Major players in the smart speakers market are Amazon, Inc., Apple, Inc., Xiaomi, Alibaba Group Holding Limited, Sonos. Inc., Harman International, Bose Corporation, Sony Corporation, ONKYO CORPORATION, and Panasonic Corporation.
The global smart speakers market is expected to grow from USD 5.5 billion in 2019 and to USD 5.7 billion in 2020 at a growth rate of 3%. The slow growth in 2020 is mainly due to the economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to grow and reach USD 11 billion in 2023 at CAGR of 24.5%.
The smart speakers market consists of sales of smart speakers and related products that include Bluetooth-, Wi-Fi-enabled and wireless devices which are integrated with virtual assistant device powered by artificial intelligence. The smart speakers market consists of revenue generated through the sales of speakers with virtual assistant intelligence such as Alexa, Google Assistant, Siri, and Cortana, among others which are distributed through online or offline channels to personal and commercial users for smart home, smart office, automotive, commercial and more applications. The companies involved in the smart speakers market are engaged in designing, manufacturing, producing artificial intelligence assisted speakers which are activated with one ‘hot word’ using voice recognition systems to perform wide range of wireless activities.
North America was the largest region in the smart speakers market in 2019. Asia Pacific was the second largest region in the smart speakers market in 2019.
In November 2019, Sonos a US-based leading sound experience brand which allows it’s customers to listen better by giving access to their favourite content by controlling as they wish announced the acquisition of Snips for USD 37.5 million. The deal will benefit Sonos by improving the voice experience of Sonos with the addition of Intellectual Property of Snips and benefit Snips by taking it’s France technologies to international customers. Snips is a US-based private-by-design voice technology company which uses artificial intelligence integrated in connected devices.
Apart from increasing consumer preference for smart speakers the major drawback that’s concerning the market is the data privacy and security. These devices have access to the personal information stored in Gmail like contact details, bank details, login credentials which raise security issues. The devices of a smart home have access to sensitive data like videos, photos, personal information which can be accessed and operated from anywhere. In 2019, a survey conducted in US states that smart speaker non-users are more concerned about data and privacy reasons like hacking risk (63%), smart speakers are always listening (55%) and monitoring by government (40%) when compared with 2017 which were 41%, 36% and 34% respectively. When compared with smart speaker users, they also agreed with the above data and privacy issues similarly. These issues may hinder the market growth if appropriate development in security concerns are not addressed.
Virtual assistant devices are powered by artificial intelligence which offer ultimate luxury to the owner. They keep on listening to the command, analyze the needs and performs the task when necessary. The Amazon Echo with smart assistant Alexa can be activated with voice command of one hot word Alexa. Siri, the Apple voice assistant provides hands-free activation with deep integration technology and high quality virtual surround sound and exhibits features like setting timer, managing calendar events and more. Google assistant activated with Ok Google provides instant access to all of the Google services and the data associated with the Google account. In 2019, a survey states that Amazon Alexa/Echo dominates the US market with 70% market share followed by Google home with 25% and Apple Home Pod with 5% which was largely because of the high sales of entry-level devices like Google Home Mini and Amazon Echo Dot with reasonable price. The proliferation of virtual assistance is, in turn, driving the smart speaker market.
With increasing consumer preference for technologically advanced products there is a rise in penetration of smartphones and smart devices. The enhanced personal use of smart devices points at integration of smart devices with devices such as smart lightbulbs, thermostats, and TVs. The consumer interest in technologically advanced products has resulted in 205 million installed smart speakers in 2019 from 114 million units in 2018 and is expected to reach 325 million by 2020. In 2019, Amazon could integrate LIDAR technology into Amazon Echo through which it will be able to recognize hand gestures, type of food, and even the clothes being worn. In India, in 2019 the total number of smartphones users are 502.2 million which increased from 2017 which was 468 million users and the smartphones market is expected to gain 859 million users by 2022. Regional manufacturers are being encouraged to produce innovative and advanced products with customer interest to accept and adopt emerging technology which is expected to drive the market.
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Global Smart Speakers Market 2020 by Manufacturers, Regions, Type and Application, Forecast to 2025
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