Adoption and Prevalence of Smart Home Appliances in Tier 1 cities of India : Research Paper
Introduction
Recently, the term "smart" is used to denote technology that has been upgraded with artificial intelligence and is capable of gathering data from its surroundings and responding intelligently. This has fueled the emergence of Smart Home Systems.
Smart home appliances are internet-connected equipment that provide remote control via mobile or connected devices, revolutionizing security, lighting, and entertainment. Rising earnings, urbanization, and a growing need for integrated smart home solutions are driving considerable development in Mumbai's emergent industry, which is presently estimated at ₹500 crores. This paper investigates smart home appliance adoption in Mumbai, analysing consumer viewpoints and social issues, as well as proposing measures for further acceptance.
Objectives
To examine consumer attitudes, preferences, and perceptions of smart home products.
To investigate how socio-economic aspects affect decision to adopt smart home technology of consumers in Mumbai.
To recommend the removal of adoption barriers and promote widespread usage of smart home appliances to manufacturers and other stakeholders.
Significance
Insights from the study will help manufacturers cater to the preferences of the Mumbai smart home market.
The findings will help policymakers to enforce policies to encourage the use of smart home appliances.
The study will help consumers to make informed purchases by eliminating the misconceptions surrounding smart home appliances.
Importance
The adoption and popularity of smart home appliances in Mumbai have significant consequences in an era of developing technology and altering consumer habits. It is critical to understand consumer attitudes, preferences, and perceptions about these items. This information enables customers to make more informed decisions, helps manufacturers connect their goods with cultural and social norms, and informs stakeholders about the impediments to adoption. The study encourages the widespread adoption of smart home appliances in Mumbai by overcoming this knowledge gap, fostering convenience, energy efficiency, and higher living standards.
Scope
The study will look into household adoption rates and trends for a variety of smart home appliances.
The research will only consider data gathered up to and including August 2023.
Primary and secondary data sources will both be used.
Limitations
A small sample size resulting from practical limitations might not accurately reflect Mumbai's range of opinions.
Limited secondary data on Mumbai may make in-depth study difficult.
It is advised to exercise caution when extrapolating Mumbai's findings to other areas because local adoption trends may differ.
Research Methodology
The research methodology of this study incorporates a comprehensive approach that combines primary and secondary data sources. The primary data collection consists of surveying 100 adult respondents through a filtered questionnaire distributed through Google forms. The collected data is then carefully formatted in Excel, using pie charts and other visualizations to draw meaningful conclusions.
We have used a twofold sampling method to ensure diversity: purposive sampling, chosen due to the study’s specific focus on individuals who are aware of smart home products, and convenience sampling, which facilitates data collection if depending on respondent availability and willingness to participate.
The analysis is complemented by secondary data from research papers and companion articles as well as primary data. This blend of approaches ensures comprehensive insights into consumer behaviour, impacts on various social and cultural aspects, and formulation of recommendations to boost the adoption of smart home devices in India, especially in the data set up to August 2023.
Literature Review
The literature review examines the global and regional smart home appliance market, projecting strong growth with a 7.9% Compound Annual Growth Rate (CAGR) from 2023 to 2033, resulting in a $80.71 billion market in 2033. Key trends include brand innovations, cost considerations, and growth catalysts like consumer interest and AI advancements. Challenges encompass awareness gaps, privacy concerns, integration issues, and costs. Market insights cover smart appliances, devices, and solutions, with a focus on emerging opportunities. North America and Asia Pacific, especially India, are prominent regions, with a 12.8% CAGR. The leading players include Whirlpool Corp, LG Electronics, and Samsung Electronics. India's market, with a CAGR exceeding 38%, thrives on IoT technology, serving residential, hospitality, and commercial sectors.
Analysis and Interpretation
An analysis technique known as the descriptive method of analysis can be used to examine the primary data obtained from the questionnaire survey.
Objective 1 : To examine consumer attitudes, preferences, and perceptions of smart home products
Null Hypothesis (H0) : The adoption of smart home products are not significantly influenced by consumer attitudes, preferences and perceptions
Alternate Hypothesis (H1) : The adoption of smart home products are significantly influenced by consumer attitudes, preferences and perceptions
Figure 1
95% of respondents were aware about what a smart home appliance is and 5% weren’t (Fig 1)
Figure 2
When asked about its usage, 55% attested to not having used whereas 45% used (Fig 2)
Figure 3
Figure 4
Figure 5
Figure 6
Figure 7
Since this is a filtered questionnaire, from Fig 3 and Fig 4, we analysed that Cost and Lack of Interest were highlighted as the main causes for lack of adoption for these appliances. However, we also see that amongst the respondents who do own these appliances, Convenience, Energy Savings and Entertainment were the prime causes for their purchase. Owning these appliances also aided them by not only proving to be convenient and time saving but also enabled them to have a greater control over their home functions (Fig 5).
This also busts the misconception that smart home appliances do not save energy or increase user utility in terms of increased convenience while proving to be a source of entertainment at the same time. Our respondents have also claimed to save anywhere between 0 to 10,000 per year (Fig 6 & Fig 7), showing how smart home appliances can also help save money.
Objective 2 : To investigate how socio-economic aspects affect the decision to adopt smart home technology for consumers in Mumbai.
Null Hypothesis (H0) : Socio-economic aspects do not affect decision to purchase smart home appliances
Alternate Hypothesis (H1) : Socio-economic aspects significantly affect decision to purchase smart home appliances
For this objective, we are running Chi-Square Test of Independence.
Here is the observed data :
Income
Adoption Behaviour
Adoption Behaviour
Total
Yes
No
Less than Rs 1 Lakhs
9
8
17
Rs 1 Lakh - Rs 10 Lakh
13
16
29
Rs 11 Lakh to Rs 20 Lakh
8
12
20
Rs 21 Lakh to Rs 30 Lakh
9
8
17
More than Rs 30 Lakh
6
11
17
Total
45
55
100
Here is the expected data :
Income
Adoption Behaviour
Adoption Behaviour
Total
Yes
No
Less than Rs 1 Lakhs
7.65
9.35
17
Rs 1 Lakh - Rs 10 Lakh
13.05
15.95
29
Rs 11 Lakh to Rs 20 Lakh
9
11
20
Rs 21 Lakh to Rs 30 Lakh
7.65
9.35
17
More than Rs 30 Lakh
7.65
9.35
17
Total
45
55
100
Here is the calculation :
Income * Adoption Behaviour
Observed (O)
Expected (E)
O-E
(O-E)²
(O-E)² / E
Round off
Less than Rs 1 Lakhs * Yes
9
7.65
1.35
1.8225
0.2382352941
0.238
Rs 1 Lakh - Rs 10 Lakh * Yes
13
13.05
-0.05
0.0025
0.0001915708812
0.0001
Rs 11 Lakh to Rs 20 Lakh * Yes
8
9
-1
1
0.1111111111
0.111
Rs 21 Lakh to Rs 30 Lakh * Yes
9
7.65
1.35
1.8225
0.2382352941
0.238
More than Rs 30 Lakh * Yes
6
7.65
-1.65
2.7225
0.3558823529
0.356
Less than Rs 1 Lakhs * No
8
9.35
-1.35
1.8225
0.1949197861
0.195
Rs 1 Lakh - Rs 10 Lakh * No
16
15.95
0.05
0.0025
0.0001567398119
0.0001
Rs 11 Lakh to Rs 20 Lakh * No
12
11
1
1
0.09090909091
0.091
Rs 21 Lakh to Rs 30 Lakh * No
8
9.35
-1.35
1.8225
0.1949197861
0.195
More than Rs 30 Lakh * No
11
9.35
1.65
2.7225
0.2911764706
0.291
Total
100
100
1.7152 (Chi Cal)
Degrees of Freedom = Number of Rows - 1 * Number of Columns - 1
= 5 - 1 * 2 - 1
= 4 * 1
= 4
Chi Tab = 9.488
Chi-Square Table
According to the table above, Chi Cal (1.7152) < Chi Tab (9.488) , we accept the null hypothesis and reject the alternate hypotheses at 5% level of significance
Therefore we can conclude that Socio-economic aspects do not affect decision to purchase smart home appliances
Objective 3 : To recommend the removal of adoption barriers and promote widespread usage of smart home appliances to manufacturers and other stakeholders.
Null Hypothesis (H0) : Identifiable barriers (features, gimmicks, government policies, celebrity endorsements, etc.) do not affect the adoption of smart home appliances.
Alternate Hypothesis (H1) : Identifiable barriers affect the adoption of smart home appliances.
Figure 8
Figure 9 (part 1)
Figure 9 (part 2)
Figure 10
Figure 11 (part 1)
Figure 11 (part 2)
While Fig 8 concludes that gimmicks don’t drastically affect the adoption of these appliances, Fig 9 further shows that Enhanced Data Privacy control, Energy Efficiency & Voice Control are a few features which existing users would want to see being incorporated in these appliances.
Further, data collected from non-users states that Low Cost of Maintenance, Energy Savings & Convenience are a few features they’re looking for to be fulfilled by these appliances to get them to purchase them, while they’re available at affordable prices (Fig 10 & Fig 11).
Figure 12
Figure 13
Figure 14
Figures 12, 13 & 14 clearly indicate that High Cost, Lack of Interest and low awareness about Government incentives are prevalent factors for low adoption of these appliances. It is also evident that celebrity endorsements do not seem to have any effect on the purchase decisions.
Findings
In the following decade, the worldwide smart home appliances market, a developing landscape of technical innovation and consumer demand, is expected to reach unparalleled heights. It is anticipated to be valued US$ 37.73 billion in 2023, and with a projected Compound Annual Growth Rate (CAGR) of 7.9%, analysts think it will be worth US$ 80.71 billion by 2033. In the midst of this global phenomena, Mumbai, India, offers a riveting microcosm of this transformational journey. Mumbai's local market, now valued at over 500 crores, is nothing short of a fledgling behemoth, exhibiting incredible development potential with an astounding forecasted CAGR of between 25-30%. With this high-octane development trajectory, the market's value might rise to anywhere between 2000 and 2500 crores by the end of the year 2025.
The elements driving Mumbai's remarkable growth are varied and reflect wider global trends. To begin with, the city's rapid economic development is being fueled by higher rates of urbanization, a rise in disposable income, and a greater awareness of the numerous benefits given by smart home technology. These dynamics reflect wider developments occurring in the Indian home automation business, which is rapidly expanding. Manufacturers are reacting to consumers' varying wants by providing a variety of smart goods that not only improve convenience but also fit a variety of economic limitations.
Mumbai's consumer choices have a tremendous impact on the market environment. Notably, the category catering to smart appliances priced under Rs. 15,000 has the largest market share in India. This preference reflects the customer desire for cost-effective solutions that provide good value for money. The industry is positioned for even more strong development as technology evolves and consumer awareness grows, stimulating innovation and ensuring that smart home technology continuously corresponds with increasing customer expectations.
Mumbai's market features show hopeful indicators of fast development, albeit at an early stage. Mumbai's technologically savvy populace, along with a growing middle class, is eagerly embracing the benefits of contemporary technology. Beyond basic comfort, there is an urgent need for energy-efficient solutions, especially in a highly populated metropolis like Mumbai, where energy conservation is critical.
In terms of product market distribution, the dominance of smart TVs is evident, driven in part by rising earnings and a growing hunger for internet-based entertainment. Voice-activated smart assistants are increasingly gaining market share, since they provide not only convenience but also a new type of entertainment. Furthermore, energy-efficient smart air conditioners and smart kitchen equipment have made their mark by addressing the city's growing sustainability standards.
Current trends in Mumbai's smart home appliance market show a clear preference for standalone items over integrated smart home solutions. While integrated solutions, which include smart lighting, security, and entertainment systems, account for less than 10% of overall sales, customer interest in integrated solutions is increasing. In fact, 46.7% of those polled expressed a desire for a more comprehensive smart home setup.
Surprisingly, the adoption of smart home technologies is greeted with high levels of user satisfaction. An amazing 35.6% of those who have integrated smart home technology into their life reported being extremely satisfied, while 48.9% reported being somewhat satisfied. It's also worth noting that none of the respondents claimed to be unsatisfied, and several were eager to promote smart home products to non-users.
However, it is critical to recognize the hurdles that await us on this exciting adventure. High prices connected with smart appliances, challenges linked to smooth entertainment integration, and compatibility concerns with other smart devices are all obstacles that manufacturers and other stakeholders must carefully negotiate.
One cannot not but be enthralled by the potential when considering the smart home appliances sector's future prospects in Mumbai. Mumbai's market provides a dramatic picture of the progression of urban life by embracing cutting-edge technology like voice control, artificial intelligence, and data analytics. Mumbai's local market is poised for transformational change against a backdrop of rising urbanisation and government programmes like the Smart City Mission. Mumbai's citizens might see a fundamental change in how they interact with their houses as a result of this change, making them smarter, more effective, and safer in a world that is becoming ever more linked. Mumbai's smart home appliance future is an exciting story of technical development, consumer empowerment, and urban development.
Suggestions
To ensure the continued relevance of the study, it's important to consider external factors like economic developments and policy changes. Government visibility and intervention are crucial for promoting smart home technology adoption through awareness campaigns, incentives, and robust policies.
Manufacturers aiming to excel in the Mumbai smart home appliance market should focus on affordability and innovation, providing better features and energy-efficient solutions. Collaborations with experts, and real estate developers can broaden market reach, however the strategy of getting a renowned influencer/ celebrity brand ambassador as a face of the brand might not help in driving sales as the data collected from our respondents evidently showcases how they are unaffected by celebrity endorsements.
Furthermore, ongoing research beyond the study's scope (up to August 2023) is necessary to track evolving trends in this dynamic field. By adhering to these recommendations and staying adaptable, the Mumbai smart home appliance market can thrive and enhance urban living significantly.
Conclusion
This study provides insight into the "Adoption and Prevalence of Smart Home Appliances in Mumbai." It exposes key features of consumer attitudes as well as social and cultural factors, and it makes suggestions for stakeholders. The report emphasizes the expanding market in Mumbai, which is being fueled by urbanization, and a desire for contemporary amenities and energy efficiency. It highlights the prevalence of voice assistants, and smart TVs, and the possibilities for holistic solutions. Despite obstacles like high costs and integration problems, the market shows impressive customer satisfaction levels. The report concludes that Mumbai's smart home appliance market is primed for revolutionary development, altering urban life in a more connected and effective way, and upgrading the standard of living, with deliberate government backing, industry innovation, and continued research.
Insights, F. B. (2023, 7 27). Smart home appliances market size, share, research [2023-2030]: Fortune business insights™. Retrieved from GlobeNewswire News Room: https://www.globenewswire.com/news-release/2023/07/27/2711882/0/en/Smart-Home-Appliances-Market-Size-Share-Research-2023-2030-Fortune-Business-Insights.htmlinsights, F. m. (2023). Smart Home Appliances Market. Future market insights .
Jai Krishna Mishra, S. G. (2018). IOT based Smart Energy Management System. ResearchGate.
How satisfied are you with your current smart home appliances on a scale from 1 to 5? (Linear Scale) *
Very Dissatisfied
1
2
3
4
5
Very Satisfied
Are you interested in exploring or installing a holistic smart home solution? (An all-in-one smart home setup that automates and manages various devices) (Multiple Choice) *
Very Interested
Not Interested
Not Sure
Why did you decide to purchase smart home appliances? (Select all that apply) (Checkboxes) *
Convenience
Energy savings
Security
Entertainment
Integration with Other devices
Low Cost of Maintenance
Trend / Fashion
Sale / Discount
Other _____
In what ways has owning smart home appliances influenced your daily routine / lifestyle? (Select all that apply) (Checkboxes) *
Improved convenience and time savings.
Enhanced energy efficiency.
Increased security and peace of mind.
Greater control over home functions.
Enhanced entertainment options.
Better management of household tasks.
Minimal impact on daily routine.
Other _____
Have you observed a reduction in your utility bills since owning smart home appliances? (Linear Scale) *
No Savings
1
2
3
4
5
Major Savings
If you've noticed savings, please estimate your annual savings in INR (Please write 00 if there are no savings) (Short Answer)
__________
Did your purchase of Smart Home Appliances get influenced by gimmicks? (fancy but unnecessary features that may not improve daily life) (Linear Scale)*
Negatively Influenced
1
2
3
4
5
Positively Influenced
What smart home appliances would you want to buy next? (1= Least Interested; 5 = Highly Interested) (Multiple-choice Grid)*
If an appliance of your choice is not mentioned above, please mention it here (Short Answer)
_____________
How likely are you to recommend smart home appliances that you have used to Others on a scale from 1 to 5? (Linear Scale)*
Very Unlikely
1
2
3
4
5
Very Likely
Are there any additional features or improvements you would like to see in future smart home appliances? (1 = Not Important; 5 = Very Important) (Multiple-choice Grid)*
1
2
3
4
5
Enhanced Energy Efficiency
•
•
•
•
•
Greater Compatibility with Other Smart Devices
•
•
•
•
•
Improved Security and Privacy Features
•
•
•
•
•
More User-Friendly Mobile Apps or Interfaces
•
•
•
•
•
Enhanced Voice Control Capabilities
•
•
•
•
•
Better Integration with Renewable Energy Sources
•
•
•
•
•
Increased Customization and Personalization Options
•
•
•
•
•
Enhanced Data Privacy Controls
•
•
•
•
•
Improved Affordability
•
•
•
•
•
Section 3 : For the ones who chose “No” for the 9th question
Why have you chosen to not own any smart home appliances? (Select all that apply) (Checkboxes)*
Cost
Lack of interest
Privacy concerns
Security concerns
Complexity of setup/use
Current non-availability in my area
Other _____
Would you consider purchasing smart home appliances in the future? If yes, what factors would influence your decision? (Select all that apply) (Checkboxes)*
Convenience
Energy savings
Security
Entertainment
Integration with Other devices
Low Cost of Maintenance
Trend / Fashion
Other _____
Have you ever researched or considered buying smart home appliances in the past but decided against it? If so, why? (Multiple Choice) *
No, I've never explored this
High Cost
Concerns About Data Privacy and Security
Lack of Compatibility with Existing Home Setup
Complexity of Setup and Use
Limited Understanding of Smart Home Technology
Lack of Trust in Smart Home Brands or Manufacturers
Other _____
What role do cost and affordability play in your decision not to own smart home appliances? (Linear Scale)*
Not Important
1
2
3
4
5
Very Important
What specific factors would influence your future decision to buy smart home appliances? (1 = Less Influential Important; 5 = More Influential) (Multiple-choice Grid)*
1
2
3
4
5
Affordability
•
•
•
•
•
Data Privacy and Security
•
•
•
•
•
Compatibility with existing Home Setup
•
•
•
•
•
Simplicity of Setup and Use
•
•
•
•
•
Improved Understanding of Smart Home Technology
•
•
•
•
•
Are you aware of any government incentives or rebates related to the adoption of energy-efficient or smart technologies in your area? (Multiple Choice)*
Yes
No
Do celebrity endorsements influence your decision to buy a smart home appliance? (Multiple Choice)*
