart. Open protocols have given clients more power to choose different suppliers more easily. Frost & Sullivan rate customer satisfaction in the market at six out of ten: implying that it is possible to compete in the market by increasing product quality and establishing a closer relationship with customers in order to meet expectations by anticipating their needs.
Drivers in the market growth include upgrades and retrofits. Across Europe, pneumatic systems are still fairly common, and will fuel the upgrade market for some time. And developments in IT are the rule rather than the exception, so even those buildings with the latest technology now, will be out of date in a matter of a few years. Recent efforts by European manufacturers to create a standard protocol for different systems and brands have played a key role in popularising bems. Standards such as European Installation Bus (EIBus), specially developed for installation in commercial applications and used by Siemens, BT and other manufacturers, has provided further flexibility and credibility to building controls technology. Frost & Sullivan recognises that further standardisation in protocols will positively affect bems.
Energy efficiency initiatives are also boosting demand for better building control systems. The European Union recognises the importance of bems in rationalising energy use in buildings, and some governments are subsidising investment in this technology (for example the Netherlands).
Germany is the biggest market in Europe for building management control systems, accounting for 39·2% of total revenues generated by the European industry in 2001. The figure reflects the importance of the market, not only in terms of revenues but also by the number of companies operating in the country.
Frost & Sullivan forecasts, however, show that the German market will decline in comparison to Scandinavia and the UK. In these regions, bems are expected to play a central role in building security and energy management.
Scandinavia is the second largest market, accounting for 15·6% of total generated revenues in 2001. The factors behind this active market can be found in the tight environmental and working conditions which exist. Building controls are regarded as crucial to comply with the strict regulations, which will become ever tighter under new European legislation. Frost & Sullivan estimates that in 2008 Scandinavia will account for 16·4% of total European revenues.
The UK and Republic of Ireland represented 13·8% of total European bems industry revenues in 2001. Frost & Sullivan predicts this will rise to 14·2% in 2008. A large amount of new building work is taking place in these markets. And the UK government is particularly keen to pursue energy efficiency policies. Frost & Sullivan states that these factors will help the UK bems industry grow, and that this is already reflected by the number of companies operating in this sector.
Fred Ransom, group executive of the Building Controls Group of ESTA has been collecting data on the UK controls market for over a decade. He says that the UK controls market has been fairly flat. "But the market has risen recently, and 2001 was probably one of our best years. However, it wasn't what you'd call rapid growth."
Ransom points out that one of the biggest areas of growth within the controls sector is servicing and maintenance. "In the third quarter of 2000, service and maintenance total market value was around £60 million. In 2001, this rose to just over £100 million."
Chris Monson, strategic marketing manager for Trend Control Systems in the UK agrees that the UK is a mature market. "There has been some growth, but not what I would call outstanding."
He says that IP based systems will result in changes in the market, and the eventual erosion of proprietary systems. Monson also says that technology will continue to advance: "Even to the point where you have smart solutions, based on data collection and analysis from buildings. There would be no need for human intervention."
We are already at the point where the requirement for a building management system is taken as read. Monson also points to the growth of outsourced facilities as a trend that will lead to greater demand for building management systems.
The more companies need to monitor their energy use, the greater their need for accurate and speedy data on how buildings are functioning.
The language of controls
There are a number of protocols being used across the European building management systems sector. Some of the most common are listed below: BACnet
Developed by the American Society of Heating, Refrigeration and Air conditioning Engineers (ASHRAE), BACnet is now an American national standard. BACnet is a data communication protocol for building and automation networks. This is a set of rules governing the exchange of data over a computer network. The rules take the form of a written specification. BACnet provides a standard way of representing the functions of any device, as long as it has these functions. Examples include analogue and binary outputs and inputs, schedules, control loops and alarms. LonWorks
Conceived by Apple Computers founder Mike Markkula, LonWorks is an open system protocol for control networks in buildings, homes, industrial and transport applications. Developed by Echelon, LonWorks is hardware dependent. Echelon’s LonWorks system links key building sub-systems such as security, lighting and hvac systems. They must all be using LonMark certified devices from multiple manufacturers. The advantage is that users do have a choice of manufacturers, rather than being locked into one. This makes upgrading, for example, easier and more cost-effective. Batibus
This system was developed in 1988 in France by Merlin Gerin. It was primarily designed to link what are known as field devices such as intelligent sensors, actuators and terminal unit controllers within a building. In addition to transmitting data, a small amount of power can also be provided over the bus, reducing the need for running power cables. European Installation Bus (EIBus)
EIBus was developed by a group of companies led by Siemens. It is controlled by the European Installation Bus Association (EIBA) and is widely used in Germany, particularly for lighting and blind control. The European Home Systems Association, and Batibus Club International have now joined EIBA in a consortium which intends to market a single field protocol. Future developments
BACnet is working with representatives of EIBA on an interface between BACnet and EIB. This specification is likely to become an annex to the ISO BACnet standard. For further information on the different protocols go to the Energy Systems Trade Association website www.esta.org.uk
Source
Building Sustainable Design
Postscript
For more information on the Frost & Sullivan report (ref BO61) visit www.frost.com.
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