Home Automation in India – Deep dive into

Home Automation in India – Future trends of the market

the future trends of themarket

Understanding the product and market growth of home automation in India

CONTENTS

1. Leading markets in India....................................................................................................................... 1

2. Market Analysis by product segments............................................................................................. 1

a) Lighting Market................................................................................................................................ 1

b) Security Market ................................................................................................................................ 2

3. Market trends – technology................................................................................................................. 2

4. Wired Vs. Wireless systems .................................................................................................................. 2

The home automation market in India is expected
to reach INR 8800 crore by 2017, with the
residential segment accounting for nearly 60% of Pune currently is the biggest market for home
the industry. Home automation in India today automation in India. The market shares for key
consists of four functional segments – Lighting, markets are as follows:
Security, Audio/Video and HVAC (Heating,
Ventilation and Air Conditioning). Lighting is the Key markets % Share
largest component of residential market while Delhi-NCR 13%
security is the largest component of Commercial Jaipur 4%
market. Chandigarh 2%

1. Leading markets in India Ludhiana 2%

Mumbai 12%
The market is currently concentrated in top-10
Pune 15%
cities and few smaller cities; companies are looking
at tier-2 cities for their next level of growth. Ahmadabad 7%
Kolkata 4%
Hyderabad 9%
Bangalore 7%
Chennai 6%
Coimbatore 2%
Cochin 2%
Others 15%
Market share by region

2. Market Analysis by product

segments
a) LightingMarket
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
Market share by geography.
the organised players and the rest by unorganised
It can be observed that certain areas have shown players. Legrand leads the market followed by the
higher growth and this can largely attributed to next 25 players. The unorganised market largely
two factors – growth of IT Hubs and HNIs (high constitutes of local players who import sensors,
net-worth individuals). HNIs are concentrated in switches, control boxes and remotes from other
NCR, Punjab and Gujarat and IT Hubs are located markets such as China.
in Pune, Hyderabad, Bangalore, Noida and
Coimbatore.

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 3. 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
Market share by product segment and players
 Lack of flexibility for adding new products
b) SecurityMarket  High installation time
The security systems market is the largest product Although foreign players are entering the market,
segment in India’s home automation market. The the process of purchasing and maintaining a
market is dominated by organised players; nearly system sold by a foreign player is still not smooth.
70% of the market is made up of organised Some of the drawbacks of foreign players in India
players. Zicom, Honeywell and Bosch lead the are as follows:
market this segment. The unorganised market
includes players who sell CCTVs, alarm systems,  Product replacement times are as high as 4
door sensors and video phones imported from weeks
China.  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.

4. Wired Vs. Wireless systems

The home automation market worldwide is making
a shift from wired to wireless systems. Some of the
Marketshare by product segment and players
key features of both systems are listed on the chart
The security and surveillance and market in India below:
stands at INR 9000 crores. The industrial and
government security market accounts for 85% of
the security market.

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  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
Key insights for both systems across important security domain. However, brand is not a very
factors:
important factor for builders as price is the
 Installation – Installation time for a wired most important consideration for builders.
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

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Authors

Research & Analysis

Niteesh Verma
(Associate Consultant)

Tanvi Gupta
(Senior Research Analyst)

Content Editor
Pavithra Babu
(Consultant - Content and Thought Leadership)

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