Today, consumers only spend $2 billion through voice shopping with smart speakers such as the Amazon Echo and the Google Home. But over the next few years, that amount is likely to soar, writes Jacob Passy.
Voice shopping will account for $40 billion of consumer spending in 2022, according to research from OC&C Strategy Consultants, a global consulting firm. Fueling that expansion will be the increased prevalence of smart speakers. Today, only 13% of homes have one of these devices, but by 2022 that share will grow to 55%, says the report.
Currently, the Amazon Echo has the largest market share in the U.S. of any virtual assistant at 10% penetration. Google Home is next at 4%, followed by Microsoft’s Cortana at 2%. Apple was late out of the gate with its HomePod device, released earlier this year.
People who own Amazon’s smart speaker spend 66% more on average at the online retailer than other consumers, according to a recent survey of 2,000 Amazon customers from Chicago-based research firm Consumer Intelligence Research Partners.
Echo owners spend $1,700 annually at Amazon on average, while members of the Amazon Prime program spend around $1,300 a year at Amazon, and the average for all American Amazon customers is $1,000 per year, says the report.
Researchers said the smart speaker market is still relatively young at barely three years old, which makes an analysis like this somewhat premature, acknowledges the report. And it’s not clear whether similar habits would extend to those who own rival devices such as the Google Home, says the report. Nevertheless, it’s part of “an unmistakable trend,” says Mike Levin, CIRP co-founder and partner.