HPM Legrand sees growth in connected devices, aged care

Australian electrical industry giant HPM Legrand is banking on the Internet of Things to fuel growth in 2016.

The concept of the Internet of Things has been around for some time now, but its full potential hasn’t yet been realised in the electrical industry. Increasing awareness and acceptance of technologies, the need to reduce energy consumption and rapidly growing demand for automation are creating opportunities for electrical and digital building infrastructure businesses.

The electrical industry is undergoing a massive transformation — earlier we used to distribute only power, now we are distributing power as well as data, said Tony Berland, managing director and CEO, HPM Legrand Australia.

The market requirements have changed significantly over the years. Customers now want more control, and this creates opportunities for companies such as Legrand to launch new automation and control products.

Recognising the potential of the Internet of Things, Legrand, the parent company of HPM Legrand, launched a new program — Eliot –— dedicated to connected devices in 2015. Eliot is a contraction of electricity and the Internet of Things. Legrand made sales of €200m ($297.27m) with connectable devices in 2014 and the company expects the sales of connected and connectable devices to achieve a double-digit overall average annual growth rate by 2020.

When a number of manufacturers are moving, or have already moved, their manufacturing base to other cheaper markets, Legrand still proudly manufactures in Australia. “When you invest in a factory here, you have to be confident in the local market,” said Berland.

HPM Legrand is confident about the local market and sees strong prospects in the residential market, particularly aged care. The company also expects opportunities in commercial and hospitality markets. Globally, the residential market (49%) has been the highest revenue generator for Legrand, followed by commercial (44%) and industrial (7%).

In addition to a local manufacturing facility, the company also has a local research and development team that ensures products are in line with the local requirements. Most, almost all, of the company’s products are adapted to suit the local market requirements. It’s “very, very” rare for the company to take a product from the global portfolio and launch it in Australia without any changes, informed Berland. The company adapts global products to the local market for a number of reasons, such as compliance, regulations and market/consumer preferences.

A lot goes into a product development pipeline but it isn’t always easy for local manufacturers, such as HPM Legrand, to show the true value of quality products as these businesses compete with pure importers. In recent years, there’s been a huge influx of faulty, non-compliant electrical products in Australia and electrical contractors could play an important role in educating the market on quality.

The role of electrical contractors has changed significantly in recent years. Previously, electrical contractors had to design, install and maintain electrical systems; now they have to connect products and make sure they communicate with each other. They have a bigger role to play in the connected era and it’s a huge opportunity for the industry to show how electricity is important in life, concluded Berland.

Image caption: Legrand’s factory in Australia. Image supplied by HPM Legrand.