The smart speaker market size is expected to grow at CAGR of over 20 percent during the period from 2018 to 2024
The Smart Speaker Market is expected to witness a significant growth in the next five years due to increasing penetration of IoT technology across the globe.
According to a Global Market Insights report, the global shipments of smart speakers are projected to reach over 500 million units by 2024.
The smart speaker market size was estimated to be over USD 4.5 billion in 2017, but it  is expected to grow at CAGR of over 20 percent during the period between 2018 and 2024.
Several factors, such as growing need to increase consumer convenience and growing network connectivity, will drive the demand, the report said.
The major players operating in the market include Apple Inc., Baidu, LG Electronics, Panasonic Corporation, Sonos, Amazon, Inc., Lenovo, Sony, SK Telecom, Google, Inc.
Increasing usage of the devices in smart homes to boost the market
Smart speaker market in personal applications is expected to hold the majority share of over 90 percent due to the increasing usage of the devices in smart homes. The integration of these devices with devices such as smart lightbulbs, thermostats, and TVs is encouraging the consumers to adopt these devices for personal uses. Devices such as Google Home allow the users to make phone calls and send messages, monitor the user activity, set alarms, and go shopping.
In addition, increasing use of these devices in commercial applications such as banking will further propel the industry growth. Financial corporations and big banks such as the U.S. Bank, Capital One, and American Express are increasingly using virtual assistants to offer services such as paying bills and checking balances using personal assistants such as Alexa and Siri. For instance, in June 2018, the U.S. Bank announced the launch of its voice assistant banking services with Amazon Echo and Google Home in New York.
Intelligent Virtual Assistant (IVA)-enabled devices likely to see high growth
Virtual assistants are projected to undergo a high growth over the forecast timespan. The report revealed that various companies have leveraged this opportunity to launch products integrated with virtual assistants.
Analysts at Global Market Insights have predicted that Siri-enabled smart speaker market will witness a significant growth of over 35 percent during the forecast timespan due to the large established market of Apple and iOS for the smart devices.
In 2017, Alexa-enabled smart speaker market held the majority share of over 70 percent, thanks to its low cost and the many benefits it offers such as controlling smart homes, playing games, and playing music.
The analysts also pointed out that several companies are developing devices equipped with Alexa that are affordable to a wide range of customers. For instance, companies such as Sonos and Fabriq have launched their devices integrated with Alexa voice assistants.
However, the report said that increasing concerns regarding compatibility may restrain the smart speaker market size. It cited that new devices, such as Sonos One and Samsung Bixby, are facing compatibility issues with devices such as Belkin’s WeMo range of switches, Philips Hue, and LIFX.
