Wednesday, 03 June, 2020


Amazon retains dominant position in smart speaker market, despite rising competition

Amazon retains dominant position in smart speaker market, despite rising competition eMarketer Forecasts for Amazon, Google Smart Speakers Q4 2019
Melba Vasquez | 12 February, 2020, 23:10

According to market research company eMarketer, Amazon continues to take the lead in the us smart speaker market.

While Amazon lost a little market share between 2017 and 2018, it quickly bounced back to an estimated 72.9 percent slice of the U.S. pie previous year, looking at retaining its comfortable lead through 2021.

Despite the increase in competitors, Amazon is still the frontrunner in the home smart speaker race. eMarketer reports that Amazon is expected to maintain its lead through 2021 with Amazon Echo devices estimated to make up 70% of total USA smart speaker users.

Google is expected to make some headway against Amazon, but eMarketer does not believe that the "Other" category, which includes Apple's HomePod, the Sonos One, and other smart speakers, will gain significant ground over the next two years.

As the rise of other smart assistant-enabled devices continues, the overall use of smart speakers, in general, is expected to decline.

The firm thinks that smart speaker users will continue to rise, although growth will slow in the next several years. "By offering affordable devices and building out the number of Alexa skills, the company has maintained Echo's appeal", says eMarketer's principal analyst, Victoria Petrock. It's also worth noting that while the U.S. may be rapidly maturing as a smart-speaker market, many other countries are still very early, while China - which overtook the United States a while back - is still seeing strong growth.

The company also said it anticipates the amount of all USA smart speaker consumers to continue to grow during the upcoming several decades, but growth will slowdown. By then, an estimated 68.2 percent of homes in the USA can still be expected to use Amazon's Echo speakers. Since then, Amazon was aggressive in keeping its lead by constantly offering updates and features that further improved the existing device. Because it supports fewer languages other than English than other speakers like Google Home, so that is an area where Apple could venture into the smart speaker market.

In addition to this, users will also get a free third-generation Amazon Echo Dot with each purchase.

That stated, the USA remains an integral market for clever speaker adoption, therefore Amazon's advantages here shouldn't be discounted.

That does not automatically mean those users are not using voice supporters, however.

It is estimated that there will be 83.1 million smart speaker users this year, according to eMarketer. Over the years, consumers will even start to utilize voice helper built into other devices, such as appliances, vehicles along with alternative smart home devices, and much more.

This year's number might be lower compared to last year's record, but it still is substantially higher than the number of non-Echo users in the US combined.

The report did not provide estimates regarding the number of US homes using Apple's HomePod.

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