Smart Speaker Market Analysis, Growth, Share and Size| 2031

[Research Report] The smart speaker market is expected to grow from US$ 10.07 billion in 2022 to US$ 37.51 billion by 2031; it is estimated to grow at a CAGR of 17.9% from 2022 to 2031.

Analyst Perspective:

The rise in the adoption of smart home technology and many cost-effective smart home devices are major factors driving people to prefer smart speakers. The ability of this device to activate and operate using voice commands is propelling their adoption. These devices help control the entire home from any corner of the house by using voice commands, which gain consumers' attention toward these products, successively driving the smart speaker market. Voice assistants such as Amazon Alexa and Google Home are gaining immense popularity among consumers. Amazon Alexa held the largest market share in 2022, followed by Google Assistant.

Smart speakers are a home automation gadget that provides various services to its users. One of the major factors is that parents buy smart speakers for their kids as it allows them to reduce kids' screen time and help them focus on improving their learning. Smart speakers have special, fun educational features to help children develop critical thinking, problem-solving, and communication skills. Therefore, the market players incorporate special features in their product offerings, especially for kids, which drives the demand for smart speakers among parents and fosters the market.

According to the United Nations, the world’s population reached 8 billion in mid-November 2022. The world’s population is over three times larger than the figure recorded in the mid-20th century. It is anticipated to rise by approximately 2 billion persons in the next 30 years, reaching 9.7 billion by 2050. The rise in population contributes to the growing number of working parents, which further encourages them to adopt technologically advanced products for their kids to monitor them and increase their learning. More parents seek solutions to provide essential and enhanced care to their children, leading to the adoption of technologically advanced solutions. Adopting smart speakers allows parents to set parental controls on the broadband to limit children's access to inappropriate content.

Smart speaker manufacturers are focused on providing interactive features for users. For example, Google Home's Family Link app allows the creation of different profiles for each family member by identifying their voice. This allows the parents to limit the kid's reach to appropriate content. Amazon Echo has ‘Kids Mode’ where the device tells jokes, plays games, and teaches good manners. This technology is making working parents' lives simpler. As per the World Economic Forum in November 2021, the millennial population held 23% of the global population, i.e., ~1.8 billion. Asia homes approximately a quarter of global millennials, while US millennial per capita spending is expected to increase by over 10% by 2031. The growing digitalization and millennial expectations for enhanced convenience create opportunities for advanced solutions to simplify their lives. Thus, the increasing millennial population is likely to create a massive opportunity for the adoption of smart speakers worldwide during the forecast period.

Market Overview:

A smart speaker is a voice command device or loudspeaker with an integrated virtual assistant that provides interactive actions and hands-free activation of commands ordered by the user. A smart speaker typically has numerous other features, including playing music, controlling other smart home devices, and making notes of appointments. In smart homes, the smart speaker lets the user turn on lights or change the thermostat with a simple voice command. Thus, various smart speaker uses contribute to the smart speaker market growth.

These devices have easy integration with smartphones, computers, and smart home devices, further driving their demand among users. Consumers' preference for cost-efficient smart products with several advanced features contributes to the smart speaker market.

The rise in automation and mounting demand for human-to-machine interaction will boost the smart speaker market growth over the coming years.

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Smart Speaker Market: Strategic Insights

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Market Driver:

Rise in Smart Homes to Drive Growth of the Smart Speaker Market

The smart homes concept is rising continuously across the globe due to a rise in awareness regarding the convenience and enhancements offered by technology to improve day-to-day life. Smart home features such as remote control of home systems, security automation, energy efficiency, and entertainment integration are gaining traction. In addition, the government supports building smart homes as it helps reduce the carbon footprint and optimize energy usage. For example, Germany’s Federal Ministry of Economic Affairs and Climate Action (BMWK) and the Federal Ministry of Transport, Building and Urban Development (BMVBS) actively support smart home initiatives. Initiatives include the Next Generation Media Programme, Connected Living/SerCHo ("Service-Centric Home"), HOMEPLANE, Energy Plus House, Plus Energy House, and "Das Haus" Vision, among others. In addition, the Government of India is focused on enhancing the energy-efficiency levels in residential buildings with future-driven initiatives such as smart home ecosystems, according to the Ministry of Power in July 2021. Thus, the growing awareness of smart homes and rising government support boost the energy-efficient residential sector and foster the integration of advanced technologies in the home. The rising demand for interconnected homes will generate the demand for tech solutions such as internet-enabled appliances and devices, including smart speakers, to control home setup remotely using a networked device automatically. Therefore, the rise in building smart homes fosters the smart speaker market.

Segmental Analysis:

Based on virtual personal assistants, the smart speaker market is segmented into Amazon Alexa, Google Assistant, Apple Siri, and others. The Amazon Alexa segment held the largest share of the smart speaker market in 2022, and the Apple Siri segment is anticipated to register the highest CAGR in the market during the forecast period. The smart speaker market is segmented into hardware and software based on components. The hardware segment held the largest share of the smart speaker market in 2022, and the software segment is anticipated to register the highest CAGR in the market during the forecast period. Based on application, the smart speaker market is segmented into residential and non-residential. The residential segment held the largest share of the smart speaker market in 2022, and the non-residential segment is anticipated to register the highest CAGR in the market during the forecast period.

Regional Analysis:

The smart speaker market is broadly segmented into five major regions: North America, Europe, APAC, Middle East & Africa, and South America. The North American region dominated the smart speaker market in 2022. The US and Canada are among the region's most advanced countries as they are at the forefront of adopting technologies in almost all sectors. Moreover, the presence of significant smart speaker providers and the widespread adoption of these devices further propel North America's market growth.

Amazon's early entry into the market has helped Alexa gain a significant first-mover advantage in the competitive environment. This factor has helped Amazon gain a larger market share by innovating and refining its natural language processing and voice recognition capabilities. Additionally, Amazon's integration of Alexa with various Amazon services, such as Amazon Prime and Amazon Music, has created an enhanced and improved user experience, driving its adoption in the smart speaker market. In addition, Amazon's continuous investment in research and development has led to consistent improvements in Alexa's capabilities, performance, and accuracy, further strengthening its position as a leader in the smart speaker market.

The rise in smart city initiatives is a prime factor fueling Europe's market share. For example, according to the International Trade Administration (ITA), the number of smart and sustainable cities in Italy rose by 23% in 2022 compared to the previous year. Approximately 89% of the local governments in Italy have launched initiatives to bring smart transformation to the cities. Such initiatives by the governments contribute to adopting smart solutions in the newly developed smart buildings.

Key Player Analysis:

The smart speaker market analysis includes players like Amazon, Apple, Inc., Google, Sonos, Harman International, Bose Corporation, Sony, Samsung, Baidu, and Panasonic. Among the players in the market is a diversified product portfolio offered.

Recent Developments:

 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the smart speaker market. A few recent key market developments are listed below:

• In June 2023, Amazon India expanded its range of Echo smart speakers nationwide. The company has launched the Amazon Echo Pop smart speaker with features like a semi-hemisphere design offered in charcoal, glacier white, lavender bloom, and midnight teal color variants.

• In August 2021, Bose announced the launch of a new line of multi-room wireless audio portable home speakers. This battery-powered smart speaker has Wi-Fi and Bluetooth connectivity and supports Google Assistant and Amazon Alexa voice assistants.

Report Scope

Smart Speaker Market Regional Insights

The regional trends and factors influencing the Smart Speaker Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Smart Speaker Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Smart Speaker Market Report Scope

Smart Speaker Market Players Density: Understanding Its Impact on Business Dynamics

The Smart Speaker Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Smart Speaker Market are:

1. Alphabet Inc
2. Amazon.com, Inc
3. Apple Inc
4. HARMAN International.
5. Bose Corporation

Disclaimer: The companies listed above are not ranked in any particular order.