Disruption in Global Manufacturing and Distribution Impact Sales During COVID-19 Crisis

The increased spending time at home during the COVID-19 outbreak has resulted in the boom of the “at-home economy”. This has led to the popularity of smart home speakers. Companies in the smart home digital assistant (voice) market are capitalizing on spiked interest toward smart home devices. As such, voice-enabled devices are being highly publicized for minimizing the transmission of COVID-19 pathogens. Hence, manufacturers in the smart home digital assistant (voice) market are increasing the availability of products that cater to smart locks and connected video doorbells to reduce face-to-face interactions.

Analysts at the Transparency Market Research opine that the pandemic is expected to push global voice control device shipments in 2021. However, adverse forces such as disruption in global manufacturing and distribution are anticipated to inhibit market growth. Hence, companies should help people get comfortable with hands-free interactions in public places to drive sales of smart home speakers.

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Data Security Concerns in Devices Likely to Affect Market Growth

Amazon and Google are aggressively innovating in their respective voice-enabled devices. However, there is an increased awareness about data security concerns as to how these tech giants collect and share their data. Hence, companies in the smart home digital assistant (voice) market are making improvements in devices that can automatically delete recordings of users on a routine basis, thus limiting a user’s access for prior voice commands.

The concept of fun-to-have gadgets for checking weather, playing music, and answering trivia questions is gaining prominence worldwide. In order to enhance user experience, companies are increasing efforts to eliminate the need for wake words such as Ok Google or Alexa in devices. Such innovative devices are bolstering the growth of the smart home digital assistant (voice) market, which is anticipated to cross the valuation of US$ 13.5 Bn by 2030.

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Individualized Experiences Help Manufacturers Leverage Business Opportunities in Voice-based Advertising

Providing a more user-centric experience has become the key focus point for companies in the smart home digital assistant (voice) market. Emerging market players such as Samsung Bixby and Microsoft Cortana are focusing on integrating the voice technology with other products to boost sales. This involves compatibility and integration with refrigerators, thermostats, and other commodities. Manufacturers are gravitating to the idea of making custom devices that serve specific functions of users. They are tapping opportunities in voice-based advertising since many people are conducting voice search through mobile Apps.

Smart home digital assistants will continue to offer individualized experiences to users. Companies in the smart home digital assistant (voice) market are increasing the availability of devices that support multiple user accounts and are capable of detecting unique voices. On the other hand, voice push notifications are an efficient way to remind users of mobile Apps that are related to calendar appointments and the likes.

Growing Demand for On-the-Go Entertainment Boosts Product Uptake

Choosing smart home speakers has become an easy task for customers since various information outlets compare and review the pros and cons of devices. This can either build or break the credibility of manufacturers in the smart home digital assistant (voice) market. Hence, companies can take the opportunity to constantly improvise in technologies in order to gain a competitive edge in the global market landscape. For instance, Sonos One is increasing efforts to gain an edge over Amazon and Google to deliver superior sound quality and voice assistance to users.

The growing demand for news consumption on the go, listening to podcasts, and music is likely to bolster the growth of the smart home digital assistant (voice) market. As such, artificial intelligence (AI) is acquiring prominence in smart home speakers to enhance user experience.

Safety and Touch Interactions in Devices Add to Credibility of Manufacturers

The smart home digital assistant (voice) market is predicted to advance at a striking CAGR of ~17% during the forecast period. However, it has been found that the features in latest smart home speakers are more or less the same. This indicates that manufacturers have reached their peak in technological innovations for smart home digital assistants. Thus, in order to stand out in the competitive landscape, manufacturers should focus on innovative touch interactions and security features to boost product sales. They are now increasing efforts to merge voice and visual displays into one seamless experience for users.

Moreover, more than 40% of the users of voice assistants are concerned about trust and privacy pertaining to devices. Hence, manufacturers in the smart home digital assistant (voice) market are enabling features to turn off the microphone of speakers in order to maintain privacy of the user.

Voice and Visual Capabilities Enable Users to Better Interact with Devices

Simple user demands such as finding local movie times, buying travel tickets, and making reservations for restaurant are fueling the demand for smart home speakers. Since manufacturers in the smart home digital assistant (voice) market are increasing efforts to combine voice and visual displays, they are increasing production capabilities for devices that display local traffic info, calendar events, and weather forecasts. Thus, visual and voice capabilities help users to better interact with the assistant.

In addition, companies are developing devices that can manage payments and sensitive information. The trend of voice payments is gaining popularity in the market landscape where voice assistants are becoming more secure and ID verification plays a pivotal role.

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Analysts’ Viewpoint

Since touch has become a taboo amidst the ongoing COVID-19 crisis, the sales of smart home speakers are projected to surge in the upcoming months. Manufacturers are tapping into areas of superior sound quality, smart-home utility, and stable multiroom audio in order to gain a competitive edge over other players in the market landscape. They are developing devices that facilitate all-around listening, and enable easy booking of tickets and hotel reservations.

However, technological innovations in smart home digital assistants have reached a stagnation. Hence, companies in the smart home digital assistant (voice) market should focus on the integration of voice and visual capabilities in devices to boost product uptake.

Smart Home Digital Assistant (Voice) Market: Overview

  • The global smart home digital assistant (voice) market is projected to cross US$ 13.5 Bn by 2030. The smart home digital assistant (voice) market is projected to expand at a CAGR of ~17% from 2020 to 2030

Smart Home Digital Assistant (Voice) Market: Key Drivers

Advancement in Artificial Intelligence and Growth in Usage of Smartphones Driving Smart Home Digital Assistant (Voice) Market

  • Adoption of voice-powered smart speakers has seen huge increase across the globe. In a report published by Capgemini, the years 2017 and 2018 saw a 145% increase in the installed base of smart speakers in the top six countries across the globe (U.S., U.K., China, Germany, Canada, and South Korea). Over the past 2-3 years, customer segments, which are actively using voice assistants has also increased.
  • According to Conversational Commerce Survey, in the U.S., the U.K., Germany, and France, approximately 51% of the respondents said they are actively using voice assistants. According to a report by voicebot.ai, in the year 2018, smart speakers have an installed user base of nearly 1 in 4 U.S. adults. It is also observed that Generation Y (millennial) holds the largest share within users of voice technology.
  • Adoption by this segment plays a critical role in driving the demand for smart voice assistants. Smartphones have seen immense increase in adoption across the globe. In 2020, the number of smartphone users in the world stands at 3.5 billion, which translates to 44.87% of the world’s population possessing a smartphone; it is also estimated that 50% of searches could be by voice by the end of the year 2020. Increased adoption of NextGen technology as well as the penetration of smartphones, which will enable 50% of searches by voice is driving the smart home digital assistant (voice) market.

Innovation in Speech Recognition Technology Fueling Market Growth

  • Speech recognition technology is used in a wide range of applications from complex enterprise systems to industrial robotics. The technology has features, which enable analysis tools, discovery, capture, search, and support enterprises to access insights about unstructured data which is about 90% of the digital information (voice recordings, text, and transcription).
  • Penetration of the speech recognition market into various sectors, such as consumer products, medicine, and government and services is leading to growth of language technology and the smart home digital assistant (voice) market. According to TMR research, Google’s word error rate in speech recognition is only 4.9%. Innovative products and services in the market are integrating intelligence to the infrastructure, adding speech recognition technology for interactivity. Nuance Communications markets a natural language product and IVA with natural language processing. Software which has embedded technology for text and speech recognition with platforms which support communication are offering high revenue growth opportunities across the market. This has led to growth of the smart home digital assistant (voice) market.

Smart Home Digital Assistant (Voice) Market: Market Segmentation

  • The global smart home digital assistant (voice) market has been segmented in terms of product, operating system, type, and region
  • Based on product, the smart home digital assistant (voice) market has been segmented into Amazon Alexa, Google Assistant, Apple Siri, Microsoft Cortana, Samsung Bixby, AIVC (Alice), Aido, and Nina
  • In terms of operating system, the global smart home digital assistant (voice) market has been categorized into iOS, Android, and Windows
  • Based on type, the smart home digital assistant (voice) market has been classified into App-based voice assistance and product-based voice assistance
  • The global smart home digital assistant (voice) market has been divided into North America, Europe, Asia Pacific, Middle East & Africa, and South America. Initially, vendors across the ecosystem of smart home digital assistants (voice) were analyzed on the basis of type and OS providers in the market.

Smart Home Digital Assistant (Voice) Market: Regional Outlook

  • North America is expected to dominate the smart home digital assistant (voice) market in the year 2020, whereas Asia Pacific is likely to dominate the market by the end of the forecast period
  • The smart home digital assistant (voice) market in Asia Pacific is anticipated to witness the highest growth. The smart home digital assistant (voice) market in Europe, South America, and Middle East & Africa is also expected to expand rapidly during the forecast period.
  • The report provides in-depth segment analysis of the global smart home digital assistant (voice) market, thereby providing valuable insights at macro as well as micro levels
  • Analysis of major countries, which hold growth opportunities or account for significant share has also been included as part of geographic analysis of the smart home digital assistant (voice) market

Smart Home Digital Assistant (Voice) Market: Competition Dynamics

  • The research study includes profiles of leading companies operating in the global smart home digital assistant (voice) market
  • Key players profiled in the report include
    • Amazon.com, Inc.
    • Apple Inc.
    • Microsoft Corporation
    • Google LLC
    • Samsung Group
    • Yandex
    • InGen Dynamics, Inc.
    • Nuance Communications, Inc.

Smart Home Digital Assistant (Voice) Market – Scope of the Report

A new study on the global smart home digital assistant (voice) market was published by Transparency Market Research (TMR). It presents a wealth of information on the key market dynamics including the drivers, market trends, and challenges, as well as the structure of the smart home digital assistant (voice) market. TMR’s study offers valuable information about the smart home digital assistant (voice) market, to illustrate how growth will discern during the forecast period, 2020-2030.

Key indicators of market growth, which include value chain as well as supply chain analysis, and Compound Annual Growth Rate (CAGR), have been elucidated in TMR’s study in a comprehensive manner. This data can help readers interpret the quantitative growth aspects of the smart home digital assistant (voice) market during the forecast period.

An extensive analysis on leading market players’ business strategies has been featured in TMR’s study on the smart home digital assistant (voice) market. This can help readers understand principal factors to foresee growth in the smart home digital assistant (voice) market. In this study, readers can also find specific data on the qualitative and quantitative growth avenues for the smart home digital assistant (voice) market, which will guide market players in making apt decisions in the future.

Key Questions Answered in TMR’s Smart Home Digital Assistant (Voice) Market Study

  • What is the scope of growth of smart home digital assistant (voice) providing companies across the globe?
  • What will be the Y-o-Y growth of the smart home digital assistant (voice) market between 2020 and 2030?
  • What is the influence of changing trends in technologies on the smart home digital assistant (voice) market?
  • Will North America continue to dominate the market for smart home digital assistants (voice)?
  • Which factors will impede the growth of the smart home digital assistant (voice) market during the forecast period?
  • Which are the leading companies in the global smart home digital assistant (voice) market?

Research Methodology

A unique research methodology has been utilized by TMR to conduct a comprehensive research on the growth of the smart home digital assistant (voice) market, and arrive at conclusions on the future growth prospects of the market. This research methodology is a combination of primary and secondary research, which helps analysts warrant the accuracy and reliability of the drawn conclusions.

Secondary sources referred to by analysts during the production of the smart home digital assistant (voice) market report include statistics from company annual reports, SEC filings, company websites, World Bank database, investor presentations, regulatory databases, government publications, and industry white papers. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, and market intelligence managers who contributed to the production of TMR’s study on the smart home digital assistant (voice) market as a primary source.

These primary and secondary sources provided exclusive information during the interviews, which serves as a validation from smart home digital assistant (voice) industry leaders. Access to an extensive internal repository and external proprietary databases allows this report to address specific details and questions about the smart home digital assistant (voice) market with accuracy. The study also uses a top-down approach to assess the numbers for each segment, and a bottom-up approach to counter-validate them. This has helped in making TMR’s estimates on the future prospects of the smart home digital assistant (voice) market more reliable and accurate.

Smart Home Digital Assistant (Voice) Market – Segmentation

TMR’s study on the smart home digital assistant (voice) market includes information divided into four sections ? product, operating system, type, and region. Changing industry trends and other crucial market dynamics associated with these sections of the smart home digital assistant (voice) market have been discussed in detail.

Product

  • Amazon Alexa
  • Google Assistant
  • Apple Siri
  • Microsoft Cortana
  • Samsung Bixby
  • AIVC (Alice) 
  • Aido
  • Nina

Operating System

  • iOS
  • Android
  • Windows

Type

  • App-based Voice Assistance
  • Product-based Voice Assistance

Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • U.K.
    • France
    • Russia
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • Saudi Arabia
    • Kuwait
    • United Arab Emirates
    • Qatar
    • South Africa
    • Rest of Middle East & Africa
  • South America
    • Brazil
    • Argentina
    • Rest of South America

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