Urban Indian homes are turning into personalised, energy-efficient environments due to a rapid shift to interconnected, internet of things (IoT)-enabled smart devices. Key factors driving this trend are increasing urbanisation, seamless 5G connectivity, enhanced safety needs, rising disposable incomes, changing consumer preferences, technological advancements, energy efficiency considerations and convenience. Further, the emergence of the cross-vendor Matter protocol has put home automation in the mainstream.
As per industry reports, the Indian smart home devices market, valued at $8.33 billion in 2025, is forecast to reach $54.97 billion by 2034, growing at a CAGR of 23.3 per cent. The World Bank, in its analysis paper titled “Gearing Up for India’s Rapid Urban Transformation”, estimates that by 2036, Indian towns and cities will be home to 600 million people, making up 40 per cent of the population, with urban areas contributing almost 70 per cent to the GDP. Government initiatives such as the Smart Cities Mission and rooftop solar incentives under the PM Surya Ghar: Muft Bijli Yojana have further increased the uptake of home automation systems. The PM Surya Ghar programme requires all solar inverters and data loggers to use machine-to-machine SIMs for IoT-based power monitoring, and provides households up to 300 free units of daytime solar electricity. This is driving demand for smart plugs, circuit breakers and automated switches to run heavy appliances during peak solar hours and maximise free energy use.
Under the Smart Cities Mission, 94 per cent of over 7,800 planned smart city projects had been completed across 100 cities as of early 2025.
Smart home devices and communication technologies
Automated home systems use various communication technologies depending on tasks to be performed, such as Wi-Fi, Zigbee and Z-Wave, Bluetooth, Matter, narrowband (NB) IoT and long-range wide area network (LoRaWAN). While Wi-Fi is the most commonly used protocol that allows devices to connect directly to the internet and a central hub, Zigbee and Z-Wave are low-power mesh networks that are particularly intended for smart home devices (like lights and sensors), and often require a dedicated hub to connect to the internet. Wi-Fi works best for devices that need high data throughput, such as smart cameras, video doorbells and streaming speakers. Bluetooth is a short-range wireless technology that keeps devices in a low-power state and works best for simple, direct control of lights and accessories from a phone over short distances. Matter is an open-source, IP-based connectivity standard from the Connectivity Standards Alliance that runs on top of Thread or Wi-Fi to unify ecosystems, making it the key to future-proofing smart homes so that devices from different brands (such as Apple, Google, Amazon and Samsung) can work together. When compared with Wi-Fi, Z-Wave and Matter offer better reliability and interoperability. Further, NB-IoT is a cellular-based solution that keeps low-data devices like security sensors connected for years without needing a battery change, and LoRaWAN is a long-distance wireless standard perfect for outdoor home automation. It easily reaches garden watering systems as well as property boundary monitors. Another communication technology, near-field communication, adds “tap-and-go” convenience, providing quick, secure access control and authentication through close-range interactions.
The primary components of a smart home automation system are controllers/hubs or central units (such as Apple HomePod, Amazon Echo and SmartThings) that administer communication; sensors, which capture environmental changes (motion, temperature or smoke); actuators (these are physical devices that execute actions, such as smart locks, motor controllers and light switches); and network protocols.
tele.net takes a look at some of the smart home systems that are gaining traction…
Smart air and water monitoring systems
With growing health consciousness due to rising pollution levels in most big cities, the demand for smart air purifier systems has shot up. Modern smart air purifiers offer app control for monitoring the air quality index, which is done via laser sensors, and controlling fan speeds remotely; voice control, enabling integration with Alexa/Google Home for hands-free operation; and 4-in-1 HEPA filtration that ensures the removal of fine particles and formaldehyde destruction. Premium models like Dyson Purifier Cool Gen1 feature 350-degree oscillation, advanced sensing technology and also destroy formaldehyde, a common indoor pollutant in newer furniture. Xiaomi Smart Air Purifier 4 Lite offers 360-degree filtration for 99.97 per cent of 0.3μm particles, smart App/voice control and OLED display, while Acerpure Pro P2 combines a pre-filter, HEPA filter, activated carbon and antivirus coating to tackle allergens and harmful gases. Further, new models use energy-efficient brushless DC motors that are quieter, with some operating at noise levels as low as 13dB, ideal for bedrooms.
Meanwhile, water purification systems have also advanced by integrating IoT connectivity, AI-based water quality monitoring and multi-stage RO+UV+UF+alkaline technologies to ensure safe, mineral-rich drinking water. Leading brands such as Kent, Aquaguard and Livpure offer app-enabled, real-time monitoring for filter life, total dissolved solids levels and automated service booking.
Smart comfort and energy management
Smart lighting solutions are altering household energy consumption patterns and bringing down electricity bills. These lighting solutions automate daylight matching as well as app and voice control with scheduling. Popular brands such as Philips WiZ, Crompton Immensa, Wipro, Aziot and Syska have colour-changing bulbs, adjustable panels and smart tube lights that save energy. Philips WiZ has a wide Wi-Fi range from downlights to spotlights; Aziot offers sleek, modern options like trimless spotlights and RGB strips; and Crompton’s Immensa bulbs feature 16 million colours and music-sync modes. There are smart node switches that can be installed behind existing wall switches that convert conventional lights, fans and appliances into smart devices. They do not require any rewiring or replacement of fixtures, thus enabling seamless integration with legacy electrical infrastructure. Meanwhile, JioThings offers smart street poles. The primary market leaders in the smart lighting category are Signify (Philips), Havells, Syska, Wipro and Bajaj Electricals.
Safety apps are an important aspect of a smart home. With smart locks, video doorbells, smart wireless alarm systems and IP cameras, real-time surveillance and remote access control have become possible for householders. The biggest benefit of a smart wireless alarm system is its flexibility. Initially, only a few sensors need to be installed, and more can be added as per requirement. These systems are easy to use, and with battery backup, they continue working even during a power outage.
Further, smart appliances such as smart beds that track sleep quality, motorised curtains, and robotic vacuums and mops are simplifying urban life by automating daily tasks.
Smart entertainment
Smart home entertainment systems in India centre on voice-activated, artificial intelligence (AI)-integrated and wireless ecosystems powered by Google Assistant, Alexa and Apple HomeKit. Some of the key trends are AI-enhanced smart TVs that auto-adjust picture and sound, wireless multi-room audio from brands like Sonos and Amazon Echo Studio. Smart projectors and ambient screen-synced lighting are also gaining traction for home cinema set-ups. Major players include Amazon Echo and Google Nest Hub for smart hubs, Samsung and Sony for smart TVs, and Sonos and Bose for audio. The market is gradually moving towards user-friendly, modular and wireless solutions that retrofit older appliances using Wi-Fi plugs and infrared blasters, making integration easy for both new and existing homes.
Smart health
Wearables and smart home health tech have turned homes into active care hubs, making remote patient care possible. Body-worn devices such as smartwatches, rings and medical patches continuously track heart rate, oxygen, glucose and sleep, sending data to doctors. Further, in-home IoT systems integrate smart pill dispensers, connected scales, fall detectors, CPAP machines and air quality monitors to manage medications, detect emergencies and adjust environments. Together, they enable remote patient monitoring for some chronic conditions, let families check on ageing relatives and trigger alerts for falls or wandering. This trend has shifted healthcare from clinics to daily life, helping people stay independent and manage well-being safely at home.
Conclusion
Improvements in infrastructure and expanding internet connectivity have enabled smart home systems to extend beyond metropolitan centres and penetrate into semi-urban and rural areas. Big players such as Amazon and Google Nest are betting on the open Matter standard to reach consumers in semi-urban and rural areas. With device prices going down and digital skills improving in smaller towns, semi-urban markets are set to drive the next phase of home automation growth. Going forward, this broader adoption will amplify the impact of smart home devices on energy conservation and environmental sustainability.
With the adoption of smart home devices gathering traction in the country, it is evident that the market is no longer driven by novelty but necessity.
AI-powered systems are making homes more intuitive by learning daily routines to manage climate, lighting and even entertainment all on their own. These systems are also finding new applications in healthcare. Due to increasing power costs, homeowners are switching to energy-efficient devices. Meanwhile, security, too, has become paramount, with remote access, real-time alerts and reliable offline control becoming standard expectations.
Going forward, automation-ready homes with sound security systems will not just be desirable but essential as well. This will likely push up property resale value. Overall, the uptake of smart home appliances in India is not just a technology trend but the start of a more efficient way of living.
Anagha Bhambri
