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Smart speakers are wireless speakers and voice command devices integrated or embedded with artificially intelligent virtual assistants that provide interactive actions and hands-free activation of services with the help of a "hot word" or several "hot words".
Apart from audio-playback and related services, these devices can also sometimes be made to automate digital tasks by utilizing Wi-Fi, Bluetooth, and other protocol standards. This can include live music & news streaming, problem-solving, setting reminders, ordering of household supplies, making the to-do list, setting alarms, providing real time information, ordering food, online shopping, weather forecasting, latest news, and other day to day activities.
Not only that, few of these smart speakers these days also have a smart display embedded in the device. This enables the benefit of controlling other smart home connected devices or providing visual information to accompany the verbal command or query extended to these speakers.
The global smart speaker market is expected to exhibit a CAGR of around 18.3% over the 2020-2025 period. The global industry shipments are projected to cross 500 million units by 2024.
The growth of this market is attributed towards major pertaining factors including; the rapidly increasing application of smart devices in homes, the globally increasing number of smart homes, the growing demand for smart speaker display, the rising advancement in audio technology, the rapid proliferation of multifunctional devices such as smartphones and smart devices, the increasing product innovation with integration of new technologies and services and the growing demand for luxury entertainment systems worldwide etc.
Additionally, there is a surging demand for stay-home entertainment across the world presently because of which, the key market players have begun launching new smart speakers and displays for ensuring widespread availability and increasing value and quality of products. Also, some local and regional manufacturers are being encouraged to produce innovative and advanced products with customer for the increased acceptance and adoption of this emerging technology. This is comprehensively creating opportunities for some considerable growth in this market.
Moreover, virtual assistant devices are powered by advanced artificial intelligence which provides more than a handful number of luxurious services to the end users. Google assistant activated with Ok Google offers instant access to all of the Google services and the data associated with the user’s Google account. This has created several opportunities for the growth of this market and as such the market vendors are instilling the idea and implementing the use of virtual assistants in their new product concepts and to be launched products. This is tremendously enhancing the overall scope of the global market.
Furthermore, other factors such as the decreasing cost of smart home technologies, the increasing customer awareness regarding these products, the growing number of tech savvy consumers, the establishment of 5G network, the advancement in Natural Language Processing (NLP), rising disposable incomes of people, the rising penetration of the IoT, the advancement in automated speech recognition and microphone technology will further propel the growth of this market.
However, factors such as security & privacy challenges, possibility of explosion in these systems, connectivity range and compatibility issues and the lack of standardization hinder the growth of this market.
SMART SPEAKER MARKET SEGMENTATION:
By Intelligent Virtual Assistant:
The North American region is the largest regional market for smart speakers and is expected to maintain its dominance in the market in the next few years also. The growth in the region could be attributed to factors such as the presence of early adopters and key smart speaker providers in the region, the increasing adoption of new technologies such as IoT and Artificial Intelligence, the high willingness of customers to accept and use new technologies, the presence of large number of key players of the market in the region and the increasing investments by them etc. Moreover, the growing number of smart homes and the increasing per disposable incomes of people in the region also is contributing significantly in the expansion of the regional market. The major contributor in the region is the U.S.
The Asia-Pacific region is the fastest growing regional market for smart speakers and is projected to register growth at a robust rate in the upcoming years owing to factors such as the growing adoption of smart homes and smart offices, the increasing focus of manufacturers to launch smart speakers and smart living appliances enabled by IoT solutions, the increasing investment in the field of smart gadgets and technologies, the presence of large technology-based companies and smart speaker manufacturers in the region etc. The major contributors in the region include India, China and Japan.
FEW KEY PLAYERS IN SMART SPEAKER MARKET: