Smart Speaker Market with COVID-19 Impact Analysis by IVA Alexa, Google Assistant, Siri, DuerOS, Ali Genie

[136] The global smart speaker market size is expected to reach USD 15.6 billion by 2025 from USD 7.1 billion in 2020, at a CAGR of 17.1%. The growth of the smart speaker market can be attributed to the growing demand for smart speaker display, the increasing number of smart homes, rising disposable income, and the rapid proliferation of multifunctional devices.

Alexa is expected to hold a major share of the smart speaker market during the forecast period

Amazon launched the Alexa IVA smart speaker Echo in 2014. Since then, the platform is used in Amazon’s Echo device series and smart speakers offered by most companies. Alexa speaker is offered in more than 80 countries, thus covering a wide audience from which the company gathers usage data and continually improves its service. The increasing sales of electronic devices are expected to drive the growth of the segment.

Download PDF Brochure @

https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=44984088

The smart home segment to be the largest contributor to the smart speaker market during the forecast period

Smart home is the major application of smart speakers owing to their features and usability. Smart speakers can control smart devices with the user’s voice, thus making day-to-day tasks easy. With a voice command, the user can control all smart devices by connecting the device to the Internet. Smart speakers understand the natural way of speaking and are less complicated to operate than other smart devices. The changing lifestyles, increasing per capita income, and the inclination of smart home owners toward luxurious entertainment systems have spurred the demand for smart speakers in smart homes.

The increasing penetration of smart devices in APAC countries, along with the rising market share of Chinese players such as Baidu, Alibaba, and Xiaomi, who have launched smart speakers with local language support, is expected to fuel the demand for smart speakers in the region.

The software segment to grow at the highest CAGR during the forecast period

In the coming years, smart speakers will expand their operations. To perform these operations, more data would be sensed or processed by smart speakers. To process this large volume of data, advanced software would be needed. Hence, there would be a requirement for advanced software that can work on a complex set of databases.

Amazon has done significantly well in economies such as India, the UK, and Germany. The markets in APAC and Europe are growing significantly. Consumers are attracted to new technological advancements in smart speakers and innovative products in this market. The company has opportunities to grow its business in these technologically advancing economies and can further increase its share in the smart speaker market. Amazon is ramping up efforts to expand the market for its smart speakers in Asia through the launch of new products as well as increasing tie-ups with local device makers. Since the last few years, the company has been pushing to bring Alexa voice assistant into vehicles, either through integration or through its Echo Auto Device. In January 2020, Amazon expanded its Echo Auto sales internationally. The company launched Amazon Echo Auto for the Indian market. The Amazon Echo Auto smart speaker brings the power of Alexa inside a car. The expansion of Echo Auto in the Indian market could give a big boost to Alexa’s presence in cars.

Alphabet is one of the most diversified companies, with products ranging from consumer durables to business solutions for enterprises. In the smart speaker market, the company has a strong portfolio, with Google Home product series and Google Assistant intelligent voice assistance. The company has collaborated with several companies to integrate Google Assistant into smart devices, thus increasing its market share. Alphabet is known for its continuous innovation in its products. The company has made efforts to expand its AI offerings. Google has adopted organic growth strategies to maintain its position in the smart speaker market.