This market research report on smart speaker market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis.
The market study also includes insights on segmentation by device type (first-party devices and third-party devices), by distribution (retail (specialty store, mass-market store, and electronic stores) and online channels), by end-users (residential users and commercial users), and by geography (APAC, Europe, North America, and ROW).
The proliferation technology that led to the transformation of customer's experience and human interaction is one of the primary factor driving the growth of the global smart speaker market. The leading vendors are leveraging voice-assistance technology that offers ease and convenience to end-users to gain a larger global market share. Some of the most popular virtual voice assistants such as Siri (Apple), Alexa (Amazon), Google Assistant (Google), and Cortana (Microsoft) are used across various smart appliances in the global market. The development of trade and manufacturing units, increasing investment in advanced economies, decreasing deflationary pressures, and increasing import demand from commodity-exporting developing and emerging markets will create a requirement for smart Techint the global market.
The launch of new product model that is designed to provide ease-of-use along with a taste of innovation will drive the demand for these products in the global market. The rise in per capita income, high adoption of smart homes, and growth of dual-income households will result in the increasing spend on smart devices in the global market. The growing awareness about innovations and penetration of connected devices will create a demand for wireless speakers and other such products in the global market. The integration of voice-assistance technology in household appliances will augment the evolution of the global smart speaker market.
The exponential presence of online retailers such as Amazon, JD.com, and eBay offering a variety of products will augment the development of the global market. The launch of new products developed with ease of usage, connectivity, and skillsets, design, sensor technology, voice-recognition, signal transmission, and battery capacity will create revenue potential for vendors operating in this market. The global smart speaker market is estimated to reach revenues of approximately $19 billion by 2023, growing at an impressive CAGR of around 31% during 2018-2023.
The exponential usage and popularity of broadband and internet connectivity across various countries in the world are augmenting the demand in the global smart speaker market. The rising number of deployment of LTE networks and the government initiatives to push for digital economies is leading to the use of the Internet and other smart devices in the global market. The technological advancements in the development of consumer applications have resulted in the integration of smart home or connected home in the global market.
The development of smart homes has pushed end-users to adopt fast broadband connections or mobile internet across households in the market. For instance, advanced mobile networks such as LTE have reached about 58% of the global population according to the research analysts. The rising popularity of connected homes will boost the demand in the global smart speaker market during the forecast period.
This market research report includes a detailed segmentation of the market by devices, end-users, distribution channels, and geography.
By Devices Type
First-party speakers introduced by Amazon and Google to dominate the global smart speaker market during the forecast period.
The devices type segment in the global smart speaker market is divided into first-party devices and third-party devices. First-party devices segment occupied the largest market share in 2017, growing at a CAGR of approximately 24% during the forecast period. The increasing collaborations with smart ecosystem providers is propelling the demand for new systems in this segment in the global market. Leading vendors such as Amazon, Google, Apple, and Microsoft are leveraging its smart assistant platforms to introduce innovative products in the global market.
The rapid improvement in audio quality and product designs will help manufacturers to gain a larger market share and attract new consumers over the next few years. For instance, Google Home Max by Google is an attempt to focus on sound quality as well as smartness of the speakers. Apple, living up to its reputation, focused on sound quality and launched HomePod in February 2018. Such innovations will boost the demand in the global smart speaker market.
The use of multi-room speakers to boost sales in the global smart speaker market during the forecast period.
The global smart speaker market by end-users is segmented into residential users and commercial users. The residential end-users dominated the majority of the market share in 2017, growing at a CAGR of approximately 31% during the forecast period. These products are used by individuals who buy smart devices for home use or residential purposes in the global market. Some of the household are installing more than one product at home, thereby, boosting the revenues in this segment in the global market.
The increasing application of these products as multi-room speakers will enable vendors to launch innovative products in the market. The increasing availability of Bluetooth-only speaker and allowing end-users to avail free calling facility in the US and Canadian region will attribute to the sales in this segment in the global market. Additionally, the improvement in economic conditions and rise in disposable income in emerging countries such as India and China will attribute to the growth of this segment in the global smart speaker market.
By Distribution Channel
Online retail segment to generate the highest revenues in the global smart speaker market during the forecast period.
The distribution channel segment in the global smart speaker market is classified as retail (specialty store, mass-market store, and electronic stores) and online channels. Online channel occupied the largest market share in 2017, growing at a CAGR of over 21% during the forecast period. The growing number of online OEMs' e-commerce portals and online direct-to-consumer stores such as Amazon, eBay, Best Buy, Alibaba, and JD.com is augmenting the growth of this segment in the global market.
Factors such as ease-of-accessibility and convenience afforded by such channels are boosting the revenues of the online retail channel in the global market. The leading vendors are offering YouTube tutorial videos to help beginners to get knowledge of the working and set-up of voice-assistant speakers will ease in the global market. The increasing popularity of online stores in the UK, the US, and Germany will create lucrative opportunities for leading players in the global smart speaker market.
The US leads the market share in North America in the global smart speaker market.
The global smart speaker market by geography is segmented into APAC, Europe, North America, and ROW. North America dominated that largest market share in 2017, growing at a CAGR of more than 21% during the forecast period. The benefits of reliability, ease of installation, and convenience offered by these speakers are propelling the demand in the North American market. The top players are leveraging advanced technology to deliver high performance and user-friendly devices to attract new consumers and gain a larger market share in North America. The increasing purchasing power of millennials, growing adoption of smartphones, inclination toward new technology, and high urbanization are some of the factors boosting the demand for smart devices in the North American market. The US and Canada to emerge as the largest revenues generators in the global smart speaker market during the forecast period.
Key Vendor Analysis
The global smart speaker market is witnessing the emergence of two major players such as Amazon and Google that are leading the competition level. The consumers' expectations regarding continual innovations and upgrades will encourage vendors to launch new products in the global market. The presence of diversified international vendors and a few regional vendors will boost the revenues in the market. The increasing number of product or service extensions, technological innovations, and M&A activities will intensify the competition level in the market over the next few years. The business expansion plans of key companies to fast-developing countries in APAC and Latin America will propel the growth of the global smart speaker market during the forecast period.
The major vendors in the global market are:
Key Topics Covered
1 Research Methodology
2 Research Objectives
3 Research Process
4 Report Coverage 4.1 Market Definition 4.2 Base Year 4.3 Scope of Study
14 Market by Distribution Channel 14.1 Market Overview 14.2 Manufacture, Production, and Distribution 14.3 Distribution through Retail Stores 14.4 Distribution through Online Websites
15 Market by Geographical Segmentation 15.1 Market Overview
16 North America: Smart Speaker Market 16.1 Market Overview 16.2 Key Countries 16.3 Leading Trend, Enabler, and Restraint
17 Europe: Smart Speaker Market 17.1 Market Overview 17.2 Key Countries 17.3 Leading Trend, Enabler, and Restraint
18 APAC: Smart Speaker Market 18.1 Market Overview 18.2 Key Countries 18.3 Leading Trend, Enabler, and Restraint
19 ROW: Smart Speaker Market 19.1 Market overview 19.2 Latin America by Key Macroeconomic Factors 2015 19.3 Population Demographics in Middle Eastern Countries 2014-2015 19.4 Key countries 19.5 Leading Trend, Enabler, and Restraint
20 Competitive Landscape 20.1 Market Overview 20.2 Market Structure and Mapping of Competition 20.3 Market Share Analysis
21 Key Company Profiles 21.1 Alibaba Group 21.2 Alphabet (Google) 21.3 Amazon.com 21.4 Harman International (Samsung) 21.5 Sonos
22 Other Prominent Vendors 22.1 Anker Innovations 22.2 Apple 22.3 Avnera 22.4 Baidu 22.5 Beijing LingLong (JD.com) 22.6 Deutsche Telekom 22.7 Fabriq 22.8 Facebook 22.9 Jam Audio 22.1 KaKao 22.11 KitSound by Kondor 22.12 KT 22.13 Invoxia 22.14 Lenovo 22.15 LG Electronics 22.16 Libratone 22.17 Line 22.18 Mobvoi 22.19 Mycroft AI 22.20 Naver 22.21 NVIDIA 22.22 Onkyo & Pioneer 22.23 Orange 22.24 Panasonic 22.25 Samsung Electronics 22.26 SK Telecom 22.27 Sony 22.28 Telefnica 22.29 Tencent 22.3 TIBO 22.31 Ultimate Ears 22.32 Xiaomi 22.33 Yandex
23 Report Summary 23.1 Key Takeaways 23.2 Strategic Recommendation 23.3 Qualitative Summary of Global Smart Speaker Market 23.4 Quantitative Summary: Global Smart Speaker Market