The popularity of home automation products is increasing steadily among the end consumers. According to a forecast made by the Fortune Business Insights, the global home automation market size is set to reach USD 114 Billion by late 2025. This alone makes this product category incredibly attractive to both the manufacturers and retailers.
Key Drivers:
Convenience – People, especially in urban areas, are busier than ever. Smart home products have emerged as a boon for working people as they allow them to automate their lights and other ‘connected’ home appliances by creating a daily schedule right from their Smartphone. So, no more dark porches for them every evening.
Better control and security – It is a great relief for anyone to know that they can monitor and control most of their home appliances, including their smart door locks and CCTV cameras, from anywhere in the world. While the automated lights and curtains can discourage burglars from sneaking in, smart home security systems can immediately alert the homeowner in case they do.
Less energy bill – Who doesn’t need lower utility bills? Energy-efficient smart LEDs, plugs, and switches; automated thermostats, and other such devices can easily be optimised for reduced power consumption. A lot of smart devices ‘remember’ human preferences and automatically adjust their settings based on the stored data. Also, most smart home Apps allow the user to monitor energy expenditure in real-time and control the same.
Greater adoption of IoT, AI, and wireless technology – The market for technologically connected electronic devices like televisions, refrigerators, geysers, Smartphones, etc. is also on the rise as they enhance the standard of living of the consumers. The target market is mainly the youth as they are more technologically aware. However, continuous R&D is going on to make these products more user-friendly so that they can penetrate other demography as well.
Increasing disposable income – Home automation products are pricier than their traditional counterparts. However, well educated urban dwellers earn well and don’t shy away from spending on products that ensure a hassle-free luxurious lifestyle. Moreover, with increased adoption, the price of these products is set to drop soon.
Market Potential:
With the advancement in machine to machine communication, smart homes are set to be as common as Smartphones in the near future. Naturally, the competition will be intense. To tap this great opportunity, manufacturers of home automation products will need to innovate; while the retailers can showcase this product category more to enhance the buzz. The earlier, the better! Because early birds get the worm!
