In the modern world we all are getting very dependent over technology. We are growing very swiftly in the digital world today. Everything is becoming smarter day by day with the help of technology integration. Now even homes are smarter by use of technology advancement which give us safety, security, automation, and many other crucial benefits in our day to day life. Smart homes concept is picking up attention even in some parts of sub-urban and rural areas in India. In an interaction with DT, C. Alankrutha, Architect, Navin's N-Hance talks overs the increasing trend of smart homes today.
DT: Please give us a brief overview about the emerging trend of Smart Homes in India? How this market has been flourishing in India?
C. Alankrutha: In this digital era, we are dependent on technology for every aspect of our everyday life. At the same time, we are also conscious of sustainable way of life, conserving resources with the help of technology. Talking of efficiency and convenience, in future we would be completely reliant on technological innovations.
Currently Smart homes market pertains to luxury projects, very soon it will become a requirement in all categories of housing. According to a recent Statista report, revenue in India for the Smart Home market is pegged at US$870m and the average revenue per installed Smart Home is US$97.59.Some of the main advantages of smart homes are safety and security, reduced manual intervention, convenience at the tap of a button, connectivity and accessibility. Considering the Internet of Things (IOT), every technology under home automation will make life easier, help in better time management, planning and efficient use of resources.
DT: Which consumer segment is more likely to buy this kind of connected homes?
C. Alankrutha: Initially, in the Indian market smart homes catered to the luxury homebuyers. Owing to the price factor, the benefits were majorly limited to the high end market. But, with increased internet penetration, smart homes concept is picking up attention even in some parts of sub-urban and rural areas. In cities, with a lot of tech savvy crowd and IT/ITeS employees, smart homes market is gaining traction at a promising rate.
DT: How the technological advancements are affecting the market of traditional home buyers?
C. Alankrutha: Traditional home buyers still dominate the market. Since, today’s generations will become future homebuyers, realty market is dependent on digital upgrade for the technology savvy generation. As discussed earlier, in this digital age, easy connectivity and security lures the home buyers to consider smart homes as a worthy investment. Moreover, the tech savvy consumers are well-aware of surplus benefits and prefer minimum of two smart features in their homes. Eg. Digital Main Door access, light and fan control. Understanding the consumer preference, companies need to slowly implement such digital advances to adapt to the change and be future ready.
DT: What are the factors that are driving the growth of Smart Homes here?
C. Alankrutha: Our educated youth migrate to the urban areas in search of jobs and ultimately settle in the cities or urban work areas. This buyer segment with the desire to own a house in sync with the current trend aspires for Smart homes or homes that are adept to evolving technologies. In a country like India, where technology and digitalization is fast growing and accessible, home automation at affordable pricing would be a welcoming move. At present, apart from smart light/fan controls, other features gaining popularity among home buyers are security systems including CCTV, fire response and fighting systems and water management systems. With technological advancements this trend will rapidly evolve and many more smart features would gain demand among the end users.
DT: Tell us about the main challenges for this sector in providing smart connected homes to homebuyers.
C. Alankrutha: Owing to high costs and selective demand, complete home automation is restricted to high end project or uber luxury projects. Not just home buyer’s even developers need to invest substantial capital, for offering home automation. Conversely, some consumers aspiring connected homes are skeptical on paying a premium to avail its benefits. So cost is by far, the single biggest challenge faced by the industry. Apart from this issue, currently not many companies in India are available for mass production of smart home technology help and services. We need require more Indian companies to provide automation solutions at affordable rates. When the consumption or demand increases, we hopefully would be left with more choices.
DT: Where do you see this sector in next couple of years? What is the future of this sector in India?
C. Alankrutha: The sector is witnessing prominent growth due to its various advantages. Apart from luxury segment, with home automation provided at affordable prices, homebuyers from various segments will begin opting for smart home and its benefits. Statista report also predicts Indian smart home market to hit 7.2% by 2022. In the wake of these positive numbers, I expect the overall industry to grow steadily in the future.
