COVID-19 Impact on Home Automation System in Semiconductors and Electronics Industry
COVID-19 is a pandemic disease that has created a severe outbreak in the world starting from China to almost every country. It has a major impact almost on everything including the world economy, human life, industrial sector, automotive sector, and others as a result demand and consumption rate gets lowered. Inaccessibility of vaccines to remedy or avoid the disease from spreading is a major reason due to which lockdown has been started for anticipation and to lower the COVID-19 spread. To control the disease spread, lockdown is so distant and is considered to be the superior arrangement watched within the numerous nations but it moreover has an unfavorable effect on the economy. The lockdown impacted every industry such as the manufacturing industry, healthcare, mining, logistics industry, construction, electronics, and other locations as all facilities are closed which is a reason behind the slow market growth.
The COVID-19 cases reaching the big named countries with a strong dominance in the global market has adversely affected the economy globally. The spread of Coronavirus has led to the global recession; many companies are being bound to take stringent actions of laying off their employees. There has been a disruption in the supply chain of many industries due to restrictions in logistics and the closing of manufacturing facilities. The impact of the pandemic has also been seen on the people who were staying at home. Due to the pandemic, the people did not want anybody to enter their home or if enter, avoid touching anything. As it was said by the scientists that the virus or germs live on surfaces for a few hours or days. Therefore, people have opted for the home automation system to avoid touching people to the doorknobs, gates, walls, switches or other surfaces. The home automation system is a contactless solution that has increasingly been implemented for preventing contamination of surfaces. Smart automating technologies can aid in creating minimal touch during COVID and post COVID situation for many things that need to be operated. With the spread of Coronavirus, the world has seen a quick shift towards working from home, and hence many technology companies are navigating new terrains for figuring out how to communicate effectively with home to get the desired outcomes.
This has surely shifted people towards technology-enabled services for home consumption. The pandemic has created new opportunities for the technology-enabled services such as home automation system. Many major key players are estimated to witness a massive growth in home automation system market.
AFTERMATH OF COVID-19 AND GOVERNMENT ROLE
Pandemic situation created by the coronavirus spread imposed the lockdown in the various countries to initiate physical distancing to lower the spread. COVID-19 outbreak has affected the behavior of the individuals and markets which impacts on economies and societies. There is a huge demand for medical equipment, medicines and technology-enabled service industries to meet the demand of the market, so government is majorly focusing on the preventive steps towards the pandemic and is ensuring that the companies should be more focused towards the safety of workers along with continuity in their business to generate revenue. The schooling and working from home has become the new way of life. In the past decade, the adoption rate of smart-home technologies has seen huge growth such as the home security systems had the adoption rate between 18-21%. Now, due to COVID-19 home automation system vendors had evaluated their installation strategies and possibly considered the emerging do-it-with-me movement system. Government of various countries has made it mandatory to install touchless thermal scanners at the entrances of residential societies, institutions and commercial establishments. Several companies are coming up with new ideas, innovation and strategies to overcome the pandemic situation and help their business to keep running without any disruption. For instance,
In May 2020, NUOS Home Automation launched an IR touchless thermal scanner for COVID-19 safety. This scanner has an infrared wall-mount thermal touchless detector for automatically detecting or identifying persons with increased or high body temperature.
STRATEGIC DECISIONS FOR MARKET PLAYERS AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARE
The pandemic has boosted the growth automation technologies for home. Home automation system providers are introducing new touchless solutions for customers to lessen the risks of contamination at home.
The pandemic has boosted the smart-home technologies for homes and residential societies. People working from home or going outside needs touchless automated systems for lights, safety & security, entertainment, heating, ventilation and air conditioning. Companies are offering the smart-home solutions which can be operated through smartphones. Voice enabled smartphone controls for controlling various household devices has definitely minimized or localized the touching of shared control items. People are more opting for DIY (Do-It-Yourself) or Do-It-With-Me home automation systems as they do not wanted to let outsider enter their home even for installation of automation systems. Many home automation system and solutions has been specifically developed and introduced for coping up with this pandemic situation. For instance,
In December 2020, Legrand has introduced a User Interface, which is dedicated for supporting developers, specifiers and contractors to keep up with the growing demand for home automation technology.
IMPACT ON DEMAND & SUPPLY CHAIN
The COVID-19 pandemic has been posing measurable impacts on the global economy. Owing to quarantines situation, social distancing measures and traveling constraints on a broad-scale drives a steep decline in businesses. The pandemic has adversely affected the sales of the companies as the demand has reduced due to several factors such as slowdown of economy.
However, the people are now adopting the smart-home technologies rapidly to avoid the risks of spreading of Coronavirus through touching the surfaces of household control items. Due to this the demand for the home automation system has upsurge in the pandemic period and shown huge growth in COVID-19.
The supply of home automation system has been also increased during COVID-19 in many regions globally. However, people are not allowing the company’s personnel to set up the automation system in their home. And the demand for DIY and Do-it-with-me home automation systems has increased rapidly. Also, the companies are providing the systems to their customers of demand. Key players are collaborating together to bring the new smart home solutions for meeting the market demand of connected technologies. For instance,
In October, 2020, STRATIS and Silicon Labs have collaborated to build new smart home solution, specifically for apartment complexes. According to the VP and GM of industrial and commercial IoT products division of Silicon Labs, they are seeing the continue demand for connected technologies extending well beyond the smart home.
As the COVID-19 prevails the initial period saw huge growth in both demand and supply of the home automation system market. In many regions, the demand for smart home solutions has been increased massively. People found it convenient to adopt touchless technologies at home such as safety & security and lighting systems for avoiding touching of surfaces by them. The companies are also collaborating to bring new solutions for meeting the increased demand of the market due to pandemic. Home automation system providers are focusing on partnerships and collaborations to overcome the COVID-19 outbreak.