Smart Speakers Market Analysis Report By Virtual Personal Assistant, By Region And Segment Forecasts From 2018 To 2025

Industry Insights

The global smart speakers market size was worth USD 2.2 billion in the year 2017 and is projected to register a CAGR of 38.7% from 2018 to 2025. The increasing use of smart home devices and technology is shifting consumer preferences towards smart speakers. These speakers have the feature to operate via voice commands which is the major driver of the market. The ability to control the entire house through voice commands has attracted customers to these products, thereby, boosting the market.

Voice assistants like Google Home and Alexa are observing a subsequent rise in popularity among consumers. Alexa dominated the market share with Google acquiring the second largest market share in 2017. Amazon utilized the first-mover strategy with its dominant position in the U.S. regional market since its onset during 2014. Moreover, Google launched Google Home, a smart speaker, mainly in Asian countries like Japan and India, and is anticipated to boost market growth by 2025.

Consumers generally prefer affordable products with multiple features. Alexa gained popularity among the masses owing to its promotional strategies with Alexa-centric advertisements and Whole Foods store. Moreover, Amazon limited its prices to acquire a competitive edge in the overall market.

The smart speaker market growth is expected to increase in the near future due to the rising need for human-to-machine interaction and the automation of domestic tasks. As per the U.S. household data, over 40% of customers in the U.S. adopted smart speakers in their day-to-day lives in March 2018. It is anticipated to gain further traction in the near future. The multi-purpose uses of these speakers for music, entertainment, and sports updates, and voice commands are expected to fuel the demand for smart speakers in the upcoming years.

Virtual Personal Assistant (VPA) Insights

Amazon Alexa held the largest share in 2017 and is highly popular among U.S. consumers owing to its first-mover advantage. Its demand is predicted to increase in the upcoming years due to its features relating to voice assistance and multiple smart home integrations. For example, Linkplay Technologies, Inc., in 2016, integrated with Amazon in order to include Alexa in its smart speakers to increase its penetration in the market.

Google Assistant is expected to register considerable growth and appear as a leading segment over the projected period. The market for Google assistant is expected to significantly increase among Asian countries like Japan and India with Google introducing its products in the region. In the present scenario, the presence of established players like Xiaomi, JD.com, and Alibaba have graced the Chinese market.

Regional Insights

North America held the leading market in 2017 due to the rising need for wireless devices and Internet-of-Things (IoT) services. The increasing trend for convenience goods in the region has surged regional growth.

However, Asia Pacific is expected to surpass the North American market over the forecast period registering a CAGR of above 55.0% from 2018 to 2025. The market is expected to emerge as a lucrative market over the forecast period.

Amazon Alexa accounted for a considerable share in Europe in 2017 due to its popularity in U.K. and Germany. Alexa was followed by Google Home, which is anticipated to acquire the largest share in the European regional market due to its popularity in Italy, France, and Spain. Until June 2018, Google Home has its presence in around 13 European countries while Amazon Alexa is among 11 countries.

Smart Speakers Market Share Insights

The key players include Google, Xiaomi, Apple, and Amazon. Industry participants predominantly emphasize upgrading to the latest versions of the products, spending on technological upgrades, and through various collaborations to increase their market penetration.

Amazon, in 2018, introduced its Alexa Voice-enabled Service (AVS) in the Japanese market. It allowed several other manufacturers to operate AVS and introduce their Alexa-enabled speakers in Japan, thus, acquiring an increased base in the Japanese market.

Conexant Systems, Inc., in May 2017, announced the integration of Amazon, Inc. The organization announced to launch of an upgraded version of the AudioSmart Development Kit called AudioSmart 4-mic Development Kit to help the third-party manufacturers incorporate the voice assistant of Alexa in their products.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global smart speaker market report based on VPA and region:

• Virtual Personal Assistant (VPA) Outlook (Volume, Million Units; Revenue, USD Million, 2015 - 2025)
    • Amazon Alexa
    • Google Assistant
    • Apple Siri
    • Others

• Regional Outlook (Volume, Million Units; Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
        • France
    • Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa