The smart speaker market size is projected to grow from US$4.4 million in 2017 to $23.3 million by 2025 at a compound annual growth rate [CAGR] of 23.4%, according to Valuates.
A smart speaker is a type of speaker and voice control system with an integrated virtual assistant that offers interactive behavior and hands-free activation. Demand for smart speakers has been steadily growing, especially in smart homes, owing to increased consumer demand for advanced, multifunctional products. In addition, the proliferation of smartphones has allowed applications to stream music to a specific unit, increasing demand for smart speakers, according to Valuates.
The highest smart speaker market share, region wise, was held by North America with 36.9%. However, Asia-Pacific is predicted to show the highest growth rate for the smart speaker market, with a CAGR of 24.93%.
Valuates says trends influencing the global smart speaker market include:
- The continuous need among homeowners for a convenient and relaxed lifestyle has led to the rapid growth of connected solutions in smart homes. This shift in people’s lifestyles has a direct impact on smart speaker market growth. Furthermore, the smart speaker’s ability to integrate seamlessly with the smart home devices has increased smart speaker market size.
- The virtual assistant device integration has created new pathways for the smart speaker market. Virtual assistants are expected to experience a higher growth over the predicted time span, and this ability has been leveraged by numerous companies to launch virtual assistant integrated products. This proliferation of virtual assistance is, in turn, driving the smart speaker market.
- Other factors that positively influence the growth of the market are increased customer willingness to invest in trend innovations and increased use of smart devices among the younger generation.
