Residential segment has 60% share in the home automation market in India: Vishnu Malikireddy, Hogar Controls
Due to more and more millennials investing in home ownership over the last few years, the home automation market in India has been growing rapidly
Anushruti Singh March 29, 2023
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The smart home automation market is booming. Over the years, a host of home automation tech start-ups have come up with cutting-edge smart home products and solutions to revolutionise the way people live.
Vishnu Malikireddy aka Vishnu Reddy, Founder and CEO of Hogar Controls, has been catering to the Indian home automation market since 2019. His assembling unit is now looking to expedite the manufacturing of custom designed products for their Indian consumers. The company recently showcased its products at the ABID Interiors 2023 Expo in Kolkata. In a discussion with SME Futures, Malikireddy talks about the consumers’ growing interest in home automation in India and where this sector is still lacking.
Tell us about your company in brief, its presence and its product portfolio.
Hogar Controls was established in 2015 in Virginia, USA, and has since become a globally renowned automation company. Our products are at the forefront of technological development, and the combination of cutting-edge tech and design thinking allows us to create a range of stylish, user-friendly solutions for homeowners, retailers, and professional integrators. Our automated solutions are perfect for any number of settings, including smart cities, communities, hospitality and commercial, residential, and working spaces.
In 2019, our manufacturing and R&D facility in Hyderabad was established, covering a total area of 10,000 square feet. This facility is automated with state-of-the-art electronic manufacturing equipment and has an annual production capacity of more than 6,00,000 units. As a result of this growth, we have broadened our global presence to multiple countries in the Middle East, Singapore, Thailand, London, France, Netherlands and Lagos.
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In the last three years, we have invested more than Rs 100 crores in our product portfolio, which includes Wi-Fi-enabled smart touch panels, smart controllers, video doorbells, digital door locks, curtain motors, security cameras, and our retrofit series for smart lighting.
How has the home automation industry grown over the years? What’s the scenario in this market?
Over the past few years, as more and more consumers strive to personalise their living spaces with home IoT devices, the industry has experienced significant growth.
This is primarily due to millennials investing in home ownership, combined with the rising disposable income of citizens in developed countries. In 2020, the global home automation market size was estimated to be worth US$ 40.8 billion and is projected to increase to US$ 63.2 billion by 2025. India, despite having a relatively low number of smart homes at 13 million, is experiencing an upsurge in the market for home IoT.
What are the top trends of the sector in India? What do consumers prefer?
Hogar Controls has taken a proactive approach to target the residential segment in India’s home automation market, a market that is projected to be valued at Rs 55,000 crores by 2024, with the residential market accounting for 60 per cent of the total value.
At present, the consumers in India are increasingly opting for home automation systems to make their homes smarter and more secure. Security is currently the most in-demand type of home automation device in the Indian market. Smart cameras, door sensors, smoke detectors, gas leakage detectors, and smart locks are leading the charge. Entertainment appliances such as smart assistants, smart lighting, and universal remotes come in at a close second, with electrical control and energy efficiency devices following behind.
As the CEO of Hogar Controls, how do you look at the business prospects of home IoT in tier 2 and tier 3 cities? What are the opportunities there?
The growing popularity of smart homes in India amongst the more affluent classes and amongst those living in tier 2 cities, can be attributed to their desire for comfort and luxury. People are investing in the safety features of IoT and smart homes, such as the detection of gas leakages, fire, smoke and intruder alerts, in order to be better prepared and more secure.
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The tier 2 and tier 3 cities present a great opportunity for smart home product providers to expand their market as there are numerous cost-effective offerings available. To maximise their success in these markets, companies should focus their efforts on specific areas such as energy management, security, appliances, water control, and healthcare.
What are the main challenges of this industry? What measures did it need to grow rapidly?
The industry initially faced difficult challenges as it transitioned from wired to wireless technology. It was essential to determine the right wireless protocols that could guarantee both security and network stability. Over time, the industry has seen a range of developments and innovations that have helped to build the secure and reliable network that is in place today. And technology has aided a lot in achieving this.
By utilising the latest cutting-edge technologies, Hogar Controls smart home products have been designed with modern aesthetics and user-friendly features to make your life more comfortable, easier, and more convenient. All our devices are integrated for unified operation, so you can control the entirety of your home with a few taps on your phone or through voice commands. Equipped with advanced sensors and AI algorithms, these products learn your preferences and adapt to your needs, personalising your home environment.
In your opinion, is the Indian home automation market fragmented? If so, what are the reasons behind it?
Yes, the home IoT market is becoming increasingly competitive as established and new players are making significant investments in home automation technologies. However, the fragmentation of the market is being driven by the emergence of different proprietary platforms and communication protocols, the lack of common interoperability standards, network connectivity issues, synchronisation challenges, market saturation, and the lack of uniformity in standards and regulations.
We at Hogar Controls, are proud to say that our product offerings stand apart from the rest. We recognise the confusion that consumers face when they think about purchasing smart home devices and strive to provide them with a clear and unique value proposition. Our goal is to not only promote the concept of premium living but also to emphasise the utility and value that smart devices bring to everyday lifestyles. We have worked hard to perfect our user-centric design, personalised solutions, open standards, scalability, and comprehensive support to ensure that our consumers have the best experience possible.
Isn’t automated living making the setup more vulnerable in terms of cybersecurity? What are the IoT standards that need to be set?
Improved cybersecurity systems for home IoT are essential to protect against the risks that come with the increasing capabilities of IoT and smart homes. Vendors must ensure that their devices have upgraded security features, and when vulnerabilities are detected, security patch updates need to be applied without delay.
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Having said that, it is necessary to emphasise the importance of safety in automated living setups. That’s why our systems employ robust encryption algorithms to protect passwords and a one-way hashing algorithm that makes it near impossible for attackers to retrieve the original passwords. Additionally, we take a thorough and transparent approach to firmware updates, ensuring that they are thoroughly tested and staged before being communicated to our users.
We urge our users to take the necessary precautions such as utilising robust passwords, frequently updating their software, and implementing network security systems, so that they can reduce the chances of risks and ensure the security of their automated living systems.