Technavio predicts the Smart Speaker Market growth of USD 16.6 Billion from 2022 to 2027

August 17, 2023 by our News Team

Smart speaker market is projected to experience significant growth in the coming years, driven by increasing unit sales, popularity of voice commerce, and the versatility of features offered by the devices, despite the challenges posed by privacy and security threats.

  • Rapidly increasing unit sales of smart speakers
  • Increasing popularity of voice commerce
  • Comprehensive insights into the market's competitive landscape

The smart speaker market is projected to experience significant growth in the coming years, according to a new market research report by Technavio. The report estimates that the market will grow by USD 16,659.23 million between 2022 and 2027, with a compound annual growth rate (CAGR) of 18.75% during the forecast period.

The report highlights the growing competition in the market, which is driving companies to adopt various growth strategies such as promotional activities and increased spending on advertisements. This is aimed at improving the visibility of their services and attracting more customers. Some of the key players in the market include Alphabet Inc., Inc., Apple Inc., Bang and Olufsen Group, Belkin International Inc., Bose Corp., Edifier International Ltd., Imagine Marketing Pvt. Ltd., Lenovo Group Ltd., LG Electronics Inc., NXP Semiconductors NV, Onkyo Corp., Portronics Digital Pvt. Ltd., Qualcomm Inc., Samsung Electronics Co. Ltd., Sonos Inc., Sony Group Corp., Xiaomi Communications Co. Ltd., Zebronics India Pvt. Ltd., and Zound Industries International AB.

One of the major drivers of market growth is the rapidly increasing unit sales of smart speakers. Major players like Amazon, Alphabet (Google), and Apple have played a significant role in driving this growth. Smart speakers offer various features such as music streaming, weather updates, alarms, radio, games, Smart Home control, news, product search, calls, traffic updates, messaging texts, and even shopping. This versatility has led to increased consumer interest and investment in smart speakers.

Another major trend in the market is the increasing popularity of voice commerce. Voice commerce is being recognized worldwide as an alternative to traditional online ordering and purchasing methods. Smart speakers equipped with virtual assistants like Amazon Alexa or Google Assistant allow users to easily search and buy products online using voice commands. This method offers fast and convenient shopping, attracting users with its hands-free operation, multitasking ability, and quick response.

However, the market also faces significant challenges, particularly in terms of privacy and security threats associated with smart speakers. Many consumers are concerned about the potential threat to their privacy and personal data when using smart speakers. Manufacturers have been known to hire people to listen to voice recordings recorded by smart speakers in users’ homes, which raises privacy concerns. In addition, weak or default passwords for internet-connected smart speakers can be hacked, compromising the user’s network and making it easier to download malware. These privacy and security threats are expected to restrict market growth in the coming years.

Overall, the smart speaker market is poised for significant growth in the forecast period. The report provides comprehensive insights into the market’s competitive landscape, key drivers, major trends, challenges, and market positioning of companies. It also offers a detailed analysis of the market’s segmentation by end-user (residential and commercial), distribution channel (offline and online), and geography (North America, Europe, APAC, South America, and Middle East and Africa).

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Background Information

About Alphabet: Alphabet Inc. is the parent company of Google and several other subsidiaries. Alphabet was founded in 2015 as part of a corporate restructuring of Google. The company's headquarters are in Mountain View, California, USA. It is involved in various technology-related businesses, including internet services, self-driving cars, and more.

About Inc: Amazon, founded by Jeff Bezos in 1994, has evolved from an online bookstore into a global e-commerce and technology powerhouse. It's now known for its vast array of products, including electronics, apparel, household items, and more. With a user-friendly interface and efficient delivery services, Amazon has revolutionized online shopping. Beyond e-commerce, the company has expanded into various areas such as cloud computing (Amazon Web Services), digital streaming (Amazon Prime Video), and smart devices (Amazon Echo). Amazon's innovative strategies, like its personalized recommendations and the introduction of Prime membership benefits, have reshaped consumer expectations. The company's influence extends to entertainment, technology infrastructure, and beyond, making it a pivotal player in the modern digital landscape. Inc website Inc LinkedIn

About Apple: Apple Inc., known for its iconic products, was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976. The company has since revolutionized the technology landscape with innovations like the Macintosh computer, iPod, iPhone, iPad, and more. for its emphasis on design, user experience, and ecosystem integration, Apple's devices and software have made a profound impact on various industries. With a commitment to quality and innovation, Apple remains a global technology leader.

Apple website  Apple LinkedIn

About Belkin: Belkin is a important company for its wide array of computer products and accessories, catering to the ever-evolving needs of technology enthusiasts and professionals. With a rich history in designing and manufacturing innovative solutions, Belkin has established itself as a trusted brand in the realm of computing. Its diverse product lineup spans across various categories, encompassing connectivity solutions such as cables, adapters, and hubs, which seamlessly integrate with modern computing setups. Additionally, Belkin's range of laptop and desktop accessories, including docking stations, laptop stands, and keyboard cases, reflects the company's commitment to enhancing user productivity and comfort. The company's expertise extends to networking equipment, with routers, switches, and Wi-Fi range extenders designed to optimize network performance and connectivity. By consistently pushing the boundaries of technology, Belkin has solidified its reputation for producing reliable and high-quality products that seamlessly integrate with users' digital lives.

Belkin website  Belkin LinkedIn

About Bose: Bose Corporation, founded in 1964 in the United States, is a leading company in the audio equipment industry. They are famous for their premium audio products, including headphones, speakers, and sound systems. Bose is recognized for its dedication to delivering superior sound quality and innovative audio solutions.

Bose website  Bose LinkedIn

About Google: Google, founded by Larry Page and Sergey Brin in 1998, is a multinational technology company known for its internet-related services and products. Initially for its search engine, Google has since expanded into various domains including online advertising, cloud computing, software development, and hardware devices. With its innovative approach, Google has introduced influential products such as Google Search, Android OS, Google Maps, and Google Drive. The company's commitment to research and development has led to advancements in artificial intelligence and machine learning.

Google website  Google LinkedIn

About Lenovo: Lenovo, formerly known as "Legend Holdings," is a important global technology company that offers an extensive portfolio of computers, smartphones, servers, and electronic devices. Notably, Lenovo acquired IBM's personal computer division, including the ThinkPad line of laptops, in 2005. With a strong presence in laptops and PCs, Lenovo's products cater to a wide range of consumer and business needs. Committed to innovation and quality, Lenovo delivers reliable and high-performance solutions, making it a significant player in the tech industry.

Lenovo website  Lenovo LinkedIn

About LG: LG Electronics, headquartered in Seoul, South Korea, is a global technology company for its diverse portfolio of innovative products. With a presence in various industries, including consumer electronics, home appliances, mobile devices, and more, LG is a leader in technological advancements. LG offers a range of laptops and monitors that combine sleek design with advanced features, catering to both personal and professional needs.

LG website  LG LinkedIn

About Qualcomm: Qualcomm, a leading American global semiconductor and telecommunications equipment company, has played a pivotal role in shaping the modern technology landscape. Founded in 1985, Qualcomm has been at the forefront of innovation, particularly in the realm of mobile communications and wireless technology. The company's advancements have been instrumental in the evolution of smartphones, powering devices with their Snapdragon processors that deliver exceptional performance and efficiency. With a strong commitment to research and development, Qualcomm has enabled the growth of 5G technology, paving the way for faster and more connected experiences.

Qualcomm website  Qualcomm LinkedIn

About Samsung: Samsung, a South Korean multinational conglomerate, has established itself as a global leader in various industries, including electronics, technology, and more. Founded in 1938, Samsung's influence spans from smartphones and consumer electronics to semiconductors and home appliances. With a commitment to innovation, Samsung has contributed products like the Galaxy series of smartphones, QLED TVs, and SSDs that have revolutionized the way we live and work.

Samsung website  Samsung LinkedIn

About Sony: Sony Corporation, a global conglomerate for its diverse range of innovative consumer electronics and entertainment products, has also made significant strides in the realm of computer products. Leveraging its expertise in engineering and technology, Sony has introduced laptops, tablets, and accessories that blend sleek design with robust performance. These computer products bear the hallmark of Sony's commitment to quality and innovation, catering to both casual users and professionals seeking powerful computing solutions. With a history of pushing technological boundaries, Sony's computer products showcase its dedication to creating devices that seamlessly integrate into modern lifestyle

Sony website  Sony LinkedIn

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