Smart Speaker Market Size By Intelligent Virtual Assistant (Alexa, Google Assistant, Siri, Cortana, Others), By Application (Personal, Professional, Commercial), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2018 – 2024

Industry Trends

Smart Speaker Market size was estimated to be over USD 4.5 billion in 2017, growing at CAGR of over 20% from 2018 to 2024. The global shipments are forecast to reach over 500 million units by 2024.
 

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Rising penetration of the IoT technology is expected to propel the smart speaker market growth over the forecast timespan. A variety of smart electronic devices is increasingly keeping users connected to the internet and the network of connected devices in addition to smartphones. These devices include features such as social networking applications, gaming, weather information, e-book readers, music players, digital camera, and GPS navigation. A strong growth is observed in the fields of the Internet of Things (IoT) and connected devices due to the reduction in computing costs and growing Wi-Fi connectivity. The growth in the use of smartphones and the deployment of data-friendly networks, such as 3G and 4G, are expanding the network connectivity across the globe. This is increasing the proliferation of these devices across the consumers of smart technologies, accelerating the growth.
 

In addition to the provision of sound and entertainment, these devices have extended their functionality to include several other applications such as live music & news streaming, problem-solving, setting reminders, and ordering of household supplies. The integration of the virtual assistant software has established new pathways for the smart speaker market. Virtual assistants are projected to undergo a high growth over the forecast timespan and various companies have leveraged this opportunity to launch products integrated with virtual assistants.
 

Impounding security issues are major factors restraining the smart speaker market share. These devices are developed with the prime focus on listening to the vocal commands from the users. The microphone within these systems hear the command keywords even when the devices are idle. This allows the personal customer data to be registered over the internet without the knowledge of the user. The security loophole allows the external entities to hack into these systems and use the customer data for nefarious purposes, impacting the growth.

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Smart Speaker Market, By IVA

Siri-enabled smart speaker market is expected to witness a significant growth of over 35% during the forecast timespan due to the large established market of Apple and iOS for the smart devices. For instance, in 2017, Siri constituted 48.4% share of voice assistants on smartphones. Furthermore, Siri provides a high quality of virtual surround sound and deep integration technology, which will increase the popularity of these devices among the consumers.

Alexa-enabled smart speaker market held the majority share of over 70% in 2017 due to its low cost and a large number of benefits such as controlling smart homes, playing games, and playing music. Several companies are developing devices equipped with Alexa that are affordable to a wide range of customers. For instance, companies such as Sonos and Fabriq have launched their devices integrated with Alexa voice assistants.
 

Smart Speaker Market, By Application

Smart speaker market in personal applications is expected to hold the majority share of over 90% due to the increasing usage of the devices in smart homes. The integration of these devices with devices such as smart lightbulbs, thermostats, and TVs is encouraging the consumers to adopt these devices for personal uses. Devices such as Google Home allow the users to make phone calls and send messages, monitor the user activity, set alarms, and go shopping.
 

Increasing use of these devices in commercial applications such as banking will propel the industry growth. Financial corporations and big banks such as the U.S. Bank, Capital One, and American Express are increasingly using virtual assistants to offer services such as paying bills and checking balances using personal assistants such as Alexa and Siri. For instance, in June 2018, the U.S. Bank announced the launch of its voice assistant banking services with Amazon Echo and Google Home in New York.
 

Smart Speaker Market, Region

The U.S. smart speaker market is expected to grow at a CAGR of over 25% due to the increasing penetration of smart homes in the country. The consumers are increasingly demanding technologies that will improve their lives. With more products and services becoming internet-enabled, the number of smart homes is increasing to a large extent. Consumer focus on smart homes is increasing rapidly owing to the benefits of these systems including convenience, luxury, safety, entertainment, and energy efficiency. After security, smart entertainment and connectivity have grabbed the highest consumer appeal in the smart homes segment, propelling the smart speaker market.
 

Competitive Market Share

Prominent players in the smart speaker market comprise Amazon, Apple, Inc., Google, Inc, Sonos, Sony, Onkyo, Fabriq, Harman International, and Lenovo. The industry is characterized by intense competition among the players to develop products with innovative functionalities. These companies are investing in product development on a large scale to cater to the increasingly increasing consumer demand. For instance, in January 2018, LG Electronics introduced ThinQ Speakers, a new line of audio products powered by Google Assistant.
 

The participants in the smart speaker market are increasingly investing in research & development to improve the functionalities of their devices to combat the increasing competition. For instance, Amazon announced the launch of the Amazon Echo Show, a smart speaker with an embedded screen. The popularity of these devices is expected to hybridize traditional tablets with intelligent audio devices.
 

Smart Speaker Industry Background  

In 2014, Amazon introduced Echo Back, that was introduced with the feature of controlling music with the voice of the user. With this introduction, the company introduced several other features such as cameras and displays to enable the devices with additional features to gain consumer appeal. Following suit, technology companies such as Apple & Google and traditional audio devices companies including Sonos have introduced the intelligent audio devices, thus propelling the smart speaker industry. Furthermore, the industry is offering several opportunities for several entities such as application developers, component suppliers, distributors, network operators, and other vendors to satisfy customer requirements and generate revenue.