WHICH AUDIO BRAND WILL CHALLENGE AMAZON'S ECHO IN 2018? - Whitepaper - Brand News
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WHICH AUDIO BRAND
WILL CHALLENGE AMAZON’S
ECHO IN 2018?
Whitepaper
www.juniperresearch.comWHICH AUDIO BRAND WILL CHALLENGE AMAZON’S ECHO IN 2018?
1
1.3 Player Landscape & Analysis
1.1 Introduction This section will present a Juniper Leaderboard for players in the smart
audio market, alongside an assessment of each player’s strategy. This will
The Amazon Echo has kickstarted a new market in connected home audio include both traditional audio companies and technology firms producing
devices that also function as a hub for a variety of smart home these devices.
functionalities. These have become a natural evolution for the connected
audio experience offered by room-scale audio providers, who have been 1.3.1 Stakeholder Assessment Criteria
limited to control of the audio devices and attached music services
themselves. Our approach in this assesment of smart audio vendors is to use a
standard template to summarise vendor capability. This template
The advent of these devices, which primarily connect over Wi-Fi, have concludes with our views of the key strengths and strategic development
brought simple cross-device connectivity into the home, and are beginning opportunities for each vendor. In this section we provide our view of
to displace the traditional smart home. Juniper believes that ultimately vendor positioning using our Leaderboard technique.This technique, which
smart audio devices will be the devices through which the smart home is applies quantitative scoring to qualitative information, enables us to assess
controlled, with a variety of different smart home protocols integrated into each vendor’s capability and capacity as well as its product and position in
the devices. the smart audio space. The resulting matrix exhibits our view of relative
vendor positioning.
1.2 Definitions We have assessed each vendor’s capabilities against a range of criteria
based on a vendor’s general coporate capabilities and their product and
1.2.1 Smart Audio Devices position within the smart audio devices market. Full details of the criteria
used are available in the full research, Smart Audio Devices: Strategies &
Juniper considers smart audio devices to be Internet-connected audio
Forecasts 2017-2022.
devices which can be controlled through interaction with the audio device
itself.
This is in contrast to ‘connected audio’, which are Internet-connected
audio devices which are controlled through interacting with an intermediary
device such as a smartphone or PC.WHICH AUDIO BRAND WILL CHALLENGE AMAZON’S ECHO IN 2018?
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1.3.2 Juniper Leaderboard for Consumer Digital Voice Assistants
We have mapped out the results of our assessment, displaying 13 key vendors on the Leaderboard.
Figure 1: Smart Audio Leaderboard
Source: Juniper ResearchWHICH AUDIO BRAND WILL CHALLENGE AMAZON’S ECHO IN 2018?
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1.3.3 Player Groupings range of smart audio integrations currently available. However, these are
all tied to specific devices, limiting customer device choice to particular
Our analysis enables us to conclude that, from this particular list of platforms. When the company expands to multi-assistant devices, partly
vendors, there is one main group that reflects the nascent state of the under way thanks to an Amazon-Microsoft agreement, they will be able
industry, and a few companies that have carved successful paths for to cater to a wide array of aesthetics and use cases for smart audio,
themselves as market leaders in a variety of ways. allowing them to have a strong range of products and users.
i. Established Leader Audio company Onkyo has released the VC-FLX1 on the premise of an
Echolike device with better audio and a similar product to Google
With its wide range of Echo devices and a large number of third party
Assistant in the VC-GX30. However, with the current device range the
firms using Alexa as a voice interface, Amazon is currently the clear
smart audio elements may only extend to part of their products, leaving
leader in the smart audio category. The one area that Amazon needs to
an incomplete smart audio experience.
improve is the management of capabilities of the Alexa platform as
distinct from Echo devices, as the 2 are currently synonymous in the iii. Disruptors & Emulators
industry and any capability gaps may confuse and alienate both users
and partners as these differences become apparent. This sector is where the majority of smart audio players are situated, given
the relative infancy of the market. These vendors typically have either very
ii. Leading Challengers few smart audio devices in the market, little way to connect them to an
existing audio network, or both.
These companies comprise electronics and audio companies that have a
range of smart audio devices, but are either positioned towards a smaller Alibaba entered the smart audio market with the release of the Tmall
market, or offer a more limited range of devices. Genie, which will follow a very similar strategy to Amazon in that it can
provide Alibaba another gateway onto its eCommerce platform. The
Google has a smaller set of first-party smart audio devices to Amazon,
company does need to work on both the hardware and software of the
with a wider range of third party audio partners but does not have the
device, which are limited on both sides in comparison to other
same market presence and association as Amazon, but its devices do
companies in the space.
not support the extension of its smart audio system across existing
setups as completely. In the short term the lack of such a device may Apple’s HomePod product is positioned as a premium audio product
harm uptake of its smart audio ecosystem. beyond any smarts it may have, despite the ability to integrate with both
HomeKit and AirPlay via Siri. In the absence of both audio system
Harman/Kardon and its subsidiary, JBL, offer wireless speakers that
partnerships and products; this means that they can only be considered
integrate with Alexa, Cortana and Google Assistant, giving the widestWHICH AUDIO BRAND WILL CHALLENGE AMAZON’S ECHO IN 2018?
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a fringe player in smart audio at present. This will be remedied quite JD.com’s LingLong division has released the DingDong, a smart
quickly when the HomePod is released in 2018, although by that time speaker that provides basic assistant functionalities as well as music
other premium audio players, most notably Sonos, may have claimed playback. Like the Tmall Genie, it is focused on providing notifications
many of the HomePod’s initial customers. Apple will have to generate and assistant functions rather than the audio functions. However,
interest in its own products purely based on the synergy with its Alibaba is in a better position to distribute the device overall, meaning
services, rather than its preferred messaging around audio quality. that the DingDong will face an uphill struggle without more product
refinement.
Bose has a small number of integrations with voice assistants and smart
audio across its portfolio, in the shape of the QC 35 II headphones and Sonos is presenting itself as a universal company for smart audio,
the SoundLink range. However, the provision of smart audio capabilities endeavouring to secure partnerships for all voice assistants on a single
is frequently an additional part of the device, not fully integrated into the device. While this approach is ambitious and will be the future of these
system. Bose needs to make such connectivity a more integral part of its devices, at present they have only secured Alexa on their sole smart
range if it wants its speakers to remain relevant in an increasingly smart speaker offering. Despite this, Sonos is well-positioned to capture
and connected marketplace. would-be HomePod buyers and others not yet committed to a smart
audio ecosystem, leaving it in a strong position to grow its presence here
A budget competitor to the Echo Dot, Eufy’s Genie speaker retains the once their full partnerships are in place.
basic functions of Amazon’s device, beyond Bluetooth connectivity. The
integration with Eufy’s smart home app is a nice idea for encouraging its Sony has the BSP60 and LF-S50G smart speakers in market at present,
own ecosystem, but will be seen as an inconvenience by many outside targeting different use cases. These both support Google Assistant.
its core market, who simply want the device itself. Sony’s strategy with these is similar to other providers; promote one as a
smart assistant which produces good audio, and have the other as a
A rapid copycat of the Echo, Lenovo’s Smart Assistant device pure voice assistant interface. Without strong marketing, this generic
established itself based on superior audio quality, but has had little else approach means that Sony’s offerings are at risk of being lost amid the
to promote it, meaning that its reach has been somewhat limited. The crowd of devices.
Home Assistant continues this trend, providing a hub which essentially
mimics the Echo Show. The use of a tablet rather than an integral Ultimate Ears has integrated Alexa into its Blast and Boom ranges of
screen indicates some possibilities to develop a unique Lenovo hub portable speakers, offering portable smart audio. However, because of
feature in future, where users could integrate their existing devices, but this portable positioning, the company has not developed a strong
this does not appear to be on the product roadmap at present. partner ecosystem for connecting devices, meaning that they will remain
a relatively specialised smart speaker offering, with the smaller audience
which that implies.WHICH AUDIO BRAND WILL CHALLENGE AMAZON’S ECHO IN 2018?
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1.3.4 Limitations & Interpretation Therefore, for avoidance of doubt in interpreting the Leaderboard, we are
not suggesting that any single cell in the Leaderboard implies in any way
Our assessment is based on a combination of quantitative measures
that a group of vendors is more advantageously positioned than another
where they are available (such as revenues and numbers of employees)
group, just differently positioned. We additionally would draw the reader’s
that indicate relative strength and also of qualitative judgement based on
attention to the fact that vendors are listed alphabetically in a unit of the
available market and vendor. We have used publicly available information
Leaderboard and not ranked in any way.
to arrive at a broad, indicative positioning of vendors in this market, on a
‘best efforts’ basis. However, we would also caution that our analysis is, by The Leaderboard are also valid at a point in time: November 2017. It does
nature, based on incomplete information and therefore, in some instances not indicate how we expect positioning to change in the future, or indeed in
of analysis, it has been necessary to use our best judgement. For example which direction we believe that the vendors are moving. We caution
with some vendors, less detailed financial information is typically available against companies taking any decisions based on this analysis: it is merely
if they are not publicly listed companies. intended as an analytical summary by Juniper as an independent third
party.
We also remind readers that the list of vendors considered is not
exhaustive across the entire market but, rather, selective. Juniper Finally we would point out that the Leaderboard is based on a global view
Research endeavours to provide accurate information. Whilst information consolidated across broadly defined smart audio market segments. Any
or comment is believed to be correct at the time of publication, Juniper Leaderboard produced for one specific region or more specific smart audio
Research cannot accept any responsibility for its completeness or sector would, by definition, show different vendor positioning and indeed
accuracy: the analysis is presented on a ‘best efforts’ basis. not every vendor would appear on such a Leaderboard.
The Leaderboard compares the positioning of smart audio providers based
on Juniper’s scoring of each company against the above criteria that
Juniper has defined. The Leaderboard is designed to compare how the
vendors position themselves in the market based on these criteria; relative
placement in one particular unit of the Leaderboard does not imply that
any one provider is necessarily better placed than others.
For example, one vendor’s objectives will be different from the next and
the vendor may be very successfully fulfilling them without being placed in
the top right box of the Leaderboard, which is the traditional location for
the leading players.WHICH AUDIO BRAND WILL CHALLENGE AMAZON’S ECHO IN 2018?
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1.4 Smart Audio Forecasts The majority of this revenue will come from the US, as this market has
both the expectations of premium audio (and thereby premium pricing) and
1.4.1 Device Revenues the presence of technology companies to push their products heavily.
Smart speakers will grow to be a $10.6 billion market by 2022, a CAGR A minor price war in the smaller speaker market has already begun, with
(Compound Annual Growth Rate) of 33.2% throughout the forecast period. prices between the larger players already at parity and some smaller
players offering discounts on those prices. As a result, we expect to see a
Figure 3: 2022 Smart Speaker Hardware Revenue, Split by 8 Key
decline in average selling price of over 20% over the forecast period, with
Regions: $10.6 billion
devices costing under $75 making up 40% of the market by 2022.
North America Latin America West Europe
Central & East Europe Far East & China Indian Subcontinent
Rest of Asia Pacific Africa & Middle East
Source: Juniper ResearchWHICH AUDIO BRAND WILL CHALLENGE AMAZON’S ECHO IN 2018?
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Order the Full Research Strategic Analysis – In-depth analysis of current hearable devices,
player positioning and strategic assessment of future opportunities.
Our new Smart Audio research examines the trends shaping how audio (PDF).
technology and computing are merging in the form of smart speakers and
hearables. Readers will receive an unrivalled analysies of the developing Interactive Forecast Excel – Highly granular dataset comprising more
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Key Features Publications Details
Technological Capabilities & Positioning Analysis: Exploration of Publication date: December 2017
smart audio capabilities and how this affects the products’ positioning.
Author: James Moar
Strategic Trends Analysis: Impact assessment of key trends across
Contact Jon King, Sales & Marketing Manager, for more information:
the space as a whole.
Jon.King@juniperresearch.com
Benchmark Industry Forecasts: Category and form factor-based
Juniper Research Ltd, Church Cottage House, Church Square,
device installed base and shipment forecasts, including attendant
Basingstoke, Hampshire RG21 7QW UK
revenues projections for Home-based smart audio speakers; Portable
smart audio speakers; Auxiliary smart audio speakers; Multimedia
Tel: UK: +44 (0)1256 830002/475656 USA: +1 408 716 5483
hearables.
(International answering service) Fax: +44(0)1256 830093
Juniper Leaderboard: Positioning and strategic evaluation of a range of
http://www.juniperresearch.com
players in the smart audio market.
What’s in This Research?
Market Trends & Opportunities – Key market trends accompanied by
an assessment of how technological developments will affect the market
(PDF).You can also read
