Amazon Alexa is celebrating three years in Australian homes with one in six households now owning a smart speaker.

In 2020, Amazon saw a significant rise in smart home product sales with its Echo Dot smart speaker topping the list. However, Amazon data has revealed that many customers are not always using Alexa to its full potential with less than half of users (43%) pairing it with other compatible devices.

Over one-third (36%) use smart speakers in their daily lives and 48% to listen to news and weather reports but streaming music remained the top use case in 2020.

Recent Amazon research has revealed that 76% of Australians agree Alexa will be a key feature in the home within the next five years, suggesting that smart homes will become the norm.

Increased home automation is expected to be a top trend for 2021, fueled by convenience of voice communication and a continued desire for more personalised experiences. This year, Alexa will be working with compatible smart home devices to produce a fresh cup of coffee and set the air-conditioning temperature.

Australians are also expected to up their home entertainment game, from pairing an Echo device with a compatible Fire TV device to automating home entertainment systems, to finding the perfect party games, or creating the ideal mood lighting with compatible lights.

With international and domestic travel off the cards for the foreseeable future, Australians will connect with friends who have the Alexa app or supported Echo device. One quarter of customers already use Alexa to speak with friends and family, with Alexa allowing them to share personalised messages and make video calls around the world.