Navigant Research Blog

Wireless Bulbs Offer Connected Light Controls

— October 20, 2014

Homeowners around the world have begun to transition from incandescent and compact fluorescent bulbs (CFLs) to more efficient and higher quality light-emitting diodes (LEDs).  Navigant Research’s report, Residential Energy Efficient Lighting and Lighting Controls, forecasts that LED sales for residential applications will increase at a compound annual growth rate of 17.6% through 2023.  Within this wholesale shift of lamp types, however, is another trend with far-reaching implications.

More and more  LED light bulbs are being sold with integrated wireless connectivity.  Instead of being controlled with simple switches, or even physical dimmers, these bulbs connect to the Internet, often through the homeowner’s Wi-Fi network, and can then be controlled through applications on a computer or smartphone.

This capability may seem extravagant , but the trend is picking up steam surprisingly quickly.  One of the first entrants to the category of wireless light bulbs was the Philips Hue, launched in October 2012.  Since then, nearly all of the large lighting companies have launched products in this category, including OSRAM, GE, Samsung, and LG.  In total, 18 different wireless light bulb products are available from 16 different manufacturers, including Greenwave Systems, Leedarson, LIFX Labs, Belkin, Fujikom, Whirlpool, and others.

Mood Lighting

These products come with a large range of features.  All are capable of dimming, while only some are able to change color (Philips, LIFX Labs, OSRAM, Tabu, Fujikom, and Environmental Lights).  Through various software applications, the lighting can be modified based on the time of day, weather conditions, or any other user preferences.  Lighting can also be tied into other home systems, such as the Philips Hue’s ability to connect with the Nest Protect smoke detector and flash red lights when either smoke or carbon monoxide are detected.  The Hue even allows lighting to be modified based on programmed sequences as an audio book is being read to provide a fully immersive scene for the listener.

Wireless bulbs come with a significant price premium over their non-connected counterparts.  While outlets such as The Home Depot have begun selling standard A-type LED bulbs for under $10, wireless bulbs are priced between $30 and $60 apiece.  As this premium comes down, and as more users become interested in the range of possibilities made available through connected lighting, adoption is expected to increase rapidly.

 

Automation Gives Manufacturers an Energy Boost

— October 17, 2014

According to the U.S. Manufacturing Purchasing Managers’ Index, a measure developed by financial research firm Markit, manufacturing activity in the United States in September reached its highest point in more than 4 years.  Factory employment, though still well below pre-2008 levels, reached its highest level since March 2012.

U.S. manufacturers are getting a boost from low energy costs, driven primarily by the bonanza of low-cost natural gas (and, to a lesser extent, by distributed renewables, often onsite at plants).  But what’s going on inside U.S. plants is equally important.  Increased energy efficiency, enabled by a revolution in process automation technology, is also helping U.S. manufacturers compete with manufacturers that enjoy low-cost labor in developing countries, particularly China.

Excess No Longer Success

Since peaking around 1999, the primary energy use in the U.S. manufacturing sector has declined steadily, according to the American Council for an Energy-Efficient Economy, from about 35 quadrillion BTUs annually to less than 31 quads.  Energy intensity – the BTUs used per dollar value of shipments – has declined even more dramatically.

The shift is coming as a shock to old-line factory managers unused to calculating energy as a key metric of efficiency and productivity.  “No one ever got fired for purchasing a pump or a machine that’s too big for the job,” said Fred Discenzo, manager of R&D at Rockwell Automation, at a recent energy management conference in Akron, Ohio.  In manufacturing, “excess capacity has always been the safe option.”

Rockwell is among an emerging segment of technology vendors that is trying to change that, through what it calls “the connected enterprise.”  What that means is connecting the factory floor to the C-suite with far greater visibility and immediacy than before.  Another name for this change might be “extreme granularity.”  In the near future, energy use will be measured not at the factory or line or machine level, but at the individual process level, per unit of production: how much energy did it take to make this widget or valve or bag of ice, and where in the process can that energy use be optimized?

The Next Revolution

Advances in factory-floor networks, wireless sensors, virtualization, and monitoring equipment are enabling these improvements in manufacturing efficiency, energy conservation, and quality control.  These twinned revolutions – cleaner, cheaper, more distributed energy coming into the plant and sophisticated automation technology reducing energy intensity inside the plant – will result in changes that have far-reaching implications for the manufacturing sector, and for the economy.  “The new era of manufacturing will be marked by highly agile, networked enterprises that use information and analytics as skillfully as they employ talent and machinery to deliver products and services to diverse global markets,” concluded a 2012 McKinsey study entitled Manufacturing the Future.

At 32% of total energy consumption, industry uses more energy than any other sector of the U.S. economy.  Manufacturers that adapt to the new realities of energy, by changing the ways in which they source and use electricity, will be more competitive on the global stage – and could help usher in the new economic upswing that politicians and analysts have been dreaming of for years.

 

Building Automation Shifts to Integrated Controls

— October 12, 2014

Building automation system (BAS) controls have long acted as a cash cow for vendors.  Historically, they were built on closed, proprietary communications protocols, virtually guaranteeing steady revenue from future maintenance and upgrades.  Now, though, customers are migrating to control systems with open protocols, such as BACnet and LonWorks, to gain greater flexibility and interoperability.  The emergence of these standards is changing the landscape of building controls.

The shift to open protocols largely benefits building owners (and has unsurprisingly been driven by the demand of building owners).  Competition is increased, as all vendors are on equal footing, which drives down prices.  Naturally, controls vendors are now exploring alternatives to gain a competitive advantage and regain steady revenue.  One emerging strategy is integrating more intelligence and more controls into HVAC equipment.  Even though more vendors can compete with open systems, the more intelligence that is shipped with HVAC equipment, the less there is available for controls companies to install, thereby protecting revenue from the increased competition.

Rapid Adaptation

Johnson Controls seems to be adapting to the changing environment rapidly.  The company made two important announcements in September.  First, it is reorganizing its building efficiency business to separate the North America branch from the global products business.  This will enable the company to focus on high-margin HVAC product lines, notably air distribution and ventilation solutions and variable refrigerant flow (VRF) systems.  The second announcement signaled plans to divest Johnson Controls’ Global Workplace Solutions business.

As I noted after Johnson Controls’ acquisition of Air Distribution Technologies, the move was not about products but about controls.  Johnson Controls’ joint venture with Hitachi to provide VRF systems follows the same strategy.  VRF systems represent lower potential revenue for controls suppliers because controls are typically provided by the equipment manufacturer.  Moreover, because VRF systems use refrigerant as the heat transfer medium instead of air, the need for complex air-side control of supply air temperature and humidity is obviated.  By shifting its focus to HVAC products, Johnson Controls is ensuring that its controls stay relevant.

 

Building Systems Learn to Communicate

— September 25, 2014

In the Hype Cycle, the Internet of Things (IoT) has reached the peak of inflated expectations and may even be over-hyped.  Many observers have commented on its adoption in home automation, high-voltage transmission systems, and smart cities.  The state of IoT in commercial building automation is murkier.

In a recent survey of building professionals administered by CoR advisors, 41% of the respondents reported not being familiar with the term “Internet of Things.”  Hype about IoT in building automation, it seems, is lagging, but its promise may be just as enticing in buildings as in other applications.  Indeed, more respondents indicated that they think the IoT will have an effect on how their building is run over the next 2 to 3 years than those who indicated they were familiar with it.

At a certain level, machine-to-machine communications, the foundation of the IoT, have been present in building automation systems (BASs) for decades.  In heating, ventilation, and air conditioning (HVAC), a temperature sensor can communicate with a variable air volume box to modulate the supply of conditioned air.  In turn, this variable air volume box communicates with an air handling unit that supplies the proper amount of air.  In most buildings, this happens on the HVAC control network.  The promise of IoT is for this to happen not on a network, but on the network, for any machine to communicate with other machines.

Open Sesame

This integration is happening.  Daintree Networks, for instance, offers seamless HVAC control, lighting control, and power metering.  Similarly, Automated Logic has introduced solutions to integrate different control silos.  One of the most interesting integrated deployments is the Government Services Agency headquarters in Washington, D.C.  The building management system knows when an occupant badges in, where that person is going, and what temperature they want the space they’ll occupy.  The next step is getting building automation to interact with a mobile phone or an automobile.

Unlocking the promise of IoT requires multiple companies and multiple systems to interact with each other.  It requires disparate BASs to not only communicate with other BASs, but to also communicate with anything.  Thankfully, the industry is moving in that direction.  Over the past 20 years, open protocols, such as BACnet, LonTalk, DALI, and Modbus, have gained widespread acceptance.  Unfortunately, they don’t communicate with each other very well.

Another survey, this one by Echelon (which recently announced an increased focus on the IoT), outlined the path to IoT in buildings.  Seventy percent of respondents reported that they plan to integrate disparate BASs onto a common platform.  Nearly a third of respondents indicated a plan to do so in the next 12 to 18 months.  Regardless of whether the IoT is over-hyped or unfamiliar, it’s coming to commercial building automation systems soon.

 

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