Smart home voice assistants to see rapid uptake
Juniper Research predicts 1000% increase in sales as voice assistants become the core of smart homes
Smart home voice assistants such as Alexa and Google Assistant will see 1000% growth in uptake in the next five years.
Juniper Research said that the number of voice assistants in use will grow from an estimated 25 million this year, to 275 million by 2023. The growth will be a key factor in the adoption of more smart home solutions, the company said.
Juniper's new report, Smart Homes: Vendor Analysis, Impact Assessments & Strategic Opportunities 2018-2023, found that the introduction of routines from both Amazon and Google means that voice assistants are now the most convenient way to combine desired actions in the smart home; creating a more cohesive user experience across the smart home ecosystem.
Greater integration of home appliances with voice assistants will also add to the ecosystem and improve smart home uptake.
Amazon has established a lead in the market for voice assistants, thanks to its loss-leading strategy, with hardware products tied to a comprehensive product and service ecosystem.
Juniper predicts that Google will remain a distant second in the space, with the latter's Nest brand incurring a $621 million loss in 2017. The research highlighted Google's AI prowess, demonstrated by ‘Duplex', although noted its comparatively poor ecosystem as a negative factor. Furthermore, it claimed that the introduction of a monetised Alexa skills will incentivise smaller vendors to take an ‘Amazon-first' approach.
Research Author Nick Maynard explained: "Current AI capabilities coupled with routines means that Google's greater AI investment will not displace Amazon's lead. To compete effectively, Google must enhance the quality of its ecosystem."
The research also forecasts that connected appliances will have greater integration with voice assistants. This will be crucial to manufacturers being able to position connected appliances as a central hub for the smart home.
These integrations will allow shipments of connected appliances to increase by 80% per annum on average until 2023. This growth will be further helped by dramatic falls in the average cost of connected appliances, set to fall by 52% between 2018 and 2023, to $280 globally.