Retrofit Automation Solutions to drive the growth in residential smart home market of India: Bonafide Research
The cost of smart home has drastically come down with the retrofit automation solutions. Many new startups have entered the market in the past 2 years and are providing the retrofit solutions at a price as low as INR 3360. With the increasing need of comfort and automation being available at such a low price, the residential segment is expected to adopt the retrofit home automation solutions in the metro cities as well as tier-2 and tier-3 cities.
The smart home market in India was almost negligible till the year 2013. After that, the market started to increase and has grown significantly in the last four years. The smart home market in the country consists of three major sectors viz. Hospitality, Commercial and Residential. The automation solutions in these sectors are further categorized into lighting, blinds/shades, servers, entertainment, security/access control, energy management, etc. Home Automation consists of lighting, blinds, hub/server, entertainment and others like smart sockets, cabling, triggers etc. Till now the highest adoption of the automation has remained in the hospitality segment which includes hotel exteriors and hotel rooms. The obvious reason for this is that the premium as well as five-star hotels are bound to provide the epitome of comfort and service to their customers.
According to recently published report of Bonafide Research, "India Smart Home Market Outlook, 2021", the smart home market is expected to grow with a CAGR of more than 25% over next three years. Currently, lighting automation and control category is at the top and expected to capture majority of the revenues in the coming years as well. Smart Home which was considered to be a costly affair in India has now seen a total turn around with the introduction of retrofit home automation solutions. The commercial segment, even though is not a major market for automation, has grown significantly in the last two years. The major adoption expected in this sector is of security & access control automation in the coming few years. Residential users have remained skeptical about adopting the automation in their homes due to the fact that their solutions are very costly. The growth or adoption which has happened in the past few years was majorly based upon the new entire home automation by the rich people who could have afforded it. However in future, the smart home market is expected to grow because of the retrofit home automation solutions. Major adoption in the residential segment currently has remained in the lighting and entertainment segments.
In recent times, many start-ups have been established in India for providing automation solutions and they all are mainly providing retrofit solutions being designed and manufactured by them only. The price of installing automation in a room has come down to as low as Rs. 8000 and such retrofit solutions are not costly for even the people from tier-2 and tier-3 cities. Moreover with the rising disposable incomes in India and the need for comfort and luxury, people are ready to shell the cost which in turn will make the market grow. This has provided a great opportunity for players and thus the market has seen more and more startups being established in the home automation field.
Major companies operating in the smart home market of India are Control4 India Private Limited, Crestron Electronics India Limited, Lutron GL Sales & Service Private Limited, Legrand India Private Limited, Inoho Electronics Private Limited, Silvan Innovation Labs Private Limited, PERT Info-consulting Private Limited, RIOT Labz Private Limited and Home Brain IOT Service Private Limited.