The total number of Amazon Alexa skills continues to grow at a steady pace in selected countries. As of January 2021, the skill count for Amazon Alexa has grown to 80,111 in the United States. The most noticeable jump in the number of skills was noticed in Spain at 10,549 with the last year just at 4,673.

As of January 2021, there were over 80 thousand skills contained within Amazon Alexa in the United States' model, with the United Kingdom coming in second with over 39.3 thousand skills. It is interesting to note, that from January 2020 to January 2021 there were a little less than ten thousand skills added to Alexa's programming in the United States alone.

In a little over three years, Amazon’s Alexa has gone from having 130 skills to over 100,000 skills as of September 2019. Introduced in November 2014, Alexa is a virtual assistant artificial intelligence technology developed by Amazon and used through Amazon’s services such as Amazon Echo.

Alexa’s used across the globe    

Virtual assistants like Amazon’s Alexa are increasingly becoming a commonplace feature of many consumer electronics devices. As the worldwide adoption of digital voice assistants continues to increase rapidly, so does the number of skills being performed by these devices. Amazon’s Alexa performs the most functions in the United States, followed by the United Kingdom, and India, as of January 2020. Alexa is the platform supported by the highest number of devices, estimated as high as 60,000 supported devices worldwide.

“Sorry, what did you say?”   

As the smart device industry continues to expand, companies are increasingly searching for wider and better uses of “smart” technology. Google’s Siri is ranked the highest in terms of its ability to correctly understand and answer to queries, while Siri and Alexa are next in line. Despite this, the accuracy of interpreting queries by consumers still remains the biggest hurdle to the worldwide adoption of voice technology. Many consumers worldwide find accent or dialect related recognition issues to be a major problem for voice technology adoption.

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US Smart Home Speaker Market Size 2024-2028

The US smart home speaker market size is forecast to increase by USD 4.64 billion at a CAGR of 20.6% between 2023 and 2028.

The market is witnessing significant growth due to the increasing functionalities and automation capabilities of innovative devices. Voice-controlled devices, powered by virtual assistants and natural language processing, are revolutionizing digital life by offering hands-free convenience. 
The integration of artificial intelligence (AI) enhances user experience, enabling devices to learn and adapt to individual preferences. However, concerns over privacy and security threats associated with these devices may hinder market growth. As traditional speakers become obsolete, the demand for smart home speakers continues to rise, making it an attractive market for technology companies.

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The primary appeal of smart home speakers lies in their convenience. With built-in microphones and natural language processing capabilities, users can easily manage schedules, play music, and control other smart home devices without lifting a finger. Voice commands allow for hands-free operation, making these devices an essential addition to any home. Connectivity is another significant advantage of smart home speakers. These devices offer seamless integration with streaming music services, podcasts, audiobooks, and various entertainment platforms.
Moreover, these voice-controlled devices offer advanced functionalities, including media control, environmental management, and even security features. The integration of artificial intelligence (AI) further enhances their capabilities, enabling users to perform complex tasks and access information with ease. Traditional wireless Bluetooth speakers have become obsolete in the face of smart home speakers' versatility. These devices offer a more comprehensive user experience, combining the functionality of a speaker with the convenience of a virtual assistant and smart home controller. 

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Platform

  Amazon Alexa
  Google Assistant
  Others


Distribution Channel

  Online
  Offline


Geography

  US

By Platform Insights

The Amazon Alexa segment is estimated to witness significant growth during the forecast period.In the US market, smart home speakers have gained significant traction as a preferred platform for digital voice assistants. These cloud-based voice services have expanded their presence beyond smartphones, tablets, computers, and wearables, finding a niche in the smart home sector. The primary reason for this trend is the integration of digital voice assistants with IoT devices, enabling users to control various smart house functions with simple voice commands. Amazon Alexa is a prominent digital voice assistant that powers several smart home speakers, including Amazon's Echo, Echo Dot, Echo Plus, Echo Spot, Echo Show, Echo Look, and devices from third-party manufacturers.

Moreover, Amazon Alexa, a popular digital voice assistant, is integrated into various smart home speakers, including those manufactured by Amazon and third-party brands. Alexa's capabilities extend beyond basic voice control, allowing users to stream music, order groceries, check the weather, and even control connected home devices with ease. By providing hands-free convenience and seamless integration with various services, smart home speakers equipped with voice assistants have become indispensable tools for many US consumers.

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The Amazon Alexa segment was valued at USD 1.01 billion in 2018 and showed a gradual increase during the forecast period.

Our market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Market Driver

Rapidly increasing unit sales of smart home speakers is the key driver of the market. The smart home speaker market in the US has witnessed notable growth in recent years, with devices featuring advanced voice-activated assistants from Google and Amazon becoming increasingly indispensable for users. In 2021, these two tech giants, Amazon and Alphabet Inc. (Google), are expected to hold a significant market share in terms of smart home speaker shipments. Amazon, with its popular line of Alexa-enabled Echo devices such as the Echo Dot, led the market in Q3 2021, accounting for approximately 26% of the total smart home speaker sales.

The

Digital voice assistants are versatile and can be used with different devices. A 2021 survey carried out in the United Kingdom showed that Siri, the voice assistant service of Apple, was mostly used on mobile phones (89 percent). Google Assistant was also widely used on smartphones (68 percent) in the UK. On the contrary, 78 percent of survey participants used Amazon Alexa with smart speakers, as Amazon Echo was one of the first smart speaker introduced to the mass public and has a leading market share.

Amazon is the leading vendor in the global smart speaker market, having a market share of 28. percent in the first quarter of 2022. Google is Amazon’s closest competitor, with a share of 17.2 percent in the same quarter. Chinese vendors Baidu, Alibaba and Xiaomi have become strong players in recent quarters, thanks to growing demand in the Chinese domestic market.

Smart speaker

A wireless speaker with an integrated virtual voice assistant, a smart speaker performs tasks such as seeking information, playing music, making a shopping list, etc., upon receiving voice commands from users. Since Amazon introduced its pioneering Echo speaker into the consumer market in 2015, the smart speaker has gained increasing popularity among consumers. The market became more dynamic after Google entered the competition with its Google Home speaker and shipment figures went up dramatically, from 6.57 million in 2016 to a projected 186 million in 2021.

In 2021, Amazon Alexa was overall the most popular voice assistant in the United Kingdom, a survey revealed. Seventy-one percent of respondents aged between 55 and 64 years old reported to use the voice assistant provided by Amazon, although only 32 percent of voice assistant respondents between 18 and 24 years old stated the same. Younger users showed a stronger preference for Siri, the voice assistant of Apple.

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Smart Speaker Market Size 2024-2028

The smart speaker market size is forecast to increase by USD 50.75 billion at a CAGR of 34.28% between 2023 and 2028.

The market is experiencing significant growth, driven by the rapidly increasing unit sales of these devices. This trend is fueled by the convenience and accessibility they offer, as well as the increasing popularity of voice commerce.
However, the market also faces challenges related to privacy and security concerns, as smart speakers constantly listen and record user interactions. These issues may hinder the adoption rate of smart speakers in some households. It is essential for manufacturers to address these challenges by implementing robust security measures and transparent data handling practices to maintain user trust and ensure the continued growth of the market.

What will be the Size of the Smart Speaker Market During the Forecast Period?

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The market is experiencing significant growth, driven by the increasing adoption of smart homes and IoT technologies. Smart speakers, as wireless voice-enabled devices, serve as central hubs for controlling various smart home devices and appliances. According to recent studies, The market is projected to expand at a compound annual growth rate of over 20% through 2025. This expansion is fueled by the integration of advanced sensors, voice assistance, and intelligent virtual assistants into these devices. Digital technology companies are investing heavily in data-steered innovations to enhance user experiences and expand functionalities. Smart speakers, which can be connected via Wi-Fi or Bluetooth, are revolutionizing the way we interact with our homes and appliances, making daily tasks more convenient and efficient.
The virtual assistant-enabled smart speakers market is experiencing rapid growth, with millions of households worldwide owning a wireless voice-enabled device in 2021, according to Consumer Intelligence Research Partners (CIRP). These devices, which include display-based smart speaker devices and wireless speakers, serve as smart home hubs, controlling various smart home appliances and entertainment systems through artificial intelligence of things (AIoT) and natural processing language (NPL). However, the integration of AI and the constant connectivity of these devices pose potential security risks, making it essential for users to prioritize privacy settings and updates. As the market continues to evolve, intelligent virtual assistants like Siri, Alexa, and Google Assistant are expected to revolutionize conventional home entertainment systems and enhance our daily lives with seamless integration into the AIoT ecosystem
The integration of smart speakers with various smart home products and appliances is expected to further boost market growth.

How is this Smart Speaker Industry segmented and which is the largest segment?

The smart speaker industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  Residential
  Commercial


Distribution Channel

  Offline
  Online


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    Japan


  South America



  Middle East and Africa

By End-user Insights

The residential segment is estimated to witness significant growth during the forecast period.

The residential segment of the market is experiencing notable growth due to the increasing demand for these devices in households. The convenience of voice control and their ability to connect with various digital streaming platforms and home appliances make smart speakers an essential addition to modern homes. The popularity of digital content and subscription services, such as Amazon Prime, Netflix, and YouTube, has further accentuated the need for smart speakers in managing household entertainment. As a result, there has been a consistent trend towards the adoption of smart speakers for personal use in households worldwide. These devices serve as a central hub for managing and accessing digital content and home automation, making them an indispensable tool for homeowners.

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The residential segment was valued at USD 2.92 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 48% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The North American market for smart speaker

Digital voice assistants are versatile and can be used with different devices. A 2021 survey carried out in Germany showed that Siri, the voice assistant service of Apple, was mostly used on mobile phones (86 percent). Two-thirds of German respondents used Google Assistant on their phones as well. On the contrary, Amazon Alexa was used with smart speakers in 67 percent of cases, as Amazon Echo was one of the first smart speaker introduced to the mass public and has a leading market share.

The statistic shows the unit shipments of Amazon Echo smart speakers worldwide from 2014 to 2025. The Echo's unit sales stood at 32 million in 2018. In 2025, it is estimated that about 130 million Amazon Echo will be sold globally.

According to Amazon, Indian customers interacted with the digital assistant Alexa 68 percent more in 2021 compared to the previous year. The most common interaction that year was to ask Alexa to play a song which amounted to about 216 thousand requests per day. This was followed by product-related queries on the Amazon shopping app.

In 2021, Alexa and Siri were the most popular voice assistant in the United States, a survey revealed. Around forty percent of individuals aged over 55 years old reported to use the voice assistant provided by Amazon, while 60 percent of users aged between 18 and 24 years old showed a preference for Siri, the voice assistant of Apple.

Digital voice assistants are versatile and can be used with different devices. A 2021 survey carried out in the United States showed that Siri was mostly used on mobile phones (90 percent), being the voice assistant service of Apple. Google Assistant was also widely used on smartphones (75 percent) in the U.S. On the contrary, 66 percent of U.S. survey participants used Amazon Alexa with smart speakers, as Amazon Echo was one of the first smart speaker introduced to the mass public and has a leading market share.

In the first quarter of 2022, market leader Amazon shipped ten million smart speakers worldwide, while runners-up Google and Baidu only shipped between five to six million smart speakers each. Smart speakers with an integrated virtual assistant can carry out tasks based on users’ voice command and provide control over smart home functions.

Amazon's software agent Alexa
Of the smart speakers sold in 2019, the vast majority were smart speakers with no embedded display and were supported by a smart assistant. Amazon's smart assistant, Alexa, has around 100,000 skills as of September 2019, a jump from 25,000 skills at the end of 2017. In addition to being the intelligent personal assistant connected to Amazon's Echo smart speakers, Amazon's Alexa is compatible with over 60,000 types of smart home devices, the most of any smart assistant system.

Google and Amazon speakers in comparison
Although Google was trailing behind Amazon in terms of speaker sales and unit shipments, its voice assistant has been a strong contender for consumers' preferences: when evaluated on how well the assistant responded to a variety of questions, Google Assistant scored the highest. As of 2019, Google Assistant is also the most frequently installed voice assistant, tied with Apple’s Siri at an installed base of 500 million each, while Amazon had an installed base of 100 million.

In 2020, there will be 4.2 billion digital voice assistants being used in devices around the world. Forecasts suggest that by 2024, the number of digital voice assistants will reach 8.4 billion units – a number higher than the world’s population.

Virtual assistants

Virtual assistants, an increasingly commonplace feature of many consumer electronics devices, can respond to commands, provide users with information, and assist in the control of other connected electronics. There are over 110 million virtual assistant users in the United States alone, and the software is especially common in smartphones and smart speakers. As of 2019, Amazon’s Alexa was supported on around 60,000 different smart home devices around the world, providing an excellent example of just how popular the software has become.

“Smart” everything

Virtual assistants have become a key component of the smart device industry, being absolutely integral to the way that consumers interact with their devices. As the industry grows and its technology becomes more advanced, companies are increasingly searching for bigger and better uses of “smart” technology. Tech savvy consumers can now communicate with their connected homes and vehicles in much the same way that they can with their smartphones.

In 2021, Google dominated the smart speaker market in Australia with a 57 percent share. Smart speakers with Google Nest allow the user to connect to Google Assistant via voice control in order to play music, read out news, and control smart home devices among other functions.

Smart speaker shipments worldwide are forecast to grow to more than 150 million units in 2021, with Amazon leading the market with around 42.5 million smart speaker shipments in that year. Google and the Chinese companies Alibaba, Xiaomi, and Baidu are also projected to hold a significant share of the market.

From 2004 to 2024, the net revenue of Amazon e-commerce and service sales has increased tremendously. In the fiscal year ending December 31, the multinational e-commerce company's net revenue was almost 638 billion U.S. dollars, up from 575 billion U.S. dollars in 2023.Amazon.com, a U.S. e-commerce company originally founded in 1994, is the world’s largest online retailer of books, clothing, electronics, music, and many more goods. As of 2024, the company generates the majority of it's net revenues through online retail product sales, followed by third-party retail seller services, cloud computing services, and retail subscription services including Amazon Prime. From seller to digital environment Through Amazon, consumers are able to purchase goods at a rather discounted price from both small and large companies as well as from other users. Both new and used goods are sold on the website. Due to the wide variety of goods available at prices which often undercut local brick-and-mortar retail offerings, Amazon has dominated the retailer market. As of 2024, Amazon’s brand worth amounts to over 185 billion U.S. dollars, topping the likes of companies such as Walmart, Ikea, as well as digital competitors Alibaba and eBay. One of Amazon's first forays into the world of hardware was its e-reader Kindle, one of the most popular e-book readers worldwide. More recently, Amazon has also released several series of own-branded products and a voice-controlled virtual assistant, Alexa. Headquartered in North America Due to its location, Amazon offers more services in North America than worldwide. As a result, the majority of the company’s net revenue in 2023 was actually earned in the United States, Canada, and Mexico. In 2023, approximately 353 billion U.S. dollars was earned in North America compared to only roughly 131 billion U.S. dollars internationally.

During a 2024 survey conducted in the United Kingdom, it was found that 46 percent of respondents aged between 35 and 44 years owned a smart speaker. Respondents aged between 45 and 54 years old recorded the highest share of speaker owners, nearly 50 percent, followed closely by those between 35 and 44 years old.

The global smart speaker market was valued at 11.9 billion U.S. dollars in 2019, increasing the tally from the previous year. By 2025, projections suggest that this annual figure could grow to over 35.5 billion U.S. dollars.

The couch-side companion
Smart speakers not only serve as speakers for music and entertainment but also allow users to issue voice commands and control other smart devices. This is performed through the support of a virtual assistant, such as Apple's Siri or Amazon's Alexa. Amazon is the market leader and ships the largest share of smart speakers. In contrast, it was Google's Assistant that consistently scored the highest when tested through different types of questions.

Do you want a visual or audio control panel?
In addition to voice assistants, smart speakers sometimes have a smart display embedded in the device. This can provide the benefit of controlling other smart home connected devices or providing visual information to accompany the verbal command or query. Currently, consumers largely purchase smart speakers without an embedded display, perhaps indicating a tendency of using smart speakers for non-visual activities such as listening to music, asking questions, and checking the weather. However, it appears more people are incorporating using displays into their smart speaker experiences, as smart displays are expected to become more and more widespread in the coming years.