Wireless L ighting Controls Opportunities, Markets and Challenges Dr Andy Davies Business Development Manager Harvard E

1. Wireless Lighting Controls Opportunities, Markets and Challenges Dr Andy Davies Business Development Manager Harvard Engineering

2. Agenda The Controls Market Mega-Trends driving Wireless Control Adoption The need to retrofit The rise of mixed-use developments Pre-fabrication trends in construction Available wireless technologies & protocols Challenges & Headwinds Perceived cost Network Co-existence Security Other Considerations Data Management & User Interfaces Conclusions

3. Market for Wireless Controls Analysts predict a doubling of wireless controls share from 2012-2018 Controls market overall is also expecting to double 4x growth in wireless controls overall What are the drivers? What challenges do we need to overcome?

4. Mega Trends Driving Wireless Controls Adoption 1. Requirement for Retrofit 80% 80% of buildings that will exist in the UK in 2050 have already been built (source: Greater London Authority) 75% 75% of controllable lighting sold in Europe is not controlled when installed (source: Frost & Sullivan) 41% 41% of electricity demand across all sectors is due to lighting (source: CIBSE) Link between these statistics - RETROFIT

5. Mega Trends Driving Wireless Controls Adoption 1. Requirement for Retrofit Our OEM customers are reporting that a very large part of their LED luminaire business is to retrofit traditional lighting technology, where no other changes are made to building infrastructure Often this will involve the replacement of non-controllable light sources (eg HID), with controllable LED. This presents an excellent opportunity to add controls and potentially improve ROI Adding control wiring in these projects is difficult and often prohibitive

6. Mega Trends Driving Wireless Controls Adoption 1. Requirement for Retrofit Project Example: Retail Department Store • Controls Strategy • Ambient, accent, perimeter and aisle lighting controlled independently in each zone • Occupancy sensor in each zone, measuring occupancy by zone by time of day • Selectively time-schedule layers of lighting in response to occupancy • Apply minimum necessary lighting during out of hours (staff training, stocking, cleaning) 2 AISLE: 12W LED replaces 56W halogen PERIMETER: 58W LED replaces 88W HID 1 3 ACCENT: 32W LED replaces 112W halogen • Results • Initial consumption: 1500kWh/day • LED retrofit reduces to 580kWh/day • Adding controls further reduces to 330kWh/day • Effective power density of 5.6w/m2 • 2 year payback from additional controls investment 4 AMBIENT: 29W LED replaces 70W CFL

7. Mega Trends Driving Wireless Controls Adoption 2. Changes in building occupancy patterns • London Real Estate Example Residential rents are outstripping office rents, yet there is a shortage of office space This is driving an increase in mixed-use developments combining office, resi, retail and hospitality Lease lengths are decreasing. 25% decrease in London over past 10 years New development schemes have elements of multiple use, under single landlord This is driving need for greater flexibility in building and energy management

8. Mega Trends Driving Wireless Controls Adoption 3. Prefabrication and Modular Construction • Prefabrication and modular construction is growing globally, and can bring numerous benefits: • 3-4 week reduction in project schedules • 5% reduction in construction site waste • 5% reduction in material use • 6% reduction in project spend • Wireless controls integration into prefabrications is attractive, and could increase adoption – but also requires easy commissioning!! Source: McGraw-Hill Construction

9. Mega Trends Driving Wireless Controls Adoption • User Perception with ‘Traditional’ Lighting Controls • Require specialist engineers to re-program, often at high cost (£1000 a day not unusual) • Time-consuming to re-configure • Often require intervention into infrastructure to resolve issues 4. Experience with Wired Systems User Software often not intuitive; ‘written by controls engineers for controls engineers’

10. Which Wireless Protocol? Questions to consider…. Which Application Segment? Different protocols may be better suited to certain applications (eg Z-wave for residential) Open Standard or Proprietary? There are many proprietary protocols supported by only one company. If you want to avoid being tied down, an open, standardised protocol. Open standards can also give better device interoperability Standalone Controls or Networked? Sometimes wireless functionality may be required only locally (eg from switch interface to nearest wired device). Other times wireless benefits can be realised from end to end across the system Integration with Broader BMS System Can the protocol integrate with BMS standards egBacnet, KNX, LON etc Communication Robustness For large areas, mesh networking protocols allow a more robust communication since they are not reliant on single point to point routes Future-Proofing Look for trends in adoption. Widely supported protocols are likely to be around in the future

11. Which Wireless Protocol? Some common open standards • Supported by Connected Lighting Alliance • Mesh protocol chosen for larger networked solutions (eg LG, Harvard EyeNut, Acuity Adura, Daintree Networks) • Many sub-protocols – LightLink for domestic, Building Automation for B2B • Robust protocol, widely supported • Devices limited to end-point devices (switches, sensors) • Battery-free operation seen as benefit • Widely supported by many major brands • Focused on residential/consumer use • Many products adjacent to lighting • Most focus in US • In lighting, WiFi is used primarily for point-to-point communication with enabled LED lamps in domestic applications

12. Which Wireless Protocol? Global Market Analysis (Indoor Lighting) ZigBee has highest single share of any protocol, however market has been very fragmented with many proprietary technologies Forecast shows ZigBee increasing and cannibalizing multiple proprietary protocols EnOcean and Wifi stable – expected to grow with market Source: ON World

13. Challenges & Concerns 1. Perceived Higher Cost Is wireless more expensive when all factors are considered? Model of 300 Luminaire office ‘cost neutral’ fit-out suggests not, but that cost is distributed differently around the system components

14. Challenges & Concerns 2. Wireless Network Co-Existence WiFi traffic on Harvard stand at recent Euroshop exhibition: Against this background our ZigBee-based EyeNut system operated well in live demos Common Question is ‘Can your wireless lighting network co-exist with regular WiFi’ Open protocols can offer reassurance here by published studies See for example ZigBee Alliance co-existence study: http://www.zigbee.org/LearnMore/KnowledgeBase.aspx?Contenttype=ArticleDet&Aid=143&CatID): Study defines co-existence traffic limits, which are far in excess of practical traffic experienced in regular use.

15. Challenges & Concerns 3. Security A valid concern given recent media ‘lightbulb hacking’ reports. The following items should be considered: Evaluate the real risk Risk = likelihood x severity. How likely is it that someone will want to infiltrate your lighting system and what is the impact? What is the benefit of adopting networked controls versus this risk? Don’t assume the protocol provides protection ‘out of the box’ It is how your supplier designs using the protocol which is important, not the protocol itself Many reports crfiticise ‘insecure protocols’, however in most cases systems can be made secure through robust design Question potential suppliers Suppliers should be able to provide detailed information regarding security measures that are implemented in their product Ensure suppliers are also questioned regarding their in-house security knowledge and capabilities Is security future-proofed? Suppliers with trained resource to stay vigilant against new threats are more likely to deliver a secure system Take appropriate measures…stay vigilant….but be realistic about the real risk

16. Other Considerations User Interface The absence of intuitive user interfaces has been a major barrier to lighting control adoption Users now expect easy-to-use, familar interfaces available on a variety of media Data Management Lighting control systems are evolving to become data management systems, using measured energy and status data to drive smart decisions on control strategies Wireless is not enough…need also to adopt key interface and data management features

17. Conclusions Wireless lighting control market share will grow fast, expect to double share in 6 years Increase in LED luminaire retrofit projects provides huge wireless controls opportunity Main construction trends of mixed-use and prefabrication also provide opportunity ZigBee expected to gain ground as main protocol of choice, especially around scaled networked installations Major challenges of cost, robustness/reliability and security are being addressed Data monitoring and analysis will optimize control strategies and maximize energy savings Tomorrows systems will be interactive packages for users, driven by supported software platforms

18. Thank You