Smart Speaker Market Size, Trends, Share, Growth, and Opportunity Forecast, 2023 - 2030 Global Industry Analysis By Component (Hardware, and Software), By Virtual Assistant (Alexa, Google Assistant, Siri, Aligenie, Dueros and Others), By Connectivity (Wi-Fi, and Bluetooth), By Application (Smart Home, Smart Office, Consumer, Others) By Sales Channel (Online, Offline) and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

The Global Smart Speaker Market was valued at USD 10,045.1 Million in 2022 and is anticipated to reach a value of USD 37,130.8 Million by 2030 expanding at a CAGR of 17.8% between 2023 and 2030.

A smart speaker is a wireless speaker produces sound that is equipped with a built-in smart voice assistants and microphones to record sound. Smart speaker offers users a way to interact with speaker and operate other smart devices such as lighting, thermostats, switches, cameras, and appliances. User can communicate with the speaker by giving the speaker voice commands. Smart speaker works closely with other smart devices in smart home, if they are connected to the same network. Smart speaker is activated by the voice commands to perform many activities including online shopping, social networking, weather forecasting, order food, latest news, watching content, music, and other activities in our daily lives. Smart speaker can be used to dim your lights, turn the heating up or down, control TV or start the coffee machine. The smart speaker uses google assistant to offer hands-free convenience and a natural mode of interaction. Smart speakers can be used for residential and commercial applications. Smart speaker can be classified based on intelligent virtual assistant into Alexa, google assistant, Siri, Aligenie, Dueros and other assistants. 

Smart Speaker Market Major Driving Forces

Growing Adoption of Smart Home Products: Consumers are increasingly adopting smart home devices including mart locks, security cameras, smart TVs and smart lights for convenient and comfortable lifestyle. These smart devices can control with the internet connection and mobile devices. Smart speaker act as a single point of control and contact hub through which all devices can be easily operated.

Rising Disposable Income: Due to increasing disposable income in many countries of the world consumers are spending more on smart products for comfort and convenience. Changing lifestyle have made consumers to adopt more smart devices which drives the demand for smart speakers.

Increasing Demand for Voice-activated Devices: Voice assistant devices are becoming more popular due to their convenience. Many modern consumers are looking for devices that are offering hands-free convenience and easy mode of interaction. Smart speakers allow user to control music playback, set alarms, get news updates, and even online purchase through voice commands.

Increasing Demand for Display-based Smart Speaker: The increasing growth of display devices is driving the growth of the market. Demand for display-based smart speaker devices increasing due to evolving use cases, including social networking, watching online content and video call features. 

Smart Speaker Market Key Opportunities

Advancements in Natural Language Processing: Advancement in natural language processing enables these devices to interpret and understand language, enabling seamless communication between user and virtual assistants. It has improved accuracy, interaction and responsiveness of virtual assistants.

Rising Preference of Technologically Advanced Products:

With increasing consumer spending on smart devices that are portable, convenient, easy to use and inbuilt with advanced technology, there has been a significant shift in consumer preference. Smart speakers enabled users to connect with online platforms and facilitated real-time interaction with increased comfort, convenience, and security.

Development of Artificial Intelligence Technology:

Artificial intelligence makes smart speakers more intelligent and versatile. Artificial intelligence is incorporated with smart speaker speech recognition, natural language processing, and large language models. AI improves voice assistants’ functionality and user experience.

Smart Speaker Market Key Trends

·         Increasing demand for display-based smart speaker devices owing to evolving use cases, including social networking, watching online content, and video call features

·         Growing demand for amazon Alexa is expected to retain its dominance as it is very popular among consumers

·         Integration of artificial intelligence technology with smart speaker to offer voice control, audio quality, and enhanced battery life

·         Growing preference of consumers for technologically advanced products that enables users to connect with online platforms and facilitated real-time interaction

·         Growing popularity of voice activated devices that offer convenience and natural ode of interaction

·         Increasing use of natural language processing to enable these devices to interpret and understand human speech and perform task based on voice commands

·         Growing ecosystem of smart home devices such as lighting, thermostats, security systems, and appliances through a single voice activated devices

Region-wise Market Insights

North America accounted for the largest market share at 36.6% in 2022 whereas, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 18.4% between 2023 and 2030.

In North America, the demand is driven by growing adoption of advanced technologies, growing demand for IoT services and wireless devices, large number of smart homes, smart offices, and strong presence of major speaker providers. Furthermore, North America has been highly responsive to the technological advancements to improve their client-centric approaches. Europe has significant demand for smart speakers owing to development of digital technologies in the region. In addition, the growth is attributed to factors such as growing adoption of smart homes, increasing demand for voice-activated devices, and increasing funding in research and development activities in the region.  In Asia-Pacific, the smart speaker market is growing rapidly and is expected to witness a significant growth in forecast period. In Asia Pacific, the market is characterized by rapid internet penetration, increasing demand for wireless connectivity, adoption of innovative technologies, growing population, and rising disposable incomes which has created an increasing demand for smart speakers. The Middle East and Africa has been witnessing a growing demand for smart speaker. The market is influenced by economic factors, increasing disposable income, increasing adoption of smart devices, and rising prevalence of smart speaker in the region.

Market Competition Landscape

The global smart speaker market is characterized by high degree of competition among a large number of manufacturers. Key players in the smart speaker market engage in strategies aimed at gaining a competitive edge. These strategies include product innovation, design differentiation, and the incorporation of sustainable and eco-friendly materials to meet evolving consumer preferences. Established brands leverage their reputation for quality and reliability to maintain market share, while newer entrants focus on disruptive innovations and unique selling propositions.

Amazon.com, Inc. has been adopting strategy of reducing the cost of old products after introducing a new version of the product in the market to capture high margin with early adopters and brand-conscious consumers. This company continuously investing in innovative technologies for staying ahead of its competitors. The company have started introducing new versions of Echo inbuilt with Alexa that has bigger vibrant sound, an ambient-powered display, and advanced features.

Key players in the global smart speaker market implement various organic and inorganic strategies to strengthen and improve their market positioning. Prominent players in the market include:

·         Amazon.com, Inc.

·         Apple Inc.

·         Google LLC

·         Bose Corporation

·         Alphabet Inc.

·         Harman International

·         LG Electronics.

·         Altec Lansing is owned by AL Infinity, LLC

·         Avnera Corporation

·         Panasonic Corporation.

·         D&M Holding Co.

·         Sharp Corporation

·         Logitech

·         Sony Corporation

·         Alibaba Group Holding Limited