How Are Google and Amazon Placed in Home Automation Space?

Alphabet’s (GOOGL) biggest division, Google, has recently gained traction in the home automation segment where Amazon (AMZN) has a dominant position with its Echo Devices. Google and Amazon have been battling to win a larger slice of the home automation market for years. However, the battle got fierce in 2015 when Amazon refused to sell Google products like Google’s smart speaker, Google Home, on its platform. In retaliation, Google withdrew YouTube from Amazon devices including Amazon Echo Show and Amazon Fire TV.

To get a bigger share in the home automation space, both Google and Amazon are racing head to head with their devices. Recently, Google has launched smart speakers in India where Amazon already has a presence. Google also has extended ties with a French retailer to promote Google Assistant-powered devices. Amazon has not yet reached France with its smart home devices.

Amazon has also recently completed the acquisition of smart doorbell maker Ring, presenting tough competition to the recently launched Nest’s Hello doorbell system. Nest Labs is Google’s home automation division, which was acquired in 2014.

According to eMarketer, Amazon Echo has more than a 70% share in the US’s voice-controlled speakers market in 2017. Google Home stands at 23.8%, while other vendors hold a 5.6% market. However, according to Loup Ventures, the global smart speaker market is expected to be dominated by Google Home with a 48% share, followed by Amazon’s Alexa and Apple HomePod with a market share of 37% and 12%, respectively.

In the US, Apple and Facebook (FB) are also seeking to explore the segment and are expected to launch their smart speaker devices, HomePod and Portal, respectively, in 2018.