US Smart Speaker Market 2024–2033

Reports Description

The US Smart Speaker Market was valued at USD 5,987 million in 2024 and is expected to reach USD 28,190 million by 2033, at a CAGR of 20.77% during the forecast period 2024 – 2033.

Smart Speakers are connected to smart home devices and can be controlled through various smartphone applications and other smart devices such as cameras, doorbells, locks, thermostats, plugs and outlets, lighting, and more. A Smart Speaker is a loudspeaker and voice command device in which various emerging technologies and virtual assistance provide interactive actions and hands-free activation.

US Smart Speaker Market: Growth Factors

Increasing Number of Smart Homes

The increasing penetration of smart homes in the US is expected to drive the adoption of smart speakers during the forecast period. The increasing disposable income, growing renovation and construction activities, and increasing preferences towards convenience and ease will drive the demand for smart speakers during the forecast period. For instance, recently, the State of the Smart Home conducted a survey that revealed that the number of smart homes is expected to reach 103.15 million users, a 65% increase from the last year.

Various factors, such as increasing internet penetration across the U.S, increasing renovation and reconstruction activities of old homes, and increasing implementation of smart home devices among Gen Z and Millennial generations are some of the factors propelling the adoption of smart speakers across the US  The smart home technology is becoming increasingly popular among the younger generations due to increasing inclination towards advanced technologies and convince.

The penetration of smart homes is increasing across the urban areas of the US due to supportive government policies and the rise in the population. Smart homeowners are increasingly adopting smart speakers for the entertainment and security accessibility of these houses, thereby driving the market growth.

Growing Demand for Technologically Advanced Smart Speakers

The demand for technologically advanced smart speakers is increasing due to growing tech-savvy consumers and their increasing inclination towards technologically advanced products. The growing internet penetration, coupled with the wide adaptation of various smart devices such as smartphones, smart television sets, tablets, and smartwatches, is fuelling the demand for smart speakers. These smart devices are connected with smart speakers to operate them from remote locations.

Key players in the market are integrating various emerging technologies such as artificial intelligence, natural language processing, virtual reality, and augmented reality into smart speaker devices. Thus, such advanced technologies are boosting the adoption of smart speakers across the U.S., thereby driving market growth. The Association for Smarter Homes & Buildings conducted a survey that found that the adoption of smart home technology has risen, with 36% of US households adopting some home automation technology in 2023.

US Smart Speaker Market: Restraints

High Costs of Smart Speakers and Data Security Issues

The manufacturing cost of smart speakers is very high as it requires high-quality raw materials such as electrical components, speakers, resistors, capacitors, transistors, diode, connectors, plastic granules, and semiconductors and other materials.

The cost of these raw materials fluctuates periodically, and coupled with the growing cost of electricity and maintenance, it increases the overall production cost, thereby increasing the selling prices and consequently reducing the adaption among price-sensitive consumers. For instance, the installation cost of smart speakers starts at around USD 360 and quickly goes as high as USD 1000, depending on the size, automation level, and features of the smart speakers.

Smart speakers operate on various technologies and generate and store a large amount of data, which makes them vulnerable to cyber-attacks and creates cyber security threats. Furthermore, growing incidences of unauthorized access, content mismanagement, and misinterpretations by speakers are some of the factors restraining the market’s growth.

Additionally, growing stringent regulations related to noise pollution are expected to restrain the adaptation of smart speakers during the forecast period. Every state in the US has different rules about noise pollution and the usage of smart speakers.

Key players operating in the US smart speaker market find it difficult to design and manufacture smart speakers that comply with such dynamics and state-wide regulations, reducing their adaption. Thus, such factors discourage investment in the market, thereby restraining market growth.

US Smart Speaker Market: Opportunities

Technological Advancements and Innovations

The technological advancements and innovations in smart home products are expected to create lucrative opportunities for the market during the forecast period. The increasing incorporation of various emerging technologies such as artificial intelligence-driven features, virtual reality-built displays, voice assistants, natural language processing, multi-room audio playback, third-party apps and services, and connectivity features with the other smart devices, and intelligent displays are mainly boosting the adaption of smart speakers.

Digital assistance features integrated with Artificial Intelligence technology offer users personalized recommendations and allow smart speakers to perform complex tasks such as personalized songs and post-cast recommendations, contextual understanding, and predictive analysis, more user-friendly deployment of smart speakers, significantly creating market opportunities. Furthermore, the growing internet penetration coupled with the increasing adoption of smartphones is expected to drive the demand for smart speakers during the forecast period.

Additionally, key players are integrating many advanced technologies, such as cloud-based voice services, enhanced data processing integrated with AI features, purpose and custom-built audio features, and various other components, such as MEMS microphones, touch controllers, and new technologies such as radar, which are vital to improving the user experience in the smart speaker segment.

Key players operating in the market collaborate with many residential and commercial builders to install smart speaker devices at ongoing construction projects. Growing investment by the US government and private companies in new residential and commercial construction projects is expected to create lucrative opportunities for smart speakers during the forecast period.

US Smart Speaker Market: Key Trends

Growing Adaption of Display Based Smart Speakers

The key trends observed in the market include end users adapting to display-based and customized smart home speakers. The growing popularity of display-built smart speakers is due to the growing consumer inclination toward convenient products, as smart displays combine the voice control functionality of a smart speaker with a touch screen for even more utility.

The fast paced lifestyle is boosting the adaptation of smart speakers with intelligent displays. Key players operating in the market, such as Amazon, Google, Apple, and Samsung, are integrating intelligent displays with touch screens in the smart speakers for touch controls, visual information, and video streaming. End User are adapting smart speakers integrated with smart displayers for entertainment purposes, watching live feeds from compatible home security cameras, video phone calls, information retrieval and tracking productivity tasks and watching and getting step-by-step instructions for cooking.

Evolving trends in display-based smart speakers include the growing usage of these devices for streaming online content, social networking, and video call features, which is progressively shifting the focus of market leaders toward display-based devices. Thus, the abovementioned factors are expected to create lucrative opportunities for the market during the forecast period.

US Smart Speaker Market: Segmentation Analysis

The US Smart Speaker market is segmented by intelligent virtual assistant, components, price, application, and end user industries. As an intelligent virtual assistant, Alexa dominated the market and is expected to maintain its dominance during the forecast period owing to its growing popularity among residential and commercial applications.

The demand for Alexa smart speakers is increasing across the region due to growing home automation, increasing demand for IoT-enabled devices, and Alexa’s excellent voice assistant features. The demand for connected devices in the US is growing exponentially due to smart home projects. There has also been a 100% increase in requests to Alexa for controlling compatible smart home appliances such as bright lights, plugs, fans, TVs, security cameras, ACs, water heaters, and air purifiers.

As of March 2024, 71.4 million people in the US were using Amazon Alexa. Alexa is available on 60,000 devices and is linked to 100 million devices. In the last couple of years, Alexa has transformed from a reactive assistant to a proactive assistant.

The Google Assistance segment is expected to grow at the fastest CAGR during the forecast period owing to the low cost of its services and easy operational process. Various factors, such as the growing proliferation of Google-enabled smart speakers, the increasing number of connected devices, and the wide spread use of speech technology, are mainly boosting the market growth of this segment during the forecast period.

By component, the hardware-based segment dominated the US smart speaker market and is expected to keep its dominance during the forecast period owing to the low cost of hardware-based smart speaker devices and less maintenance. Growing inclination of consumers towards cost efficient products that offer multiple advanced features. The software segment is expected to grow at the fastest CAGR during the forecast period.

By Price, the medium price segment of smart speakers dominates the market and is expected to remain dominant during the forecast period. The medium price of smart speakers ranges between USD 400 and USD 500; these speakers are mainly used in residential applications. Consumers are increasingly adopting smart speakers of this price range as they offer a cost advantage and contain a lot of advanced features such as smart locks, cameras, smart displays, voice assistants, and intelligent lights.

Growing disposable income coupled with increasing spending on smart home solutions is expected to create lucrative opportunities for market growth in this segment during the forecast period. The high-price segment is expected to grow at the fastest CAGR during the forecast period owing to increasing adaption in commercial applications.

By End user industry, the residential application segment dominated the US smart speaker market and is expected to continue doing so during the forecast period. The growing investment in new residential construction projects and the increasing renovation of old homes are some of the factors mainly driving the market growth of this segment.

As a result, key players operating in the market are collaborating with builders and construction companies to provide smart speakers in their new construction projects. Various factors, such as growing government investment in residential construction projects and supportive government policies such as the affordable housing support program, mainly create lucrative opportunities for this segment during the forecast period.

The commercial application segment is expected to grow at the fastest CAGR during the forecast period, owing to the growing installations of smart speakers in commercial constructions. Various commercial establishments include hotels, educational institutes, retail stores, warehouses and factories.

The growing investment in constructing these commercial establishments, adapting innovative technologies for customer support, and enhancing operational efficiency are expected to create lucrative opportunities for the market during the forecast period.

Report Scope

US Smart Speaker Market: Regional Analysis

The US Smart Speaker market is mainly influenced by regional factors such as the development of residential and commercial construction infrastructure, urbanization, and the increasing adoption of smart homes. Densely populated cities such as New York City, Log Angeles, Texas, Washington DC, California, Florida, Pennsylvania, Chicago, and Los Angeles are renovating their construction projects, boosting smart speakers’ adoption.

Various factors, such as growing investment in residential homes, commercial buildings, education facilities, airports, hotels, and various other establishments, are expected to propel the adaptation of smart speakers during the forecast period.

List of the prominent players in the US Smart Speaker Market:

• Harman International
• Apple Inc.S
• Anvera Corporation
• Altek Lansing
• Sonos Inc.
• Amazon
• Sonos Inc
• Alphabet
• Bose Corporation
• Sony Corporation
• SAMSUNG
• Panasonic Corporation
• Lenovo
• Altec Lansing
• LG Electronics
• Others

The US Smart Speaker Market is segmented as follows:

By Intelligent Virtual Assistance

• Alexa
• Google Assistance
• Siri
• Others

By Component

• Hardware
• Software

By Price

• Low
• Mid
• Premium

By Application

• Smart Home
• Consumer
• Smart Office
• Others

By End Use Industry

• Residential
• Commercial

By Distribution Channel

• Online
• Offline