As homes are getting more dependent on technology, the battle for homes takeover is heating up. Technology juggernauts like Google and Amazon are already in a scuffle over getting the lion’s share of the smart homes market. Since people are confined to their homes during quarantine in the wake of global outbreak of the novel coronavirus, many of them have opted in for smart homes option. The idea is to make life easier and comfort-filled at their homes as they rely more on technology to go about their work-from-home lifestyle.
You might already be using any of Google Assistant, Amazon Alexa, Siri, or Apple HomeKit smart home services in your homes. Google and Amazon are the two biggest players in the market right now.
Voice searches happen to have made the difference in the smart home market share. People tend to speak their questions out to the voice assistants, which has also impacted the search engine results. Voice assistants allow people living in a home to interact with different devices. The voice searches have changed the demographics of smart homes market share. Amazon has been the market leader but Google seems to have expanded its market share recently.
Evolution of Smart Speakers
The rise of voice searches has increased the importance of smart speakers manifolds. Smart speakers started finding traction in 2018 when the number of American adults with smart searches-enabled devices surpassed 20% mark. The number has further risen to 25% now and is expected to more than double to 55% by the end of 2022.
China ups its stakes in Smart Speaker Market
Meanwhile, China has expanded its share in the smart speaker market to 30% in just a year from zero. The Asian juggernaut’s smart home market was estimated at more than $7 billion as manufacturers like AliBaba and Baidu are in a two-way battle to gain the lion’s share of the domestic market.
What Makes Amazon Smart Speaker Market Leader?
Amazon is the leader in the smart speaker market and it has all reasons to boast about its position. The company launched Alexa and Echo almost five years ago. The launch of Alexa and Echo started a new era and other companies gradually joined the bandwagon of producing smart speakers. However, the other companies took more than two years to join the battle to capture the smart speaker market share. It gave Amazon the advantage or ruling the roost by a great difference. Even after five years since the advent of smart speakers, the other manufacturers of smart speakers are still playing catch-up to Amazon.
The War is Brewing
In a bid to increase their market share, brands have adopted different strategies. For example, Apple shed prices of its HomePod smart speaker to $299. It was very unlike for Apple, which is regarded as the company that liked to see people lining up to purchase its products.
On the contrary, Google took a 360-degree different approach. The company launched the Google Home Mini as a cost-efficient option for the consumers who wanted to try voice-centric device. Google also teamed up with Spotify and offered Home Minis as a free promotion for Spotify Premium. As a matter of fact, Spotfiy Premium enjoys a huge user-base of around 90 million. Google is set to benefit the most from this promotion.
In the space of a year only, the competitors have taken away more than 10% of Amazon’s market share, and Google took half of it.
The Concluding Remarks
Smart home products seem to have a bright future ahead and brands like Amazon, Google, and Apple are doing all they can to make the most of this anticipation. The global smart speaker market is still evolving and it is hard to estimate how much it will grow in the space of next two to three years. The way the competition is heating up, we can expect these companies to launch more strategies to challenge each other. As it appears, Google is on its way to challenge Amazon more than any other competitor. If you want to know more about our line-up of smart home products, feel free to call us at (833) 808-1028.