Business Aspect of Home Automation

Feb. 8, 2019

Author: Ankita Kumari

There was a time when humans starved for electricity and now they starve for saving electricity.

The time has changed so much that interaction with power and machines have changed completely. The home automation industry has also changed from simple switching on and off of the device to smart security and AI enabled solutions which not only takes care of the home but also saves the energy with its energy saving module.
Consider an example where everything in your home from groceries to fuel gets refilled automatically whenever it gets empty and you start getting a notification for every issue in your home, from water leakage to required ingredients, wouldn’t that make your life a lot easier?

Yes, surely it will!

In the last few years the home automation industry grew at a tremendous rate and there are several reasons behind this. One of the major reason is the technical development which has taken apace in India due to which the industry has started to emerge with a great business potential platform.

Why People love Home automation?

As Human race evolves we happen to understand that time is the real money!
Things that marketers think are the main factors to drive the growth of the sector are as follows:

  • Security has become a serious issue for most of the people.

  • The potential of cost saving via energy conservation is another factor.

  • Ease-of-use technology has taken a drive.

  • Consumers want smart devices to keep a track with the changing trend.

If you went through the points mentioned above, you might have noticed that all of them notify a key human trait that, no one wants to spend time on useless activities which are not directly related to productivity, and here is when automation comes into action.
Home Automation has come to light as a platform which transforms our daily life by making our day-to-day activity simpler and much secure so that we can focus on other productive works. It provides a complete system which takes care of the entire daily activity of a person. Home automation has such a vast domain that can affect almost each and every individual.

So what are the key features of a smart home which attracts people towards it? After a lot of research as an individual these are the key features which I think people love the most about home automation:

  • Leaving the home without any worry. Home Automation system is like another person who stays at your home to take care of it even if you are not there.

  • No need to worry about switching on and off the appliances. Just set it and forget about it.

  • Motion detection is something which excites people a lot. The automatic switching on and off of light and the automatic opening of the door.

Business Aspect and Market Potential of the Industry

The advancement of Internet accessibility and the growing penetration of the Internet of Things (IoT) are the key factors which contribute towards moving to direct digital control. This, in turn, leads to a better machine to machine (M2M) communication which encourages users to move to smart homes which creates a great market opportunity for the home automation sector.
However, factors such as less awareness and high installation cost associated with the device may pose a challenge to the market demand for the system but I am sure that it is something which can be eliminated with time just like the smartphones and computers which took over the entire world with the passing time.
The following figure is proof that the sector has no barrier and is determined to excel in the near future.

“The industry is about to grow by $78 billion by 2022 and by 2025 it will grow by $264 billion.” - Forbes

What’s next in home automation and where’s the industry moving?

The home automation sector is growing rapidly and has already started to integrate with it all the devices.

“In India by 2025 smart homes will be as common as a smartphone” (google this stat).

The machines (Refrigerator, microwave, washing machine, geyser, AC) will start to communicate with each other and also with humans for a better home and maybe very soon you can be surprised by seeing a delivery man at your doorstep for an order done by your kitchen!

With IoT, I believe that we can change our imagination into reality!

What do you guys think about Home Automation? Do tell me your views in the comment section below...