The smart speaker market is estimated to grow by USD 16,659.23 million between 2022 and 2027 accelerating at a CAGR of 18.75% during the forecast period, according to Technavio.
- Companies: 15+, Including 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, among others
- Coverage: Parent market analysis; key drivers, major trends, and challenges; customer and company landscape; company product insights and recent developments; key companies; and market positioning of companies
- Segments: end-user (residential and commercial), distribution channel (offline and online), and geography (North America, Europe, APAC, South America, and Middle East and Africa).
The growing competition in the market is compelling companies to adopt various growth strategies such as promotional activities and spending on advertisements to improve the visibility of their services. Technavio report analyzes the market’s competitive landscape and offers information on several market companies including – 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
Rapidly increasing unit sales of smart speakers is a key factor driving market growth. The smart speaker market is witnessing significant growth, mainly led by major players like Amazon, Alphabet (Google), and Apple in 2022. Other significant contributors to the market are Alibaba, Baidu, and Xiaomi.
Additionally, Amazon and Google have notably dominated this market. The increase in smart speaker sales is attributed to their versatility as personal digital assistants. They offer various features like music streaming, weather updates, alarms, radio, games, smart home control, news, product search, calls, traffic updates, messaging texts and even shopping. This versatility is driving consumers to invest in smart speakers. Hence, these factors are expected to drive market growth during the forecast period.
The increasing popularity of voice commerce is a major trend in the market. Voice commerce is increasingly recognized worldwide as an alternative to traditional online ordering and purchasing methods. Consumers can easily search and buy products online using voice commands from smart speakers equipped with virtual assistants such as Amazon Alexa or Google Assistant.
In addition, this method offers fast and convenient shopping, attracting users with hands-free operation, multitasking ability, and quick response. For example, Amazon’s Alexa-enabled smart speaker allows customers to search, order, and purchase products. Leveraging users’ shopping history, Alexa recommends relevant items and streamlines purchases with voice commands, while smart speaker enhancements simplify online shopping. Hence, the increasing popularity of voice commerce is expected to drive market growth during the forecast period.
Privacy and security threats associated with smart speakers are significant challenges restricting market growth. Privacy and security concerns are prevalent among consumers around the world. For example, many people in the United States are worried about the potential threat to their privacy and personal data when using smart speakers. Manufacturers in the market have hired many people around the world to listen to voice recordings recorded by smart speakers in USers’ homes. This method aims to improve the understanding of human speech by smart speakers and improve their response to commands. Weak or default passwords for Internet-connected smart speakers can be hacked, leaving the network owned by the end user compromised. In addition, unsecured connected smart speakers can also make it easier to download malware onto the network. Hence, the increasing Privacy and security threats are expected to restrict market growth during the forecast period.
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