Smart Speaker Market Size, Share, Forecast, & Trends Analysis by Type (Display and Non-display), Audio Output Mode, Portability, Wattage, Distribution Channel (Online Retail and Offline Retail), Application (Personal Usage and Commercial Usage) - Global Forecast to 2031

Smart Speaker Market Size & Forecast

The Smart Speaker Market is expected to reach $48.8 billion by 2031, at a CAGR of 18.6% from 2024 to 2031, while in terms of volume, the market is expected to reach 143.1 million units by 2031, at a CAGR of 3.6% from 2024–2031.

The growth of the smart speaker market is driven by the growing number of smart homes, the proliferation of multifunctional devices, and the growing demand for voice-activated devices. However, connectivity range issues restrain the growth of this market.

Furthermore, the increasing consumer preference for technologically advanced products and the increasing demand for display-based smart speaker devices are expected to offer significant market growth opportunities.

Smart Speaker Market Growth Drivers

• Growing Number of Smart Homes

Smart speakers often serve as central hubs for smart home systems, enabling users to control various devices through voice commands. Their popularity has surged in recent years, driven by the proliferation of smart homes. Smart speakers are equipped with communication capabilities via voice commands and typically connect via Wi-Fi. They act as control centers for managing smart home devices. The growing demand for smart speaker systems in residential applications is expected to drive increased product demand in the near future. As more households embrace smart technologies for controlling lighting, thermostats, security cameras, and household appliances, the demand for smart speakers is expected to rise.

The proliferation of smart home products, advancements in artificial intelligence technology, and the increasing popularity of display-based devices are expected to create growth opportunities for market players. Furthermore, various market players are initiating innovative initiatives to drive market development. For instance, in June 2021, ProKNX (France) launched an offline multilingual voice-controlled system for smart homes. This system performs all the functions of traditional home automation assistants while prioritizing user privacy. The ProKNX plug-and-play smart speaker operates locally via Wi-Fi, allowing users to control lights, blinds, heating, Sonos speakers, and smart televisions using natural voice commands without recording or storing user data.

• Growing Demand for Voice-activated Devices

The surging demand for voice-activated devices is a significant driver for the smart speaker market. Voice-activated devices, including smart speakers, offer hands-free operation, allowing users to perform various tasks with just their voice commands. Voice-activated interfaces make technology more accessible to a broader range of users, including those with disabilities or limited mobility. By enabling interaction through natural language, smart speakers cater to individuals who may have difficulty using traditional interfaces like keyboards or touchscreens.

Voice-activated devices are ideal for smart homes. They allow users to control lights, thermostats, appliances, and other compatible devices using just their voice. This seamless integration creates a more connected and automated living experience. Such factors help to drive the growth of the growth of the smart speaker market.

Click here to: Get a Free Sample Copy of this report

Smart Speaker Market Trends

• Advancements in Natural Language Processing (NLP)

Advancements in Natural Language Processing (NLP) are significantly shaping trends in the smart speaker market as Improved NLP allows smart speakers to understand complex sentences and respond in a way that feels more natural. This makes conversations with smart speakers smoother and less frustrating, leading to a more positive user experience. With advancements in NLP, smart speakers are evolving towards more natural and conversational interfaces. Users can engage in more complex interactions with their devices, asking questions, issuing commands, and engaging in dialogue in a manner that feels intuitive and human-like.

Moreover, NLP advancements enable smart speakers to handle multi-turn conversations, where users can ask follow-up questions or provide additional context without having to repeat themselves. This enhances the conversational flow and allows for more nuanced interactions, making smart speakers more versatile and useful.

• Focus on Multi-Room Audio and Smart Displays

Multi-room audio capabilities allow users to synchronize audio playback across multiple speakers in different rooms, creating an immersive and cohesive listening experience throughout the home. Smart speakers equipped with this feature can appeal to consumers seeking enhanced entertainment options and audio quality. Furthermore, by emphasizing multi-room audio, smart speakers become integral components of whole-home audio systems. Manufacturers can capitalize on this trend by offering products and services that enable seamless connectivity and control of audio playback across multiple rooms, providing convenience and flexibility to users.

Smart speakers with multi-room audio capabilities serve as central hubs for integrating and controlling various smart home devices and services. Manufacturers can leverage this opportunity to expand their ecosystem and offer a comprehensive solution for home automation, entertainment, and communication.

Smart Speaker Market Opportunity

• Increasing Consumer Preference for Technologically Advanced Products

As consumer spending on portable and user-friendly smart devices equipped with advanced technology continues to rise, there has been a notable shift in consumer preferences toward integrating technology into daily life. Technological advancements have enabled smart speakers to deliver personalized experiences tailored to individual preferences and usage patterns. This customization can encompass personalized recommendations, voice recognition for multiple users, and adaptive responses based on past interactions. By prioritizing customization and personalization features, manufacturers can appeal to consumers who desire a more tailored and intuitive user experience.

Furthermore, the increasing consumer demand for multifunctional, fast, versatile, and reliable solutions has incentivized many speaker manufacturers to incorporate voice assistance capabilities into their products. Connected devices and solutions have gained popularity among consumers due to their ease of use and accessibility. The advent of smart speakers has enabled users to seamlessly connect with online platforms and engage in real-time communication while on the move, offering enhanced comfort, convenience, safety, and security. The rising technological adoption in emerging markets and regions is expected to offer opportunities for smart speaker manufacturers to broaden their market presence and tap into new consumer segments. These factors are expected to drive the growth of the smart speaker market during the forecast period.

Smart Speaker Market Analysis: Key Findings

By Audio Output Mode: In 2024, the Surround Segment to Dominate the Smart Speaker Market

Based on audio output mode, the global smart speaker market is segmented into stereo and surround. In 2024, the surround segment is expected to account for the larger share of 77% of the global smart speaker market. This segment's significant market share can be attributed to the benefits offered by surround smart speakers, including hands-free interaction and the delivery of high-fidelity audio experiences. These features make surround smart speakers particularly appealing to audiophiles seeking a voice-controlled smart home speaker with exceptional sound quality. Moreover, continuous innovation in the tech sector is driving the development of advanced and affordable surround smart speaker options.

Additionally, the surround segment is projected to register the highest CAGR during the forecast period.

By Type: In 2024, the Non-display Segment to Dominate the Smart Speaker Market

Based on type, the global smart speaker market is segmented into display and non-display. In 2024, the non-display segment is expected to account for the larger share of the global smart speaker market. The segment's large market share can be attributed to several factors, including the simplicity of manufacturing these types of speakers, which results in a lower price point. This affordability makes them accessible to a wider range of consumers, especially those who are budget-conscious. Additionally, these speakers excel at voice interaction, enabling a seamless hands-free experience, which is particularly appealing for multitasking or situations where using a phone or screen is inconvenient.

Furthermore, various key players are launching various non-display smart speakers. For instance:

• In June 2023, Amazon.com, Inc. (U.S.) launched a new affordable Echo smart speaker in India, namely, the Echo Pop. This smart speaker features a unique semi-sphere design and supports Alexa. The company claims that the AZ2 Neural Edge processor in the speaker enables faster responses to requests made to Alexa. The Echo Pop can track cricket scores, control smart lights, set alarms and reminders, and perform other activities.
• In January 2023, Apple introduced the HomePod (2nd generation), a powerful smart speaker that delivers exceptional acoustics. Packed with Apple innovations and Siri intelligence, the HomePod offers advanced computational audio for a groundbreaking listening experience, including support for immersive Spatial Audio tracks.

However, the display segment is projected to register the highest CAGR during the forecast period. The growth of this segment can be attributed to the benefits offered by smart displays, such as enhanced functionality, improved user experience, visual entertainment, multitasking capabilities, and enhanced accessibility. Furthermore, smart displays act as a central hub for controlling various smart home devices. With a visual interface, users can monitor and manage their smart home ecosystem more intuitively. Additionally, smart displays provide a richer and more intuitive user experience compared to traditional voice-only smart speakers.

By Portability: In 2024, the Wireless Smart Speakers Segment to Dominate the Smart Speaker Market

In 2024, the wireless smart speakers segment is expected to account for the larger share of 84% of the global smart speaker market. This segment's large market share can be attributed to several factors, including advancements in voice recognition technology, increased demand for smart home devices, convenience and user-friendly interfaces, expansion of the IoT ecosystem, competitive pricing, and ongoing technological innovations in smart speaker design. Furthermore, the rising popularity of music streaming platforms, podcasts, and audiobooks has fueled demand for devices that can deliver premium audio content seamlessly. Smart speakers offer seamless integration with popular streaming platforms, thereby enriching the overall user experience.

Additionally, the wireless smart speakers segment is projected to register the highest CAGR during the forecast period.

By Wattage: In 2024, the up to 99W Segment to Dominate the Smart Speaker Market

Based on wattage, the global smart speaker market is segmented into up to 99W, 100W to 199W, 200W to 499W, 500W to 799W, and more than 800W. In 2024, the up to 99W segment is expected to account for the largest share of the global smart speaker market. The segment's large market share can be attributed to the superior sound quality, deeper bass, and louder volume levels offered by speakers within this range (up to 99W), appealing to audiophiles and users who prioritize high-quality audio experiences. As consumer demand for immersive audio continues to rise, there is an increasing preference for smart speakers with higher power output.

However, the 100W to 199W segment is projected to register the highest CAGR during the forecast period. Smart speakers within this wattage range (100W to 199W) are versatile and serve applications beyond consumer use, particularly in professional settings like offices, retail stores, restaurants, and event venues. The increasing demand for these speakers for business and commercial purposes drives the growth of this segment.

By Distribution Channel: In 2024, the Online Retail Segment to Dominate the Smart Speaker Market

Based on distribution channel, the global smart speaker market is segmented into online retail and offline retail. In 2024, the online retail segment is expected to account for the larger share of the global smart speaker market. Online platforms enable customers to effortlessly browse, compare, and purchase smart speakers from the comfort of their homes or while on the move using various devices. Moreover, online retailers offer a wide range of smart speakers spanning different brands, models, and price points, providing consumers with various options tailored to their preferences and requirements. Additionally, the competitive pricing offered by online retailers, facilitated by lower overhead costs compared to brick-and-mortar stores, is a significant draw for price-conscious consumers seeking the best deals on smart speakers. These factors contribute to the large market share of the online retail segment.

Additionally, the online retail segment is projected to register the highest CAGR during the forecast period.

By Application: In 2024, the Personal Usage Segment to Dominate the Smart Speaker Market

Based on application, the global smart speaker market is segmented into personal usage and commercial usage. In 2024, the personal usage segment is expected to account for the larger share of 89% of the global smart speaker market. The segment's large market share can be attributed to the hands-free operation and voice control capabilities offered by smart speakers, enabling users to perform a wide range of tasks through voice commands. Furthermore, smart speakers have evolved beyond their traditional role of playing music, now facilitating functions like making calls, sending messages, setting reminders, shopping online, and providing news updates, making them indispensable devices for everyday use.

Additionally, the personal usage segment is projected to register the highest CAGR during the forecast period.

Geographical Analysis

In 2024, North America is expected to account for the largest share of 39% of the global smart speaker market. North America's significant market share can be attributed to the growing consumer preference for convenience-oriented products. This region has been an early adopter of technologically advanced products, reflecting the willingness of consumers to embrace and integrate new technologies into their lives. This trend has, in turn, spurred manufacturers to innovate and develop increasingly advanced products. Furthermore, the U.S. and Canada stand out as leaders in technology adoption across various sectors. Additionally, North America benefits from the presence of major smart speaker providers and the widespread adoption of these devices, which further accelerates the growth of this regional market.

However, the market in Asia-Pacific is projected to register the highest CAGR of 20% during the forecast period. The growth of this regional market can be attributed to the availability of a diverse range of smart appliances and systems, the rising adoption of advanced technologies, continuous technological advancements in IoT devices, and the presence of established market players in the region.

Additionally, the growth of the smart speaker market in Asia-Pacific is supported by the increasing production of consumer electronics, the growing population, and the rapid increase in purchasing power parity (PPP). Furthermore, smart speakers equipped with local language support have significant potential for growth in technologically advancing countries across the region.

Smart Speaker Market: Competitive Analysis

The report offers a competitive analysis based on an extensive assessment of the product portfolios and geographic presence of leading market players and the key growth strategies adopted by them over the past 3–4 years. Some of the key players operating in the smart speaker market are Apple Inc. (U.S.), Amazon.com, Inc. (U.S.), Bose Corporation (U.S.), Google LLC (U.S.), Harman International Industries, Inc., (U.S.), Baidu, Inc. (China), Sony Group Corporation (Japan), Sonos, Inc. (U.S.), Panasonic Holdings Corporation (Japan), Samsung Electronics Co., Ltd. (South Korea), Lenovo Group Limited (China), SK Telecom Co., Ltd. (South Korea), LG Electronics Inc. (South Korea), Onkyo Corporation (Japan), and Xiaomi Corporation (China).

Smart Speaker Industry Overview: Latest Developments from Key Industry Players

• In October 2023, Sonos, a U.S.-based audio device maker, introduced the Sonos Era 300 and Sonos Era 100 smart speakers in India. The Era 300 is designed to provide an exceptional out-loud spatial audio experience with Dolby Atmos, whereas the Era 100 is an updated version of its Sonos One model.

• In December 2022, Tuya Smart (China), a global IoT development platform service provider, collaborated with three of its German partners—NOUS, Mango, and Nedis—for a social media campaign showcasing the latest smart home products and solutions to German consumers, aiming to boost the rapid development of the country's smart home ecosystem. As part of this campaign, Nedis introduced an "Energy Saving Kit" designed to enable consumers to easily manage their home climate. The Smart Climate Control Starter Kit includes five products: a Zigbee Gateway, a Smart Gen Clock 2 Smart Speaker, a Zigbee Radiator Thermostat, a Zigbee Climate Sensor, and a smart socket.

• In March 2022, Teladoc Health, Inc. (U.S.), a multinational telemedicine and virtual healthcare company, partnered with Amazon (U.S.) to launch its telehealth service integrated with Amazon's Alexa technology, marking a significant expansion of Teladoc's consumer reach. This collaboration enables users to access healthcare services through Amazon Alexa, allowing for hands-free consultations with health professionals to address various healthcare needs.

Smart Speaker Market Research Summary:

Key questions answered in the smart speaker market report: