Smart Speakers Market Size was valued at USD 11.86 Billion in 2023. The Smart Speakers industry is projected to grow from USD 13.79 Billion in 2024 to USD 39.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.13% during the forecast period (2024 - 2032). Increasing demand for display-based smart speaker devices and consumers' growing preference for technologically advanced products are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for smart speakers is being driven by the increasing growth of display devices is assisting in sustaining the growth of the market. Major players in the market are increasingly switching to display-based devices owing to evolving use cases, including watching online content, social networking, and video call features. Key players provide a huge range of smart display device products. For instance, in September 2020, Baidu announced financing for Smart Living Group (SLG), including Xiaodu smart devices and the DuerOS voice assistant platform. Further, the funding is a Series A financing with a valuation of USD 2.9 billion.
The fast development of linked solutions in smart homes is a result of homeowners' constant desire for easy and pleasant living. Since 2012, a growing number of smart devices have been released into the market. Consumers' attention is turning towards smart devices as a result of the ability to operate household appliances using an Internet connection and a mobile device. The development of IOT, the rising need for convenience, security, and safety, as well as the expansion of energy-saving goods and solutions, are all factors that have contributed to the growth of smart devices in smart homes. Customers who own smart speakers may speak remotely to manage linked gadgets in their homes. Because of this, smart speakers—which serve as a centre for smart homes—are the most important and popular gadgets in smart homes. It is simple to connect to smart devices and carry out tasks like controlling lighting, playing music, and browsing the Internet thanks to the built-in smart home hub. Users may access mobile devices wirelessly, which is convenient. Additionally, smart speakers take up less room than conventional home entertainment systems. People in both technologically sophisticated and developing nations are quickly switching from conventional speakers to smart speakers as a result of these benefits. In the upcoming years, the expansion of smart speakers with virtual assistants is anticipated to be driven by the development of smart home gadgets.
Furthermore, with growing customer expenditure on smart devices that are transportable, comfortable to use, and inbuilt with cutting-edge technology, there has been a substantial shift in customer preference regarding the usage of technology in daily life. Moreover, consumer demand for multifunctional, fast, varied, and reliable solutions has pushed many speaker manufacturers to integrate voice assistance into speakers. Connected devices and solutions have become prevalent among consumers due to their user-friendliness. The emergence of smart speakers has allowed users to join online platforms and facilitated real-time communication on the go with enhanced convenience, comfort, safety, and security.
The rising demand for Amazon Alexa has augmented the smart speaker market growth and is expected to retain its dominance over the forecast period. Amazon Alexa has the first-mover advantage and is very popular among consumers. Amazon Alexa integration with numerous other smart home appliances and the craze for the Internet of Things (IoT devices among millennials is anticipated to retain its popularity and project to increase the smart speakers market revenue.
The Smart Speakers Market segmentation, based on intelligent virtual assistants, includes Alexa, Google Assistant, Cortana, Siri, and others. The Alexa segment dominated the market, accounting for 35% of market revenue (4.15 Billion). In developing economies, category growth is driven by its first-mover advantage. This adoption is expected to enhance over the next few years due to Alexa's multiple smart home integrations and Amazon's strategy to offer its voice assistant to various emerging players in the market. However, Google Assistant is the fastest-growing category as it provides utilizers with a quick and easy way to perform various tasks, such as setting reminders, answering questions, and making purchases.
The Smart Speakers Market segmentation is based on application, personal use, and commercial use. The commercial use category generated the most income (70.4%). This is due to the growing adoption of smart assistants for businesses that help manage business tasks with increased efficiency. Commercial use of these speakers helps employees stay prepared, organized, and focused, eventually boosting productivity. However, personal use is the fastest-growing category owing to the increasing use of home and individual entertainment devices.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American smart speakers market will dominate this market, owing to the growing demand for Internet-of-Things (IoT)-enabled services and wireless devices. Increasing consumer inclination toward convenience goods in the region drives market growth. Further, the US smart speakers market held the largest market share, and the Canada smart speakers market was the fastest-growing market in the North American region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe smart speakers market accounts for the second-largest market share due to an increase in internet and smartphone usage in the region is driving the adoption of intelligent speakers, which are becoming increasingly accessible to consumers. Further, the German smart speakers market held the largest market share, and the UK smart speakers market was the fastest-growing market in the European region.
The Asia-Pacific smart speakers market is expected to grow at the fastest CAGR from 2024 to 2032. The trend towards smart homes is growing in this region, with consumers looking for ways to make their homes more efficient and convenient, including the use of intelligent speakers. The use of voice-activated technology, such as voice assistants, is growing rapidly in the region, driving the demand for the market. Moreover, China smart speakers market held the largest market share, and the India smart speakers market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the smart speakers market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the smart speakers industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global smart speakers industry to benefit clients and increase the market sector. Major players in the smart speakers market, including Harman International (US), Apple Inc. (US), Sonos, Inc. (US), Alphabet (US), and Baidu, Inc (China), and others, are attempting to increase the market demand by investing in research and development operations.
Amazon.com Inc is a web service provider and online retailer. The organization provides products such as apparel, beauty and health products, electronics, auto and industrial items, grocery, games, jewelry, music, sports goods, toys, kids and baby products, and tools. It also offers related support services, including home delivery and shipping, cloud web hosting and other web-related services. Amazon merchandises these products through company-owned online and physical platforms. It also manufactures and commercializes various electric devices such as Kindle e-readers, fire tablets, fire TVs, Echo, Alexa and other devices. The company allows authors, musicians, filmmakers, and others to publish and sell content. In September 2022, Amazon introduced the next generation of Echo Dot and Echo Auto, giving utilizers more methods to convey the convenience of Alexa to each room of the home and into the car.
Xiaomi Inc, a subsidiary of Xiaomi Corporation, is a mobile internet company. It offers various products, including Xiaomi phones, televisions, and smart devices. The company also provides fitness bands, power banks, and accessories, including lifestyle items, headphones, bluetooth devices, protective cases, back covers, and smart bands. In addition, Xiaomi also provides air purifiers, security cameras, sensors, routers, smart LED bulbs, portable mice, handheld vacuum cleaners, mi electric scooters, and backpacks. In July 2022, Xiaomi launched its second-ever smart speaker in India. The Xiaomi smart speaker has new and improved features such as IR Control, smart home control center, balanced sound field, LED clock display, and more.
Harman International (US.)
Apple Inc. (US.)
Sonos, Inc. (US.)
Alphabet (US.)
Baidu, Inc (China)
Bose Corporation (US.)
Sony Corporation (Japan)
Onkyo & Pioneer Corporation (Japan)
SAMSUNG (South Korea)
Panasonic Corporation (Japan)
Lenovo (China)
Altec Lansing (US.)
Xiaomi (China)
SK Telecom Co., Ltd. (South Korea)
LG Electronics (South Korea)
February 2023: Sonos, the company best known for its top-quality quality speakers and soundbars, is preparing to release a new smart speaker generation speaker in the coming months. The speakers, codenamed Optimo, were previously leaked and are expected to compete with Apple's HomePod and other related smart speakers from companies such as Google and Amazon.
December 2021: Google introduced its artificial intelligence-powered virtual assistant in Saudi Arabia. Google has been particularly adapted to understand all Saudi dialects and react in standard Arabic. These features will permit Google to sing and joke in the Arabic language.
October 2020: Apple Inc. launched Home Pod mini speaker compatible with Apple's voice assistant Siri and Edge software. Further, the HomePod mini is enabled with Wi-Fi and smart home capabilities with built-in security and privacy.
Alexa
Google Assistant
Cortana
Siri
Others
Personal Use
Commercial Use
North America
Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 11.86 Billion |
| Market Size 2024 | USD 13.79 Billion |
| Market Size 2032 | USD 39.7 Billion |
| Compound Annual Growth Rate (CAGR) | 14.13% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Intelligent Virtual Assistant, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Amazon.com (US), SK Telecom Co Ltd (South Korea), Altec Lansing/AL Infinity, LLC (US), Bose Corporation (US), Harman International (US), Alibaba Group Holding Ltd (China), Panasonic Corporation (Japan), Apple Inc. (US), and Xioami Corporation (China) |
| Key Market Opportunities | Increasing demand for the display-based smart speaker devices |
| Key Market Dynamics | Growing preference of consumers for technologically advanced products |
Smart Speaker Market Highlights:
Frequently Asked Questions (FAQ) :
The Smart Speakers Market size was valued at USD 11.86 Billion in 2023.
The global market is projected to grow at a CAGR of 14.13% during the forecast period, 2024-2032.
North America had the largest share of the global market
The key players in the market are Amazon.com (US), SK Telecom Co Ltd (South Korea), Altec Lansing/AL Infinity, LLC (US), Bose Corporation (US), Harman International (US), Alibaba Group Holding Ltd (China), Panasonic Corporation (Japan), Apple Inc. (US), and Xioami Corporation (China).
The Alexa category dominated the market in 2023.
Commercial use had the largest share of the global market.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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