Smart Home Market To Grow 30% YOY: Study

by CXOtoday News Desk    Dec 23, 2015

smart homes

With the growing influence of technology and digitisation, the concept of smart homes is gaining popularity, such that smart home market is expected to grow at a rate of 30 per cent year-on-year, thereby, ensuring that the market will double in revenue every three years, according to a survey by Schneider Electric.

A smart home is an automated house with various electrical connections, functions and facilities that can be connected to a smartphone or a computer and controlled by it.Smart Home Solution encompasses home automation, wiring devices, final distribution and safety energy management technologies. The survey was conducted among end customers of premium apartment complexes, duplex, triplex and villas. The survey revealed high awareness among respondents about Smart Homes, which was almost universal in metros and upper-end segments.

As per the survey, security, convenience and energy efficiency were the largest drivers for smart homes followed by comfort and prestige. However, high cost and lack of clarity about the real value were the only barriers, the study revealed.

“Almost 75 per cent respondents were aware of smart homes, which was almost universal among the upper-end segment. But awareness was low among the lower end, since these respondents hailed from smaller towns, with 11 per cent not aware even on being prompted,” Schneider Electric India Vice President, Buildings and Partner Shrinivas Chebbi said. He further said the quality of knowledge about smart homes across budget segments was quite good, especially in metros, but vague in non-metros. 

Those respondents who have the awareness identified smart homes with security systems such as CCTV cameras and video calling, lighting systems, fire and gas leak alarms, etc. On controls in smart homes, the highest salience was for security and lighting controls, followed by AV and entertainment.

In another research report, Gartner estimates that more than 21% of total IoT use in 2016 will be in smart homes, adding up to more than 1.6 billion Internet-connected things. Not only will the average consumer own and use more than three smart personal devices, but all of these devices will have the ability to constantly monitor, interact with, and broadcast personal and private user data at all times.

The studies also stated that as rise of smart homes present major security risks, yet at the same time, advancement in technology and emergence of smart homes has led to the rise of integrated home security systems, which can be connected to smartphones and enable the monitoring of residences from remote locations. According to a ReportsnReports , home security system market is likely to surpass 13% Growth with Security Cameras contributing maximum growth by 2019. The key players in the market are ABB, Honeywell International, Schneider Electric and Siemens and there will also be competition from various startups, thereby bringing the costs of these solutions down - and making them more affordable for general consumers.