​The smart home market could see big changes in 2023

The smart home market is probably the strongest it has ever been. Apple recently reintroduced the HomePod to rave reviews, Roborock is gearing up to launch its new line of powerful robot vacuums, and nearly half of US households interact with a smart home device every month. That’s an impressive number, and it’s an increase from 2022 — which means the market is trending in the right direction and people seem to be believing the dream of a connected home. This incredible market saturation means it’s going to be a long time before the smart home market completely disappears — and its death probably won’t happen this year (or anytime soon). But the rest of 2023 is set to be an interesting year for the smart home industry, as Amazon and Google have run into financial troubles with their smart home offerings, while Apple finally seems to be picking up steam.

Money problems at Amazon and Google
Last November, it was reported that Alexa and related devices would cost Amazon an estimated $10 billion in losses. Similarly, Google has reorganized its Google Assistant division to streamline its performance and prioritize the development of Bard — Google’s entry into the AI arena. What’s even more interesting is that Google hasn’t released a new piece of “smart home” hardware in almost two years.

It’s possible that Bard will somehow play a bigger role in Google’s smart home plans, but things are a bit murky at the moment. Google has historically pulled the plug on projects when they start going south (Stadia is just the latest example), and Amazon is highly unlikely to sit on its laurels as Alexa continues to take the company’s money loses.

Exactly what that will look like in 2023 is unclear. What is clear, however, is that both Google and Amazon, two of the biggest players in the smart home market, are getting into trouble and may have to scale back their smart home production until they come up with a profitable plan.

However, Amazon has reached out to Digital Trends to reiterate the important role Alexa plays in the business. “Any speculation that we are less committed to Alexa and Smart Home is just plain wrong,” said an Amazon spokesman. “Alexa has changed the way people interact with their homes. Today, more than 300 million smart home devices are connected to Alexa, and smart home engagement has grown more than 30% over the past year. There will be many more inventions.”

Unfortunately, no specific details on those future plans have been announced – but we hope some big news is planned to reassure Alexa fans.

Apple rises to the top of the pack

HomeKit is one of the least attractive smart home ecosystems out there right now. That’s not to say it’s bad — in fact, HomeKit is remarkably easy to use. But because Apple likes to stay in control of its platforms, HomeKit doesn’t support nearly as many products as Google Home or Amazon Alexa. Finding a smart lock, smart thermostat, smart lightbulb, and smart socket that works with Google Assistant or Amazon Alexa is easy, but doing the same for HomeKit is nothing short of a headache.

All of that could change in 2023, as the newly released HomePod is one of the best smart speakers out there, with full support for Matter. And with the interoperability platform expected to see significant growth this year, HomeKit should start gaining support for more products.

Apple also appears to be working on its first smart display, which would provide stiff competition for both Google and Amazon. Details about the product are scarce, but as with everything Apple designs, expect it to be premium and packed with high-end features. So while Google and Amazon scale back their smart home ambitions, Apple seems to be just getting started.

A newly structured smart home marketplace Amazon However you slice it, 2023 has some big changes in store for your smart home. Whether that means reduced support from Google and Amazon, the emergence of Apple as a smart home powerhouse, or a combination of both is up for debate. The smart home market isn’t going away anytime soon, but a renewed focus on the profitable parts seems in sight.

This could result in higher prices, fewer products to choose from, or even the loss of voice control on some devices – requiring expensive servers and making manufacturers little money. Reports also indicate that Google Assistant won’t invest as heavily in third-party products, which could limit the number of devices supporting the platform.

The integration of AI technology like Bard into Google Assistant could bring a new level of versatility to the platform, but for now it’s unclear if we should expect that to happen in the coming months (or at all).