Smart Speaker Market Size By Technology (Bluetooth, Wi-Fi, NFC), By Product (Single Room, Double-Room, Multi-Room), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, Italy, South Korea, China, India, Japan, Brazil, GCC, Africa), Growth Potential, Price Trends, Competitive Market Share & Forecast, 2017 – 2024
Published Date: June 2017 | 120 Pages | Report ID: GMI1757 Report Format: PDF
Smart Speaker Market size was over USD 400 million in 2016 and is predicted to grow at an estimated CAGR of over 50% from 2017 to 2024.
Global Smart Speaker Market Share, By Region, 2016
Internet of things (IoT) is expected to be a major factor driving the smart speaker market growth. The rising penetration of the internet has extended to everyday applications and has increased the consumer demand for smart devices that offer a wide range of functions.
These devices are not limited to the provision of sound and entertainment but have also extended their functionality to include a variety of other applications such as problem solving, live streaming of music and news, setting reminders, and ordering of household supplies among others. Technological advancements such as integration of virtual assistant software has paved new pathways for the growth of the smart speaker market. Virtual assistants are predicted to experience high growth during the forecast time and various companies at present have exploited this opportunity to launch products integrating virtual assistant software. For instance, Google Home is a voice activated speaker that is powered by Google Assistant. It allows multiple user access with voice distinguishing and recognition capabilities to offer a customized user experience.
Security issues is a major factor restraining the rise of the smart speaker market. A large number of these systems are developed with a prime focus on listening to vocal commands. As a result, the web connected microphone within these systems can pick up on command keywords even when the system is not being used, owing to which personal customer data can be registered without the knowledge of the user. Furthermore, external entities can hack into the system and extract confidential information and use it for nefarious purposes; making it prone to cyber-attacks.
Smart Speaker Market, By Technology
The Bluetooth smart speaker market is predicted to experience high growth during the forecast timespan. Bluetooth enabled devices offer portability and have a compact, built-in battery, which makes them ideal for usage in travel or outdoor activities.
Wi-Fi devices are gaining traction in the global smart speaker market ecosystem as they enable a direct connection to the home network and allow the user to access the internet and provide longer range. This is a major factor contributing towards the growth of the smart speaker market segment. Furthermore, virtual assistant software cannot function without the access to the internet. However, these are relatively more expensive as they require continuous connectivity to function.
Smart Speaker Market, By Product
Single-room smart speaker market will dominate the industry owing to high adoption of a single system. Consumers are more likely to buy a single speaker which can be accessed in a single room in the house. However, the service range is limited and cannot be used outside the perimeter. Multi-room smart speaker market offers greater convenience and control by letting the user control the functionality of multiple rooms via a single remote device such as a laptop or a smartphone. For instance, Sonos Play wireless system allows multiple speakers to be linked together wirelessly in a mesh network which causes the signals to be strong and resilient. Furthermore, growth of connected technologies will decrease the need of multiple control devices and increase the range of media connection networks.
Smart Speaker Market, By Region
U.S. smart speaker market is anticipated to dominate the global revenue owing to the rising demand for wireless systems and increasing IoT applications. Customer focus on convenience and inclination towards the high adoption of luxury goods in the region is expected to fuel industry demand. APAC industry revenue is expected to have high growth during the forecast time-period. Low cost labor, decreasing raw material prices, and industry automation trends are predicted to contribute to the industry growth. Additionally, in economies such as China and India, the rising penetration of LTE and 3G/4G combined with low usage costs will lead to high adoption.
Customer emphasis on unified digital entertainment network that is connected to various components within their homes has fueled the customer appeal in the smart speaker market. Smart homes offer central home connectivity between various electronic devices in-house and are anticipated to escalate the industry demand owing to initiatives undertaken by the government of various economies including the U.S., China, and India.
Competitive Market Share
Players operating in the smart speaker market include Google Corporation, Amazon, Terratec, Edifier, Samsung Electronics, Philips, JBL, and Sony Corporation. To cater to the increasing consumer demand and sustain growth, vendors are increasingly investing in research and development strategies for the provision of smarter and more convenient devices. For instance, in January 2015, Sony Corporation announced the launch of the Hi-Res audio products which allows consumers to listen to high quality music wirelessly via Bluetooth. In May 2017, Amazon launched Echo Show which provides the basic functionalities of Amazon Echo along with new video features such as video calling, flash briefings, online video browsing, etc.
Smart Speaker Industry Background
The smart speaker market is offering several opportunities for component suppliers, application developers, network operators, distributors, and other vendors to generate revenue, satisfy customer requirement and spread awareness of the benefits of the products. Players in provide devices that are wireless and portable. These utilize a range of connectivity types such as Bluetooth, Wi-Fi, and others to extend a large number of functions such as virtual assistants, audio playback, order management, and others and provide convenience and ease of usage to the customers.
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