Northbrook, IL -- (SBWIRE) -- 05/13/2021 -- 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.
North America to continue to hold the largest market share of the smart speaker market during the forecast period
North American countries such as the US, Canada, and Mexico are receptive to products enabled with advanced technologies. The penetration of smart speakers in North American countries, especially in the US, is high owing to the presence of early adopters and key smart speaker providers. The willingness of customers to accept and use new technologies has also encouraged manufacturers in the region to develop new and advanced products. Key players such as Amazon, Google, Apple, and Bose that smart speakers are based in the US, due to which most products are launched and shipped first in this region.
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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.
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.
Key Market Players
Amazon, Inc (Amazon) (US), Apple Inc. (Apple) (US), Alphabet Inc (Alphabet) (US), Baidu, Inc (Baidu) (China), Alibaba Group (Alibaba) (China), Lenovo Group Ltd. (Lenovo) (China), and Xiaomi Inc. (Xiaomi) (China) are among the major players in the smart speaker market.