In January 2024, around 34 thousand downloads of the Amazon Alexa app were reported in Australia according to AppMagic. The highest number of downloads was recorded in December 2020, coinciding with the holiday season.

Among Amazon Echo users, the most shopped category was e-commerce retail, with one-fourth of users shopping online in 2022. Second was food purchases, with 16 percent of users spending on this category. Only 5 percent of Amazon Echo users shopped for home improvement items.

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.

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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.

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

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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

Google.com was the website with the most page views per day in Bolivia in February 2022, according to ranking by Alexa. The website had more than 18.49 daily page views and was followed by Unitel.bo, with 11 page views per day that month. Within Latin America, Mexico was the country where Amazon Alexa contained the largest number of skills.

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.

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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.

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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

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Voice Controlled Devices Market 2024-2028

The voice controlled devices market size is estimated to grow at a CAGR of 23.07% between 2023 and 2028. The market size is forecast to increase by USD 10.51 billion. The growth of the market depends on several factors, including convenience and improved user experience, the rise in digital transformation initiatives, and the rising tendency to use smart controlled devices. A voice-controlled device is an electronic device that can respond to and execute commands that are given verbally. These devices utilize speech recognition technology to comprehend and interpret human speech, convert it into written language, and then carry out various tasks or activities in response to voice commands.

The report includes a comprehensive outlook on the Voice Controlled Devices Market, offering forecasts for the industry segmented by Component , which comprises hardware and software. Additionally, it categorizes Distribution Channel into offline and online, and covers Geography regions, including North America, APAC, Europe, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.

What will be the size of the Voice Controlled Devices Market During the Forecast Period?

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Voice Controlled Devices Market Overview

Driver

Convenience and improved user experience is the key factor driving market growth. Voice-controlled devices provide users with the ability to interact with technology with ease, allowing them to carry out their daily activities conveniently and efficiently. Through voice control, users can execute commands without the need to navigate complicated environments or operate devices manually. Devices such as smartphones, smart speakers, and smart home appliances provide hands-free control, which facilitates multi-tasking.

In addition, voice control improves the user experience by offering a more natural and user-friendly interface. Voice assistants such as Siri, Alexa, and Google Assistant comprehend and react to human speech, providing personalized assistance and information to users. Thus, such factors will propel the growth of the market during the forecast period.

Trends

The rising popularity of voice e-commerce is the primary trend shaping market growth. The concept of voice commerce is gaining popularity across the globe. Voice commerce is a technology that provides an alternative to using a keyboard and mouse or smartphone to order and purchase products online. Consumers can give voice commands to smart speaker-enabled virtual assistants such as Google Assistant or Amazon Alexa to search for and buy products online.

Moreover, consumers prefer voice commerce over traditional input methods due to advantages such as hands-free operation, the ability to order when multi-tasking, and faster responses and results. In addition, online purchases are made easier with the innovative options present in smart speakers. Therefore, the increasing popularity of voice commerce will be a major trend driving the demand for voice-based user interfaces, which, in turn, will fuel the growth of the market during the forecast period.

Restrain

Issues related to user privacy and cybersecurity threats is a challenge that affects market growth. In many countries, network security in high-security zones is assumed to pose a high national security risk as these network areas may be the target of terrorist attacks. Using voice-based user interfaces over mobile and cloud networks can lead to cybersecurity and data breach issues due to increased data-sharing over the network. In addition, some nations have restricted a few application areas of voice-controlled devices, including vehicle and infrastructure communication, due to security concerns.

Furthermore, voice-controlled devices can be a potential target for hackers, as their systems are controlled by machine intelligence and sensors that use the Internet. Therefore, the threat of hacking into such network systems is high. Therefore, such factors may impede the growth of the global voice controlled devices market during the forecast period.

Voice Controlled Devices Market Segmentation By Component

The market share growth by the hardware segment will be significant during the forecast period. Voice-enabled devices use advanced technology to incorporate voice recognition and natural language processing (NLP). Some of the hardware components in voice-controlled devices are microphones, speakers, processors, memory, and connection modules. Microphones are essential for voice-controlled devices to interpret voice commands and respond to these user commands accurately.

Get a glance at the market contribution of various segment

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.

Global smart speaker market revenues reached an estimated 11.8 billion U.S. dollars in 2018, more than doubling the tally from the previous year. By 2022, forecasts suggest that this annual figure could grow to nearly 28 billion, representing continued rapid growth within the market.

Smart speakers

Smart speakers are a relatively recent innovation in the consumer electronics industry which not only serve as speakers for music and entertainment, but also allow users to issue commands and control other smart devices. Around 35 million smart speaker devices will be shipped in the United States in 2019, as a growing number of consumers around the country begin to incorporate the technology into their homes. Common uses of the technology include listening to music, asking questions, and checking the weather.

Virtual assistants

Smart speakers utilize virtual assistant technology to respond to user requests and carry out various tasks. Amazon’s Alexa, Google’s Assistant, and Apple’s Siri are three of the most popular virtual assistants and can be accessed through various smartphones, smart speakers and other smart devices. There are over 111 million voice assistant users in the U.S. alone with millions more around the world.

During a 2022 survey conducted in the United Kingdom, it was found that listening to music via a streaming service like Spotify, Apple Music, or Deezer was the main activity performed on smart speakers by respondents, with 86 percent stating that they did this. By contrast, only 14 out of the 100 interviewees claimed to use smart speakers to listen to audiobooks.

Smart speakers

Smart speakers are loudspeakers powered by a virtual intelligent assistant and can be controlled by spoken commands. Such speakers can perform various tasks, for example streaming audio content, answering calls, setting alarms, answering questions on several topics, and communicating with other devices. Given their capabilities, smart speakers are often set up as smart home hubs. Nowadays, several brands offer smart speakers, with Amazon Alexa, Google Home, and Apple HomePod mini being among the most popular. In January 2023, Apple announced the release of their second generation HomePod.

Smart home

The expression “smart home” refers to a home setup where devices and appliances are controlled remotely through an internet connection. The smart home market is forecast to grow in the coming years, reaching a size of over 142 billion U.S. dollars in 2023. The markets include several subsegments, examples of which include smart appliances, control and connectivity, security, and entertainment. The growth of the market is in line with the increasing number of smart homes worldwide, which is expected to amount to roughly 353 million by 2023.

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.

According to a 2023 study, 40 percent of German households owned a smart speaker. This proportion reached nearly a quarter in Spain. Smart speakers, powered by a voice-enabled virtual intelligent assistant, are the central controlling hubs for many smart home functions and are used for entertainment, answering questions, searching the web, among many other tasks.

The booming industry of smart home technology

The global smart speaker market is projected to count over 200 million units by 2024, a number that will keep increasing in the coming years. This trend is in line with the rising popularity of smart home technology, with the number of smart homes forecast to grow and surpass 400 million by 2024 as consumers are drawn to the many functionalities these related technologies have to offer.

Familiar big tech companies are major players in the smart home market

Companies including Google, Amazon, and Apple have driven the development of smart home technology with their smart speaker products such as Amazon Alexa and Echo, and Google Nest. Nevertheless, many additional tech and consumer electronics companies have entered the smart speaker market in recent years. As of 2022, Chinese vendors Xiaomi, Baidu, and Alibaba combined accounted for almost one-third of the global smart speaker sales. As the number of automated tasks is forecast to increase in coming years, this fierce competition is likely to continue.

In 2022, 46 percent of respondents from the United Kingdom indicated using Amazon's Alexa. Google's voice assistant is used least among all respondents.

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.

When asked about "Smart home device ownership", 35 percent of UK respondents answer "Yes, smart speakers with an integrated virtual assistant (e.g., Amazon Echo)". This online survey was conducted in 2024, among 4,030 consumers.

Amazon es el principal fabricante de altavoces inteligentes a nivel mundial, con una cuota de mercado del 28,2% en el primer trimestre de 2022. Google le sigue en el ranking a una distancia notable, con un 17,2% sobre el total de los envios de ese trimestre. Por su parte, los vendedores chinos Baidu, Alibaba y en especial Apple han ido ganando protragonismo en los últimos trimestres, gracias a la creciente demanda dentro de su propio mercado nacional.