Smart Speaker Market - Global Outlook and Forecast 2018-2023

SMART SPEAKER MARKET SIZE TO CROSS OF $19 BILLION BY 2023, GROWING AT A CAGR OF OVER 31% DURING THE PERIOD 2018–2023

Smart Speaker Market Size, Share, Trends, Analysis Report by Device Type (First-Party Devices and Third-Party Devices), Distribution (Retail (Specialty Store, Mass-Market Store, and Electronic Stores) and Online Channels), End-Users (Residential Users and Commercial Users), and Geography (APAC, Europe, North America, and Rest of the World) Industry Analysis Report, Regional Outlook, Growth Trends, Competitive Landscape, Share & Forecast, 2018–2023

GLOBAL SMART SPEAKER MARKET REPORT SCOPE

Key Highlights

• Emerging use of voice based searches among users has disrupted the traditional communication between user and smart devices and is paving the way for the smart speaker market growth.
• Rising penetration of IoT leads to more digitized and smart household appliances and the investments are expected to increase in the near future.
• APAC records the strongest demand for smart speakers and it has highest growth potential due to factors such as increasing inclination towards gadgets, tech –savvy population, per capita disposable income, and other miscellaneous aspects.
• The most effective way to acquire more share and improve customer base for leading vendors are product customization and meeting end user requirements.
• Growing hacking activities and cyber attacks worldwide are the major concerns for smart device manufacturers.

Market Overview

The proliferation technology that led to the transformation of customer's experience and human interaction is one of the primary factors driving the growth of the global smart speaker market. The leading vendors are leveraging voice-assistance technology that offers ease and convenience to end-users to gain a larger global share. Some of the most popular virtual voice assistants such as Siri (Apple), Alexa (Amazon), Google Assistant (Google), and Cortana (Microsoft) are used across various smart appliances. The development of trade and manufacturing units, increasing investment in advanced economies, decreasing deflationary pressures, and increasing import demand from commodity-exporting developing and emerging markets will create a requirement for smart tech. The launch of new product model that is designed to provide ease-of-use along with a taste of innovation will drive the demand for these products in the global market. The rise in per capita income, high adoption of smart homes, and growth of dual-income households will result in the increasing spend on smart devices. The growing awareness about innovations and penetration of connected devices will create a demand for wireless speakers and other such products. The integration of voice-assistance technology in household appliances will augment the evolution of the market.

The exponential presence of online retailers such as Amazon, JD.com, and eBay offering a variety of products will augment the development of the global smart speaker market. The launch of new products developed with ease of usage, connectivity, and skillsets, design, sensor technology, voice-recognition, signal transmission, and battery capacity will create revenue potential for vendors.

Market Dynamics

The exponential usage and popularity of broadband and internet connectivity across various countries in the world are augmenting the demand in the global smart speaker market. The rising number of deployment of LTE networks and the government initiatives to push for digital economies is leading to the use of the Internet and other smart devices in. The technological advancements in the development of consumer applications have resulted in the integration of smart home or connected home. The development of smart homes has pushed end-users to adopt fast broadband connections or mobile internet across households. For instance, advanced mobile networks such as LTE have reached about 58% of the global population according to the research analysts at Arizton. The rising popularity of connected homes will boost the demand during the forecast period.

Smart Speaker Market Segmentation

This research report includes a detailed segmentation by devices, end-users, distribution channels, and geography.

Insights by Devices Type

First-party speakers introduced by Amazon and Google to dominate the global smart speaker market during the forecast period

First-party devices segment occupied the largest smart speaker market share in 2017, growing at a CAGR of approximately 24% during the forecast period. The increasing collaborations with smart ecosystem providers is propelling the demand for new systems in the segment. Leading vendors such as Amazon, Google, Apple, and Microsoft are leveraging its smart assistant platforms to introduce innovative products. The rapid improvement in audio quality and product designs will help manufacturers to gain a larger share and attract new consumers over the next few years. For instance, Google Home Max by Google is an attempt to focus on sound quality as well as smartness of the device. Apple, living up to its reputation, focused on sound quality and launched HomePod in February 2018. Such innovations will boost the demand in the market.

Insights by End-Users

The use of multi-room devices to boost sales during the forecast period

The residential end-users dominated the majority of the share in 2017, growing at a CAGR of approximately 31% during the forecast period. These products are used by individuals who buy smart devices for home use or residential purposes. Some of the household are installing more than one product at home, thereby, boosting the revenues in the segment. The increasing application of these products as multi-room speakers will enable vendors to launch innovative products.  The increasing availability of Bluetooth-only speaker and allowing end-users to avail free calling facility in the US and Canadian region will attribute to the sales in this segment. Additionally, the improvement in economic conditions and rise in disposable income in emerging countries such as India and China will attribute to the growth of this segment.

Insights by Distribution Channel

Online retail segment to generate the highest revenues during the forecast period

The distribution channel segment is classified as retail (specialty store, mass-market store, and electronic stores) and online channels. Online channel occupied the largest share in 2017, growing at a CAGR of over 21% during the forecast period. The growing number of online OEMs’ e-commerce portals and online direct-to-consumer stores such as Amazon, eBay, Best Buy, Alibaba, and JD.com is augmenting the smart speaker market growth. Factors such as ease-of-accessibility and convenience afforded by such channels are boosting the revenues of the online retail channel. The leading vendors are offering YouTube tutorial videos to help beginners to get knowledge of the working and set-up of voice-assistant devices will ease in the global market. The increasing popularity of online stores in the UK, the US, and Germany will create lucrative opportunities for leading players.

Insights by Geography

The US leads the market share in North America region during the forecast period

North America dominated that largest share in 2017, growing at a CAGR of more than 21% during the forecast period. The benefits of reliability, ease of installation, and convenience offered by these products are propelling the demand in the North American region for smart speakers. The top players are leveraging advanced technology to deliver high performance and user-friendly devices to attract new consumers and gain a larger shares in North America. The increasing purchasing power of millennials, growing adoption of smartphones, inclination toward new technology, and high urbanization are some of the factors boosting the demand for smart devices in the North American region. The smart speaker market in US and Canada to emerge as the largest revenues generators during the forecast period.

Key Vendor Analysis

The global market is witnessing the emergence of two major players such as Amazon and Google that are leading the competition level. The consumers’ expectations regarding continual innovations and upgrades will encourage vendors to launch new products. The presence of diversified international vendors and a few regional vendors will boost the revenues. The increasing number of product or service extensions, technological innovations, and M&A activities will intensify the competition level over the next few years. The business expansion plans of key companies to fast-developing countries in APAC and Latin America will propel the growth during the forecast period.

Major Vendors:

• Alphabet (Google)
• Amazon.com
• HARMAN International
• Alibaba Group
• Sonos

The smart speaker market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

By Device Type

• First-party devices
• Third-party devices

By Distribution Channel

• Retail
• Specialty Store
• Mass Market Store
• Electronic Stores
• Online

By End-users

• Residential Users
• Commercial Users

By Geography

• North America
• US
• Canada
• APAC
• China
• South Korea
• Europe
• UK
• Germany
• ROW

Key Questions Answered

1. What is the smart speaker market size and growth rate during the forecast period?
2. Which device type/end-users/region is generating the largest revenue in the Europe region?
3. What are the factors driving the growth of North America smart speaker market shares?
4. How is the growth of the residential users segment influencing the growth of the smart speaker market?
5. Who are the leading vendors in the smart speaker market, and what are their market shares?