Market Research Report

This research report aims at gathering information regarding Aegis’ current market scenario
and to assess the information to understand the competitive landscape of the company. This is
an important step to gauge the target market and determine the future scope for the company.

About AEGIS
Aegis group was initiated 20 years ago with an aim to transfer the way of living and provide
solutions in multiple verticals using their cutting-edge technology.
They have been serving the Communities in the areas of Central Vacuum Solutions, Fresh Air
Systems, Agricultural Automation, Industrial Security Systems, Telecom Infra, Telecom Power
Solutions, Safety Maintenance, Renewable Energy & Storage Systems and Safety Maintenance.

Home Automation Industry Trends

The Smart Home market constitutes the sale of networked devices and related services that
enable home automation for private end users (B2C). These include devices that are connected
directly or indirectly via a so-called gateway to the Internet. Their main purposes are the
control, monitoring and regulation of functions in a household. The remote control and
monitoring of individual devices and, if applicable, their direct communication with one another
(Internet of Things), is an essential component of intelligent home automation. Devices whose
primary function is not automation or remote control of household equipment, like
smartphones and tablets, are not included here. Similarly, devices that relate to household
connection and remote control only to a limited extent, such as smart TVs, are not included
either.

● Market Size- According to the Digital Market Outlook, the penetration rate of Smart Homes
in the segment Smart Home in India is expected to be 12.8% in 2025. The average revenue
per Smart Home in the segment Smart Appliances in India is expected to be 223.8 USD by
2025. Here are some statistics regarding the Indian smart home market (data collected from
Statista):
Indian share in global smart device shipment- 8%
Number of Smart Homes in India- 13.15mn
Leading connected Smart Home device- Security Cameras
Number of IoT connected devices in India- 2.7bn
Share of people not ready to use IoT for home appliance monitoring- 8.9%
Population size based on upper-middle income and high-income group- About 23 million
people belong to this category (according to 2019 world bank statistics)

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● Geographic location- Pan India

● Demographic structure- Targeted towards individuals belonging to the high-income group,

(especially home-owners and commercial office spaces) as home automation products fall
under the luxury category

● Market Segmentation

⮚ Product Segmentation- There are two types of products under the home automation
segment- wired and wireless. The four functional segments of home automation in India
include Lighting, Security, Audio/Video and HVAC (Heating, Ventilating and Air
Conditioning).

⮚ Customer Segmentation- The market can be segmented on the basis of the customers
into three main categories- residential, commercial and hospitality.

The residential segment accounts for nearly 60% of India’s home automation industry
(out of which individual homes and villas account for 75-80% of market and builders
account for ~20% of market). This segment has the highest growth and is currently
growing at a CAGR of 35-40%. The market for residential home automation is highly
fragmented, especially in home security systems.
Commercial spaces contribute to 30% of the home automation market. This segment is
largely driven by security and access systems. Large companies like Samsung, Bosch and
Honeywell dominate this segment in India. Efficient building management systems are
fast gaining popularity in India as well.
The hospitality industry also uses home automation and accounts for 10% of the
market. Security and lighting systems are popular in this sector due to the growing need
for differentiation.

● Factors Affecting Industry Growth/ Future scope of Industry:

The key growth drivers for this demand are increasing consumer awareness and financial
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 ability, product innovations (like smart phone apps), builders’ requirement for market
differentiation and an increase in the preference for energy efficient systems. Energy
efficiency norms and other such regulations are anticipated to boost the growth in adoption
of smart automated controls during the forecast period. Home automation controls provide
economical usage of electricity and further reduce the energy consumption in lighting,
security, and HVAC systems. Building owners are focusing on green initiatives to minimize
the overall CO2 emissions. The increasing awareness is one of the important factors that
boost the adoption of automated controls globally. With the advent of various wireless
technologies such as ZigBee and Bluetooth, installation of automated control systems has
been simplified.

However, the market is still in its growth phase with a significant gap for more innovative
and connected systems. It can be observed that certain areas have shown higher growth
and this can largely be attributed to two factors – growth of IT Hubs and HNIs (high net-
worth individuals). HNIs are concentrated in NCR, Punjab and Gujarat and IT Hubs are
located in Pune, Hyderabad, Bangalore, Noida and Coimbatore.

Pune currently is the biggest market for home automation in India (according to Statista).

The smart home market in India was estimated to grow significantly to become the fourth
largest smart home market in the world. It is composed of networked devices and
associated services that facilitate automation. As per forecasts, India had one of the
highest numbers of smart homes around the world in 2019.

Market information regarding Aegis

● Geographic Location- Corporate office is in Hyderabad, Andhra Pradesh and expanding all
over India with direct presence in metros such as Bangalore, Chennai, Delhi, Mumbai and
dealer network across the country.

● Product offerings- Aegis offers automation solutions in both residential and commercial
domains. The main residential products include Drainvac, Aegis Air, Home Automation
products (lighting, security, entertainment, security). The commercial products include
Plasmicore, Dr. Battery Clinic, Surveillance and VDP.

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 ● Target audience
The target market would be homeowners who are currently struggling with their energy
bill and/or who are deeply concerned about the home environment. Mainly targeted
towards premier client, upper middle class, luxury clients, VIP’s, MLA, MPS’
A secondary market would be contractors and architects who may be called to either
install electrical, Interiors, HVAC units in new buildings or replace existing installations.

● Aegis’ USP(s)
Established R & D and technical team
Customization of product as per client budget and requirement
Competitive price
Unbeatable customer service
Dedicated Technical manager
Customer service- 24-hour chat & phone support

● Highest selling product(s)

CVS, Home automation, Fresh air system

● Marketing channels currently being used

Offline (Participating in expo’s) & Online (social media promotions (WhatsApp, Insta, FB
promotions) marketing channels

● Customer feedback
Positive feedback
Complaints regarding delay of project delivery.

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SWOT ANALYSIS OF HOME AUTOMATION MARKET

Lighting; Safety and Security; Heating, Ventilation, and Air Conditioning; Entertainment (Audio - Video)

Strength:
● Versatility and the ability to connect to other smart devices and accessories
● Responsive to voice control
● Simple installation and set up
● Diverse features (e.g. Bluetooth, microphone)

Weakness:
● Unreliable connection with Wi-Fi routers
● Insufficient battery life
● Inability to move device freely after installation
● Inadequate technical support
● Lack of manual control

Opportunities:
● Ability to connect to varying Wi-Fi frequencies
● Manual control option
● Smartphone application option
● Ability to connect with various smart devices
● Increase implementation of home automation
● Collaborations with other companies would provide more opportunities.

Threats:
● Short product relevancy life span
● Inaccessibility to product specialist

Porter's Five Forces Analysis - Aegis

Bargaining power of suppliers - High

Not many suppliers provide home automation products. The bargaining power of the suppliers is high
since this is a service line and innovative products are always demanded by customers, especially those
tech-savvy customers. Customer requirements are ever changing and suppliers need to keep producing
innovative products to attract more customers. For the Smart Home Automation industry supplier, there
are a few major players in the world and they are creating great ideas with impressive product designs.

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Switching suppliers is not easy because the switching cost is high and costly although there are plenty of
suppliers available. This is because product familiarization where Aegis had trained up their technical
team to be equipped with the knowledge of a supplier’s products and they are well-versed with the
product from A to Z. To change the product or the supplier, the retraining cost and re-branding is not
small. Thus, the bargaining power of suppliers is high.

Bargaining power buyers - Low

Bargaining power of buyers is low because the majority of the customers do not really
care about what are the brand of the Smart Home Automation products they will be getting and
they are more concerned about the service they will receive. Nevertheless, they will just call up the
service provider if there is any fault found. As not many providers are present, installation costs for the
buyers hike up and they have no choice but to look for the readily available vendors near to them for
reduced implantation cost. The buyer can indeed ask for Unique product design and can change to
different suppliers.

Threat from substitutes - Low

The current trend in Indian families seems to be moving towards automation comfort-ability. More and
more families are willing to spend or invest their money on better and improved quality of life which
translated into automated household activities and thus this
a business or capable service provider is not easily substitutable by any other product or innovation in a
very near future.
Overall, this Smart Home Automation business demand will only grow bigger and stronger with the right
partnership between the service provider and the hardware or software supplier. Therefore, customer
demand will determine the survival of this business or services and the threat of substitute products or
services is low. Turn-It-On (TIO) and Do-It-Yourself (DIY) are directly meant for customers who can
deploy and install the smart home products, hence multiple substitutes are available at cheaper price.

Threat of new entrants - High

The threat of new entrants for Smart Home Automation businesses is high but the
successful players are not many and indicating that this business is having high level
competition. The business concept is still new and not many house owners are willing to pay or to
engage with reliable vendors to deploy automation in their home. The comparatively higher
implementation cost is one of the main factors that causes people to give up the idea of automation.

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However, the implementation cost is getting lower and lower thanks to the innovative suppliers with
cost effective products. Of course, there are two sides of the coin and this has brought in more players
or vendors to share the lucrative profit margin. Therefore, the new vendors of Home Automation
business are normally converted from other businesses mainly interior design business, small scale
constructions, home entertainment service provider etc. Labor costs are relatively lower in some cities
and new companies might provide services at lower costs.

Degree of competition - High

With the advancement of technology many big players have started investing in R&D. Artificial
intelligence in the future will play a big role so we can see more competition. The competition in the
Smart Home automation industry is intense due to the high profitability margin and high potential
market in India. Aegis needs to act more aggressively to promote their products and services by
resolving customer’s complaints and issues to the best so that the customer will have a higher will to
return for a second purchase or recommend friends or relatives to the same service provider.

● Product: Top selling products: CVS, Home automation, Fresh air system. Availability of R&D and
technical team. Automation and electronic security solutions, Drain vac solution, fresh air
system in both residential and commercial projects.

● Place: Corporate office in Hyderabad, AP and expanding all over India with direct presence in
metros such as Bangalore, Chennai, Delhi, Mumbai and dealer network across the country.

● Price: Every product has its own uniqueness and since it is home automation the pricing varies
according to products that are offered.

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 ● Promotion: Multichannel marketing: Offline & Digital Marketing.

● People: The target market would be homeowners who are currently struggling with their
energy bill and/or who are deeply concerned about the home environment.

● Process: Authorities go and implement the things that are required to be done. Aegis has
obtained both positive and negative feedback which will help to improve the company.

● Physical evidence: Order confirmation, whether it’s physical receipts or confirmation emails.
Product packaging where customers will get both the physical and digital packaging of your
products or services.

SWOT of Aegis

Strength:
● Customization of product as per client budget and requirement
● Competitive price
● Unbeatable customer service (24-hour chat & Phone support) and Dedicated Technical manager
● Partnership with reputed companies.

Weakness:
● Delay of project delivery due to lack of manpower.
● Delay of material from our dealers.

Opportunities:
● Initiating campaigns to promote green.
● Asking customers to take part in energy saving awareness.
● Hospitals, shopping malls, and museums are some places where Automation can be used.

Threats:
● Many companies are offering similar automation products to the market.
● Inaccessibility to product specialist
● Ever changing technological advancement and meeting the needs of different customers.

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 COMPETITION ANALYSIS

Direct competitors
These are the integrators who directly compete with AEGIS Smart Logix in terms of products
and services.

● Mahavir Sound Room

● The Sound Sense
● Awicon Technologies

Mahavir Sound Room

MSR is much more than just being the best home automation company in India. Catering to a
very niche clientele, MSR offers total integrated solutions in high-end automation, along with
Luxury Home Cinema and Luxury Gadgets.

MSR has been certified by the prestigious K Academy as ‘K–ARRAY Installed Sound Operator’,
awarded as "Best Residential 2018" from K-array at K-ACADEMY, Italy , 'Best Partner 2017'
award from CasaDigi

Ch
anged logo on June 2017

Website- https://www.mahavirsoundroom.com/

Geographic location – Pan India

Target market- only cater to HNIs with their upcoming bungalows, villas and farmhouses

Product range
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 1) High end automation

Duration Varies · 7.5 Lacs upwards

Automation, Lights and Moods, Curtains, Air Conditioning, Entertainment, Video Door Station,
Fire Alarm, Door Lock Sensors

2) Home Cinema

Duration Varies · 10 Lacs upwards

Creating a cinema experience in your home with stunning Visuals and Immersive Sound which
makes you a part of the movie you are watching. Come and experience the same in our
experience lounge.

3) Luxury Gadgets

Duration Varies · 25K upwards

Bluetooth, WIFI, Sound Docks.

Brands- Casadigi, Crestron, Rako, Barco, Meridian, Piega, Devialet

Currently focusing-Interfaces, which is visually seen in a smart home are the keypads and the
well-designed graphic user interface (GUI).

Social media –

1) Facebook – Created in 2013,8.8k follow the page, not very active, post 5-6 images a month.
Every post has a musical tone, instrument or a device festival wishes , launch of new product,
Featured in newspaper articles and magazines , achievements & awards , usage of hashtags -
#MSR #MahavirSoundroom #SmartHomeWorld #SmartHomes #HomeCinema
#EntertainmentCategory
2) Instagram – created on sept 2018 ,253 followers, not very active, same content as
Facebook
3) Twitter- created in January 2014, 87 followers, 70 posts, not very active. Content is
same as Facebook and Instagram, very less promotion of products

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Sound Sense
A company started in 2007 with international recognition from CEDIA, HAA, ISF and THX which
provides solutions for home theatres, dedicated home theatres, outdoor music and add luxury
and comfort to your life by introducing Automation.

Website - https://www.soundsense.co.in/

Geographic location – Pan India

Minimum project- 10lakh

What sound sense does extra- VR layout after designing, customer demands focus, also works
on interior designing part if required

Key question asked- Room layout, exit entry points, which floor, Room dimensions, seating
capacity and weather we can create stairs

Currently focusing- Home theatres, sound systems, and media rooms

Brands - decides according to the budget of the clients

AWARDS & NOMINATIONS

● CES - mark of excellence 2020-2021 – finalist

● CEDIA 2020 - award winner, best home cinema (EMEA - level i)
● CEDIA 2020 – nominations, best documentation (EMEA)
● CES - mark of excellence 2019-2020 - award winner
● CEDIA 2019 - award winner, best home cinema (CEDIA global), best home
cinema (EMEA - level iii), best documentation (EMEA), best dressed rack (EMEA)
● CES pro 2019 - Home cinema level ii global award winner (bronze)
● CEDIA 2018 - award winner, best home cinema (CEDIA global), best home
cinema (EMEA - level I), best showroom (EMEA)
● CEDIA 2018 – nominations, highly commended - best documentation (EMEA),
best dressed rack (EMEA)
● CES - mark of excellence 2018-2019 – nominations, finalist - home cinema (under
$50,000)

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Products & services

1. Home cinema- These solutions to suit all budgets, lifestyles & interior designs,
standalone AV consultation, media server solutions
2. Media rooms- Customized media room solutions for all room sizes, open spaces,
brightly lit spaces, resonating spaces
3. Audio solutions- Wireless multi-room audio, centralized audio, outdoor
weatherproof audio solutions
4. Seating, design & acoustics- Customizable premium recliner chairs, treated
wooden flooring, acoustic designing
5. Home automation- One-touch control, environment & lighting solutions, energy
saving solutions

Best-selling product - Home cinemas

Social media
1) Facebook -created in 2012, 1.3k followers, not active since dec 2019. Content is
about recent projects, project update, hiring, brand endorsement, awards and
achievements. Usage of hashtags- #soundsense #soundsensesurat
#soundsensebharuch #soundsenseanand #soundsenseahmedabad #automation
#lightcontrol #ondemandcontrols #lutron #elan
2) Instagram- 1.3k followers, not active since dec 2019. Same content as Facebook
only. Usage of hashtags – same as Facebook
3) No twitter accounts

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Awicon Technologies
They serve diverse audiences apart from Commercial and Residential markets which includes
health care, hospitality and education. They have done 7000+ projects and have more than 9
years of experiences

Some of their products are:

1. TELEMEDICINE (delivering health services remotely)

2. DISTANCE CONSULTATION ROOMS (connecting healthcare specialists globally)
3. COLLABORATIVE LEARNING SPACES (connecting physical and virtual learning spaces)
FITNESS CLUB (BLAST THAT MUSIC & WORK IT OUT)
4. OPERATING CENTRES (SOC/NOC) (MISSION CRITICAL SPACES THAT CENTRALIZE
MONITORING AND CONTROL OF OPERATIONS)

Brands – Sony, Samsung, Shure, Yamaha, ABB, B&W, Control 4

Social Media- Very fewer social media presence and not very active

1. LinkedIn- 300 followers, not very active last post 8 months ago, only 5 posts

Content about products & services, projects and awards and recognition

2. Instagram- created on oct 2020, 300 followers only 10 posts, not active

Content is same as LinkedIn

INDIRECT COMPETITORS

These are ones who are integrators as well as manufactures who supplies their products to
integrators for installations

● Control4
● Honeywell International

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Control4 Corporation

Global provider of advanced smart home and AV technology for homes and businesses.
Control4 offers the ultimate smart home automation solution by making the electronic
components and systems you already use on a daily basis work together, seamlessly.

Products & services

● Smart home OS
● Complete home automation
● Smart lighting
● Home security
● Home theaters
● Multi room audio

Social media- Targeting every social media channel with YouTube and Pinterest too

1. Facebook - 64k followers, very active, video and posts

Content about latest tech news, new product launches, projects update, insider talk
with director and founders of other companies, webinars, nominations for control4 ,
blogs. Very less usage of hashtags

Campaigns
● tech Tuesday
● best gift ever
● C4yourself
● set the scene

2. Twitter- Joined January 2009, 6.2k Followers, content is same with high engagement,
retweets

3. Pinterest- 2.2k followers, https://in.pinterest.com/control4/_created/, content about

blogs, Customers reviews and feedback, new products and features, new technology
and project update usage of hashtags- #Control4 #automation #mancave
#AutomatedHome #HomeAutomation #iot #Connected #SMartDevices #SmartLiving
#HGTV #Dwell #Designer #InteriorDesign #Designer #HomeImprovement

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Honeywell International

Honeywell International, Inc. (NYSE: HON), global of US$ 38 Billion with 128,000 employees and
presence in businesses ranging from Automation & Control Solutions, Aerospace,
Transportation Systems and Specialty Materials.

It focuses all efforts on product developments, R&D and manufacturing. R&D Centers and
factories are in China, Korea, India and Mexico catering to different needs in the regions.

Honeywell Price/Pricing Strategy:

● Honeywell follows competitive pricing as a part of its marketing mix strategy

● Costs of Honeywell products are sensitive to raw material price fluctuations but the
impact is not passed on through to consumers.
● The company achieves this through long-term supply agreements, price increases and
hedging activities where feasible.

Honeywell Promotion & Advertising Strategy:

● Honeywell has both consumer and business customers hence it has B2B and B2C
marketing strategies.
● To improve the B2B marketing Honeywell launched the Honeywell User Experience. The
system examines the pathway of the product including user experience. The marketing
teams analyze market trends and find out the needs and specific wants of customers.
Honeywell engages in observational research to see how customers perceive their
products.
● The Honeywell Academy in which the employees are taught marketing
● Honeywell direction to grow organically by selling more, employing more people,
approaching and increasing the market share

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Summary

If we look at the competition then every brand has its own unique selling point.

There are some points what we can look for

● Project delays are unacceptable, every project is been given up with the timeline and it
has to followed
● Social media channels are been avoided by every brand and it's hardly been
maintained, it can be a valuable asset and help in generating leads
● Sounsense gives customer VR tour layout and also assist in interior designs if required,
● Aegis is serving few geographical locations, that should be expanded as competition is
serving pan India
● The biggest trends this year include security and having a connected home. They want
to be able to monitor their personal space when they are not home and see when
visitors are coming and going through smart door locks, alarm panels, and surveillance
cameras, which are becoming very affordable and user friendly.
● Another trend is audio, as consumers increasingly want to use voice activation to
control their devices. Lights turn on to a preset scene, the door unlock for guests, music
starts to play, landscape lighting illuminates, and more.
● List some DIY solutions or products which the customers can see and install themselves.
We can use blog sections or social media channels for educating customers

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