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Amazon's Alexa is dominating the smart speaker landscape (AMZN, GOOG, GOOGL)

Amazon’s voice-oriented "Alexa everywhere" strategy is paying off.

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Amazon’s voice-oriented "Alexa everywhere" strategy is paying off. The company’s AI-powered voice assistant, Alexa, runs on 68% of the smart speakers sold so far in 2017 in the US,accordingto data from Strategy Analytics.

This includes Echos created by Amazon and other third-party smart speakers with built-in Alexa support. Meanwhile, Google Assistant runs on just over 20% of the smart speakers sold during the year.

The leading voice assistant vendors, Amazon and Google, are going toe-to-toe to capture a greater foothold in the voice assistant landscape, both announcing updates to their platforms.

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  • Amazon’s Alexa can now recognize individual voices to service multiple users.
  • personalize
  • introduced
  • Google teamed up with Target to enable voice-activated shopping.
  • purchases
  • partnership

But first-party manufacturers’ dominance over the smart speaker market may be short-lived. Although Amazon, Google, and Chinese tech giant Baidu will account for the overwhelming majority of smart speaker sales this year, their dominance will cool by 2020, with their collective share of the market expected to drop to under 70%. These companies will begin focusing on developing their voice assistants, leaving third-party manufacturers to run hardware developments of smart speaker devices.

Meanwhile, Apple is building up an ecosystem of voice-connected devices, which is well positioned to corner off a swath of the voice market. The company is banking on its heavily integrated ecosystem to drive the adoption and usage of Siri. For instance, Apple integrated Siri into the iPhone, Apple Watch, Apple TV, Mac, Airpods, as well as the upcoming HomePod. A vast ecosystem of connected devices will boost Siri’s reach and dominance in the voice assistant landscape.

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