Smart homes catch on, market may grow 30% annually

High awareness among consumers about smart homes will drive growth for smart home solutions in future

With the growing influence of technology and digitisation, the concept of smart homes is gaining popularity and is likely to grow at 30% year-on-year, potentially ensuring the market will double in revenue every 3 years, a recent survey revealed.

According to a study conducted by Schneider Electric India, high awareness among consumers about smart homes, which is almost universal in metros and upper-end segments, will drive the growth for smart home solutions in future.

The segment is expected to witness a growth of 30% year-on-year, it said.

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.

The survey was conducted among end customers of premium apartment complexes, duplex, triplex and villas within the range of Rs 50 lakh to Rs 1 crore, Rs 1-5 crore and over Rs 5 crore as well as builders of such complexes.

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% 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% 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.

According to the survey, in the Rs 5 crore and above segment, 100% respondents were aware of smart homes, while in the Rs 1-5 crore bracket, 87% were aware.

In the Rs 50 lakh to Rs 1 crore section, only 49% were aware, while another 28% expressed awareness on being prompted, with the balance 23% having no awareness at all.