Here’s How Amazon Could Pull Ahead in Home Automation – Market Realist
Alexa camera device believed to be in the works
A recently leaked image is believed to show an Alexa-enabled security camera in development, most likely by Amazon (AMZN), the owner of the Alexa voice assistant. Alexa is the same technology behind Amazon’s widely popular smart speaker and home automation hub, Amazon Echo. Alphabet’s (GOOGL) Google has a similar device called Google Home powered by Google Assistant.
The leaked Alexa camera image was first published by AFTVnews, which shares information about Amazon Fire TV and the Fire TV Stick. Not much seems to link the camera to Amazon, but a blue ring light similar to the one on the Echo speaker is a design feature that suggests it could be part of the Amazon family.
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Race to dominate home automation systems market
If Amazon is indeed working on an Alexa camera, it would build on the success of Echo, its home automation hub. It could potentially enable the company to preserve its share of the connected home market amid growing competition.
Apple (AAPL) is rumored to be working on a hub automation hub similar to Echo. Microsoft (MSFT) and Facebook (FB) could also join the race. The market for home automation systems is projected to grow to $78.3 billion by 2020, from $32.1 billion in 2015, as shown in the above graph and according to MarketsandMarkets.
An Amazon Alexa camera would compete with products such as Nest Cam from Google’s Nest Labs and Canary Flex.
More than $10 billion in Alexa revenues
According to recent research by investment bank RBC Capital Markets, Alexa-based products could generate revenue for Amazon of more than $10.0 billion by 2020. The bulk of the revenues could come from the sale of Alexa devices such as the Echo and the rumored security camera. Revenues could also come from online retail sales driven by voice orders through Alexa devices.