OVERALL FLOW
- Overview of the market and drivers impacting its growth
- Functional Segments
- Market Analy sis by customer segments
- Market Analysis by product segments
- Leading markets in India
- Market trends – technology
- Wired Vs. Wireless systems
- KEY INSIGHTS
- Schematic of smart home
- Categorization of smart home
- Segmentation matrix
- Current Engagement with IOT companies
HOME AUTOMATION MARKET UNDERSTANDING:
Technology is a critical factor in the way we function today; disruption through technology has bought forth some of the most efficient solutions in many aspects of life today. From smart phones, internet banking, e-commerce, to new age innovations such as wearable technology and smart homes, technological innovation is impacting our lives like it has never before; stitching together people, systems and solutions Seamlessly.
Home automation has its roots in smart home appliances which has over the years led to the development of integrated smart homes. Home automation today largely consists of four functional segments –Lighting, Security, Audio/Video and HVAC (Heating, Ventilating and Air Conditioning). Residential usage is the highest in the market and accounts for nearly 60% of the home automation industry.
The home automation market in India is expected to reach INR 8800 crores by 2017. The key growth drivers for this demand are increasing consumer awareness and financial ability, product innovations (like smart phone apps), builders’ requirement for market differentiation and an increase in the preference for energy efficient systems. However the market is still in its growth phase with a significant gap for more innovative and connected systems. Some of the key constraints include high product costs and moderate levels of satisfaction among the customers.
Home automation market growth in India in Cr. INR
The four functional segments of home automation in India include Lighting, Security, Audio/Video and HVAC (Heating, Ventilating and Air Conditioning).Major driving forces for installing smart home systems are convenience, energy conservation and security. Smart home systems today, help control anything from climate/temperature, security cameras, locks, sensors and entertainment systems among others. A detailed segment wise breakdown of the systems are given below:
Market Analysis by Customer segment
The residential segment accounts for nearly 60% of India’s home automation industry (out of which individual homes and villas account for 75-80% of market and builders account for ~20% of market). This segment has the highest growth and is currently growing at a CAGR of 35-40%. The market for residential home automation is highly fragmented, especially in home security systems.
Commercial spaces contribute to 30% of the home automation market. This segment is largely driven by security and access systems. Large companies like Samsung, Bosch and Honeywell dominate this segment in India. Efficient building management systems are fast gaining popularity in India as well.
The hospitality industry also uses home automation and accounts for 10% of the market. Security and lighting systems are popular in this sector due to the growing need for differentiation.
Market Analysis by product segments
a) Lighting Market
The lighting market makes for 39% of the home automation market thus being the second largest segment in the market (the first being the security market at 45%).The lighting market is highly fragmented with 60% of the market captured by the organised players and the rest by unorganised players. Legrand leads the market followed by the next 25 players. The unorganised market largely constitutes of local players who import sensors, switches, control boxes and remotes from other markets such as China.
b) Security Market
The security systems market is the largest product segment in India’s home automation market. The market is dominated by organised players; nearly 70% of the market is made up of organised players. Zicom, Honeywell and Bosch lead the market this segment. The unorganised market includes players who sell CCTVs, alarm systems,door sensors and video phones imported from China.
The security and surveillance and market in India stands at INR 9000 crores . The industrial and government security market accounts for 85% of the security market.
Overall, the market is highly fragmented, largely due to the low entry barriers. Availability of open source technologies makes it easy to enter the market. Innovation is the driving force of the industry and the market is evolving fast both in terms of technology and features (mobile apps etc.). In India, the home automation market is expected to grow significantly over the next few years and will witness growth both in terms of number of players and technologies offered.
Leading markets in India The market is currently concentrated in top-10 cities and few smaller cities; companies are looking at tier-2 cities for their next level of growth. Market share by geography. It can be observed that certain areas have shown higher growth and this can largely attributed to two factors – growth of IT Hubs and HNIs (high net-worth individuals). HNIs are concentrated in NCR, Punjab and Gujarat and IT Hubs are located in Pune, Hyderabad, Bangalore, Noida and Coimbatore.
Pune currently is the biggest market for home automation in India.
Market trends – technology
Some of the key problem areas in India are issues with wired systems and foreign players. Some of the main pain points with wired systems are as follows:
- Difficult to retro-fit
- Lack of inter-operability between different products
- Lack of remote management from outside
- Settings to be configured only by company engineers
- Lack of flexibility for adding new products
- High installation time
Although foreign players are entering the market, the process of purchasing and maintaining a system sold by a foreign player is still not smooth.
Some of the drawbacks of foreign players in India are as follows:
- roduct replacement times are as high as 4 weeks
- Lack of service infrastructure as 1 service engineer services up to 400 clients
- Lack of support for ‘India-models’ of products as codes are written for US models
- Lack of support for system integrators
Unsuccessful wireless solutions by MNCs is leading to system integrators creating their own protocols or switching to open source products. This in turn leads to higher margins for the integrators.
Wired Vs. Wireless systems
The home automation market worldwide is making a shift from wired to wireless systems. Some of the key features of both systems are listed on the chart below:
Key insights for both systems across important factors:
- Installation – Installation time for a wired system is less than a day, in some cases it could get up to a week`s time. A wireless system requires fewer hours of installation time and is very convenient to install
- Warranty – Warranty of 2 years is provided by most home automation brands. Some system integrators do provide additional warranty on services
- After sales services – AMC of 8-10% of total project cost is common in the market. Many customers are not very much concerned about hardware and do not feel the need of AMC.
- Brand importance – Brand is a very important parameter for end users, especially in the security domain. However, brand is not a very important factor for builders as price is the most important consideration for builders.
1) Lights(ON/OFF) 2) Curtain 3) HVAC 4) CCTV and VDP 5) Ipad contol
Categorization of Smart Home systems
Residential home automation is broadly categorized into 3 types
1. Entrance Management 2. Safety and Security 3. Smart Device-Life Style Management
OEM’S
1. CRESTRON
It is one of the leading OEM’s in home automation space across the globe with HQ in New jersey USA.
2. SILVAN
Spurred on by the magnitude of success the company has achieved in home automation in the Indian market, Silvan is now looking to expand into other geographies. It is also working on new products that would increase its footprint amongst the consumers.
IOT Based solution companies
3. IRAM
4. ZEESENSE
5. Intellicon:
Intellicon, an integrated technology solutions company functioning in the Enterprise Communication and Information Technology domains. Intellicon’s pan India presence, combined with its acknowledged capability to optimize its core capabilities across diverse technology platforms, and commitment to quality and support facilitates the delivery of best in class solutions.
6. StereoTrend
7. Build Track
BuildTrack Labs has been awarded the LEED Commercial Interiors Platinum Ratingby U.S. Green Building Council. The labs and offices use the entire BuildTrack™ brand of products to provide elements of energy efficiency, safety, security, comfort and convenience and serve as a product demonstration showroom for all the products developed. Buildtrack is the first indian company to receive the globally recognized internet of things award 2015 in connected home category. We have also received the most innovative product award for energy savings.
