Smart Speaker Market

Global Smart Speakers Market Overview:

Smart Speakers Market Size was valued at USD 11.86 Billion in 2023. The Smart Speakers industry is projected to grow from USD 13.79 Billion in 2024 to USD 39.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.13% during the forecast period (2024 - 2032). Increasing demand for display-based smart speaker devices and consumers' growing preference for technologically advanced products are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Smart Speakers Market Trends

• Increased demand for display-based smart speaker devices is driving market growth.

Market CAGR for smart speakers is being driven by the increasing growth of display devices is assisting in sustaining the growth of the market. Major players in the market are increasingly switching to display-based devices owing to evolving use cases, including watching online content, social networking, and video call features. Key players provide a huge range of smart display device products. For instance, in September 2020, Baidu announced financing for Smart Living Group (SLG), including Xiaodu smart devices and the DuerOS voice assistant platform. Further, the funding is a Series A financing with a valuation of USD 2.9 billion.

The fast development of linked solutions in smart homes is a result of homeowners' constant desire for easy and pleasant living. Since 2012, a growing number of smart devices have been released into the market. Consumers' attention is turning towards smart devices as a result of the ability to operate household appliances using an Internet connection and a mobile device. The development of IOT, the rising need for convenience, security, and safety, as well as the expansion of energy-saving goods and solutions, are all factors that have contributed to the growth of smart devices in smart homes. Customers who own smart speakers may speak remotely to manage linked gadgets in their homes. Because of this, smart speakers—which serve as a centre for smart homes—are the most important and popular gadgets in smart homes. It is simple to connect to smart devices and carry out tasks like controlling lighting, playing music, and browsing the Internet thanks to the built-in smart home hub. Users may access mobile devices wirelessly, which is convenient. Additionally, smart speakers take up less room than conventional home entertainment systems. People in both technologically sophisticated and developing nations are quickly switching from conventional speakers to smart speakers as a result of these benefits. In the upcoming years, the expansion of smart speakers with virtual assistants is anticipated to be driven by the development of smart home gadgets.

Furthermore, with growing customer expenditure on smart devices that are transportable, comfortable to use, and inbuilt with cutting-edge technology, there has been a substantial shift in customer preference regarding the usage of technology in daily life. Moreover, consumer demand for multifunctional, fast, varied, and reliable solutions has pushed many speaker manufacturers to integrate voice assistance into speakers. Connected devices and solutions have become prevalent among consumers due to their user-friendliness. The emergence of smart speakers has allowed users to join online platforms and facilitated real-time communication on the go with enhanced convenience, comfort, safety, and security.

The rising demand for Amazon Alexa has augmented the smart speaker market growth and is expected to retain its dominance over the forecast period. Amazon Alexa has the first-mover advantage and is very popular among consumers. Amazon Alexa integration with numerous other smart home appliances and the craze for the Internet of Things (IoT devices among millennials is anticipated to retain its popularity and project to increase the smart speakers market revenue.

Smart Speakers Market Segment Insights:

Smart Speakers Intelligent Virtual Assistant Insights

The Smart Speakers Market segmentation, based on intelligent virtual assistants, includes Alexa, Google Assistant, Cortana, Siri, and others. The Alexa segment dominated the market, accounting for 35% of market revenue (4.15 Billion). In developing economies, category growth is driven by its first-mover advantage. This adoption is expected to enhance over the next few years due to Alexa's multiple smart home integrations and Amazon's strategy to offer its voice assistant to various emerging players in the market. However, Google Assistant is the fastest-growing category as it provides utilizers with a quick and easy way to perform various tasks, such as setting reminders, answering questions, and making purchases.

Smart Speakers Application Insights

The Smart Speakers Market segmentation is based on application, personal use, and commercial use. The commercial use category generated the most income (70.4%). This is due to the growing adoption of smart assistants for businesses that help manage business tasks with increased efficiency. Commercial use of these speakers helps employees stay prepared, organized, and focused, eventually boosting productivity. However, personal use is the fastest-growing category owing to the increasing use of home and individual entertainment devices.

Figure 1: Smart Speakers Market, by Application, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Smart Speakers Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American smart speakers market will dominate this market, owing to the growing demand for Internet-of-Things (IoT)-enabled services and wireless devices. Increasing consumer inclination toward convenience goods in the region drives market growth. Further, the US smart speakers market held the largest market share, and the Canada smart speakers market was the fastest-growing market in the North American region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Smart Speakers Market SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe smart speakers market accounts for the second-largest market share due to an increase in internet and smartphone usage in the region is driving the adoption of intelligent speakers, which are becoming increasingly accessible to consumers. Further, the German smart speakers market held the largest market share, and the UK smart speakers market was the fastest-growing market in the European region.

The Asia-Pacific smart speakers market is expected to grow at the fastest CAGR from 2024 to 2032. The trend towards smart homes is growing in this region, with consumers looking for ways to make their homes more efficient and convenient, including the use of intelligent speakers. The use of voice-activated technology, such as voice assistants, is growing rapidly in the region, driving the demand for the market. Moreover, China smart speakers market held the largest market share, and the India smart speakers market was the fastest-growing market in the Asia-Pacific region.

Smart Speakers Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the smart speakers market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the smart speakers industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global smart speakers industry to benefit clients and increase the market sector. Major players in the smart speakers market, including Harman International (US), Apple Inc. (US), Sonos, Inc. (US), Alphabet (US), and Baidu, Inc (China), and others, are attempting to increase the market demand by investing in research and development operations.

Amazon.com Inc is a web service provider and online retailer. The organization provides products such as apparel, beauty and health products, electronics, auto and industrial items, grocery, games, jewelry, music, sports goods, toys, kids and baby products, and tools. It also offers related support services, including home delivery and shipping, cloud web hosting and other web-related services. Amazon merchandises these products through company-owned online and physical platforms. It also manufactures and commercializes various electric devices such as Kindle e-readers, fire tablets, fire TVs, Echo, Alexa and other devices. The company allows authors, musicians, filmmakers, and others to publish and sell content. In September 2022, Amazon introduced the next generation of Echo Dot and Echo Auto, giving utilizers more methods to convey the convenience of Alexa to each room of the home and into the car.

Xiaomi Inc, a subsidiary of Xiaomi Corporation, is a mobile internet company. It offers various products, including Xiaomi phones, televisions, and smart devices. The company also provides fitness bands, power banks, and accessories, including lifestyle items, headphones, bluetooth devices, protective cases, back covers, and smart bands. In addition, Xiaomi also provides air purifiers, security cameras, sensors, routers, smart LED bulbs, portable mice, handheld vacuum cleaners, mi electric scooters, and backpacks. In July 2022, Xiaomi launched its second-ever smart speaker in India. The Xiaomi smart speaker has new and improved features such as IR Control, smart home control center, balanced sound field, LED clock display, and more.

Key Companies in the Smart Speakers market include

• Harman International (US.)

• Apple Inc. (US.)

• Sonos, Inc. (US.)

• Alphabet (US.)

• Baidu, Inc (China)

• Bose Corporation (US.)

• Sony Corporation (Japan)

• Onkyo & Pioneer Corporation (Japan)

• SAMSUNG (South Korea)

• Panasonic Corporation (Japan)

• Lenovo (China)

• Altec Lansing (US.)

• Xiaomi (China)

• SK Telecom Co., Ltd. (South Korea)

• LG Electronics (South Korea)

Smart Speakers Industry Developments

February 2023: Sonos, the company best known for its top-quality quality speakers and soundbars, is preparing to release a new smart speaker generation speaker in the coming months. The speakers, codenamed Optimo, were previously leaked and are expected to compete with Apple's HomePod and other related smart speakers from companies such as Google and Amazon.

December 2021: Google introduced its artificial intelligence-powered virtual assistant in Saudi Arabia. Google has been particularly adapted to understand all Saudi dialects and react in standard Arabic. These features will permit Google to sing and joke in the Arabic language.

October 2020: Apple Inc. launched Home Pod mini speaker compatible with Apple's voice assistant Siri and Edge software. Further, the HomePod mini is enabled with Wi-Fi and smart home capabilities with built-in security and privacy.

Smart Speakers Market Segmentation:

Smart Speakers Intelligent Virtual Assistant Outlook

• Alexa

• Google Assistant

• Cortana

• Siri

• Others

Smart Speakers Application Outlook

• Personal Use

• Commercial Use

Smart Speakers Regional Outlook

• North America

  • US
  • Canada

• Europe

  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • Australia

  • South Korea

  • Australia

  • Rest of Asia-Pacific

• Rest of the World

  • Middle East

  • Africa

  • Latin America

Smart Speakers Market Segmentation

Smart Speakers Intelligent Virtual Assistant Outlook (USD Billion, 2018-2032)

• Alexa

• Google Assistant

• Cortana

• Siri

• Others

Smart Speakers Application Outlook (USD Billion, 2018-2032)

• Personal Use

• Commercial Use

Smart Speakers Regional Outlook (USD Billion, 2018-2032)

• North America Outlook (USD Billion, 2018-2032)

  • North America Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • North America Smart Speakers by Application

    • Personal Use

    • Commercial Use

  • US Outlook (USD Billion, 2018-2032)

  • US Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • US Smart Speakers by Application

    • Personal Use

    • Commercial Use

  • CANADA Outlook (USD Billion, 2018-2032)

  • CANADA Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • CANADA Smart Speakers by Application

    • Personal Use

    • Commercial Use

• Europe Outlook (USD Billion, 2018-2032)

  • Europe Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • Europe Smart Speakers by Application

    • Personal Use

    • Commercial Use

  • Germany Outlook (USD Billion, 2018-2032)

  • Germany Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • Germany Smart Speakers by Application

    • Personal Use

    • Commercial Use

  • France Outlook (USD Billion, 2018-2032)

  • France Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • France Smart Speakers by Application

    • Personal Use

    • Commercial Use

  • UK Outlook (USD Billion, 2018-2032)

  • UK Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • UK Smart Speakers by Application

    • Personal Use

    • Commercial Use

  • ITALY Outlook (USD Billion, 2018-2032)

  • ITALY Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • ITALY Smart Speakers by Application

    • Personal Use

    • Commercial Use

  • SPAIN Outlook (USD Billion, 2018-2032)

  • Spain Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • Spain Smart Speakers by Application

    • Personal Use

    • Commercial Use

  • Rest Of Europe Outlook (USD Billion, 2018-2032)

  • Rest Of Europe Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • REST OF EUROPE Smart Speakers by Application

    • Personal Use

    • Commercial Use

• Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Asia-Pacific Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • Asia-Pacific Smart Speakers by Application

    • Personal Use

    • Commercial Use

  • China Outlook (USD Billion, 2018-2032)

  • China Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • China Smart Speakers by Application

    • Personal Use

    • Commercial Use

  • Japan Outlook (USD Billion, 2018-2032)

  • Japan Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • Japan Smart Speakers by Application

    • Personal Use

    • Commercial Use

  • India Outlook (USD Billion, 2018-2032)

  • India Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • India Smart Speakers by Application

    • Personal Use

    • Commercial Use

  • Australia Outlook (USD Billion, 2018-2032)

  • Australia Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • Australia Smart Speakers by Application

    • Personal Use

    • Commercial Use

  • Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Rest of Asia-Pacific Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • Rest of Asia-Pacific Smart Speakers by Application

    • Personal Use

    • Commercial Use

• Rest of the World Outlook (USD Billion, 2018-2032)

  • Rest of the World Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • Rest of the World Smart Speakers by Application

    • Personal Use

    • Commercial Use

  • Middle East Outlook (USD Billion, 2018-2032)

  • Middle East Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • Middle East Smart Speakers by Application

    • Personal Use

    • Commercial Use

  • Africa Outlook (USD Billion, 2018-2032)

  • Africa Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • Africa Smart Speakers by Application

    • Personal Use

    • Commercial Use

  • Latin America Outlook (USD Billion, 2018-2032)

  • Latin America Smart Speakers by Intelligent Virtual Assistant

    • Alexa

    • Google Assistant

    • Cortana

    • Siri

    • Others

  • Latin America Smart Speakers by Application

    • Personal Use

    • Commercial Use