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Home / Technology / Amazon's leadership in the United States smart speaker market is expected to shrink – Axios

Amazon's leadership in the United States smart speaker market is expected to shrink – Axios



Customized from eMarketer; Figure: Axios Visuals

The race to win the American smart speaker market is getting up when Google and Apple begin to shut down very slowly on Amazon's dominance.

Why is it important: Technical companies can expand their database-based ads and dramatically do business through smart speaker usage. There are also thousands of dollars at stake in the sale of smart speakers.

From the figures: According to eMarketer's latest forecast, Amazon's echo falls below two-thirds of American smart speakers for the first time next year.

  • While Echo will still capture 63.3% of smart speaker users, it begins to compete with Google Home, which will make up 31.0% of smartphone users in 2019, as well as smaller players like Sonos One and Apple HomePod. (The percentages add up to more than 100 because some consumers own more than one company's device.)
  • Amazon's share continues to shrink by 2020, while its competitors will grow, eMarketer traces.

Be smart: New competitors, like Apple's HomePod and Facebook's portal, enter the American market this holiday season, which can also start eating on Amazon's leadership.

  • Amazon's speech technology is being clobbered outside the United States, as Google and Chinese companies seem to expand their voice footsteps internationally.
  • eMarketer notes that Amazon has managed to maintain its leadership up to this point by collaborating partnerships where the voice assistant could be used on other speakers, such as Sonos. But now, other companies, like Google, have the same.
  • Amazon also confronted a privacy storm this year after the voice assistant technology, Alexa, accidentally sent a recording of a couple's conversation.

The big picture: The United States is an important market for speakers who own because it has the world's largest smart speaker market (representing 46% share of the global market) and it is still growing.

  • About 20% of American adults today use smart speakers, by eMarketer. That figure is expected to grow to one quarter (26.8%) of the American adult population by the end of next year.
  • As a result, sales of smart speaker hardware in the US are expected to rise from around $ 2.0 billion in 2017 to $ 3.2 billion this year, up 64%.
  • And while revenue from e-commerce sales on smart speakers is still relatively small, to about $ 2 billion in the US this year, the figure is expected to balloon up to $ 40 billion by 2022, as dealers get better to market their products for smart speakers.

The bigger picture: Americans use smart speakers for more features, and owners begin to set speakers in multiple rooms in houses that drive growth.

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