Smart Speaker Market Analysis

Smart Speaker Market Analysis

Siri-enabled smart speaker market is poised to witness a significant growth rate of over 35% till 2024 driven by 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 dominated a market share of around 70% in 2017 owing to its low cost and a large number of benefits such as controlling smart homes appliances, 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.
 

Personal applications will account for over 90% of revenue share through 2024 led by the increasing usage of the smart home devices. The integration of smart speaker with these 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 drive the market demand. 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.
 

The U.S. smart speaker market is predicted to expand at a CAGR of more than 25% during 2020 to 2024 impelled by the growing 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 rising 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.