Navigant Research Blog

Trends from Light + Building 2018

— March 29, 2018

When I registered to attend the infamous Light + Building trade show in Frankfurt months ago, I never could have imagined its massive scale. This colossal trade show hosted over 2,700 exhibitors and 220,000 attendees, and featured just about any company you can imagine with stakes in the digitization of lighting design, building management, and energy—from big building and lighting tech incumbents like Siemens, OSRAM, Schneider Electric, Philips Lighting, and Honeywell to smart home and Internet of Things (IoT) startups like ROCKETHOME, frogblue, and Ubie. During the many miles I walked between exhibition halls, I observed several noteworthy trends.

From Products to Solutions

Several of the vendors I spoke with that have traditionally invested in selling products and deploying hardware are transitioning their focus toward broader solutions based on software platforms and services. For example, Philips Lighting announced a new IoT platform called Interact, which allows the company to deliver new data-enabled services to professional customers through lighting. The company also announced the change of its brand name to Signify to highlight its strategic push toward IoT-enabled smart lighting systems (not just because it was required to as part of Philips Lighting’s split from Royal Philips in 2016). OSRAM made a similar announcement at the show with its Lightelligence IoT platform for developers, as did other lighting manufacturers like CREE and Zumtobel Group, each showcasing its own software solutions to support asset tracking, space utilization, and location-based services using data collected from connected lighting sources.

Li-Fi as an Emerging Technology Trend

Other technology trends featured at Light + Building include Light Fidelity (Li-Fi). At the trade show, Philips Lighting also announced that it is now offering Li-Fi-enabled luminaires, which provide broadband internet connection through light waves. Li-Fi is a wireless technology similar to Wi-Fi, though it uses lighting waves instead of radio waves to transmit data. The technology has the potential to bring additional connectivity to IoT devices. The company is piloting the technology with Icade, a French real estate investment company.

Connectivity through Partnerships

Another set of companies working to accelerate connectivity in buildings are Schneider Electric, Danfoss, and Somfy, which announced their partnership at Light + Building. The collaboration creates a connectivity ecosystem for homes, small commercial buildings, and hotels that allows each company’s products to integrate more easily with each other at the controller level or in the cloud through application programming interfaces, making the deployment and interoperability of IoT solutions for buildings less of a barrier. Initially, the ecosystem will manage lighting, heating, and window shutters on a single platform.

Implications

These technology trends, partnerships, and solutions ultimately highlight the importance of IoT and a shift toward platforms and solutions that bring together data and connectivity to increase efficiency and optimization. Whether it be in buildings and lighting or security, health, and energy, this is a trend Navigant Research sees across a variety of industries. This transformation is discussed in relation to the energy industry in Navigant’s latest white paper, Energy Cloud 4.0.

 

A Shifting Lighting Landscape Provides New Opportunities for Vendors

— March 29, 2018

The commercial lighting market is shifting focus from hardware and the production of light sources such as lamps and luminaires to a broader set of solutions that incorporate lighting controls and value-add features beyond illumination. The Internet of Things (IoT) is helping drive this change as the number of connected devices increases and as connectivity is brought to devices that were previously not connected. To address this shift, lighting manufacturers are repositioning themselves in the market to showcase their abilities beyond lighting and traditional lighting controls.

Deepening Capabilities Creates Broader Portfolio Offerings

In the emerging market of IoT lighting solutions, new and expanded technologies are providing a different way to view the capabilities of a lighting system. Vendors can use new use cases to address specific customer challenges beyond increased energy savings such as space utilization, increasing operational efficiencies, improved employee productivity, and enhanced retail customer experience, among others. Companies are leveraging a growing number of technologies to set themselves apart by providing solutions that use these different technologies.

Many companies see value in offering solutions with a breadth of protocols as these can assist a company’s aim to provide tailed solutions for each use case and to future-proof their portfolio. Philips Lighting recently announced the release of luminaires enabled with Light Fidelity (Li-Fi) technology. Li-Fi provides a two-way wireless communication traveling at high speeds, similar to how Wi-Fi uses radio waves to transmit data, but instead relies on light waves. Icade, the French real estate investment company, is piloting this technology in its office in Paris, France.

Navigant Research’s research brief, Visible Light Communication, discusses the origin of Li-Fi technology, which was first demonstrated by Professor Harald Haas during a TED Talk in July of 2011. The technology has not gained much traction in the commercial lighting market since then, but has potential to garner more attention with Philips Lighting’s bold decision to pioneer this technology with its office portfolio. Philips Lighting recently had several other announcements that are chronicled by my colleague Paige Leuschner in her recent blog, “Trends from Light + Building 2018.”

Expanding Capabilities through Acquisition

Acuity Brands, Inc., another leading lighting manufacturer, recently acquired building analytics company Lucid Design Group, Inc. The acquisition will help expand Acuity’s already robust IoT lighting solution portfolio that includes the company’s sensory network of luminaires, components, and edge devices that are enabled with Atrius and feature advanced sensing capabilities. Lucid’s data and analytics software as a service-based platform, BuildingOS, provides building owners, operators, and occupants the ability to gain insights into building operations in order to increase employee productivity and operational efficiency. Lucid’s capabilities will assist Acuity’s strategy of increasing IoT capabilities by connecting the company’s IoT solutions with broader integrated building data.

New Opportunities

These two lighting powerhouses have demonstrated the opportunities available in the market for new solution offerings to expand IoT capabilities with lighting at the center of an intelligent building’s infrastructure. Philips Lighting and Acuity are not alone in pushing the boundaries of lighting system capabilities. The lighting industry is seeing many incumbent lighting companies seize the opportunity to expand their portfolios to align with the shifting market and new startups looking to make a place for themselves in the growing IoT ecosystem.

 

Focus on Occupant Health and Well-Being Is Transforming the Commercial Buildings Market

— October 25, 2017

There has been growing interest and demand for occupant health and well-being in commercial buildings. Historically, occupant health policy was more limited and focused on preventing accidents and exposure to hazardous materials. In recent years, there has been a shift from the minimal safety requirements to improved health, increased productivity and performance, and enhanced occupant comfort.

Occupant health and well-being is a notable theme. The focus of the Greenbuild International Conference and Expo this November is human health. Educational sessions covering this area range from The Wellness/Energy Nexus – a Case for Effective Design (WELL Specific) to From Lab to Workplace: Research Advancing Health & Wellbeing.

Based on the human health educational track at the conference, it is clear that conference organizers and speakers alike view this as an essential building trend. It is a trend observed at Navigant Research and discussed as a driver in the upcoming report IoT for Lighting. I’m looking forward to attending Greenbuild to further explore this trend and learn about efforts to promote health and well-being through lighting and building technologies.

Motivation for Human Health in Buildings

A report from the US Green Building Council’s (USGBC) 2013 Summit on Green Building & Human Health is titled Health is a Human Right. Green Building Can Help. While much in the development of green buildings and occupant health and well-being has progressed since 2013, the notion that health is a human right has not.

The trend to focus on human health and well-being within buildings can largely be attributed to attracting and maintaining talent in office workplaces, incentivizing students or shoppers to build environments that focus on their health. Many green building features, such as energy efficient lighting paired with more sophisticated controls, provide motivation via energy savings in addition to improving the health of building occupants. Beyond lighting, occupant health and well-being can be prioritized through improved indoor air quality, thermal comfort, and sound quality.

Promotion of WELL-Being through Standards and Certifications

Founded in 2013, the International WELL Building Institute (IWBI) is a public benefit organization driving the promotion of health and well-being in buildings. The WELL Building Standard, launched in 2014, is based on medical research that analyzes the connection between environmental health, behavioral factors, health outcomes, and demographic risk factors that affect health with the built environment. The WELL Standard covers seven core concepts (air, water, nourishment, light, fitness, comfort, and mind) to create a flexible building standard.

Currently, there are pilot programs in progress across various areas, including multi-family residential buildings, education facilities, retail buildings, restaurants, and commercial kitchens. The aim of the pilot programs is to test and refine how WELL can best apply to different building and space types. The standard continues to evolve based on new evidence, and to incorporate new technologies. A WELL certification is a declaration of that building’s commitment to the prioritization of its inhabitants.

Certifications Setting an Example

The USGBC has incorporated the Integrative Process for Health Promotion in the LEED certification for new construction. Participants can earn credit by beginning in the pre-design phase to “achieve synergies that promote health across disciplines and building systems.” They can also work with a public health partner to help determine how to promote health and accomplish related sustainability goals.

While the USGBC and IWBI are not required across buildings and are voluntary certifications, the significance they place on human health in buildings is helping to promote these values and drive increased focus on these trends. These organizations can provide tools and resources for building owners and managers and can help drive the adoption of building elements focused on the health and well-being of building occupants.

 

An Open Cuba Is Poised for a Green Future

— December 23, 2014

The news that the United States will extend normal diplomatic relations with Cuba can be viewed as the last act of the Cold War.  With the promise of cooperation on both sides, U.S. businesses will view the island nation as a new market for consumer and industrial goods as well as infrastructure spending.  Fortunately, Cuba has the potential to develop into an energy efficient country – if it can act deliberately.

Cuba opened its first 2.6 MW solar farm in 2013, with plans to develop six more, according to the U.S. Energy Information Administration.  Cuba also has plans to develop wind projects totaling 280 MW.  Today, 4.3% of its power comes from renewable resources.  Still, Cuba relies heavily on imported oil from a precarious source, Venezuela, which supplies two-thirds of Cuba’s petroleum. According to some reports, Venezuela was poised for oil price increases before the global drop.  Now Cuba may want to buy oil from other sources in the region at low prices, disincentivizing clean energy investment in the near term. At the same time, Cuba will have access to new low-carbon sources, following its own Article 81 in its Law 33, or general environmental policy, that encourages renewable resources that have minimal impact on the environment.

Building Boom

Cuba is also a member of the Organization of American States, which just announced support for the COP20 lowered emissions goals for all countries. With an awareness of climate change impacts and adaptation choices, it is bound to be torn between the cheap oil and development funds it now has access to and the regulations and low-carbon goals it supports.

Navigant Research’s report, Global Building Stock Database, forecast a flat growth rate for Cuba’s commercial and residential space, but that will surely change.  With more tourists and new commercial prospects flooding into the country, the demand for first-world quality residential and commercial space will rise.  The energy intensity of that space will likely be greater than the current building stock, resulting in an acceleration of energy demand.  There are a few strategies that can be employed that will help tamper the accelerated demand for power.

One landmark goal would be to make all new development net zero energy.  As described in Navigant Research’s report, Zero Energy Buildings, net zero implies that a building produces as much energy as it uses over the course of a year.  A strong government like Cuba could initiate strict building codes, following similar goals instituted in  California, as there is a legacy of energy efficiency policy implementation in the country. In 2005, Castro called for a “revolución energética,” resulting in the replacement of all incandescent light bulbs to CFLs and the replacement of over 2.5 million refrigerators.  Given the available solar resource and some wind resource, new hotels and business districts can leave room for installing renewables. Again, there is a precedent here. Over 2,300 schools have been equipped with solar since 2001, and the energy revolution provided some financing for residential PV.  Building codes can also require the most efficient building possible.

Lovely Decay

A major challenge, however, will be in retrofitting the existing building stock.  Renowned for its decaying beauty, the frozen-in-time architecture of Havana is a challenge for energy efficiency retrofits.  Maintenance and upgrades have been minimal over the past half-century, and the island’s humidity and heat are intense.  It’s hard to envision the building envelope being retrofitted to a highly efficient level. However, the appliances within them could be ungraded easily as part of the revolución energética.

Cuba recently announced 246 projects , worth over $8 billion for technology and industrial jobs, focused on renewable energy development and manufacturing of air conditioners, for instance.  Cuba is now at a crossroads and has the potential to choose the green/clean path forward.

 

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