Smart Speaker Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Japan, Germany, UK - Size and Forecast 2023-2027

Smart Speaker Market Forecast 2023-2027

The smart speaker market is estimated to increase by USD 16.66 billion, growing at a CAGR of 18.75% between 2022 and 2027. Market expansion relies on various factors, such as surging unit sales, the escalating demand for these devices in households, and the increasing interest from regions where English is not the primary language. However, challenges arise from concerns regarding privacy and security linked to smart speakers, the risk posed by counterfeit products and fake setup apps, and the presence of alternative options in the market, which hinder growth.

What will be the Size of the Smart Speaker Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by end-user (residential and commercial), distribution channel (offline and online), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By End-user

The market share growth by the residential segment will be significant during the forecast period. The home segment of the global market is expected to witness significant growth during the forecast period. The need in the home is a key driver of consumer segment growth. The recent popularity of digital content and subscription services such as Amazon Prime, Netflix, YouTube, and other digital content platforms has underscored the need in homes around the world. They have voice control capabilities and act as a hub to connect to various digital streaming platforms, TVs, and other devices. Hence, the consumer segment of the global market is expected to witness an accelerating year-on-year growth rate during the forecast period.  

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The residential segment was valued at USD 670.31 million in 2017 and continued to grow until 2021. The Offline segment includes home appliance stores, hypermarkets, supermarkets, and specialty retailers selling smart home speakers. Globalization has spurred investment in traditional retail outlets, resulting in an increase in the number of offline retail outlets. Rapid advances in technology and product design have made products more affordable for US consumers in recent years, driving demand for high-end speakers. Several vendors such as Amazon, Google, Apple, and LG Electronics Inc. (LG) have adopted a one-way pricing policy where smart speaker prices are the same across all authorized retailers. Vendors in the market offer speakers through several major retail outlets, such as supermarkets such as SPAR International, Walmart, Target, and ALDI. Such factors are anticipated to drive the growth of the offline segment of the global market during the forecast period. 

By Region

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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The United States and Canada are among the most important markets in North America. The growing demand in different households is one of the main factors driving the growth of the North American market. They can be used for many purposes, such as listening to music, finding recipes, cooking instructions, shopping, and making phone calls. US consumers spend a lot of money on home renovation projects. Upgrading regular homes to smart homes is one of the main reasons for the increase in consumer spending on home improvement projects. The average investment in living spaces, such as living rooms and dining rooms, has increased in recent years in the United States. In 2021, US adoption will surpass 90 million users, making up 35% of the US adult population. Therefore, the demand in the home is expected to be driven by an increase in home improvement projects in the US. 

Market Dynamics and Customer Landscape

The Smart Speaker market is being driven by the widespread adoption of Internet of Things (IoT) technology, which has revolutionized the concept of smart homes. With the rise of IoT, virtual assistant-enabled smart speakers have become integral components of these homes, serving as central hubs for controlling various smart devices. This trend is fueled by the increasing popularity of smart devices and the convenience they offer in managing household tasks through voice commands. Moreover, advancements in digital technology and Artificial Intelligence of Things (AIoT) have enhanced the capabilities of these speakers, enabling them to integrate seamlessly with other smart home products and appliances. Additionally, the emergence of display-based smart speaker devices has further expanded the market by providing users with visual feedback and interactions, driving data-steered innovations in the industry. As a result, the market continues to experience robust growth driven by the evolution of IoT, AIoT, and the demand for smart home solutions. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The rapid surge in unit sales of the speakers is a significant driver propelling the growth of the market. Notably, the market has witnessed a substantial increase in the number of products being sold, with major players like Amazon, Alphabet (Google), and Apple leading the charge. Other key contenders such as Alibaba, Baidu, and Xiaomi have also played pivotal roles in driving market growth. Despite fluctuations in shipments, vendors like Amazon and Google have maintained dominance, offering a wide range of products integrated with virtual assistants like Alexa and Google Assistant. The versatility of features offered, including acting as personal digital assistants, contributes to their widespread adoption. Consequently, the continued increase in unit sales is anticipated to fuel robust growth in the market throughout the forecast period.

Significant Market Trend

The increasing popularity of voice commerce is a key trend influencing market growth. The concept of voice commerce is gaining popularity around the world. Voice Commerce is a technology that provides an alternative way to order and buy products online using a keyboard and mouse or smartphone. Consumers can give voice commands to speakers powered by virtual assistants such as Google Assistant and Amazon Alexa to search for and purchase products online. Completing purchases is quick and convenient with the help of voice commerce. Additionally, consumers prefer voice commerce over traditional input methods due to advantages such as hands-free operation, the ability to place orders while engaged in other tasks, and quick response and results. For Amazon, customers can use Alexa-enabled speakers to search, order, and purchase items from Amazon using voice commands. 

For example, Alexa suggests products based on the user's historical data. Alexa helps customers with simple voice commands to purchase products in the user's purchase history. Innovative options make online shopping easier. Therefore, the increasing popularity of voice trading will be the major trend driving the demand in the global market during the forecast period. 

Major Market Challenge

The privacy and security threats are challenging the market growth. Consumers in the global market are wary of potential privacy and security issues when using smart speakers. For example, in the United States, a majority of the population is concerned that the products pose a significant threat to the privacy of their conversations and personal data. Manufacturers operating in the global market employ thoUSAnds of people around the world listening to voice recordings made in the homes of smart speaker owners. This process is used to improve the product's understanding of human speech and improve its response to commands. Smart devices can be the source of various cybersecurity attacks, including persistent threats (APTs) and ransomware attacks. These attacks discourage end users from using devices. A smart speaker could serve as a means for attackers to hack into the end-user's IT infrastructure. They are often mass-produced and identical, allowing attackers to hack. Compromised smart speakers can be used to jam end-user networks. Malware can be loaded onto an unsecured network via a compromised connected products. 

Manufacturers are also placing increasing importance on protecting customer data. The lack of strict guidelines and regulations to ensure the privacy of users is making them more vulnerable to hackers. Therefore, the lack of privacy and security policies in the global market may hinder adoption during the forecast period. 

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Smart Speaker Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Alphabet Inc: The company offers different ranges of smart speakers such as Nest Mini, Nest Audio, etc. It also provides different Google services such as Google Ads, Android, Chrome, Google Maps, Google Play, Search, YouTube, and hardware.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Amazon.com Inc.
• Apple Inc.
• Bang and Olufsen Group
• Belkin International Inc.
• Bose Corp.
• Edifier International Ltd.
• Imagine Marketing Pvt. Ltd.
• Lenovo Group Ltd.
• LG Electronics Inc.
• NXP Semiconductors NV
• Onkyo Corp.
• Portronics Digital Pvt. Ltd.
• Qualcomm Inc.
• Samsung Electronics Co. Ltd.

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook 
  • Residential
  • Commercial

• Distribution Channel Outlook
  • Offline
  • Online

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The Smart Speaker Market continues to flourish, driven by a convergence of factors, including the proliferation of ambient music, audiobooks, and podcasts. With the California Consumer Privacy Act and General Data Protection Regulation ensuring data security, consumers are increasingly embracing voice assistance and smart home devices. Brand loyalty and customer satisfaction remain pivotal in this competitive landscape, with companies like JD.com and Baidu's leading innovations. From intelligent virtual assistants to wireless speakers, the market offers a myriad of options catering to diverse consumer needs. As smart speaker usage expands, powered by artificial intelligence and natural language processing, the industry witnesses a surge in demand for smart home appliances and display-based devices, revolutionizing conventional home entertainment systems and redefining the way consumers interact with technology.

The Smart Speaker Market is witnessing remarkable growth propelled by advancements in artificial technology and the increasing demand for intelligent virtual assistance. These devices have become an integral part of modern homes, offering functionalities beyond mere audio playback. With features like multi-room audio and surround sound, smart speakers provide immersive entertainment experiences. Furthermore, they serve as smart home hubs, enabling users to control various devices like air conditioning and smart locks through voice commands or remote control via Wi-Fi or Bluetooth connectivity.

The market impact of smart speakers extends beyond entertainment, with applications in business dashboards and online platforms. Privacy concerns are addressed through robust privacy policies and settings, mitigating security risks associated with data misuse. Consumer Intelligence Research Partners (CIRP) reveals the influence of first-mover advantage in establishing brand loyalty.

As the industry evolves, manufacturers focus on integrating sensors to monitor factors such as temperature, humidity, and carbon monoxide levels, ensuring safety and comfort. Moreover, advancements in natural processing language (NPL) enhance the interaction between users and smart speakers, recognizing voice patterns and optimizing performance.

In a globally connected world, the smart speaker market caters to diverse cultures and languages, including Hindi and Hinglish, reflecting its widespread adoption from San Francisco to the United Arab Emirates. With innovations like the HomePod Mini and partnerships with global media & entertainment giants, the future of smart speakers is poised for further expansion, reshaping the way we interact with technology and the world around US.

In the bustling cacophony of modern existence, background noise permeates every aspect of our lives, much like the persistent chirping of crickets in the night. Whether it's the constant hum of emails flooding our inbox or the rhythmic pulse of pop music echoing from radios, background noise shapes our daily experiences, both in business and leisure. In the realm of business, executives and managers navigate through the dashboard of data, striving to discern meaningful insights from the noise. With emails inundating inboxes and the relentless buzz of notifications, distinguishing signal from noise becomes paramount. Fuchsia, Google's enigmatic operating system, aims to streamline this process, leveraging artificial intelligence to prioritize and organize information effectively.

In the realm of consumer electronics, gadgets reign supreme, offering a myriad of features and functionalities to enhance our daily lives. From smartphones with wireless voice-enabled devices to smart speakers that harmonize with our every command, gadgets have become indispensable companions in the digital age. Amidst the chaos of commerce, standards such as ISO 9000 provide a harmonious framework for quality management, ensuring consistency and reliability in product samples and processes. As startup companies strive to carve their niche in the market, adherence to these standards becomes a cornerstone of success.

But as we navigate through the symphony of modern life, privacy concerns loom large, casting a shadow over the digital landscape. Privacy policies and settings attempt to shield the US from prying eyes, offering a semblance of control over our personal information in an age of increasing scrutiny. Meanwhile, the rhythm of race and ethnicity echoes through the United States census, reflecting the diverse tapestry of society. In the face of scarcity and volatility, companies like Whole Foods Market seek to strike a chord with consumers, offering organic products sourced from raw materials in harmony with nature.

Yet, amidst the chaos and clamor, there is solace to be found in the serenity of smoke rising from a barbecue grill or the soothing melody of a television advertisement. As speaker manufacturers craft their wares with precision and care, radios broadcast the voices of the world, bridging gaps and fostering connections in an interconnected society. In this symphony of modern life, artificial intelligence acts as the conductor, orchestrating the interplay of data, devices, and human interaction. With intelligence quotients soaring and options multiplying, the future promises a harmonious fusion of technology and humanity, where background noise fades into the melody of progress.

Smart Speaker Market Scope
Report Coverage	Details
Page number	166
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 18.75%
Market growth 2023-2027	USD 16.65 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	23.27
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 34%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Alphabet Inc., Amazon.com Inc., Apple Inc., Bang and Olufsen Group, Belkin International Inc., Bose Corp., Edifier International Ltd., Imagine Marketing Pvt. Ltd., Lenovo Group Ltd., LG Electronics Inc., NXP Semiconductors NV, Onkyo Corp., Portronics Digital Pvt. Ltd., Qualcomm Inc., Samsung Electronics Co. Ltd., Sonos Inc., Sony Group Corp., Xiaomi Communications Co. Ltd., Zebronics India Pvt. Ltd., and Zound Industries International AB
Market dynamics	Parent market analysis, market growth and trends, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Smart Speaker Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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