The latest report on the global smart speakers market by Market Research Future (MRFR) states that the market is slated to acquire a substantial market valuation from USD 1.94 billion in 2017 up to USD 11.57 billion by 2023, at a healthy 34.7% CAGR over the review period.
Drivers and Restraints
An increase in demand for smart home devices is the significant factor that drives the growth of the smart speaker market share. Other factors that have a positive impact on the market growth are the increase in consumer readiness to invest in trending technologies and the rise in usage of smart devices among the younger generation. The number of smart products released in the market has gradually increased over the past decade. The capability to control home products with an internet connection and a mobile device is shifting the focus of consumers toward smart products.
On the other hand, with the use of the smart speaker, the privacy of users’ data becomes a significant issue for consumer demand. Additionally, the potential of exploitation of user’s private data by the manufacturers and the threat of unlawful cyber-attacks to invade privacy restrict the market growth for smart speakers from the consumers. Furthermore, complexity in training the virtual assistants with various languages spoken around the world limits the global reach of smart speakers.
For the scope of the report, the smart speaker market is segmented on the basis of the intelligent virtual assistant, and application.
Based on the intelligent virtual assistant, the market is segmented into Alexa, Cortana, Google Assistant, Siri, and others. Alexa, Siri, and Google Assistant are expected to witness substantial growth over the review period, driven by the demand from consumers for advanced smart speakers
Based on the Applications, the market is bifurcated into personal use and commercial use. The personal use segment is poised to observe significant growth over the assessment period.
The COVID-19 analysis of smart speaker market has been conducted in four major regions, namely North America, the Asia Pacific, Europe, and the rest of the world (including Latin America and the Middle East and Africa).
The smart speaker market in North America is slated to dominate the smart speaker market during the prognosis period owing to the presence of early adopters and significant smart speaker providers such as Google Inc. and Amazon. The North America smart speakers market is also proliferating due to the adoption of new technologies such as IoT and Artificial Intelligence. The growth of smart devices in smart homes can be attributed to the advancements in IoT. Moreover, a growing need for security, safety, and convenience and increasing demand for energy-saving products and solutions. This proves to be a vital factor in the growth of the North America smart speaker market size.
Asia-Pacific is anticipated to grow at a faster rate during the assessment period. China and Japan dominate the smart speaker market in Asia-Pacific. In Asia-Pacific, the smart speaker market is poised to expand substantially, driven by the growing adoption of smart homes and smart offices. The continuous need for a convenient and comfortable lifestyle among homeowners has led to the rapid development of connected solutions in smart homes. Moreover, the smart city project announcement in India and China will be expected to drive the smart speaker market in Asia-Pacific during the review period.
The leading market players acknowledged by MRFR in the global market are Harman International (US), Amazon.com (US), Apple Inc. (US) Google (US), Sonos. Inc. (US), Bose Corporation (US), Sony Corporation (Japan), Panasonic Corporation (Japan), ONKYO CORPORATION (Japan), Alibaba Group Holding Ltd (China), among others.
Other prominent players in the market are Pioneer Corporation (Japan), Lenovo Group Limited (US), Altec Lansing/AL Infinity, LLC (US), SK Telecom Co Ltd (South Korea), Xioami Corporation (China), and among others.
January 2020: Samsung Group, a leading global provider of advanced gadgets, and home electronics announced their plans to launch their new Galaxy Home Mini smart speaker, powered by its virtual assistant Bixby.
October 2019: Google unveiled its new Nest mini, with improved speakers and latest Nest WiFi routers, along with the latest upgradations for its Nest smart-home unit.