Since the beginning of the digital revolution, the internet has made many devices smarter, such as smart TVs, smartphones, etc., by adding new features and functionalities.

Then how can we leave behind smart homes? IoT in home automation improves the users’ lives in many ways.

Also, it offers the best business opportunity for entrepreneurs, which we will soon discuss. But first, to understand this business opportunity even better, let’s learn about IoT.

What is IoT?

IoT stands for the “Internet of Things”. It is a system of computing devices that works together and is attached to mechanical and digital machines.

These devices enable machines to exchange data over the internet. The “Thing” represents machines, persons, or animals with fitted sensors on their body parts. 

A large variety of sensors in smart devices have different purposes like alerts, motion-detecting, and so on. We’ll discuss smart sensors in the upcoming section. But first, to understand it even better, let’s find out how the Internet of Things works.

How does IoT work?

Understanding its working can help you to find its area of improvement by which you can discover new innovative products and technologies and make big profits on your efforts. So, let’s find out how smart devices work.

These devices work together through data exchange. Some devices connect to the internet to store their data on the cloud server. The internet helps smart gadgets work together even if both devices are far from each other. 

To understand the Internet of Things working even better: let us divide it into 4 parts.

I. Devices & Sensors

It collects data from its surroundings based on the sensor, like collecting temperature, motion detection, user command, etc. smart devices can have multiple sensors based on their working purposes.

II. Connectivity

The devices need to exchange data, where connectivity plays an important role. The sensors in the Internet of Things can be connected in different ways, such as:

  • Cellular networks
  • Satellite networks 
  • Wifi
  • Bluetooth
  • Wide-area networks (WAN)

Also, there can be many ways by which we connect these devices. But home automation via wifi is more popular nowadays.

III. Data processing

Smart gadgets respond based on the collected data, such as triggering alarms when it receives the input data of fire smoke. There are many scenarios where collected data plays its different roles.

The collected data is processed by some special software that notifies these devices or other connected devices, they respond based on its programming.     

IV. User interface

It helps users access and control devices from their smartphones or other digital devices. The user can be notified by text notifications, emails, and different ways. 

These devices have improved users’ lives in many ways. These smart devices in homes make them smarter than ever before. You can learn more about how home automation works in the next section.

What is IoT based home automation & how it works?

Which appliances you can connect with IoT?

It is a centralized system that controls all the interconnected devices at home. The user can control all the smart appliances in their house, such as heating/cooling systems, CCTVs, lights, and other appliances, straight from a remote or even from their smartphones.

All these home appliances are connected by an Internet of Things application installed on users’ smartphones. It helps to give user commands to smart home appliances. 

There are many connectivity options for smart homes, such as Bluetooth, Wifi, Cloud computing, and so on, which enable these smart gadgets to communicate with each other. 

These devices automate the essential task within homes, such as switching on/off lights, refrigerators, coolers, and other common appliances. Besides automation, it provides home security, manages energy consumption, etc., which we’ll discuss in detail within the blog. 

Smart home automation is of two types- central control-based and cloud-based. Generally, most devices are based on cloud technology which uses a wifi protocol to communicate with other devices. All these devices’ functionality depends on sensors that work inside them.

The combination of different sensors creates different products that users find useful in their daily life. Check the most used smart products in the next section.

Products of IoT-based home automation system

Smart devices’ interconnection and centralized control have brought many products and services that help users. 

We’ll discuss the benefits of home automation in the next section but first, let’s look at the different types of products offered by these smart homes. 

  • Automated home security systems
  • Smart surveillance cameras and live video surveillance
  • Remote lighting control
  • Smart appliance control
  • Carbon monoxide and fire monitoring
  • Alarm systems
  • Real-time text and email updates
  • Automated Thermostat control
  • Smart nurseries with video monitoring
  • Smart kitchens

What benefits can your customers get from home automation?

The ease of living through smart houses has become the reason for its popularity. It brings a futuristic way of living by controlling all home appliances with one device. It makes the user’s lives easier and better. Let’s look at some benefits of using it for users.  

1. Control and monitoring

The smart environment will make users control and monitor all the appliances in their homes. Users can switch on their AC even from their smartphone before reaching home to create a comfortable temperature in their room. Or they can access their CCTV from distant places on their smartphone to ensure their home security.

2. Cost and Energy Savings

The Internet of Things proved to be economical and climate-friendly for its users. Appliances like smart coolers and lights can automatically switch off in the absence of their users. 

This can avoid unnecessary energy consumption, reducing the user’s monthly electricity bill. Thus using smart homes can help users in both ways.

 3. Provides safety

It offers many benefits in terms of user safety. It has a large variety of safety devices for users. Such as security cameras, smart locks, motion, smoke, and other sensors — these gadgets work together and notify users if something goes wrong.  

4. More Comfortable

It brings comfort to its users in many ways. The user can control all its appliances even without moving from their place by home automation via wifi.

Also, smart gadgets work by themselves, like switching on/off based on motion sensors that sense users’ movements. It helps users to avoid tracking all their home appliances. All of this can improve the quality of a user’s life.

Each sensor within smart devices has its unique functionality and different working. Learn how sensors are used in smart homes in the next section.

Role of Sensors in Home Automation

What are these sensors, and why is it used for smart devices? It will be better to know about the sensor to understand it well. 

The sensor is an electrical device that collects data and detects any change in its environment. Each sensor works separately based on its functionality. 

Talking about its working in smart devices: these sensors are fitted inside the devices to perform their exclusive functions. All these sensors in smart gadgets work together to give valuable working outputs to the users. 

For example, motion sensors in smart devices detect user movement to automatically switch on/off the light and other smart appliances based on users’ entry and exit through the room. 

Like motion sensors, there are many other sensors for smart homes available that you can check in the next section.

Sensors for IoT in home automation

Most used sensors in home automation

How does home automation work? You know that!

But what are those sensors that make these devices more advanced and futuristic? Let’s look at the list of some valuable sensors in detail.

1. Fire detection

These sensors detect heat/smoke and trigger an alarm or notify users of potential fire dangers. It helps users keep their property safe from fire damage by resolving the upcoming fire accident in advance. Also, most fire sensors are connected with water shower-based smart gadgets that start automatically whenever fire sensors trigger the alarm.       

2. Air composition sensors

This sensor detects any harmful gases in their atmosphere. Some gases like NH3, NOx, Benzene, and CO (Carbon Monoxide) are harmful to humans.

Air composition sensors notify users when gases spread in the atmosphere due to an accident (mostly in industrial areas).

Also, it measures air pollution by checking air quality.

3. Water monitor

Water monitor sensors detect water overflow, which can be suitable for domestic and industrial purposes. It helps users avoid any water leakage and overflow to keep their property safe from any overflowing water damage. Also, water monitoring sensors can even regulate water irrigation needs (for farms & lawns) that can be scheduled daily.

4. Biometric sensors

It is used to protect user identity from hacking and data theft. The use of Biometric sensors is common in smartphones and computers. It helps users lock their devices and applications that can only be unlocked by their body parts, such as scanning fingerprints, facial recognition, retina scanning, etc. 

Talk about its uses outside of the digital world: it can be embedded in a bank locker, domestic doors, and other places that can be unlocked only by users who set the lock via biometric devices. 

5. Motion sensors

The motion sensor is suitable mainly for using users’ security purposes. It detects the motion and notifies if anyone crosses the boundaries in the range of these motion sensors. It triggers and informs users about someone’s entrance into their areas or properties. 

6. Sound sensors

The sound sensors can sense both high & low pitch sound separately. It is used in many cases, such as informing users when it detects the sound of a baby crying or whenever their pet makes a sound to let open the door of the user’s home. Also, there are many other cases where sound sensors make users’ lives easier and better.

7. Temperature sensors

It measures the amount of heat energy generated by nearby objects. Temperature sensors come in many devices, such as air-conditioners and refrigerators. Also, it is suitable for industries, agriculture, and other places where a change in temperature plays an important role.   

It can monitor machines for an alert if it generates unnecessary heat to avoid future potential damage. 

Still, there are different sensors available for different smart gadgets. Now, for entrepreneurs, let’s discuss the business potential of the Internet of Things market to make profits.

How profitable is the IoT market?

As it provides many benefits in domestic & industrial areas, its demand has increased daily. Below you can look at some of the market facts within the Internet of Things:

Market size of IoT home automation
  • The total Internet of Things market worldwide was worth around 389 billion U.S. dollars in 2020
  • The CAGR for this market is growing by 10.53% in the next five years. 
  • There are 2.65 million active connections in 2022 worldwide.

It gives a great business opportunity for entrepreneurs who want to start their businesses. Now, let’s have a short recap of this blog in the next section.

A quick summary!

Big brands like Amazon and Google have already entered this market with smart home assistant products like Google Home and Amazon’s Alexa. 

Moreover, many other brands come into this market with unique products like the August smart lock and Nest’s thermostat domestic climate adjuster. Also, it leaves enough space for new entrepreneurs and brands to enter this market due to low competition.

Anyone can make IoT-based apps, devices & services by focusing on users’ life parameters, such as security, ease of living, automation, etc. You can combine various sensors to form unique smart home products and services. 

Also, you can contact our team to know more about starting your business in this market. 

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Frequently Asked Questions

Let’s look at some questions and answers relevant to home automation to help you resolve any doubt and confusion.

1. Can customers easily install smart devices?

The ease of installation depends on many factors such as:

  • The app availability (would be better if it’s available on the Apple app store/ Google Play
  • The device complexity for connecting it with Wifi
  • Wiring complexity (needed for specific smart gadgets) 

2. How to install smart devices?

Each smart device has its different requirements for installation. Some may need only Wifi connections, such as for smart home assistance like Amazon’s Alexa. At the same time, other devices will need complex wiring in addition, like CCTVs, fire detection systems, etc.

3. Can customers upgrade their existing and older homes with smart home technology?

The possibility of installing smart gadgets in older homes depends on the installation requirements, which are different for each device. 

For example, wireless-based smart gadgets like smart home assistance would be easy to install, while complex wiring-based smart devices would be difficult to install like CCTVs, Fire alarms, etc.

4. What is the easiest way to enter this business?

The best way to enter this business would be to publish your IoT-based app by outsourcing your app to the best software development company. App publishing requires less investment and is easier compared to manufacturing these devices. 

5. What are the top biggest brands in IoT?

The most popular brands have already entered this market, such as:

  • Cisco Systems
  • Google 
  • IBM Corporation
  • Microsoft corporation
  • Huawei Technologies
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