Smart homes are no longer a futuristic dream but a contemporary reality. Industry estimates expect that the Indian smart home market, valued at $3.68 billion in 2023, will reach $15.31 billion by 2030, growing at a CAGR of 22.6 per cent during the forecast period. This remarkable expansion will be fuelled by various factors such as growing urbanisation. As of 2024, 36.6 per cent of India’s total population resided in urban areas, and the numbers are expected to increase due to continued rural-to-urban migration. The rise in disposable incomes has further accelerated the adoption of smart home solutions. Between 2020 and 2024, despite the increase in inflation, India’s per capita disposable income grew from Rs 0.14 million to Rs 0.18 million. Moreover, the Smart Cities Mission, launched by the Indian government, has been a major enabler of home automation. Under the mission, as of December 2024, 91 per cent of the 8,075 planned projects have been completed.
Popular smart home devices
Before delving into smart home devices, it is pertinent to note that they rely on multiple communication technologies, each serving a distinct purpose to ensure seamless functionality. For example, Wi-Fi enables high-speed data transfer, allowing real-time device control, cloud integration and remote monitoring. Bluetooth facilitates short-range, low-power communication, crucial for connecting wearables, smart locks and voice assistants with minimal energy consumption. Similarly, narrowband internet of things (NB-IoT) is designed for low-bandwidth applications, ensuring reliable, energy-efficient connectivity for battery-powered sensors and security devices. Long range wide area network (LoRaWAN) provides long-range, low-power connectivity, ideal for outdoor smart home applications like garden irrigation systems and perimeter security. Meanwhile, Z-Wave, operating on sub-1 GHz frequencies, ensures secure, low-latency mesh networking with minimal interference, supporting automation in lighting, security, and heating, ventilation and air conditioning systems. Zigbee, another widely used mesh networking protocol, operates on low power and enables seamless communication among smart home devices, particularly in lighting, security and energy management systems. In addition, near field communication (NFC) enables close-range, contactless interactions, used for access control and secure authentication.
A look at some of the key smart home devices popular in the Indian market at present…
Smart entertainment
The Indian smart entertainment market is undergoing a dynamic shift, with changing consumer preferences influencing sales trends. While the smart TV market saw a 6 per cent year-on-year decline in sales in 2024 due to the increasing consumption of content on mobile devices, analysts believe that it remains a high-potential segment. Companies such as Sony, LG, Samsung and Xiaomi have maintained dominance, with growing demand for built-in services (like integration of streaming apps), seamless connectivity and intuitive features. Many of these smart TVs utilise Wi-Fi and Zigbee for seamless integration with other smart home devices, enabling synchronised operation through a centralised hub. A key innovation in this space was the launch of cloud artificial intelligence (AI)-powered operating systems that offer fast, premium and content-rich smart TV operating systems at an affordable price. Cloud TV launched its system in July 2024, followed by Jio in February 2025.
The market for smart voice assistants and smart speakers is expanding, driven by increasing integration with IoT-enabled devices. Brands such as Amazon (Alexa), Google (Google Assistant) and Apple (Siri) have strengthened their ecosystems, allowing users to control smart TVs, lighting, climate systems and security features through voice commands. Notably, the most common smart home command is light control, while voice-controlled AC and fan usage have surged by 37 per cent over the past year, indicating a shift towards voice-activated climate control. These devices also rely on Zigbee, Z-Wave and Bluetooth to ensure smooth interactions within a smart home ecosystem.
Smart comfort and convenience
Health consciousness is a significant factor driving the adoption of smart home applications in India. The worsening air quality, particularly in metro cities, has led to a surge in smart air purifier adoption. For example, New Delhi’s annual average PM2.5 levels reached 104.7 micrograms per cubic metre in 2024, over twice the national limit. Companies like Xiaomi and Philips focus on affordability and brand presence, while Dyson and Daikin cater to premium consumers with high-performance models. Many of these air purifiers integrate Wi-Fi and Z-Wave connectivity, allowing users to monitor and adjust air quality remotely.
Similarly, the smart water purification segment has evolved, featuring multistage filtration technologies such as reverse osmosis, ultraviolet and ultrafiltration for safer drinking water. Intelligent purity sensors stop water flow if purification is incomplete, while smart alerts notify users about maintenance needs. Eureka Forbes Limited, Kent RO Systems Limited, Hindustan Unilever Limited and LG Electronics India Private Limited are a few key players in this segment.
Meanwhile, smart lighting solutions are transforming energy consumption patterns in India. Adoption has accelerated with the government’s push for energy efficiency, with brands like Philips Lighting India, Wipro Lighting and Havells leading the market. Smart lighting systems integrate motion sensors and remote-controlled LED adjustments. These systems typically use Zigbee and Z-Wave for communication, enabling users to control lighting through voice assistants or smartphone apps.
IoT-driven energy-efficient climate control solutions are also reshaping home comfort. Brands like LG, Panasonic and Lloyd offer remote-controlled ACs, with Sharp making a comeback with its recent product range. Bajaj and AO Smith lead in smart heaters with adaptive thermostats and energy-efficient heating elements.
Smart security
Security remains a crucial aspect of the smart home ecosystem, with smart cameras playing a key role. These cameras offer real-time surveillance, motion detection, night vision and AI-powered alerts, with brands like CP Plus, Qubo (Hero Group), Godrej and Xiaomi providing feature-rich solutions for both residential and commercial use. Many smart cameras operate on LoRaWAN, Z-Wave and Wi-Fi. Similarly, video-enabled doorbells from brands such as Ring (Amazon), Qubo and Hikvision serve as an effective first line of defence, offering two-way communication, motion alerts and integration with smart assistants.
Complementing these solutions, smart door locks are transforming traditional security mechanisms with biometric authentication, PIN codes, RFID cards and mobile app controls. Companies like Yale, Godrej and Samsung provide keyless entry solutions that enhance security and convenience. These locks integrate NFC, Z-Wave and Bluetooth, enabling secure access via smartphones, temporary access codes and tamper alerts.
Smart appliances
Home automation extends to appliances, with smart washing machines from brands like LG, Samsung, Whirlpool and Bosch offering AI-powered fabric detection,
auto-dosing technology and remote control via smartphone apps. These appliances integrate Wi-Fi, allowing users to schedule washes, receive maintenance alerts and optimise water and detergent usage.
Similarly, smart ovens and air fryers are gaining popularity, with companies like Philips and Havells incorporating precise temperature control, preset cooking modes and app connectivity. These kitchen appliances use Z-Wave and Wi-Fi, allowing users to monitor and control cooking remotely.
Challenges
Despite the rising adoption of smart home solutions, many consumers underutilise their advanced features due to a notable gap between technological capabilities and user engagement. For instance, people hesitate to retrofit smart door locks on to existing doors due to installation complexities. This may affect the sales of smart home devices.
Additionally, security vulnerabilities remain a significant concern, as smart devices like cameras, door locks and thermostats are susceptible to hacking due to weak passwords and insecure networks, raising privacy and safety risks.
The high cost of some smart home setups is another major barrier to widespread adoption, with basic installations costing up to Rs 200,000, mid-range set-ups up to Rs 500,000, and high-end, fully integrated systems exceeding Rs 500,000, making them unaffordable for many. Reliable high speed internet is also a prerequisite for optimal device performance, yet connectivity issues persist across various regions in India, particularly in non-metro cities where infrastructure remains inadequate. Moreover, market fragmentation sometimes leads to cross-brand compatibility challenges, degrading the user experience.
The way forward
The transition to a fully integrated smart home ecosystem in India requires collaboration across industries, addressing interoperability challenges, and ensuring regulatory compliance for privacy and security. Moreover, before smart homes become a mainstream reality rather than a niche luxury, original equipment manufacturers must introduce new business models that enhance affordability and value for consumers.
Further, the future of smart homes lies in AI-driven automation, where devices will seamlessly communicate with each other to offer wellness-focused lighting, energy-saving controls and integrated experiences for users. Additionally, government-led digital initiatives and expanding connectivity in smaller cities are unlocking new opportunities for localised and affordable smart home solutions.
Concomitantly, smart energy management is gaining traction as homeowners seek more efficient power consumption strategies. With India’s renewable energy capacity surpassing 203.18 GW as of November 2024, the integration of solar-powered systems and smart meters is becoming a critical component of modern homes. These technologies not only enhance energy efficiency but also enable real-time consumption monitoring, peak load balancing and automated grid interactions, positioning smart energy solutions at the core of India’s evolving home automation landscape.
Harshita Kalra
