The world of Cinema, especially Hollywood gave some fantastical and futuristic movies which were way ahead of their time. Though many of them might have seemed bizarre then but are now a part of our living reality. “The Cable Guy” (1996), starring Jim Carry showed us a world of cable TVs and a computer and a phone can be on the same device. It has eventually became our reality now.
Gradually, more and more of these technical fantasies came into existence and the world of the Internet grew rapidly. The ever-increasing rate of internet users around the globe and exponential growth in data paved a way for the IoT. Some traditional appliances now use Internet connectivity for remote access. And that’s how the Internet of Things (IoT) is at the heart of a wave of home automation that we know as smart homes.
In general, the smart home market is segmented based on products, services, and deployment technology. The product segment then is divided into thermostats, humidifiers, air cleaners, wireless doorbells and cameras, light timers, alarm systems, Yale locks, smoke alarms, pop smart buttons, smart sensors and speakers, robot vacuums, and more. The service segment is further divided into managed and professional services, and the on-site and cloud subcategories include the deployment technology segment.
Smart Homes Market: Growth Projections
The global smart home market is expected to rise to $144 billion between 2019 and 2025 at a CAGR of 16.5%. This is largely due to North America, which has a 25% – 28% regional smart home market share. North American automation and electronic companies leave no stone unturned in boosting the market growth.
In India, the market of smart-homes took pick-up in 2018 and picked up a sincere pace in 2019. The Government of India encourages the growth of high-speed internet connectivity through its programs like “Digital India” across the country; which are welcoming businesses to capitalize on this lucrative opportunity.
Although the smart-home market has set its foot recently and it is in a nascent stage, it is expected to witness sizable growth shortly. The market is expected to grow at 9% CAGR from 2017 to 2022, according to the PwC Study.
Evolution of the smart-home ecosystem
The concept of smart home not only proves to deliver higher living standards, but also includes a myriad of eco-friendly advanced security features that are contributing to its popularity and its future scope. With other smart-devices penetration in the Indian community, it paves a positive growth and reliance over smart-homes; as people have started embracing other smart, IoT-enabled devices such as smart speakers and lights.
There is a building ecosystem of digitization and adoption of smart technology like Amazon Echo which has created a consumer base for more advanced devices and smart technology in the Indian community. Being a first-mover Amazon Echo product has the advantage of being the segment leader and driving the shift in consumer behavior and the adoption of the Indian market of voice-assisted products.
The shift towards Eco-friendliness & Sustainability
Smart home can be proving to be a boon to environmental sustainability, provided it is used wisely even in future. The common tendency of wasting excessive amounts of energy from heating and cooling appliances might not help to achieve that.
Smart devices optimize internal home temperature according to weather, which can contribute to massive savings on energy. Eco-friendly smart homes also reduce the carbon footprint of an individual by optimizing appliances to suit his needs. We no longer have to worry about leaving an appliance turned on during the holiday because the smart home will take care of itself.
Future of smart home
According to the World Bank report, one billion people in the world live with some disability. As accessibility is a frequent issue for disabled people, and they tend to be more susceptible to socioeconomic outcomes; smart homes and devices are a simple solution to help individuals with special needs and our older populations . This to lead a more comfortable, independent lifestyle and control their home environment.
Smart technological systems have become the need of the hour because of its societal benefits. Many companies are exploiting every resource and time to build Eco-friendlier smart products. Smart devices have immense potential of improving the lives of individuals, society, and the environment.