New York, March 13, 2023 (GLOBE NEWSWIRE) -- The Global Smart Speakers Market size was accounted at USD 10.8 billion in 2022. It is expected to reach USD 100 billion in the forecast period of 2023-2032 with a CAGR of 25.6%. Voice recognition with virtual assistants which is also known as smart speakers, acts as a central control hub for the variety of smart home functions with smart technology, such as entertainment, query resolutions, online surfing, and many other activities. With the increase in the popularity of smart home technology, the demand of these smart speaker devices in the homes have increased globally.
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Key Takeaway:
- By Intelligent Virtual Assistant, in 2022, the Alexa segment has generated highest revenue in Global Smart Speakers Market share in 2022.
- By Component, the Software segment is dominating the market and it is growing at significant rate over the forecast period 2023 to 2032.
- In 2022, North-America Region dominated the market with the highest revenue share of 36.4%.
- APAC Region has held second Position in revenue share in 2022.
- Europe will grow at a significant rate from 2023-2032.
In the forecasted period, demand for the smart speaker product is expected to increase due to the growing demand for the speaker systems in residential applications. A few of the important factors forecasted to provide market opportunities to the major competitors includes the development of artificial intelligence, the proliferation of smart home products, and the expansion of display-based technologies.
Additionally, major market players are trying to expand their business divisions globally. In addition, the COVID-19 pandemic has increased the demand for the smart speakers across the globe. Developments in AI technology are leading to an increase in virtual assistants such as Deep neural networks, machine learning, and others.
Factors affecting the growth of Smart Speakers industry
There are several factors that can affect the growth of the Smart Speakers industry. Some of these factors include:
- Increasing Demand: The demand for smart speakers has been increasing with the increasing popularity of voice-based user interfaces. This has driven the growth of the industry.
- New Technologies: The emergence of new technologies such as artificial intelligence (AI) and natural language processing (NLP) has enabled smart speakers to offer more sophisticated functionalities and features, thus driving the growth of the industry.
- Innovation: The industry is witnessing rapid innovation with the introduction of new features and functionalities. This has increased the demand for smart speakers, thus driving the growth of the industry.
- Low Prices: The prices of smart speakers have significantly decreased in recent years, making them more affordable to a larger audience. This has further driven the growth of the industry.
- Growing Competitors: With the emergence of new players in the market, the competition has increased, which has further propelled the growth of the industry.
- Growing Adoption: The growing adoption of smart speakers across various sectors such as hospitality, education, and healthcare is further driving the growth of the industry.
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Top Trends in Smart Speaker Market
An artificial intelligence called as NLP that allows the customer to give a command to the smart speaker. AI gives more advantages in making conversational capabilities with natural processing language. The market growth is supported by these advanced technologies.
Product innovation and differentiation are the main focus of the Smart speaker manufacturers as they are steadily moving toward consolidation through joint ventures, mergers & acquisitions, and collaborative partnerships. Such trends which are witnessed in the market are boosting the demand for the smart speakers and eventually driving the market growth.
Market Growth
Adoption of smart home devices by the consumers which includes, security cameras, smart lights, smart kitchen appliances, smart locks, thermostats, and smart TVs. All the smart devices can be easily controlled and operated remotely by this type of speaker which acts as a single point of control and contact hub.
For example, Xiaomi is developing an Artificial Intelligence of Things which is also called as AIoT system with the help of a control hub which is a speaker that would help in connecting its other IoT products.
Regional Analysis
North America region dominates the smart speaker market with a share of 36.4%. North America has a strong presence of early suppliers and adopters of major smart speakers in terms of revenue and market owing. The accessibility of customers to new technologies is also encouraging the manufacturers to develop new and advanced products in the region. However, APAC region is expected to surpass North-America and become the largest and most profitable market by 2025.
Asia Pacific is expected to dominate the market at a significant rate for the forecasted period. India, Japan and China are the three most important countries of APAC. Countries like Japan and China have different manufacturers of smart speakers. The increasing adoption of smart homes with smart devices is driving the growth of the market. Additionally, smart city projects going on in the countries like India and China are going to be the drivers of market growth.
Competitive Landscape
By launching new products in the market and reducing the prices of the old products in the market, is the strategy used by Amazon. Amazon shares major market size with the market share of 22.5% of the smart speaker’s market size. Amazon has been coming up with a variety of products for smart speakers to attract customers like echo, Alexa, and other products.
Amazon have been a trendsetter in the market, and it is leading in innovation and technology. Amazon has collaborated with companies such as BMW and Microsoft for the growth of the smart speaker market. Major market players are developing speakers with the functions like AI and more functions. Moreover, increasing competition in the market forces major market players to focus on acquisition strategies to consolidate their positions.
Scope of the Report
| Report Attribute | Details |
| Market Value (2022) | USD 10.8 Billion |
| Market Size (2032) | USD 100 Billion |
| CAGR (from 2023 to 2032) | 25.60% |
| North America Revenue Share | 36.4% |
| Historic Period | 2016 to 2022 |
| Base Year | 2022 |
| Forecast Year | 2023 to 2032 |
Market Drivers
The main factors which is supporting the growth of the smart speaker market is the rise in the manufacturing of the electronics and the growing demand for wireless connectivity. In technologically advanced countries, Smart speakers with local voice support have a high demand and huge growth potential.
With increasing technology such as social networking, speed internet, online content streaming, and video calling capabilities, major market players are increasingly shifting to display their base devices. These products work on intelligent voice assistance and are regularly updated and improved in response to customer feedback.
With homeowner’s need for a convenient and comfortable lifestyle, smart home connected solutions demand are raising rapidly. With internet connectivity and the ability to control the household products through their mobile devices, consumer interest is shifting to smart products. With all the advantages, people in both technologically advanced and emerging regions are rapidly switching to smart speakers. Due to the growth and demand of the smart homes devices there is a rise in the smart speakers with AI in the forecasted period.
Market Restraints
The Use of Voice assistant-capable smart speakers has increased due to Smart homes with integrated user personal data. One of the main worries of the users of smart speakers is the unintentional activation of smart speakers by voice commands encoded in the websites or television advertising.
Most of the smart speakers have the ability to connect to any local network and any other device on that network, which changes the smart speaker's settings or conducting a factory reset without the user's permission. To avoid such hazards, a secure local network and a strong account password are required. Additionally, smart speakers are connected to other smart devices which are usable by other people, such as smartphones, smart locks, TVs, and radios.
Some smart speakers allows voice purchasing on the device, so someone else can utilize assistance to place an online item which can result in loss. A smart speaker can also be activated with a one-click order if it is connected to an Amazon Prime account. Users must therefore safeguard their settings and keep an eye on their notifications.
Market Opportunities
With the increasing customers and growing market, spending on the technologically advanced or smart consumer electronic devices which are easy to carry, portable, easy to handle, and well-built quality has forced the manufacturers to include te feature of voice assistance and voice commands in the speakers. There has been enormous demand for multifunctional, high-speed, easy-to-use smart speakers.
The development of wireless 5G infrastructure and development in natural language processing which is also called as NLP has opened many doors in the developing nations globally. NLP is an artificial intelligence that allows the customer to give a command to the smart speaker.
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Report Segmentation of the Smart Speaker Market
Intelligent Virtual Assistant Insight
Based on IVA, the global smart speaker market is segmented into Alexa, Siri, DuerOS, Google Assistant, Ali Genie, Cortana, and others. Alexa segment dominates the market globally.
Alexa-enabled speakers are making a big contribution to the market due to its range of smart speakers and smart devices available and the compelling features alexa offers.
Siri from Apple is largely used by a wide audience of younger age groups, with 60% of those between 18 and 24 who are using it. On the other side, voice assistant users who are 35 and older are far more likely to utilize Alexa.
Component Insight
The software segment has a competitive advantage over the hardware segment. The software segment dominates the market and shares a major market size than the hardware segment due to Google, Amazon, Apple, and Others by offering regular updates to the customers, which helps the software segment of the smart speaker to take an edge ahead of the hardware segment.
Echo, Dot, Amazon Smart Plug, and Echo Auto are different software versions of Alexa devices. The cheaper version of the Amazon Echo speaker is also called 2022's best and smartest version of the speaker. The market for the Hardware segment falls short of competing with the software segment due to the decrease in the demand for hardware components which are processors, memory, mic, and others. Rather than buying hardware components of the smart speaker, customers go with buying a new one.
Application Insights.
Depending on the application segments, the Smart Home segment dominates the market growth globally. According to the data of the year 2022, smart homes have 102.5 million new users worldwide. The number is much more higher than the smart office, which is the reason for the smart homes dominating the growth of the market globally.
Some of the smart home gadgets such as smart appliances, security cameras, smart locks, smart lighting, and smart TVs are becoming popular among the consumers day by day.
Recent Development of the Smart Speaker Market
- In May 2022, Apple announced that it plans to launch a new version of its HomePod smart speaker in late 2022 or early 2023. In July 2022, Xiaomi launched its second-ever smart speaker.
- In 2020 – Xiaomi introduced its first smart speaker in the market with Google Assistant. This technology can converse in Hindi and English. In July 2022, Xiaomi launched its second-ever smart speaker with big upgrades to the previous version.
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Market Segmentation
By IVA
- Siri
- Alexa
- Assistant
- DuerOS
- Cortana
- Ali Genie
- Others
By Components
- Hardware
- Software
By Application
- Smart Home
- Smart Office
- Consumers
By Geography
- North America
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Key Market Players
- Amazon Inc.
- Apple Inc.
- Alphabet Inc.
- Tmall Genie
- Lenovo Group Ltd.
- Sonos one
- Bose Corporation
- Xiaomi Inc.
- Sonas Beam
- AliGenie
- DuerOS
- Other Key Player
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- Video Conferencing Market is expected to be worth around USD 21 billion by 2032 from USD 7.2 billion in 2023, growing at a CAGR of 11.8% during the forecast period 2023 to 2032.
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