Smart Speaker Market Size

Smart Speaker Market Size

Smart Speaker Market size was over 4.5 billion in 2017 and is estimated to exhibit 20% CAGR from 2018 to 2024. The global industry shipments will cross 500 million units by 2024.

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Rising penetration of the IoT technology is expected to propel the worldwide 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.

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 market expansion. Virtual assistants are projected to undergo a high growth over the forecast period and various companies have leveraged this opportunity to launch products integrated with virtual assistants.

Impounding security issues are major factors restraining the global market value. 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.