'I don't think smart TVs count...': Nikhil Kamath drops truth bomb on India’s 'Smart Homes' illusion
Kamath flagged two big reasons behind this disconnect: low internet penetration at just 55%, and lack of consumer awareness around home control tech
- May 15, 2025,
- Updated May 15, 2025 4:32 PM IST
Zerodha co-founder Nikhil Kamath isn’t buying the hype around India’s booming smart home device market. Writing on X, Kamath bluntly pointed out: “Ok, firstly, I don't think smart TVs count. I've tried a bunch of smart home systems over the years, the problem for me has always been user interface, and the needless complexity and useless options. The answer here might be the simplest thing that works, UI is everything.”
Kamath’s comments hit at a crucial gap in India’s smart home story. Despite being the world’s third-largest market for smart home devices, India still lags far behind when it comes to integrated, seamless smart living. Indians might love their smart TVs and appliances—leading globally in ownership of big and small devices—but less than 10% of households today have truly connected home ecosystems. Compare that to the US, where over 50% of homes are integrated, or China’s 40%.
Kamath flagged two big reasons behind this disconnect: low internet penetration at just 55%, and lack of consumer awareness around home control tech. But the next decade might flip the script. With a 16% CAGR expected through 2033, expanding 5G coverage, and more local IoT innovation, India’s smart home journey is still in its early innings. “The game isn’t about devices anymore—it’s about ecosystems,” Kamath wrote.
Consumer satisfaction data mirrors this divide. Indians show a clear preference for higher-ticket smart devices like air purifiers and locks, which earn Net Promoter Scores (NPS) of 85 and 80, respectively. In contrast, lower-cost categories like smart bulbs and plugs see far lower satisfaction rates. Kamath believes this reflects a deeper consumer instinct—Indians are willing to pay for value, longevity, and peace of mind. And brands that complicate user experience will struggle to win.
At its core, Kamath argues, the shift isn’t just technological—it’s cultural. As India’s urban wealth rises and segments like DINKs, SINKs, and high-income households expand, automation will quietly become part of daily living, not a flashy gimmick for the few. “Maybe the day isn’t far when we stop calling it a ‘smart home’ altogether—because it’ll just be home,” Kamath noted.
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Zerodha co-founder Nikhil Kamath isn’t buying the hype around India’s booming smart home device market. Writing on X, Kamath bluntly pointed out: “Ok, firstly, I don't think smart TVs count. I've tried a bunch of smart home systems over the years, the problem for me has always been user interface, and the needless complexity and useless options. The answer here might be the simplest thing that works, UI is everything.”
Kamath’s comments hit at a crucial gap in India’s smart home story. Despite being the world’s third-largest market for smart home devices, India still lags far behind when it comes to integrated, seamless smart living. Indians might love their smart TVs and appliances—leading globally in ownership of big and small devices—but less than 10% of households today have truly connected home ecosystems. Compare that to the US, where over 50% of homes are integrated, or China’s 40%.
Kamath flagged two big reasons behind this disconnect: low internet penetration at just 55%, and lack of consumer awareness around home control tech. But the next decade might flip the script. With a 16% CAGR expected through 2033, expanding 5G coverage, and more local IoT innovation, India’s smart home journey is still in its early innings. “The game isn’t about devices anymore—it’s about ecosystems,” Kamath wrote.
Consumer satisfaction data mirrors this divide. Indians show a clear preference for higher-ticket smart devices like air purifiers and locks, which earn Net Promoter Scores (NPS) of 85 and 80, respectively. In contrast, lower-cost categories like smart bulbs and plugs see far lower satisfaction rates. Kamath believes this reflects a deeper consumer instinct—Indians are willing to pay for value, longevity, and peace of mind. And brands that complicate user experience will struggle to win.
At its core, Kamath argues, the shift isn’t just technological—it’s cultural. As India’s urban wealth rises and segments like DINKs, SINKs, and high-income households expand, automation will quietly become part of daily living, not a flashy gimmick for the few. “Maybe the day isn’t far when we stop calling it a ‘smart home’ altogether—because it’ll just be home,” Kamath noted.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine