Amazon, Google not the only digital assistants in smart homes

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The rules of engagement between smart home companies and digital assistant ecosystems are changing as smart home market growth continues, highlighting areas of opportunity – and caution – for device manufacturers, service providers, and digital assistant platforms alike according to a report released by Strategy Analytics.

According to the report, Smart Home Digital Ecosystems: Competitive Comparisons, how companies approach collaborating with digital assistant providers and integrating with these ecosystems will dictate their success or challenges in the smart home market, and the risk-reward analysis is a delicate balancing act.

“Digital assistant ecosystems such as Amazon Alexa, Google Assistant, Alibaba AliGenie, and Baidu Duer are growing at a fever pitch,” said Bill Ablondi, director, Strategy Analytics’ Smart Home Strategies research service. “It is no longer a question of whether smart home companies are part of a digital assistant ecosystem, but to what extent they are part of it.”

Assessing how to navigate among digital assistant ecosystems and the roles partnerships will play to create opportunities or address challenges will help companies bolster their smart home strategies and better align them to shifting market dynamics.

“The number of brands supported is a solid metric for smart home device companies and service providers to consider when developing their digital assistant ecosystem partnership strategies,” said Jack Narcotta, senior industry analyst, Strategy Analytics’ Smart Home Strategies research service and author of the report. “However, we believe there are potentially more significant factors for these companies to consider when evaluating such a partnership, such as assessing how large the roles digital assistant providers will play in a company’s smart home business model.”


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