Global Smart Speaker Market Size Likely to Reach at a CAGR of 21.1% By 2033

According to current market research conducted by the CMI Team, the global Smart Speaker Market is expected to record a CAGR of 21.1% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 13,936.67 Million. By 2033, the valuation is anticipated to reach USD 61,815.46 Million.

Smart Speaker Market: Growth Factors and Dynamics

• Rising Smart Home Adoption: Smart speakers are increasingly required due to growing smart home technology penetration to orchestrate various functionalities of smart home devices. These devices do not work alone but complement other smart devices whereby one can speak to a device and request it to increase the temperature, turn on lights, or put on the security system through voice commands. With the advent of smart homes, more such gadgets that integrate different features concerning ease of usage and automation of home enhancement are ever on the increase.

• Advancements in AI and Voice Recognition: Edge artificial intelligence (AI) and natural language processing (NLP) technologies provide continuous improvement of the performance and attractiveness of smart speakers. AI-based virtual assistants such as Amazon’s Alexa and Google Home can comprehend and execute multi-step user commands and grow familiar with the end-user to offer them customized experiences. This enhances customer retention and diversifies the application scope from sports games to videos and book-reading to medical care and business managing software applications.

• Expansion of IoT Ecosystems: Smart speakers are important for the evolution of the IoT ecosystem as they act as central points for communication and control over smart devices. Such an interrelationship raises the products’ effectiveness and marketability among individuals looking for specific solutions. Integration with IoT device companies and the development of an enhanced user experience enable the manufacturers to cater to such trends.

• Increasing Consumer Connectivity: The rising penetration of the internet and the rising number of smartphones help increase the rate of connectivity for smart speakers. These devices use Wi-Fi and Bluetooth capabilities to play back music, provide online content, and interface with other smart gadgets. The wireless connection comforts buyers who have various entertainment or home automation needs.

• Market Competition and Innovation: As the competition intensifies between various participants, such as Amazon, Google, and Apple, smart speaker technology is continuously improving. To achieve this unique competitive advantage, companies make huge investments in innovation, including better audio systems, easy-to-operate video interfaces, security features, and even the incorporation of advanced capabilities like 5G and Edge computing. This state of affairs encourages rapid technological developments and diversity, which, in turn, is advantageous to consumers, providing them with various options and advanced technologies.

• Changing Consumer Lifestyles and Preferences: At the same time, the market of smart speakers is affected by transforming consumer habits, in particular, continuous digitalization and the need for individual solutions. People want to control operations and procedures on devices with easy access to multimedia entertainment options, with extra customization and relevance to their liking and usage. In the fast-changing electronics markets, smart speakers, which provide comprehensive and easily operable functions that correspond to changing demands, are expected to enjoy long-term expansion.

Smart Speaker Market: Partnership and Acquisitions

• In January 2023, The HomePod which is the second-generation of smart speakers made by apple was launched as a smart speaker that is also a bright audio output device, it is distinguished by its up-to-grade sound and intelligent features. Similar to the aforementioned devices, this new gadget also supports and extends the listening capabilities through Spatial Audio and, even more – computational audio. Even the most rudimentary user can interact with the device and give voice commands to Siri to control smart home devices, such as smoke or carbon monoxide detectors, and check the temperature and humidity in the room.

• In July 2022, Xiaomi presented its Smart Speaker with IR control. The speaker may double as a remote Control for air conditioning or other compatible appliances. This model includes Google Assistant, which enables users to control Mi Home-controlled smart devices around the house, typically using voice commands.

• In October 2020, Apple launched its HomePod mini, the latest portable wireless speaker that still pairs with Siri’s hand. A plug-and-play device that just needs a wireless connection and a hub app, the “Mi Home” is very easy to implement and use in a home environment.

Report Scope

Smart Speaker Market: COVID-19 Analysis

The global smart speaker market has witnessed a positive impact of COVID-19 owing to lifestyle changes and the increasing adoption of technology during the pandemic. As more people were indoors, there was a growing demand for improving home entertainment, ease of use, and connectivity. Internet-connected gadgets such as Amazon Echo and Google Home quickly became popular for controlling the house.

People could, for example, use their voices to turn on and off every light or turn on the DVT. As many stayed home, smart speakers provided a better way to manage calendars and reminder systems and schedule suitable activities through voice commands. Consequentially, this change in behaviour further bolstered the use of artificial speakers as there was increased consumption of music and podcasts as well as audiobooks in the home.

The speakers also played an important role in providing news and advertisements about the pandemic and also helped in communicating through speakers or video calls to mitigate feelings of loneliness. Retailers that dealt with electronic devices lined up offers of crazy deals and slashed prices on smart speakers, which enabled the industry to grow further even during a pandemic.

List of the prominent players in the Smart Speaker Market:

• Amazon com Inc.
• Alphabet Inc. (Google)
• Apple Inc.
• Xiaomi Corporation
• Alibaba Group Holding Limited
• Sono Inc.
• Bose Corporation
• Harman International Industries Incorporated
• Baidu Inc.
• Samsung Electronics Co Ltd.
• Sony Corporation
• Lenovo Group Limited
• LG Electronics Inc.
• Microsoft Corporation
• Tencent Holdings Limited
• Others

The Smart Speaker Market is segmented as follows:

By Type

• Virtual Assistants
• Wireless Speakers
• Others

By Application

• Residential
• Commercial

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America