Smart Speaker Market: Global Industry Analysis and Forecast (2023-2029)

Smart Speaker Market was valued at USD 9.73 Billion in 2022, and it is expected to reach USD 29.38 Billion by 2029, exhibiting a CAGR of 17.1 % during the forecast period (2023-2029)

Smart speakers, which are powered by a voice-enabled virtual intelligent assistant, serve as the core controlling hubs for various smart home operations, such as entertainment, answering queries, browsing the web, and so on. The ubiquity of these smart speaker devices in houses throughout the world has progressively increased in tandem with the growing popularity of smart home technologies. Global smart speaker shipments were expected to reach 186 million by 2021, with shipments expected to exceed 200 million yearly in 2022 or 2023.

Voice-assistance platforms are preferred by different age groups of smart speaker users in the United States. Apple's Siri is most popular among younger groups, with 60% of 18 to 24 year-olds utilising it. Amazon Alexa, on the other hand, is far more popular among voice assistant users 35 and older. More than 135 million individuals in the United States utilise voice assistants, including those not accessed through smart speakers. In the United States, the most typical activities done by smart speakers include asking general queries, receiving weather, traffic, travel, and sports updates, and listening music via built-in streaming services. Smart speakers have grown in popularity in recent years as smart homes have grown in popularity. They provide voice commands for communication and are Wi-Fi enabled. They also serve as a command and control centre for smart home gadgets.

The rising need for speaker systems in residential applications is expected to boost product demand in the near future. The proliferation of smart home goods, the advancement of artificial technology, and the expansion of display-based gadgets are just a few of the primary aspects expected to offer market possibilities for key competitors. In addition, prominent market competitors are working on growing their company units globally. For example, in September 2019, Amazon released a new range of Alexa-enabled Echo devices, including the all-new Echo Show 8, Echo Dot with clock, Echo, and Echo Flex. In addition, the newly released gadgets offer a three-dimensional audio experience with Dolby Atmos. According to Consumer Intelligence Research Partners (CIRP), Amazon Alexa and Echo will have a 70% market share in 2019, followed by Google Home (25%), and Apple HomePod (5%).
Research Methodology
The research report highly depends on both primary and secondary data sources. The research process involves the investigation of various factors affecting the industry, such as government policy, market environment, competitive landscape, historical data, current market trends, technological innovation, upcoming technologies, and technical progress in related industries, as well as market risks, opportunities, market barriers, and challenges. All conceivable elements influencing the markets included in this research study have been considered, examined in depth, validated through primary research, and evaluated to provide the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalised, and the impact of inflation, economic downturns, regulatory & policy changes, and other variables is factored into the market forecast.

This data is combined and added with detailed inputs and analysis, and presented in the report. Extensive primary research was conducted to acquire information and verify and confirm the crucial numbers arrived at after comprehensive market engineering and calculations for market statistics; and data triangulation. Bottom-up technique is widely employed in the whole market engineering process, along with multiple data triangulation methodologies, to perform market estimation and forecasting for the overall market segments and sub-segments covered in this research.

To know about the Research Methodology :- Request Free Sample Report
Smart Speaker Market Dynamics
Increased Demand for Display-Based Smart Speaker Device: The rising popularity of display devices is assisting in the market's expansion. Due to developing use cases such as social networking, streaming online content, and video call capabilities, industry leaders are progressively shifting to display-based devices. In addition, significant manufacturers provide a diverse variety of smart display device products. Display-capable gadgets include the Amazon Echo Show 5, Facebook Portal, Google Nest Hub (2nd Gen), Redmi Touch Screen Speaker 8, Lenovo Smart Display 7, Xiaodu Zai Jia 10 (Baidu), Alibaba Tmall Genie CC8, and JBL Link View. These products are also regularly updated and improved in response to end-user feedback. In September 2020, Baidu announced financing for Smart Living Group (SLG), including Xiaodu smart devices and Dueros voice assistant platform. Further, the funding is a Series A financing with a valuation of USD 2.9 billion.

Increasing Popularity of Smart Home Products: Smart home gadgets, such as smart kitchen appliances, security cameras, smart locks, smart lighting, thermostats, and smart TVs, are becoming more popular among consumers. Furthermore, this sort of speaker serves as a single point of contact and control hub for all smart devices, allowing them to be conveniently managed and controlled remotely. For example, Xiaomi is attempting to establish an Artificial Intelligence of Things (AloT) system that will use a speaker as a control hub to link its other loT products. Furthermore, Xiaomi's AloT platform is connected to about 324 million devices. Many speaker companies, including Apple Inc., Avnera, Baidu, Beijing LingLong (JD.com), Deutsche Telekom, Fabriq, and others, have begun to offer smart home connectivity features to their speakers, while others, including Xiaomi and Siemens AG, are collaborating and partnering with smart home product providers. For example, in October 2020, Apple Inc. released the HomePod tiny speaker, which is compatible with Siri, Apple's speech assistant, and edge software. Furthermore, HomePod small has Wi-Fi and smart home features, as well as built-in security and privacy.



AI Technology Research and Development: AI chipsets particularly intended for smart speakers have improved in terms of battery life, music quality, and voice control. Natural language processing (NLP) and speech recognition technology advancements are helping us to better comprehend and act on what is spoken. Baidu's expertise in search and AI provides it a considerable edge in building a voice assistant capable of natural language processing and communication. Google also just unveiled LaMDA, their next-generation Chabot (Language Model for Dialogue Application). It is a machine learning model designed to interpret natural language talks. Artificial intelligence (AI) integrated chipsets used in smart speakers provide voice control, music quality, and increased battery life. Furthermore, speech recognition technology and natural processing language (NPL) are allowing speakers to better interpret voice instructions. Baidu's experience in Al, for example, provides it significant benefits in developing conversational skills and voice assistant speakers with natural processing language.

Large Internet/Technology Companies Entering the Market: The arrival of significant internet/technology companies into the market is the most powerful driver of smart speaker proliferation. They are more advanced in terms of technology, distribution, and marketing capabilities. They also have the financial resources to offer incentives, which have contributed to the broad adoption of smart speakers. All of the major smart speaker manufacturers are revising their basic lines, with a focus on providing high-quality sound at a reasonable price. For example, Apple debuted the Home Pod Mini in November 2020 with a price tag of USD 99, whereas the original Home Pod was phased out in Q1 2021.

Increased Demand for Display-Based Smart Speaker Device: The rising popularity of display devices is assisting in the market's expansion. Due to developing use cases such as social networking, streaming online content, and video call capabilities, industry leaders are progressively shifting to display-based devices. In addition, significant manufacturers provide a diverse variety of smart display device products. Display-capable gadgets include the Amazon Echo Show 5, Facebook Portal, Google Nest Hub (2nd Gen), Redmi Touch Screen Speaker 8, Lenovo Smart Display 7, Xiaodu Zai Jia 10 (Baidu), Alibaba Tmall Genie CC8, and JBL Link View. These products are also regularly updated and improved in response to end-user feedback. Baidu announced investment for Smart Living Group (SLG), which includes Xiaodu smart gadgets and the Dueros voice assistant platform, in September 2020. Furthermore, the money represents a Series A financing with a USD 2.9 billion valuation.

Data Piracy & Security Breach: Aside from the rising popularity of smart speakers, the market's main concern is data privacy and security. These devices have access to personal information kept in Gmail, such as contacts, bank account information, and login passwords, providing a security concern. The gadgets in a smart home have access to sensitive data such as videos, photographs, and personal information, which can be viewed and managed from anywhere. According to a 2019 US poll, smart speaker non-users are more concerned about data and privacy problems such as hacking danger (63%), smart speakers constantly listening (55%), and government surveillance (40%), compared to 41%, 36%, and 34% in 2017. They had the same worries about data and privacy as smart speaker consumers. These problems may stymie industry expansion if proper advancement in security concerns is not addressed.
Smart Speaker Market Segment Analysis
Based on Virtual Assistance, the market is sub segmented into Amazon Alexa, Google Assistant, Siri, Cortana, Other. The Alexa speaker is accessible in over 80 countries, giving the company access to a huge audience from which to collect use statistics and enhance its service. Siri, Apple's voice assistant, provides hands-free activation, deep integration technologies, and high-quality virtual surround sound, as well as timer scheduling, calendar event management, and other features. When activated by saying "Ok Google," the Google assistant provides quick access to all Google services and data associated with the Google account. According to a 2019 poll, Amazon Alexa/Echo has a 70% market share in the United States, followed by Google Home (25%), and Apple Home Pod (5%). This is partly due to the high sales of low-cost devices such as Google Home Mini and Amazon Echo Dot. As a result of the rise of virtual help, the smart speaker market is growing.



Based on Distribution Channel, the market is sub-segmented into online, offline. The internet channel had the largest market share in 2022, with a CAGR of more than 21% during the forecast period. The growing number of online OEM e-commerce portals and direct-to-consumer merchants, including as Amazon, eBay, Best Buy, Alibaba, and JD.com, are driving the global market for this category. Factors such as ease of access and convenience given by such channels are increasing the worldwide market's sales of the online retail channel. Leading providers are making YouTube training videos available to help beginners learn how voice-assistant speakers function and how to set them up in the worldwide market. The rising popularity of online retailers in the United Kingdom, the United States, and Germany will help leading players in the global smart speaker industry.

Based on End-User, the market is categorized into the personal and commercial. During the forecast period, personal is expected to have the largest market share. For example, Baidu released Xidodu Smart Display in December 2019. The latest launch for personal speakers includes four powerful microphones for voice interactions and an 8-inch complete touchscreen display. X8 also supports gesture recognition and facial recognition, among other biometric modalities. The growing use of these types of speakers in personal applications is likely to boost market growth. Commercial applications are expected to gain momentum as firms increasingly use smart assistants to help them manage corporate operations more efficiently. Commercial usage of these speakers helps staff stay prepared, organised, and focused, which eventually enhances productivity and is expected to fuel market expansion. The increased usage of personal and business apps in industrialised countries such as the United States, Canada, Germany, and others is ascribed to market growth.
Regional Insights
Because of early acceptance of new technology and a strong economic backdrop, North America has seen tremendous growth in smart speakers. The existence of important speaker suppliers contributes to the region's speaker penetration. Customers' willingness to adopt and embrace new technologies has also spurred significant North American suppliers to build sophisticated and innovative items. In addition, according to the Smart Speaker Speaker use per user increased by 10% from 1.8 in 2018 to 2.0 in 2019. Furthermore, the survey claims that there were around 133 million smart speakers in the United States in 2019, with 60% of users identifying themselves as everyday users. The goods of the key market players, such as Amazon Web Services, Apple Inc., and Bose, are supplied and introduced in the area first. These main reasons are propelling the industry forward. Furthermore, according to the Smart Speaker Consumer Adoption study, the United States had the highest smart speaker penetration rate in 2019 at 26%.

Japan, South Korea, China, and India are driving market growth in Asia Pacific. For example, in 2019, China ranked first in the world in speaker, with over 86 million users. Key businesses such as Xiaomi, Alibaba, and Baidu are also among the major enterprises concentrating on domestic customers. China is one of the most important markets for voice-enabled smart home services and devices. Furthermore, according to the China Electronics Standardization Institute (CESI), the Chinese smart home market is increasing at a pace of 20-30% every year. The major markets for smart speakers are China and the United States. China accounted for more than 40% of smart speaker shipments in 2020 alone, with North America accounting for 30%.

Most smart speaker sales are handled by firms from the United States and China, which account for more than two-thirds of the overall market. Amazon's Echo/Alexa, Google Home/Google Assistant, and Apple's HomePod are the most popular smart speaker brands from American firms. Baidu, Alibaba, and Xiaomi, all located in China, are the other smart speaker suppliers with significant market share. The suppliers located in the United States have a stronger presence outside of their native markets. The Amazon Echo is the most popular smart speaker in nations such as the United Kingdom, Germany, Brazil, and India, according to Statista's Global Consumer Survey. Google Home devices, on the other hand, are more common in Sweden and the Netherlands.

Due to the rapid development of digital technologies in the area, key firms in Europe are rapidly adopting the speaker for smart homes. In the United Kingdom, for example, 13 million individuals used speakers in 2022, with a 22% penetration rate. Similarly, Germany is set to enact a new regulation for flexible online media firms in February 2020, which would view voice assistants as 'end-user interfaces' and help make them more responsible to the country's standards. Also propelling market expansion in the area are investments by leading market players, government programmes, and increased funding for research and development efforts. The growing acceptance of digital devices in South America, the Middle East, and Africa is driving the adoption of speakers. Google, for example, will debut its artificial intelligence-powered virtual assistant in Saudi Arabia in December 2021. Google has been particularly programmed to comprehend and answer in standard Arabic to all Saudi dialects. These capabilities will enable Google to sing and joke in Arabic.
Report Scope:
The Smart Speaker Market research report includes product categorization, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, and the most recent dynamic analysis, among other things. The study discusses the worldwide market's drivers, opportunities, and limitations. It discusses the influence of various drivers, trends, and constraints on market demand during the forecast period. The research also outlines market potential on a global scale. The research includes the production time, base distribution, technical characteristics, research and development trends, technology sources, and raw material sources of significant Smart Speaker Market firms in terms of production bases and technologies. The more precise research also contains the key application areas of market and consumption, significant regions and consumption, major producers, distributors, raw material suppliers, equipment providers, and their contact information, as well as an analysis of the industry chain relationship. This report's study also contains product specifications, manufacturing processes, cost structure, and data information organised by area, technology, and application.
Smart Speaker Market Scope: Inquire before buying



Smart Speaker Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 9.73 Bn.


Forecast Period 2023 to 2029 CAGR:
17.1%
Market Size in 2029:
US $ 29.38 Bn.


 Segments Covered:
by Intelligent Virtual Assistant
Amazon Alexa
Google Assistant
Siri
Cortana
Other


by End User
Personal
Commercial


by Distribution Channel
Online
Offline


by Price
Low (Less than 100)
Mid ($101 to $200)
Premium (Above $200)



Smart Speaker Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (razil, Argentina Rest of South America)
Key Player
1. Amazon.com, Inc.
2. Apple, Inc.
3. Alibaba Group
4. Alphabet Inc.
5. Tmall Genie
6. Sonos one
7. Bose Corporation
8. Xiaomi
9. Panasonic SC-GA10
10. Samsung Electronics Co. Ltd.
11. Baidu Inc.
12. JBL Link 20
13. Sonas Beam
14. Google home mini
15. Insignia voice
16. AliGenie
17. DuerOS
18. SKT NUGU
19. NaverClova
20. Kakao

Frequently Asked Questions:

1) What was the market size of Global Smart Speaker markets in 2022?
Ans - Global SMART SPEAKER Market was worth US$ 9.73 Bn in 2022.

2) What are the market segments in Global Smart Speaker Market?
Ans -The market segments are based on virtual assistance, End user, Distribution channel. Price.

3) What is forecast period consider for Global Smart Speaker Market?
Ans -The forecast period for Global Smart Speaker Market is 2023 to 2029.

4) What is the market size of Global Smart Speaker Market in 2029?
Ans – Global Smart Speaker Market is estimated as worth US$ 29.38 Bn in 2029.

5) Which region is dominated in Global Smart Speaker Market?
Ans -In 2020, Asia pacific region dominated the Global Smart Speaker Market.