The global smart speaker market is anticipated to grow at a CAGR of 20.2% during the forecast period. The major factors that are driving the growth of the market include the increasing trend of wireless connectivity and devices, growing demand for smart speaker display, increasing number of smart homes, and rising IoT demand. Various companies such as Google, Amazon, Apple, and Baidu have introduced a wide range of products, which provides different choices to the end-user. The number of smart electronic devices by the major players is keeping users connected to the internet and the network of connected devices in addition to smartphones. The features of these devices include social networking applications, gaming, weather information, e-book readers, music players, digital camera, and GPS navigation. 

Besides, the factors that are augmenting the growth of the market include increasing disposable income of people all across the globe, technological advancement, and new product development by major players are further expected to drive the growth of the market. The factor that is restraining the growth of the market includes the concern relates to the connectivity and range of smart speakers.

Impact of COVID-19 Pandemic on Global Smart Speaker Market

The global smart speaker market is hit by the COVID-19 pandemic since December 2019. The market situation has changed to a great extent. The smart speaker market was on the track to grow, due to the COVID-19 pandemic mostly under control in recent months. The various players have considered that the market will show greater growth at the year-end of 2021. Besides, the slowdown of purchasing non-essential things, a huge shut down in various areas may lead the consumer to replace their outdated units and introduce new devices in their homes. 

Recently, key players such as Google, Amazon, Apple, and Baidu have introduced a wide range of products and refreshes their smart speaker line. For instance, Google recently refreshed its Nest Audio hardware, and Apple had introduced the HomePod mini, which is less expensive. The outbreak of COVID-19 has disrupted the supply of raw materials and products across the globe, and also decline the purchasing of non-essentials, hence impacted the smart speaker market negatively. The market will witness “V” shape recovery in near future owing to the launches of newly updated products by key players, and the installation of updated devices in major economies. Also, the various companies and professionals were able to think of the box and implement effective ways for the advanced smart speaker market.

Segmental Outlook 

The global smart speaker market is segmented based on product, technology, and end-user. Based on the type, the market is segmented into single room speakers and multi-room speakers. The multi-room speaker segment is expected to show a significant growth rate due to the increasing commercial use of smart speakers. Based on the technology, the market is segmented into Bluetooth, wi-fi, and other segments. Further, the other segment is classified into DLNA, airplay, and near field communication (NFC). Among the technology segment, Wi-Fi is expected to show the highest growth rate owing to the increasing use of the internet, the introduction of 4G & LTE technology in various regions, and increasing internet-based music applications. Based on the application, the market is segmented into commercial, residential, and other sectors.

Global Smart Speaker Market Share by Technology, 2020 (%)

Wi-Fi segment projected to hold a significant share in the smart speaker market

Among various technology, the Wi-Fi segment held the highest share in 2020 and is also anticipated to grow during the forecast period. The Wi-Fi segment is growing due to the factor such due to increasing use of the internet, the introduction of 4G & LTE technology in various regions, and increasing internet-based music applications. Through Wi-Fi, the individual can stream multiple speakers at once, and unlike Bluetooth, this technology has a longer range up to around 200 feet, although 100 to 150 feet is a more realistic expectation. The various key players such as Sonos, Google, Baidu, among others offer smart speakers with Bluetooth facility as well as wireless facility. The increasing use of the internet across the globe is also rising the demand for Wi-Fi speakers. For instance, as per the ITU estimation, around 51% or 4 billion people across the globe were using the internet in 2019.

Regional Outlooks

The global smart speaker market is further segmented based on geography including North America, Europe, Asia-Pacific, and the Rest of the World.  North America region is growing significantly in the global smart speaker market during the forecast period. The factors that are driving the growth in the region include huge investment by private companies, the presence of major market players such as Apple, Amazon, Microsoft, and high adoption of the smart speaker in the region. Europe is also expected to show a significant growth rate. 

Global Smart Speaker Market Growth, by Region 2021-2027

Asia-Pacific is projected to have a considerable share in the global smart speaker market

Asia-Pacific is anticipated to hold a considerable market share in the global smart speaker market. The three major countries in the region include China, India, and Japan. The countries such as Japan and China have various manufacturers of smart speakers. The market is showing growth with the increase in the adoption of smart homes with smart devices like smart speakers. Additionally, the smart city project of India and China is likely to acts as a driver of the market growth. The factors that are driving the growth in the region include promising economic growth, a large customer base (population), increasing disposable income, and increased demand for the smart speaker. For instance, as per the World Bank data, in 2019, the overall population in China was around 1.4 billion, and in India was around 1.3 billion people. 

Market Players Outlook

The key players of the smart speaker market include Google Inc., Baidu, Inc., Apple, Inc., Sonos Inc., LG Electronics USA Inc., Harman international industries Inc., (JBL), among others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, and new product launches, to stay competitive in the market. For instance, in December 2019, Baidu, Inc. has launched the latest Display X8, a smart speaker, which supports biometric modalities includes face recognition and gestures. This is a smart home device that supports a full-screen touch display along with a 1280*800 resolution. 

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global smart speaker market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where in the market.