Here Are Some Ways Amazon Is Ruling the Internet of Things

The Internet of Things (IoT) has significant potential for Amazon, as it is intertwined with existing products and services. The company's Alexa assistant is already selling more goods, and companies are streamlining manufacturing processes and adding IoT services using AWS. As more consumers and companies seek IoT solutions, Amazon will likely be present, offering products and services that meet their needs.

Fremont, CA: Let's look at what Amazon is doing with smart speakers, connectivity for smart homes, and AWS to better understand its impact on the Internet of Things.

Smart speakers

Amazon's Echo devices dominate the market with a 61% share, surpassing Google Home's 24% share. The company sees Echo devices as long-term business drivers for its e-commerce platform, with an average household spending $1,700 on Amazon.com in 2017. This is $700 more annually than the average Amazon shopper and $400 more than the average Prime member. The critical factor is the ease of using Amazon's voice-controlled digital assistant, Alexa, to order or reorder new products. With Amazon's early lead in the innovative speaker space and the benefits it gains from Echo owners spending more on its e-commerce platform, it is well-positioned to grow alongside the expanding intelligent speaker market.

Home integration

Amazon has expanded its home presence by introducing Key for Garage, an intelligent garage-door opener that allows delivery drivers to leave packages securely inside customers' garages. The company also announced the TurnKey service in July, which helps would-be home buyers connect with top real estate agents. Once a TurnKey customer buys a house, Amazon sends them intelligent home devices like Echo speakers and Ring doorbells and credit toward home services. The goal is to increase the number of devices in homes, promoting e-commerce sales and enabling Amazon to offer new services in the future.

AWS IoT

Amazon's e-commerce dominance is primarily attributed to its cloud computing business, with AWS holding a 32% market share. The company is expanding its IoT reach by connecting 122 manufacturing plants to the cloud, including IoT services, to improve plant efficiency, uptime, production flexibility, and vehicle quality. This move is crucial for Amazon, as cloud computing services are expected to reach $370 billion in the past years. AWS's recent deal with Volkswagen highlights the importance of cloud computing services, as they are expected to be worth $210 billion this year and $370 billion by 2023.