 "Security devices lead India's smart home boom, mkt to hit Rs 36k cr by 2028 | Personal Finance")
Illustration: Binay Sinha
The smart home market in India is experiencing explosive growth, driven by increasing affordability, rising consumer incomes, and a growing preference for convenience and security. According to a new report by Redseer Strategy Consultants, the market, currently valued at Rs 90,000 crore, is projected to nearly double in size to reach Rs 140,000 crore by 2028.
Out of this, the smart home category which was valued at Rs 8000 crore in 2023 is estimated to become Rs 36,000 crore by 2028. While security-related products are expected to lead the charge, contributing around 14% to the market, other categories are also poised for steady growth by CY28.
Security Takes the Lead
Security-centric devices such as smart cameras and locks are leading the charge in smart home adoption. These devices have garnered high consumer satisfaction, with Net Promoter Scores (NPS) reaching 63 and 80, respectively.
The decreasing cost of smart home devices is a key factor in their rising popularity. With more Indians embracing digital lifestyles, the demand for connected home solutions is expected to surge. The report predicts that the penetration of smart devices will jump from 8-10% in 2023 to 25-28% by 2028.
1. Home devices are moving from being Conventional to Connected
a. Smart home devices in India have evolved from basic, high-energy-consuming gadgets to sophisticated, connected systems that can be easily controlled from our phones. These devices offer unparalleled convenience, enabling users to manage their homes remotely and effortlessly.
b. Key categories driving this revolution include security (cameras, doorbells, locks), lighting and control (lights, switches, plugs), and small appliances (air purifiers, vacuum cleaners).
2. As of CY 2023, internet penetration in India has reached approximately 55% of the population. This growth has led to a substantial increase in the adoption of connected home devices. Notably, the penetration rate of smart devices rose to 8-10% in 2023, with expectations to reach 12-15% by CY25 and an impressive 25-28% by 2028
The study highlights a growing preference for smart home devices among Indian consumers. Nearly 70% of respondents expressed interest in or are already using smart home products. Factors such as convenience, security, and energy efficiency are driving this adoption.
Most preferred smart devices
a. Security cameras and smart locks are leading the charge in enhancing home security, with Net Promoter Scores (NPS) of 63 and 80, respectively.
b. Smart lighting and small appliances are also gaining popularity, with smart bulbs achieving an NPS of 72 and smart air purifiers leading the small appliance category with an NPS of 85.
Currently, 44% of consumers own smart home devices, with another 25% are potential users considering future purchases.
“India’s smart home market is at an inflection point due to changing market dynamics, most notably the growing customer interest, which has led to a 4X increase in smart home device penetration since pre-COVID levels. This trend is further bolstered by rising internet penetration, now at ~55%, enabling a wider array of use cases for smart home devices. Notably, our recent customer research revealed that ~70% of customers are willing to explore beyond entertainment devices and are either using or interested in products in new categories such as smart security, lighting, and appliances,” said Amitabh Kumar, Engagement Manager at Redseer.
First Published: Aug 01 2024 | 11:14 AM IST
