Abstract
Smart home technologies, which integrate automation, energy management, and security, are
increasingly influencing modern urban living. This thesis investigates the adoption of smart home
systems in Mumbai, a city with notable socio-economic diversity and rapid urbanization. The study
examines consumer perceptions, financial constraints, privacy concerns, and the technical
feasibility of smart home technologies in an emerging market, with particular focus on price
sensitivity.
While global smart home adoption is driven by technological infrastructure and growing
consumer awareness, markets like India face unique challenges. These include limited
affordability, privacy concerns, and a lack of consumer knowledge, which slow the adoption of
such technologies. This thesis addresses these gaps, exploring how these factors shape smart home
adoption in Mumbai.
A mixed-methods approach was employed, involving surveys from 425 residents in Mumbai’s
F/South Ward. Conjoint analysis was used to evaluate consumer preferences regarding three key
smart home features: security, energy efficiency, and convenience. The research assesses how these
features are prioritized by consumers, and how pricing impacts decision-making.
The findings reveal that security features—such as smart locks, cameras, and motion sensors—
are the most important drivers of adoption, with 41.88% of respondents ranking security as their
top priority. This highlights the significant demand for personal safety solutions in Mumbai’s
densely populated environment. On the other hand, while energy efficiency is recognized for its
potential long-term benefits, it is generally seen as less urgent compared to immediate security
concerns.
Cost emerges as a key barrier to adoption, particularly for middle- and lower-income
households. Respondents expressed reluctance to invest in complete systems priced above
₹70,000, even when acknowledging potential savings in the long run. However, higher-income
consumers demonstrated a greater willingness to adopt comprehensive smart home solutions.
These findings underscore the need for flexible pricing strategies that offer both entry-level options
for price-sensitive consumers and premium packages for those seeking more advanced features.Additionally, privacy and data security concerns pose significant challenges, with 72.94% of
respondents expressing fears over data misuse and system vulnerabilities. These concerns, coupled
with doubts about the reliability of smart home systems, contribute to consumer hesitation.
Addressing these issues through robust data protection, transparent communication, and
trustworthy system reliability is essential to building consumer trust.
The research recommends that smart home providers focus on offering tiered pricing models to
cater to different income levels, along with subscription-based or financing options to reduce
upfront costs. Furthermore, professional installation services and strong customer support are
crucial in ensuring system reliability and addressing technical concerns. By implementing these
strategies and addressing privacy concerns, providers can enhance consumer confidence and
promote broader adoption.
In conclusion, this thesis provides a comprehensive analysis of the factors influencing smart
home technology adoption in Mumbai. By highlighting the importance of security, affordability,
and privacy, it offers practical recommendations for industry stakeholders and policymakers.
Tailored solutions that address these challenges will be essential for increasing adoption rates in
Mumbai and other similar urban markets.