In this article, we will list the 10 best alternatives to Amazon Echo and Alexa. If you want to skip our detailed analysis of the Internet of Things and Artificial Intelligence industry, go to 5 Best Alternatives to Amazon Echo and Alexa.
Internet of Things (IoT) refers to a network of interconnected physical objects, devices, machines, and other products that are embedded with sensors, software, and communication technologies. These devices can collect, and more importantly, exchange data with each other and central systems over the internet. They gather information to make decisions and interact with the physical world and digital systems.
The IoT market is one of the fastest-growing ones globally. Growth is propelled by an increased demand for automation and an increasing need for big data for data management. Research and cloud computing platforms are also driving the growth of IoT. In addition, the emergence of artificial intelligence (AI) and machine learning (ML) are also pushing the market's growth. Its market size, which was $328.6 billion in 2022, is projected to reach $2,703 billion by 2032. The global IoT market will experience a compounding annual growth rate (CAGR) of 23.46% during this forecast period. Currently, the North American region has the largest market share at 33%.
The IoT market is segmented by components, deployment, organization size, platform, technology, and industry verticals. The software segment has the largest share when segmented according to component. The cloud segment leads in the deployment segmentation, whereas the enterprise segment has the largest share when segmented according to organization size. In addition, the network communication segment has the largest market share when segmented according to technology.
IoT devices often rely on ML and AI to carry out their tasks. Amazon.com, Inc.(NASDAQ:AMZN)'s Echo devices are an example of IoT devices that use AI to enhance their capabilities. These devices are smart speakers that come with Amazon's voice assistant, Alexa. Recently, Amazon.com, Inc.(NASDAQ:AMZN) has made many AI-related enhancements to Alexa to give it a more opinionated personality. These enhancements also give it the ability to adjust tone and response to express emotions.
More recently, generative AI like ChatGPT has gained the attention of tech giants like Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc.(NASDAQ:GOOG), among others. The AI market is currently in the stage of maturation and has significant opportunities for real-world application. It has a positive long-term growth outlook, and these tech giants are looking to cash in on this opportunity.
The global AI market is expected to grow at a CAGR of 19% during the forecast period of 2022-2023. It was valued at $454 billion in 2022 and is projected to reach $2,575 billion by 2032. Currently, the North American region has the largest market share at more than 36%. However, the Asia Pacific region is expected to expand the highest during this forecast period with a CAGR of 20.3%.
The AI market can be segmented according to technology, solution, and end user. Technology-wise, deep learning has the largest share. The services segment takes the lead when segmented according to the solution. When segmented according to end users, banking, financial services & insurance (BSFI) takes the lead.
AI's flexibility and adaptability are driving its growth. Some of the areas where it is being increasingly used are life-saving medical devices and self-driving features in electric cars. This growth is also propelled by an increasing investment from top tech giants such as Alphabet Inc.(NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), IBM Corporation (NYSE:IBM), and Amazon.com, Inc.(NASDAQ:AMZN) for the upgradation and development of various applications of AI. One of the supplier-side factors driving the growth of AI is the vendor and end-user industries' partnership to enhance reach. An example of such a partnership is Microsoft Corporation (NASDAQ:MSFT)'s Intelligent Network's collaboration with LV Prasad Eye Institute in Hyderabad, India to incorporate machine learning and bring data-driven eye care services to India.
Artificial intelligence is also causing disruption left and right. A startup founded by an ex-Amazon.com, Inc.(NASDAQ:AMZN) Alexa scientist is looking to disrupt the investment industry through AI. Theia Insights recently raised $6.5 million. The company claims that it can distill vast amounts of financial information through AI and other tech so investors can make better decisions.
Machine learning and deep learning-based healthcare detection systems are also emerging trends in the industry. IBM Corporation (NYSE:IBM)'s machine learning technology advances the early detection of diabetic eye disease using deep learning. IBM Corporation (NYSE:IBM)'s diabetic eye disease detection technology is found to be 86% accurate in classifying the severity of the disease across the five levels recognized on the International Clinical Diabetic Retinopathy Scale.
One of the ongoing trends in AI is experimentation in advertising. AI giants such as Microsoft Corporation (NASDAQ:MSFT)'s Co-pilot, open AI's Chat GPT, and Alphabet Inc.(NASDAQ:GOOG)'s Google Gemini are experimenting with ads so they could solve the monetization issue of generative AI. Most people are not willing to spend $20 every month for premium generative AI models such as GPT-4. So, ads could soon take over chatbots, which would provide these companies with a more viable revenue model. This is already been done by Adzedek which introduces itself as an AI chatbot advertising market palace. The company lets brands run sponsored ads in its custom chatbots, the revenue of which is shared between Adzedek and the chatbot creator.
There is severe competition within the AI industry which also comes from new entrants. A Palo Alto-based startup by the name of Inflection AI has developed a generative chatbot that is considered as powerful as the GPT-4 model, especially across STEM subjects. This Inflection AI model is currently powering Pi, Inflection AI's voice assistant. Many people consider Pi to be ChatGPT that can take commands in the form of voice inputs.
With that backdrop, let's look at the 10 best alternatives to Amazon Echo and Alexa.
To curate our list of the 10 best alternatives to Amazon Echo and Alexa, we used five (1,2,3,4,5) sources. In our methodology, we referred to frequency as the number of times the speaker appeared in our sources. We gave the utmost importance to frequency, but we also wanted to account for the ranking of speakers in our sources. So, we devised the following calculation, which we call the ranking factor: 10/ (sum of rankings*100). Our final Insider Monkey score was calculated by adding the frequency and the ranking factor. The higher this score, the higher the speaker ranks on our list.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional looking for the best stocks to buy you can benefit from the wisdom of hedge funds and corporate insiders.
10 - Sonos IKEA Symfonisk Bookshelf Speaker
Insider Monkey Score - 1.07
The Sonos IKEA Symfonisk Bookshelf Speaker is 10th on our list of the best alternatives to Amazon Echo and Alexa. It is a bookshelf speaker, which is a result of a collaboration between Sonos and Ikea. As one might expect, it is designed to blend with home decor. The speaker can be placed horizontally or vertically. Despite being a bookshelf speaker, it can also be wall-mounted. The Sonos IKEA Symfonisk Bookshelf Speaker is fully integrated into the Sono's ecosystem which also means that you can use hands-free command to play music and control your speaker.
9 - Sonos Era 100
Insider Monkey Score - 1.08
Sonos Era 100 is 9th on our list of the 10 best alternatives to Amazon Echo and Alexa. The speaker offers an impressive sound quality as it features a wide sound stage. It comes with angled tweeters for ultrawide sound. Apart from the usual Bluetooth and Wi-Fi audio capabilities, the Sonos Era 100 also has the option to add a 3.5mm line-in and Ethernet using an adapter. The speaker integrates seamlessly into the Sonos ecosystem.
8 - Belkin Soundform Elite Hi-Fi
Insider Monkey Score - 1.09
The Belkin Soundform ELite Hi-Fi is a smart speaker with a blend of functionalities and conveniences that make it a good alternative to Amazon Echo. While the speaker does not stand out in terms of aesthetics, it brings alot to the table in terms of features. It is praised for its versatility with features such as wireless charging, accurate voice recognition, support for Alexa and Google Assistant, and the capability to operate other smart devices in the home. It also has a powerful low-end response, which is rare in speakers of its size.
7 - Sonos Era 300
Insider Monkey Score - 1.13
Sonos Era 300 is one of the best alternatives to Amazon Echo and Alexa. These smart speakers offer exceptional sound quality and advanced features such as a faster processor compared to its competitors for future software updates. The speaker comes with a built-in voice assistant with accurate voice recognition. Sonos Era 300 also features angled tweeters and stereo playback.
6 - JBL Authentics 500
Insider Monkey Score - 1.25
JBL Authentics is 6th on our list of the 10 best alternatives to Amazon Echo and Alexa. This speaker stands out for its retro design. JBL Authentics 500 offers energetic and articulate sound and an immersive listening experience. The speaker offers support for both, Amazon's Alexa and Google Assistant.
