The global wireless speaker market size to cross USD 63 billion by 2026, growing at a CAGR of 14% during the forecast period. The global wireless speaker market size by revenue is expected to pose an absolute growth of 150% during the forecast period. The market is likely to witness an increase in revenue during the period 2021-2026. However, Arizton believes that YOY growth will slow down continuously afterward. The major reasons are the increased penetration of smart speakers across the globe and a short repurchase cycle, leading to technological disruptions. In 2021−2024, in terms of unit shipments, the YOY growth of wireless speakers will be in the double-digit due to the high demand for smart devices from Europe, North America, and APAC, coupled with the rise in awareness of wireless audio devices in developing countries. The increasing demand from developed markets, the integration of voice-assistance technology in household appliances, and enhanced marketing and visibility of smart products online are other major factors contributing to the growth of the market.
- Wi-Fi-only speakers are expected to witness a decline during the forecast period as several vendors have started to offer both Wi-Fi and Bluetooth technology in a single unit.
- Premium wireless speakers are likely to increase in demand worldwide owing to the inclusion of voice-integration and rugged and sleek designs.
- The APAC region is likely to account for over 50% and 39% of the market shares in terms of unit shipment and revenue, respectively, in 2026.
- A high influence of digital consumerism is contributing to the growth of online stores. Amazon.com, ebay.com, Tmall.com, and JD.com are a few largest vendors in the online retail market.
- Voice assistants are witnessing exponential growth in the healthcare and banking industries, thereby boosting sales opportunities.
GLOBAL WIRELESS SPEAKER MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Connectivity Type
- Price Range
- Distribution Channel
- Product Type
INSIGHTS BY CONNECTIVITY
Based on connectivity, the global wireless speaker market is categorized into Bluetooth and wireless. While Bluetooth speakers are getting laced with new features, the inclusion of rugged and waterproof features is expected to drive the demand for these devices during the forecast period. In addition, increased battery life, 360-degree surround sound, customizable led lights, app sync feature, and smart assistant are likely to make the product attractive to a wide variety of audiences, thereby influencing the market growth. Traditional speakers are attaining maturity in developed countries on account of lack of innovation and feature enchantment. However, waterproof Bluetooth speakers are gaining traction in the US and Western European countries. Rugged speakers have gained immense popularity among end-users worldwide as they are shockproof, dirtproof, and waterproof.
Futuristic inventions in voice-first and complementary technologies are likely to boost the market for Wi-Fi speakers. However, the merger between Wi-Fi and Bluetooth technology is expected to decline the share of the Wi-Fi segment. Wi-Fi-only multi-room speakers are currently contributing to the market growth. It is expected that vendors of Wi-Fi-only multi-room speakers could also integrate Bluetooth connectivity in future products to offer end-users multiple connectivity options. Hybrid speakers have been witnessing massive growth in terms of unit shipment and revenue. The growing popularity of smart speakers among end-users worldwide is the major reason behind the growth. Hybrid speakers have multiple connectivity options; hence, they offer choices to end-users.
INSIGHTS BY PRICE RANGE
In 2020, the low-end segment by unit shipment dominated the market with a share of over 49% share. However, as these devices are priced at a low price in the market, the overall revenue generation is less despite high unit shipment. These devices are portable and offer excellent sound quality. The low price of these models is expected to attract more consumers from the residential segment since these models offer ease and convenience.
Mid-range models priced at $50–200 are witnessing adoption in commercial and residential segments. Portable mid-range Bluetooth speakers are not only limited to home but also during celebrations and festivities in backyards, at pools, at beaches, and parks. These devices can also be used for sports and other leisure activities. A niche segment compared to low and mid-variant speakers, premium wireless speakers are witnessing growth on account of consistency in sound, uniformity in coverage, built-in speakerphones, along with water-resistant and dust-resistant features, thereby increasing its preference among consumers.
INSIGHTS BY PRODUCT TYPE
In 2020, standard speakers dominated the market with a share of over 44%. Concentrated demand from APAC and Latin America has been a major factor for market growth. The APAC region is expected to generate incremental revenue of approx. $4 billion during the forecast period. Moreover, easy accessibility, affordability, and the presence of several domestic vendors are expected to influence the market. However, the growing popularity of smart speakers has cannibalized the market share of standard sound devices.
Smart speakers are preferred in China, the US, and other Western European countries. They are expected to account for over 58% of the revenue of the wireless speaker market by 2026. The growth and significance of vendors such as Baidu, Xiaomi, Amazon, Apple, and Google have increased the dominance of smart speakers. First-party smart speakers are highly popular among end-users. Currently, China and South Korea are the major end-users of first-party devices. However, in North America and Europe, many OEMs have collaborated with voice assistant service providers to equip their speakers with one or more voice assistants. Third-party smart devices accounted for a meager share in 2020. These devices need to offer product differentiation to gain momentum in the market. Apart from sound quality and music streaming, they need to evolve as multi-ecosystem speakers to support a plethora of smart home applications, thereby boosting growth prospects in smart homes.
INSIGHTS BY END-USER
Wireless speakers are experiencing high application in the residential segment. These devices are used for music streaming via smartphones or other hand-held devices at home. Multi-room types are gaining popularity and boosting the market growth. With a high number of consumers recognizing the benefits of hybrid devices, including portability, power-saving options, easy installation, and high sound quality, they are gaining prominence in the residential segment.
Commercial speakers are gaining momentum in North America and Western Europe. These regions are likely to exhibit strong growth during the forecast period. Commercial devices account for a significant share of the audio technology segment as these devices have been observing a steady adoption over the past few years.
INSIGHTS BY DISTRIBUTION CHANNEL
Over 375 million units of wireless speakers are expected to be sold by 2026 via offline distribution channels, which include specialty stores, supermarkets and hypermarkets, and electronic stores. The entry of Wi-Fi and Bluetooth speaker manufacturers in the traditional market has increased the sale of smart speakers through retail stores worldwide. Online distribution channels are likely to account for approximately $38 billion by 2026. Compared to retail stores, online stores offer a variety of options to choose from, which is one of the major factors contributing to the growth. Online retailers offer devices at discounted prices rather than list prices that could apply to electronic stores and other brick-and-mortar distribution channels. However, the online segment could face strong competition from the retail segment in the future due to the expected entry of traditional speaker manufacturers and other electronic device vendors in the market.
INSIGHTS BY GEOGRAPHY
A growing concept of smart home technology in the APAC region is likely to influence the wireless speaker market. Over 88% of consumers in China have some knowledge of smart homes, which is expected to emerge as a strong driver for smart home technology. China and India are the fastest-growing economies in the APAC region. The smart home market in China is expected to reach over $21 billion by 2023. The influence of Bluetooth in Chinese homes has been remarkable, where the adoption of automation solutions and IoT-based products is expected to grow 3X times during the forecast period. The consumer awareness about smart home technology in Japan stands at over 50%. The awareness of smart homes is also high in South Korea with about 90% of people stating their awareness of the technology.
INSIGHTS BY VENDORS
The global wireless speakers market is witnessing intense competition as players are competing for market shares. The market would witness growing consolidation due to the intensely competitive environment. These factors make it imperative for vendors to distinguish their products and service offerings through a clear and unique value proposition, or else they will not survive the highly competitive environment. In addition, they must develop high functionalities and continue upgrading their products to keep pace with the latest technological developments, failing which they might lose relevance in the market.
The global wireless speaker market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
- By Connectivity
- By Room Placement
Distribution Channel Type
- North America
- South Korea
- Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa