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 for orchestration of various functionalities of smart home devices. These devices do not work alone but complementing other smart devices whereby through voice commands one can speak to a device and request it to increase the temperature, turn on lights or put on the security system. With the advent of smart homes, more of such gadgets that integrate different features with respect to 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 are capable of comprehending and executing multi-step user commands and grow familiar with the end-user to offer them customized experiences. Not only does this enhance customer retention, but it also diversifies the application scope from sports games to videos and book-reading to medical care and business managing software applications.

• Expansion of IoT Ecosystems: The smart speakers are important for the evolution of the IoT ecosystem as its acts as central points for the communication and control over smart devices. Such inter-relationship rises the effectiveness and marketability of the products among individuals who are looking for specific solutions. Integration with the IoT device companies along with development of an enhanced user experience enables the manufacturers to cater such trends.

• Increasing Consumer Connectivity: The rising penetration of the internet and rising number of smartphones helps in increasing the rate of connectivity for the smart speakers. These devices make use of 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 needs as far as entertainment or home automation is concerned.

• Market Competition and Innovation: As the competition is intensifying between the various participants, such as Amazon, Google, and Apple, the smart speaker technology is continuously improved. In order to achieve this unique characteristic for 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 affair encourages rapid technological developments and technological diversity which in turn, is advantageous to the 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 needs for individual solutions. People want to control operations and procedures in devices with easy access to multimedia entertainment options, with an extra level of customizing and relevance to their liking and usage. In the fast-changing electronics markets, smart speakers, which provide such comprehensive and easily operable functions that correspond to such 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 change and increasing adoption of technology during the pandemic. As there were more people indoors, there was a growing demand for making home entertainment, ease of use and connectivity better. 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 people stayed at home, smart speakers provided a better way to manage calendars, reminder systems and scheduling 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 providing communication through speakers or video calls to mitigate feelings of loneliness. Retailers that dealt with the electronic devices lined up offers of crazy deals and slashed prices in smart speakers which enabled a further growth of the industry 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