Smart Speaker Market

Global Smart Speaker Market Size (2024 to 2029)

The global smart speaker market is projected to grow from USD 25.99 billion in 2024 to USD 122.9 billion by 2029, growing at a CAGR of 36.44% from 2024 to 2029.

The smart speaker is a wireless speaker activated by Bluetooth, Wi-Fi, or other wireless protocols and powered by a virtual assistant, which is driven by artificial intelligence. It is the latest technological innovation that dominates the consumer technology market and is activated by voice commands to perform various tasks, such as listening to music, ordering food and buying online. It also shows other activities, such as obtaining weather information, breaking news, listing daily activities and integrating with smart appliances. These multiple functions provide an advantage for smart speakers compared to other alternative technology products and services.

MARKET DRIVERS

The growing trend of smart homes is primarily driving the smart speaker market growth. The smart home is the main application of smart speakers due to its features and ease of use. Smart speakers can control devices with the user's voice, which makes everyday tasks easier. With a voice command, the user can control all smart devices by connecting them to the Internet. Smart speakers understand the natural way of speaking and are less complicated to use than other smart devices, which makes it an easy tool for older and busy people. Consumers increasingly adopt smart speakers due to the comfort offered by the device. The smart speaker can control all smart devices, through a smartphone and an Internet connection.

The growing usage of smart speakers in smart offices is further fuelling the growth rate of the smart speaker market. Smart offices are increasingly advanced with the growing implementation of smart speakers. Smart speakers that make life easier and more efficient for consumers in smart homes can also be used in work environments. Smart speakers are physically designed to be compatible with the office environment. Comfort is a crucial factor in the growing demand for smart office speakers. In a smart office environment, especially in customer service applications at retailers and call centers, smart speakers know how businesses work and help business owners make better decisions quickly.

The rising usage of smart speakers in the automotive industry is contributing to the global market growth. The demand for smart speakers used in automotive applications is increasing rapidly due to their compactness and compatibility with other devices. The smart speaker is a hands-free, voice-activated device. It allows users to change radio stations, find a button to change the song or receive calls while driving without looking at the music system and smartphone, which increases security.

Furthermore, an increase in the number of smart homes, the increase in disposable income, the increasing trend of customization and the rapid proliferation of multifunction devices are the main factors that play an essential role in the growth of the global smart speaker market. The growing demand for smart home devices is the crucial factor driving the growth of the global smart speaker market. Other factors influencing the market growth are the increased willingness of the consumer to invest in advanced technologies and the increased use of smart devices among the younger generation. In addition, the development of partnerships between smart home manufacturers and smart speaker creators enables seamless integration with the smart speaker. This turns out to be a critical factor in the adoption of smart speakers.

MARKET RESTRAINTS

However, with the use of smart speakers, the privacy of user data becomes a major problem for consumer demand. The smart speaker offers personalized service to its users through the collection and analysis of user data. The potential for manufacturers to exploit private user data and the threat of illegal cyberattacks to invade privacy limit demand for these smart speakers. Also, the complexity of training virtual assistants to speak multiple languages around the world limits the global reach of these speakers.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Smart Speaker Market Analysis By Intelligent Virtual Assistant

The sales of Amazon's Alexa skyrocketed in recent years with the increasing purchases in developing economies like India, China, and others. 

Global Smart Speaker Market Analysis By Applications

The residential segment accounted for the dominant portion in the international marketplace due to the rising demand for smart homes and consumer rising disposable income in several parts of the globe.

Global Smart Speaker Market Analysis By Distribution Channel

With the increasing mobile commerce, the online segment is foreseen to account for the highest revenue share in this business in the outlook period.

REGIONAL ANALYSIS 

The North American smart speaker market is expected to dominate the global market during the forecast period due to the presence of leading manufacturers and suppliers of smart speakers such as Google Inc. and Amazon.com. The North American region is also growing rapidly due to the adoption of new technologies such as IoT and artificial intelligence in several end-user applications.

KEY PLAYERS IN THE GLOBAL SMART SPEAKER MARKET

Companies such as Amazon.com, Inc., Microsoft Corp, Apple, Inc., Alibaba Group, Alphabet Inc. (Google Inc.), Sonos, Inc., Bose Corporation, Xiaomi, Samsung Electronics Co. Ltd., Baidu Inc. and Plantronics, Inc. (Altec Lansing/AL Infinity, LLC) are some of the major players in the global smart speaker market.

DETAILED SEGMENTATION OF THE GLOBAL SMART SPEAKER MARKET INCLUDED IN THIS REPORT

This research report on the global smart speaker market has been segmented and sub-segmented based on the intelligent virtual assistant, component, application, distribution channel, and region.

By Intelligent Virtual Assistant

• Alexa

• Google Assistant

• Cortana

• Siri

• Others

By Component

• Hardware

• Software

By Applications

• Residential

• Commercial

By Distribution Channel

• Online

• Offline

By Region

• North America

• Asia Pacific

• Latin America

• Europe

• Middle East & Africa