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SMART SPEAKER MARKET REPORT OVERVIEW
global smart speaker market size was USD 11.67 billion in 2023 and market is projected to touch USD 20.58 billion by 2032 at CAGR 6.4% during the forecast period.
Voice-activated virtual intelligent assistants powering smart speakers act as the central command centers for a range of smart home functions, including online surfing, entertainment, and question-answering. Alongside the rising popularity of smart home technology, these gadgets are becoming more and more commonplace in homes throughout the globe.
COVID-19 Impact: Pandemic Driven Remote Work, Learning and Rise of Voice Commands to Ascend the Market Shares
The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.
The desire for smart speakers including features like virtual assistants, which facilitate chores and communication in a home environment, may have been impacted by the growing acceptance of online learning and remote employment during the pandemic. Voice-activated gadgets, such as smart speakers, may have been more popular because of their hands-free functionality as people become more wary about touching surfaces to stop the virus from spreading.
LATEST TRENDS
"Increasing Demand for Display Based Smart Speakers to Louden the Market Shares"
The growing market development is being aided by the growing popularity of display devices. As a result of emerging use cases like social networking, online video streaming, and video calling, industry leaders are gradually transitioning to devices with displays. Important manufacturers also supply a wide range of goods for smart display devices. The following devices include displays: Xiaodu Zai Jia 10 (Baidu), Lenovo Smart Display 7, Redmi Touch Screen Speaker 8, Facebook Portal, Google Nest Hub (2nd Gen), Alibaba Tmall Genie CC8, JBL Link View, and Amazon Echo Show 5. Additionally, these solutions are updated and enhanced often in response to input from end users. Baidu announced funding for the Smart Living Group (SLG) in September 2020. This includes the Dueros voice assistant platform and Xiaodu smart gadgets. In addition, the money includes a USD 2.9 billion Series A investment.
SMART SPEAKER MARKET SEGMENTATION
By Type
Based on type the global market can be categorized into bluetooth connection and wireless connection.
- Bluetooth: Devices may interact with one another without a physical connection thanks to Bluetooth, a short-range wireless technology. Smartphones, tablets, laptops, and other Bluetooth-enabled devices are frequently connected to smart speakers using this method. The smart speaker can receive audio streams over Bluetooth from users' mobile devices. Playing audio files such as podcasts or music is frequently made easier using this.
- Wireless Connection: Wi-Fi networks allow smart speakers to access the internet and establish connections with other smart devices on the same network. Most smart speakers are able to connect to these networks. Higher data transmission rates and a longer range are features of Wi-Fi over Bluetooth. Fibre optic connectivity is essential for firmware upgrades, online content access, and the activation of internet-dependent smart home features.
By Application
Based on application the global market can be categorized into online sales and offline retail.
- Online Sales: Voice commands may be used by customers to make purchases using smart speakers. Customers may vocally complete purchases, verify product availability, and add things to their shopping carts. Voice-activated assistants on smart speakers allow customers to acquire delivery estimates, get shipment information, and find out how their online orders are progressing. Smart speaker voice assistants powered by artificial intelligence (AI) may assess user preferences and make tailored product suggestions based on previous purchases and browsing activity. Retailers can create a more dynamic and engaging shopping experience by using smart speakers to notify customers about special promotions, discounts, and exclusive deals. Customers may use voice commands to check their reward points, redeem offers, and take part in loyalty-related activities when voice-activated loyalty programs are implemented through smart speakers.
- Offline Retail: Customers can receive assistance from smart speakers in real retail establishments. They are able to direct consumers to various areas of the store, respond to questions, and give product information. Retailers may utilize voice commands to perform inventory management operations using smart speakers, including updating product availability, monitoring stock levels, and controlling restocking procedures. Smart speakers can make checkout procedures in physical establishments quicker and more convenient. Without having to contact in person, customers may apply discounts, vocally confirm purchases, and finish transactions. Voice commands allow customers to ask questions about product features, costs, and specs without having to interact with store employees in person. This improves the whole shopping experience. Retailers may create a more engaging shopping environment by using smart speakers to announce in-store promotions, highlight special discounts, and provide further information on ongoing sales events.
DRIVING FACTORS
"Increasing Popularity of Smart Home Products to Raise High the Market Demand"
The use of smart home products, security cameras, locks, lights, thermostats, TVs, and kitchen appliances is growing in popularity with customers. Additionally, all smart devices may be effortlessly maintained and controlled remotely thanks to the role that this type of speaker plays as a single point of contact and control hub. For instance, Xiaomi is working to create an Artificial Intelligence of Things (AloT) system that would connect its other loT products by using a speaker as a control hub. Numerous speaker manufacturers have started to provide smart home connectivity features to their speakers, such as Apple Inc., Avnera, Baidu, Beijing LingLong (JD.com), Deutsche Telekom, Fabriq, and others. Meanwhile, Xiaomi and Siemens AG are working together and forming partnerships with manufacturers of smart home products.
"Increasing Popularity of Voice Commerce and Voice Assistance Platforms to Multiply the Market Share"
Globally, voice commerce is becoming more and more popular. With the use of a keyboard and mouse or smartphone, voice commerce offers an alternate method for placing online orders and making purchases. Customers may look for and buy things online by speaking to smart speakers that are equipped with virtual assistants like Google Assistant and Amazon Alexa. Voice commerce makes it easy and quick to complete transactions. Additionally, because voice commerce offers benefits including hands-free operation, the ability to make purchases while completing other duties, and rapid response and results, consumers prefer it over traditional input methods. Customers may use voice commands to search, order, and buy products from Amazon using Alexa-enabled smart speakers.
Various age groups of American smart speaker consumers have varying preferences for voice-assistance systems. 60% of people between the ages of 18 and 24 use Apple's Siri, making it the most popular among younger demographics. However, among voice assistant users 35 years of age and older, Amazon Alexa is significantly more popular. Voice assistants, even those not accessible through smart speakers, are used by over 135 million people in the US. Asking basic questions, receiving information on the weather, traffic, sports, and travel, and using built-in streaming services for music are the most common uses of smart speakers in the United States. The rise in popularity of smart homes has coincided with the rise in popularity of smart speakers in recent years.
RESTRAINING FACTOR
"Privacy Concerns and Security Breach are the Fatal Hazards Descending the Market Sales"
The microphone integrated into smart speakers is always on the lookout for "hot words" that are followed by an instruction. However, people are also concerned about their privacy due to these always listening microphones.These include the information being captured, the intended use and protection of the data, and whether or not it will be used for intrusive advertising.Additionally, a study of Amazon Echo Dots revealed that human conversations made up 30–38% of "spurious audio recordings," indicating that these devices record audio in addition to only identifying hot words. Smart speakers can be operated by somebody other than the intended user or owner when they are configured without authentication. A speaker may be able to hear individuals, for instance, who are outside an open window, a partially constructed wall, or a security fence and are part of the public. Hence, such factors are expected to hinder the smart speaker market growth during the forecast period.
SMART SPEAKER MARKET REGIONAL INSIGHTS
"North America Witnessing Early Acceptance of New Technology and Strong Economic Backdrop to Lead the Market Share"
The market is primarily segregated into North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa.
North American region dominated the smart speaker market share in the forecasted period. North America has experienced enormous increase in the use of smart speakers due to early adoption of new technologies and a robust economic environment. The region's speaker penetration is aided by the presence of significant speaker providers. The readiness of consumers to accept and use new technology has also encouraged major North American suppliers to produce high-tech and inventive products. Furthermore, as per the Smart Speaker data, the number of speakers used per user rose by 10% from 1.8 in 2018 to 2.0 in 2019. According to the poll, there were over 133 million smart speakers in the US in 2019, and 60% of users said they used them frequently.
KEY INDUSTRY PLAYERS
"Key Industry Players Shaping the Market through Innovation and Market Expansion"
Important industry players have a big impact on the market and are crucial in determining customer preferences and market dynamics. These major firms provide consumers easy access to a vast array of clothing alternatives through their huge retail networks and online platforms. Product adoption has increased as a result of their strong worldwide presence and well-known brand, which has also enhanced consumer trust and loyalty. These industry titans also consistently fund R&D, bringing cutting-edge designs, materials, and clever features to smart speaker to meet changing customer demands and preferences. These big businesses' combined efforts have a big impact on the market's future direction and level of competition.
List of Top Smart Speaker Companies
- Amazon.com (U.S.)
- Apple (U.S.)
- Google (U.S.)
- Bose Corporation (U.S.)
- Harman (U.S.)
- LG Electronics (South Korea)
- Altec Lansing (U.S.)
- Panasonic (Japan)
- Sonos (U.S.)
- Sony Corporation (Japan)
- SK Telecom (South Korea)
- Baidu (China)
- Xiaomi (China)
- Alibaba (China)
INDUSTRIAL DEVELOPMENT
June 2023: Amazon unveiled their smart speaker, the Echo Pop. The AZ2 Neural Edge processor from Amazon powers the smart speaker known as the Amazon Echo Pop. It lets users play music, control smart lights and plugs, set alarms, check cricket scores, and make notes. It supports voice commands in Hindi, English, and Hinglish. Additionally, users may pair the Echo Pop with Bluetooth to stream music from a computer or phone. In addition, the Echo Pop has an on/off microphone button and the ability to see and remove speech recordings. Both privacy settings and when Alexa should listen are controlled by the user.
January 2023: Apple unveiled the HomePod 2nd generation, a powerful smart speaker with cutting-edge intelligence and acoustics. For a listening experience that will change your life, the HomePod features strong computational audio and immersive Spatial Audio recordings. In addition, it enables users to monitor the temperature and humidity in a room, set up smart home automation, and get alerts for smoke or carbon monoxide detectors all without using their hands.
REPORT COVERAGE
The report includes a thorough SWOT analysis and offers predictions for market growth in the future. It explores a broad range of market categories and possible applications that might have an impact on the market's trajectory in the upcoming years, as well as key aspects that contribute to the market's growth. The research provides a comprehensive overview of the market's components and identifies possible growth opportunities by taking into account both historical turning points and present trends.
| REPORT COVERAGE | DETAILS |
|---|---|
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Market Size Value In |
US$ 11.67 Billion in 2023 |
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Market Size Value By |
US$ 20.58 Billion by 2032 |
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Growth Rate |
CAGR of 6.4% from 2023 to 2032 |
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Forecast Period |
2024-2032 |
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Base Year |
2024 |
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Historical Data Available |
Yes |
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Regional Scope |
Global |
Segments Covered | |
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By Type
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By Application
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Frequently Asked Questions
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What value is the smart speaker market expected to touch by 2032?
The smart speaker market is expected to reach USD 20.58 billion by 2032.
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What CAGR is the smart speaker market expected to exhibit by 2032?
The smart speaker market is expected to exhibit a CAGR of 6.4% by 2032.
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Which are the driving factors of the smart speaker market?
Increasing popularity of smart home products, voice commerce and voice assistance platforms are the driving factors of the smart speaker market.
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What are the smart speaker market segments?
The smart speaker market segmentation that you should be aware of, which include, Based on type the market is classified as bluetooth connection and wireless connection. Based on application the market is classified as online sales and offline retail.
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