Home automation encompasses technology, devices and systems used to control household features, including lighting, temperature, window shading, entertainment, security, appliances, circuit breakers and electric vehicle charging. According to Research and Markets, the U.S. smart home market is projected to increase from $32 billion in 2023 to $87 billion by 2032.

As electrical contractors increasingly engage with the smart home market, they can combine product knowledge with their role as trusted advisers to deliver value-added solutions on existing and new home projects.

“Home automation is booming as homeowners seek technologies that enhance convenience and provide peace of mind,” said Adam Mack, senior product manager for Caseta Wireless by Lutron Electronics, Coopersburg, Pa. “For electrical contractors, staying current with innovative solutions allows them to differentiate themselves, win more jobs and grow their business by responding to customers’ evolving lifestyle needs.”

Engage the customer

Imagine living in a home where all lights, appliances and control devices are intelligent and connected. Knowing your schedule, the home automation system slowly opens window shades, adjusts the room temperature, plays music and raises the lights to the preferred level. The bathroom lights turn on at the set level. The mirror displays the weather, appointments and messages. The EV is fully charged and ready to drive. Even when the house is vacant, the system continues to adjust temperature, manage energy use through smart breakers and monitor against intrusion. In the evening, the lights turn on to a dimmed level and calming warm color while music plays over speakers as a gentle welcome home.

This is home automation in a nutshell. It is far more than products and systems. It is about customer experience, and, as such, the first step in selecting the right home automation solution is to ask questions about homeowners’ lifestyles and identify opportunities to simplify and enhance them. From there, products can be selected to connect lifestyle to desired benefits, including comfort and convenience, energy efficiency, security and customization. This conversation should include lighting; advanced control and automation can make a strong, immediate impact.

“Electrical contractors should work with homeowners to determine the devices that make the most sense for their lifestyle and needs,” said Jim O’Brien, electrician and contractor marketing manager for Leviton, Melville, N.Y. “Upgrading frequently used devices can simplify everyday tasks and routines. Most homeowners want to start small with the ability to manage a few lights and devices from their smartphone, while others may be interested in a group of interconnected devices that can light, power and monitor their whole home.”

“Intelligent lighting and shading systems come in options to suit every home size, budget and aesthetic,” Mack said. “Start with a few key questions such as the size of the home, whether the homeowners are interested in a new system or adding to an existing system, what are the budget and timeline constraints, are they looking to include shading solutions, and how open are they to comprehensive, cloud-­connected solutions built to adapt and expand over time?”

Know the technology

In the home automation market, products may be categorized as consumer, contractor or dealer. Consumer-level products are typically purchased by the customer from a retail store or dealer. Contractor-level products are typically purchased by a contractor from a distributor. Dealer-level products are offered by representatives of residential control companies and often purchased by contractors or consumers.

Products other than those at the consumer level typically require a skilled installer. These home automation systems tend to offer greater capabilities. For higher levels of integration, a dealer may provide support as a designer and integrator, or a separate expert may be used.

In this advanced wireless home automation system, the digitally controllable lights and motorized window shades are accessed, programmed and controlled using an app.

“Homeowners look for solutions that are compatible with existing devices (e.g., smart thermostats, voice assistants) and can grow with their future needs,” O’Brien said. “A product should support interoperability across multiple platforms, ensuring a seamless experience without locking the homeowner into one ecosystem. Choosing reliable brands that can update one light switch or scale to an entire home is the best option to ensure all their devices will work together and be set up and controlled within the same app.”

The home lighting automation system starts with light sources, which today are generally LED lamps and luminaires. Depending on the driver, the light source may offer analog or digital dimming.

In residential systems, analog dimming is a line-voltage, power-based dimming method with performance that can be difficult to predict, making it a relatively low-cost and low-quality option. For existing construction, they offer the advantage of not having to install new wiring. It is important, however, to ensure compatibility between the control interface (dimmer) and the driver.

Implemented through wired communication well-suited to new homes and wireless communication designed for existing homes, digital dimming offers the advantage of greater performance reliability and more advanced capabilities such as color tuning.

The next component of the home lighting system is the switch, ubiquitous in homes but far less common in home automation. Often restricted to smaller, less-frequented spaces such as laundry rooms or closets, the switch is often combined with a dimmer as a dimmer switch.

The advanced version of this functionality is the keypad, commonly used in more sophisticated home automation systems for its ability to program and recall lighting scenes (customization) and integrate with other home systems. 

Another type of interface is the touchscreen, commonly offering a graphical user interface. Home automation systems also often enable voice control by integrating with digital voice assistants.

Control devices

Sensors can monitor motion, light level and other conditions and generate signals for automatic system response. Controllers actually power the lighting and may reside anywhere from the dimmer switch to a computer installed in a utility room, connecting lighting or multiple systems. With more advanced systems, gateways/interfaces integrate digitally dimmed lights and may also bridge different systems that use protocols not natively compatible. Multiple manufacturers’ systems can be tied together using services such as Amazon Alexa, Google Home, Samsung SmartThings and Apple Home.

Devices may connect through dedicated control wiring or wirelessly using a protocol such as Wi-Fi or Bluetooth. Wireless is quite common with consumer- and contractor-level products. Devices can be connected, programmed and accessed remotely from anywhere in the home or potentially outside it, thanks to the internet.

After installation, the system may require a certain level of upkeep, notably regular software and firmware updates, which can be automatically implemented. Wireless systems may use batteries that require periodic replacement. And if internet connectivity is required—as it is in many home automation systems—the network should be properly maintained for reliable performance. 

Users can interact with Lutron Electronics’ smart home system manually using dimmer switches, keypads, touchscreens, smartphone apps and voice assistants.

Electrical contractors can offer ongoing support and system upgrades and expansion if the solution is properly scalable.

Make the most of this market

“Electrical contractors are essential to the successful implementation of the smart home,” O’Brien said. “They bridge the gap between technology and functionality by ensuring systems are installed correctly, safely and efficiently. Contractors can offer invaluable guidance on product selection, wiring requirements and compatibility, helping homeowners avoid costly mistakes. Their technical expertise allows them to integrate complex systems like lighting control, energy management and safety seamlessly. A trusted contractor not only installs the system, but serves as an adviser, ensuring the homeowner understands how to use new products and solutions effectively.”

He added that contractors can make the most out of the home automation market by proactively focusing on expanding their product expertise and relationship building. Expertise includes training, certification, staying on top of new products and emerging trends, and then offering that knowledge to customers in the form of turnkey solutions customized to their particular needs. 

Relationships include partnering with manufacturers and integrators and then building long-lasting relationships with satisfied customers.

“Electrical contractors are trusted advisers in home automation, recommending systems that meet homeowners’ unique needs and requests,” Mack said. “By selecting the right solution, contractors can complete projects efficiently, stay on budget and exceed client expectations—ultimately generating referrals and repeat business through personalized smart home installations.”

“Home automation isn’t just the future—it’s now,” O’Brien said. “As technology becomes more accessible and consumer demand skyrockets, contractors who embrace smart devices as part of their service offering will position themselves as leaders in a growing market.” 

Lutron electronics, Thanmano/stock.adobe.com