It’s officially the last Monday of 2018 – wild! We made it to the end of the year and everything is still more or less intact, who would have guessed?
If you’re looking for a good New Year’s Resolution for 2019, might I suggest learning how to build integrations for smart home speakers?
The smart speaker market reached critical mass in 2018, with around 41 percent of U.S. consumers now owning a voice-activated speaker, up from 21.5 percent in 2017.Sarah Perez, Techcrunch (link)
What this means in practice is that 41% of American consumers are now on a new platform with big commercial potential, and chances are it’ll continue to grow over the next few years.
In effect, this is a whole new market – the next iteration of the mobile platform/app wars, except there’s a lot less UI overhead.
It also forecast that Alexa would generate $18 billion to $19 billion in total revenue by 2021 — or ~5 percent of Amazon’s revenue — through a combination of device sales, incremental voice shopping sales and other platform revenues.Sarah Perez, Techcrunch (link)
The magic ultimately comes down to the integrations. Alexa calls them “Skills”, Google calls them “Actions”, but they’re the same thing: Writing conversational dialog that lets end-users engage with your service verbally.
This was the market that Siri was supposed to unlock, but it turns out that people already on their phones are more likely to use their phones to get things done, instead of switching over to a clunky voice interface.
The most simple explanation is that app developers have limited resources, and don’t see the point in supporting Siri when users aren’t demanding it.Jared Newman, Fast Company (link)
Home speakers are a different story. They’re always on, don’t require you to physically interact with them, and have the effect of enabling any given room with something approaching ambient intelligence – all with purpose-built microphone arrays and optimizations for working in home environments. Basically, for quick commands, they’re going to be more useful to more people.
It already looks like Alexa has taken the lead on revenue potential (it’s backed by a global retail giant, so this is not surprising), but both Alexa and Google Home would be good targets to build for.
Side note: Apple’s HomePod devices are nowhere to be found (5% marketshare), and their SDKs and learning requirements tend to be a lot steeper than Amazon or Google, so if you’re not already in that ecosystem it might not be worth your time to start.
Google’s platform is called Actions, and you can learn more here: https://developers.google.com/actions/
Alexa’s platform is called Skills, their developer site is here: https://developer.amazon.com/alexa
If you’re new to the world of building conversational interfaces, I strongly suggest starting with the simpler apps:
This is all within the same problem domain as chatbots (you’re creating conversational flows with voice instead of text), so anything you learn here is going to be easily transferable to other platforms and problems. Well worth your time, in my opinion!
For myself though, I doubt I’ll ever own a smart speaker at home (the creep factor is a bit too much for me), but I might end up building one or two integrations for any products I end up developing.
Are you going to try developing something in this area next year?