Hardware component segment expected to be more lucrative for the global smart speaker market
The global smart speaker market is bifurcated by components into hardware and software. Hardware based component segment is expected to surpass US$ 10,343.7 Mn by 2026. Within the hardware segment, smart speaker processor is expected to expand at a significant CAGR of above 18% during the forecast period. Smart speakers are getting more intelligent and rapidly becoming important devices used across homes. Processors are important as a smart speaker component, as it helps the smart speaker device to handle and perform multiple voice commands and tasks prompted by the user. Furthermore, it also helps in performing multiple tasks to support various functions such as music streaming, making phone calls, and device controlling.
Online mode of sale segment expected to dominate the smart speaker market around the globe
Personal application segment expected to expand at a significant growth rate during the forecast period
On the basis of application, the smart speaker market is segmented into commercial and personal. Smart speakers primarily enhance the experience of an individual while using it at home or in smart homes. Consumers can ask the smart speaker to play a song or a movie according to choice. Furthermore, consumers can also ask the smart speaker to set a timer while doing some work. A smart speaker helps in controlling the entire house through a simple voice command. Smart speakers are capable of turning down the room lights or turn up the heating, apart from performing many other tasks.
On the basis of voice assistant systems, the smart speaker market is segmented into Amazon Alexa, Google Assistant, Apple Siri, Microsoft Cortana, and others. Amazon Alexa is expected to hold a higher market share of more than 55% in 2026. Amazon.com, Inc. unveiled its smart speaker named “Amazon Echo” in the year 2015 and it was the first to enter the smart speaker market. It also launched other versions of smart speakers namely “Amazon Dot and Amazon Tap” for the U.S. market and later on for the other bigger markets such as the U.K, India, and China.
North America to continue to hold significant share in the overall market
North America is expected to hold higher market share for smart speakers during the forecast period. The growth is mainly due to the booming smart speaker market place with the presence of well-established players across the region, especially the U.S. and Canada. North America is home to many well-established players from the smart speaker domain including Apple, Inc., Amazon.com, Inc., Google, Inc., and Harman International. Furthermore, North America is witnessing higher adoption of smart speakers due to the continuously rising consumer preference toward technologically advanced products. Additionally, many companies across the U.S. are launching novel smart speakers made specifically for the particular industry or for commercial applications. For instance, in 2017, a start-up named “Askwithcue, Inc.” launched smart speakers named “Roxy” that is hospitality business focused and aims to replace hotel phones. Roxy is powered with an AI based voice assistant system that is fully customizable and under the control of the customer. This feature will help hotels to input easier commands for guests and help in planning more comprehensive capabilities other than speech-enabled assistants.
The market in Europe is projected to grow at a significant CAGR during the forecast period. The growth is the result of the launch of many smart speakers by well-established players across the European region. For instance, in April 2017, Google Inc. launched its smart speaker named “Google Home” powered by Google Assistant for consumers across the U.K.
Smart speakers are gaining popularity across the Asia Pacific region, especially across China, Japan, and India. Increasing number of smart homes and rising disposable income is expected to fuel the smart speaker market in this region. China is projected to hold a significant market share owing to the presence of large number of smart speaker providers especially local ones including Alibaba Group and Xiaomi, Inc. Alibaba Group provides smart speakers powered by its own voice assistant system at a very low price to compete with players such as Amazon and Google. In 2017, Alibaba Group also launched its smart speaker named “Tmall Genie” at a reduced price to compete with Apple HomePod, Google Home, and Amazon Echo. The new smart speaker powered by AI voice assistant will be priced at US$ 73 across the Chinese market.
Amazon.com, Inc., Apple, Inc., Harman International, Alphabet, Inc., Sonos, Inc., and Xiaomi Inc., among others are some of the major players operating in the smart speaker market profiled in this study. Details such as financials, SWOT analysis, business strategies, recent developments, and other such strategic information pertaining to these players have been duly provided as part of company profiling. Various players are providing novel smart speakers that help consumers to perform multiple tasks easily by using various voice commands. Also, market players are establishing partnerships, entering into strategic M&A, and expanding, to enhance their smart speaker offerings worldwide.
Smart Speaker Market - Overview
The “Smart Speaker Market” report provides analysis of the smart speaker market for the period 2016–2026, wherein the years from 2018 to 2026 is the forecast period and 2017 is considered as the base year. Data for 2016 has been included as historical information. The report covers all the trends and technologies playing a major role in the smart speaker market growth over the forecast period. It highlights the drivers, restraints, and opportunities expected to influence the market growth during this period. The study provides a holistic perspective on the market’s growth in terms of revenue and volume (in US$ Mn and Thousand Units) across different geographical regions, namely North America, Europe, Asia Pacific, Middle East & Africa, and South America. The report highlights the key trends affecting the market on a global scale. Furthermore, region wise prominent countries/regions covered in the report includes the U.S, Canada, Germany, France, the U.K, India, China, Japan, GCC countries, South Africa, and Brazil.
This report analyzes and forecasts the market for smart speakers at the global and regional level. The market has been forecasted based on revenue (US$ Mn) and volume (thousand units) from 2018 to 2026. The study includes drivers and restraints of the global smart speaker market. It also covers the impact of these drivers and restraints for smart speakers during the forecast period.
The report comprises a detailed value chain analysis which provides a comprehensive view of the global smart speaker market. Porter’s Five Forces model for the smart speaker market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein end-users are benchmarked based on their market size, growth rate, and general attractiveness.
Global Smart Speaker Market: Taxonomy
This research study on the global smart speaker market provides a detailed cross segment and cross country analysis based on the different segments including components, mode of sale, application, and voice assistant type. Based on components, the market is segmented into hardware and software. Hardware component segment is further bifurcated into processor, microphone, connectivity IC, audio system, and others. On the basis of mode of sale, the smart speaker market is bifurcated into online and offline mode of sale. Additionally, based on application, the market is divided into commercial and personal. In terms of voice assistant type, the market is segmented into Amazon Alexa, Google Assistant, Apple Siri, Microsoft Cortana, and others. Others segment includes the voice assistant system provided by the Alibaba Group and Xiaomi, Inc.
Global Smart Speaker Market: Research Methodology
Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, and SEC filings, internal and external proprietary databases, and relevant patent and regulatory databases, national government documents, statistical databases, and market reports, news articles, press releases, and webcasts specific to companies operating in the market, national government documents, statistical databases, and market reports, Factiva, etc.
Primary research involves e-mail interactions, telephonic interviews, and face-to-face interviews for each market, category, segment, and sub-segment across geographies. We conduct primary interviews on an ongoing basis with industry participants and commentators in order to validate the data and analysis. Primary interviews provide first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook, etc. These help us to validate and strengthen secondary research findings. These also help to develop the analysis team’s market expertise and understanding.
Global Smart Speaker Market: Competitive Dynamics
The report profiles well-established players including Amazon.com, Inc., Apple, Inc., Harman International, Sonos, Inc., Alibaba Group, and Xiaomi, Inc. among others. These are some of the well established players innovating novel smart speakers around the world to compete with other players. For instance, in April 2018, Google, Inc. announced its smart speaker named “Google Home Mini” powered by AI based voice assistant in India to compete with the smart speakers from Amazon.com, Inc. i.e. “Amazon Echo” and “Amazon Echo Dot.” For online selling of its smart speakers, Google, Inc. partnered with Flipkart and Reliance Digital, Croma, and other stores for brick and mortar selling. Furthermore, to beat the competition, the company used competitive offers and pricing i.e. Google Home Mini costs US$ 7.46 lesser than Amazon Echo Dot.
Global Smart Speaker Market
The Global Smart Speaker Market is segmented as Follows:
Global Smart Speaker Market, by Components
- Connectivity IC
- Audio System
Global Smart Speaker Market, by Mode of Sale
Global Smart Speaker Market, by Application
Global Smart Speaker Market, by Voice Assistant Type
- Amazon Alexa
- Google Assistant
- Apple Siri
- Microsoft Cortana
Global Smart Speaker Market, by Geography
- North America
- The U.S.
- Rest of North America
- The U.K
- Rest of Europe
- Asia Pacific (APAC)
- Rest of APAC
- Middle East & Africa (MEA)
- GCC Countries
- South Africa
- Rest of MEA
- South America
- Rest of South America