Endorsed with a dynamic competitive landscape, the global smart speaker market is expected to continue its torrid growth in the years to come, with Amazon, Google, and Apple battling for dominance in the business realm. Not to be outdone by the Echo, Google Home, and Apple’s HomePod, Samsung has also been developing an artificial intelligence powered smart speaker of its own. According to recent reports, the Korea-based electronics giant’s long-rumored Bixby smart speaker will be out in the mainstream in the second half of 2018, and is expected to ramp up the company’s lackluster reputation in the global smart speaker market.
This fierce competitive terrain where smart speaker market players are constantly trying to strengthen their position stands as a substantiation to the fact the number of smart speaker users are growing at an extraordinary rate. Technological advancements, quality, efficiency, price, and user friendliness are some of the parameters on the grounds of which industry contenders have been vying with one another. As per reliable estimates, Amazon’s Echo, significantly faring on the first mover advantage in the smart speaker industry is expected to account for more than 50% of the installed base in 2018. Google Home devices are expected to follow the trend by accounting for 30%, while Apple’s HomePod stands at mere 4% in 2018.
While the established tech behemoths are desperate to prove the scale & scope of their platforms to developers, several innovative companies are also expected to exploit the sizeable opportunities in this space. However, it remains to be seen how these startups & trivial companies will survive against the materializing dominance of the established magnates. LG Electronics, Sony, Onkyo, Harman International Industries, Inc., Fabriq, and Lenovo are some of the other prominent smart speaker market players that are expected to cater to the increasing product demand in the ensuing years.
What’s driving the robust product penetration?
The unprecedented proliferation of Internet of Things giving rise to the ‘connected world’ has had a significant impact on the growth prospects of the global smart speaker market. The increasing variety of electronic devices that are keeping the users connected to the internet and other applications such as digital camera, music players, social networking apps, gaming, weather information, e-book readers, GPS navigation, etc., have further fortified the product demand. Besides sound and entertainment, smart speakers have further extended their functionalities to include other important applications such as setting reminders, live music & news streaming, problem solving, and even ordering kitchen & household supplies with the help of integrated virtual assistants.
Another major factor that has propelled smart speaker industry sales is the affordable price of these products. The strategic move of the industry magnates to launch mini versions of the speakers such as the Amazon’s Echo Dot and Google Home Mini at just $49 have insistently spurred the product sales. In addition, marketing strategies and discounts have further enabled an entry-level smart speaker to be incredibly affordable, pushing the global smart speaker market share.
Over 70% of the U.S. households will have smart speakers by 2020, China to emerge as the next viable ground for smart speaker industry
The U.S. is so far one of the leading regions in terms of smart speaker market expansion. With rising demand for technologies that improve day-to-day lives, smart speakers have emerged as the best fits for several customers. Furthermore, the rapidly increasing rate of propagating smart homes and offices has also majorly influenced the product sales in the U.S.
China is still a nascent land for the growth of smart speaker market, however, active participation and heavy investment trends of local players such as Xiaomi and Alibaba are expected to drive the regional growth prospects. Analysts deem that China has massive potential, with over 400 million households – apparently, over three times the number in the U.S. – and would therefore emerge as a lucrative ground for potential investors.
Speaking of the future trends, smart speaker industry majors are expected to take their products beyond smart homes and are expected to deploy them in range of new scenarios. For instance, with the recent partnership between Marriott & Amazon, the AI-powered smart speakers are all poised to become virtual travel agents. With the global population becoming increasingly tech-savvy, it wouldn’t be surprising to see smart speakers profoundly challenging the smartphone penetration rate in the years ahead.
The latest research offering on smart speaker market is a July 2018 publication of 300 pages supported with 372 data tables, 29 figures and is now available with MarketStudyReport.com at https://www.marketstudyreport.com/reports/smart-speaker-market.