The global smart speaker market accounted for US$ 7,245 Mn in 2020 and is expected to reach US$ 29,021 Mn by 2028 with a considerable CAGR of 19.4% during the projected period of 2021 to 2028.

A smart speaker is a wireless and intelligent audio playback device that can perform additional functions by utilizing various types of connectivity. Smart speakers have special features that make them easier to use, allow them to connect to a variety of audio sources, and provide additional functionality. The primary objective of smart speakers was to deliver audio content wirelessly from a user's media library, which could be on multiple platforms, as well as from online streaming services. A smart speaker, on the other hand, is a device that plays favorite music, provides answers to questions asked orally, and controls home appliances via a integrated virtual personal assistant feature. A smart speaker extends the concept of what user usually think of as a media playback system. A smart speaker can serve as the central information source, providing weather, traffic updates, directions, and dictionaries along with other things. It also functions as a home assistant, controlling common household tasks such as lighting, temperature control (thermostat), window shades, door locks, security monitoring, and much more.

Drivers

• The growing global adoption of IoT technology
• Rising smart building integration and technological advancement

Restraint

• Threat to data privacy and security

Opportunities

• The development of wireless 5G infrastructure
• Development in natural language processing (NLP)

Report Coverage: 

Smart Speaker Market Growth Factors

The growing demand for a smart speaker with intelligent virtual assistants, the growing proportion of smart homes, increasing per capita income, and the rapid expansion of multifunctional devices are all factors driving the growth of the smart speaker market. Furthermore, the rise in demand for smart home devices is a major factor fueling the smart speaker market growth. Other factors encouraging the market growth include an increase in consumer motivation to spend on trending technologies and an increase in smart device usage among the new generations. Furthermore, the formation of alliances between smart building manufacturers and creators of smart speakers allows for the flawless integration of smart home devices with smart speakers. This is a significant factor in the adoption of smart speakers.

Market Segmentation

Market By Intelligent Virtual Assistant

• Google Assistant
• Alexa
• Cortana
• Xiao AI
• Siri
• Others

Based on the intelligent virtual assistant, Amazon's Alexa which debuted in 2014 occupied the largest market share in 2021. Increasing customer preference for Alexa, due to the fact that it is less expensive and has more applications than other assistants, drives global demand for Alexa smart speakers. It can respond to voice commands, play music, create to-do lists, set alarms, play audiobooks, stream podcasts, and provide climate, sports, traffic, and other real-time information, for instance news bulletin. Moreover, Alexa can also control a variety of smart devices by acting as a home automation system.

Market By Application

• Smart Office
• Consumer
• Smart Home
• Others

During the forecast period, smart home is projected to account for a relatively large revenue share. Due to their advanced functionality and variety of features, smart speakers are most widely used in smart homes. Smart speakers can control smart devices using the user's voice or spoken commands, enabling simple ways to make day-to-day tasks easier. Users can manage smart IoT devices with a smart speaker after connecting them to the Internet or Bluetooth. The growing integration of smart speakers with smart home appliances such as heating systems, smart led bulbs, and smart gadgets is encouraging consumers to use device capabilities to control other devices in smart building technologies, which is anticipated to increase the adoption of smart speakers and boost growth in this segment in the future.

Market By Component

• Hardware
• Software

Based on component, the hardware-based component segment has a large market share because smart speakers are becoming more thoughtful and are quickly becoming necessary devices in homes. Processors are critical components of smart speakers because they enable the smart speaker device to control and perform various voice input and tasks prompted by the consumer. It also aids in the performance of various tasks to support multiple functions such as music streaming, phone calls, and device control, which is a factor driving the market growth of the smart speaker market.

Smart Speaker Market Regional Overview