IoT: Public lighting is everywhere but connected lighting is not.
- Sustainability Problem
Lighting, beyond illumination, is an energy related asset. There are about 300 million street lights worldwide. On average, public lighting is more than 20 years old. Lighting can account for up to 40% of city’s total energy consumption. -1% of installed systems, are connected, expected to grow at 16% per year. Over the past year, we’ve seen IoT-enabled innovations enter our homes, cars, phones, and air space – and even appear on our bodies. Will they make our lives safer, simpler, healthier, and more environmentally responsible?
- Technology Article Summary
The Internet of Things: Turning $3 Lightbulbs Into A $60 Billion Opportunity1
From this article, we learn how connected public lighting can be a driver for the digital transformation of cities and join the Internet of Things (IoT) revolution. See how Dutch company Koninklijke Philips N.V. partners with SAP to empower the digital transformation of cities as they become safer and more livable and energy efficient.
The idea was a reimagined commodity that we all rely on, opening the door to a $60 billion market opportunity. Philips is refurbishing streetlights, parks, bus stops, buildings, and bridges around the world with LED lightbulbs. But these are not just standard $3 lightbulbs – they’re connected and controlled through a remote management system.
Cities can now keep their residents safer by monitoring storm drains during heavy rains. They can even adjust lighting levels to strike a balance between public safety and costs related to energy consumption and maintenance. More important, they’re making the world safer, brighter, and a little more beautiful.
- Technology Stakeholders
- Lighting Manufacturer: Koninklijke Philips N.V 3
- Database management system company: SAP HANA 4
- Government and Citizens
- Businesses and Residents
- Visitors and Tourists
- Public Sector Customers
- Arenas sports
- Roads and streets
- Parks and plazas
- Bridges monuments and facades
- Transportation hubs
- Municipal buildings
To set the stage for the connected lightbulb market while helping cities and towns benefit from digital transformation, the public segment leader at Philips Lighting discussed:
- Assets will need to communicate so their behavior can be flexibly adapted; therefore, verify on: How many assets are there? What state are they in? Are they working when they are supposed to or not working when they are not supposed to? How much energy do they use?
- Measure the energy used while monitoring lighting as they change the behavior of the environment over time to ensure energy efficiency and right amount of light at the right place at the right time. Connect assets to be able to manage them remotely. Two trends: (1) Switch from analog to digital (LED) light points with microchip for communication, tracking and connectivity; (2) Employ business model involving third party service provider. This needs:
- Connected lighting for transparency
- Create proprietary networks (i.e. RF or powerline networks)
- Deploy light points by embedding cellular network into the device now available publicly
- Measurement and verification systems in place such as EPC (Energy Performance Contracting)
- Connected lighting for transparency
- Unlock potential of IoT and think about the market opportunities in cities. More and more people will be living in cities which are close to innovation age.
- Need partnership: Philips partnered with SAP to use IoT technology for better outcome. Philips focused on the potential of IoT market while SAP focused on the future of city program for innovative, smart and digital city. Both focused holistically on how city can become digital, smart, green and resilient cities because 80% of the energy consumption, as well as GDP, are generated through cities.
To be successful, keep in mind cities core functions are: 3 Ps – Protection, Proviision of Services, Prosperity. Cities must deliver value and protection is a key aspect. Cities are the heart of the challenge we face in the future.
Looking in tech enabled value to enable value allows the understanding of how to monetize and unlock the potential of IoT in the cities market for urban resilience, and protection against climate change, terrorism, crime, shocks, etc.
Look into how IoT can improve the lives of the people in those cities such as by providing waste services, safety, water, lighting, etc.
For business outcome, how can IoT technology reduce risk of fire, flooding, and improving management of the infrastructure?
Some examples of implemented Philips CityTouch infrastructure:
- Kristiansund in Norway has 5,500 light points and outages are fixed in no time.
- Buenos Aires, has 91,000 light points, was a partnerships with Philips CityTouch and SAP Hana. Implemented by combining real time data from connected street lights with data from other assets and sensors in a single integrated city dashboard.
- Empire State Building of NY changes peoples’ state of mind through color transformation lighting. On the Commencement Day of Columbia University, lighting is turned to blue and white.
- Miami Tower in Florida is a business case that proves savings of $ 0.25 M per year.
- Bay Bridge in San Francisco implemented responsive lighting in which pattern is connected to city rhythm, i.e. traffic, wind, and they come together in algorithm to reflect the pattern of lighting in the bridge.