India is racing towards Industry 4.0 and Automation changes the manufacturing landscape every day. We see that more and more industries have moved to automation for sustainable manufacturing. But the potential for automation companies doesn’t stop there. Apart from factory and process automation, the concept of home automation or “Smart Homes” is also rapidly gaining popularity in the Indian market.
According to real estate sector insiders, the spending on home automation products constitutes about 1-5% of the home cost – making it an opportunity worth about $1.24 to $1.55 billion. A report by Research and Markets, estimates the Indian Home Automation market to cross $4.65 billion by 2022.
The government’s Smart-Cities mission for building smart cities / homes gave rise to the concept of home automation systems in India. The increased implementation of technology / IoT in every aspect of day-to-day life, ambitions for better living standards, and a rising disposable income enhances the market for home automation which looks very promising. Green revolution and a changing mind-sets of people towards energy saving has also an influential role in the growing interest in home automation. Solutions for lighting and security are currently most popular in this sector.
The largest pie of the home automation sector is with the residential segment with 60% market share (of which individual homes and villas equals to 75-80%, market and builders hold 20%). This segment has the highest growth of CAGR 35-40%. Commercial spaces come second with 30% home automation market share. Security and access systems are most popular in this segment. The remaining 10% share is held by the hospitality segment that uses home automation for mainly security and lighting systems.
Owing to the rapidly increasing competition many companies in sectors like home furnishing, home appliances, consumer electronics, and even service providers are quickly adapting and integrating their products and services with IoT to provide an unique customer experience.
For instance, IoT company Blaze Automation Inc. that provides smart home automation and security products, has launched their flagship product B.One Hub in the Indian market. As a full home automation service, B.One Hub enables homeowners to control and automate security, ambiance, entertainment, and HVAC systems.
LG Electronics, the South Korean consumer electronics major, is actively looking for partners among telecom operators in India, to introduce its smart appliances connected with IoT technology – that will enable consumers to control and operate home appliances through their smartphones.
The telecom provider, Bharti Airtel, considers to enter the home automation sector as an expansion strategy with its IoT and machine-to-machine solutions – which will allow users to control elements such as lighting, heating, air conditioning, music and security systems through smartphones. Its rival Reliance Jio Infocomm is also planning to launch fibre-to-home powered home automation that converts basic electronic products into smart products with the help of smartphones or tablets. Reliance Jio also plans to come up with a product for cars – to monitor the fuel status of the car, its engine performance, the speed limit at which the car travels, etc. with the help of a mobile app.
India is waiting on its first Smart Factory – that is being built by the Indian Institute of Science (IISc) in partnership with Boeing in Bangalore whichis expected to begin smart manufacturing by 2018. In conclusion, it won’t be long before we see hi-tech residential colonies with Smart Homes being set-up across the country. Automation is clearly a rising sector and many companies are actively exploring the potential to drive growth in both the Industrial Automation and Home Automation sectors in India.
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