According to the latest report released by market research institutions, affected by the new crown epidemic and the popularity of non-contact lifestyles, the global smart speaker market will usher in a new round of development opportunities. It is expected that the global smart speaker market will reach 11 billion US dollars by 2023. . According to the report, the global smart speaker market is expected to grow from $5.5 billion in 2019 to $5.7 billion in 2020, a growth rate of 3%. The sluggish growth in 2020 is mainly due to the outbreak of the new coronavirus COVID-19 and the measures taken to curb the economic development of various countries.
The global smart speaker market is expected to grow and reach US$11 billion by 2023, with a growth rate of approximately 24.5%. As consumers' preference for technologically advanced products continues to increase, so does the penetration of smartphones and smart devices. However, despite the growing consumer preference for smart speakers, the main hurdles that may still hold the market back are data privacy and security concerns.
The smart speaker market includes sales of smart speakers and related products, including Bluetooth, Wi-Fi enabled wireless devices integrated with AI-enabled virtual assistants. The smart speaker market includes revenue generated from the sale of speakers with virtual assistant smarts such as Alexa, Google Assistant, Siri, and Cortana, etc., which are distributed to personal and business users through online or offline channels for smart home, smart office, Automotive, commercial and more applications.
Virtual assistant devices powered by artificial intelligence provide homeowners with the ultimate luxury. They are constantly listening to orders, analyzing requirements and executing tasks when necessary. North America was the largest region in the smart speaker market in 2019. Asia Pacific was the second largest region in the smart speaker market in 2019. As consumers' preference for technologically advanced products increases, so does the penetration of smartphones and smart devices. Enhance personal use of smart devices Integrate smart devices with devices such as smart light bulbs, thermostats, and televisions.
Consumer interest in technologically advanced products has driven the widespread adoption of smart speakers. According to statistics, in 2018, the shipment of smart speakers has reached 114 million, and it has grown rapidly to 205 million in 2019, and is expected to reach 325 million by 2020. In 2019, Amazon integrated LIDAR (lidar) technology into the Amazon Echo, enabling it to recognize gestures, type of food, and even the clothes you're wearing.
In India, the total number of smartphone users in 2019 was 502.2 million, a significant increase from 468 million in 2017, and the Indian smartphone market is expected to gain 859 million users by 2022. Encouraging regional manufacturers to produce innovative and advanced products with customers is expected to drive regional market adoption of emerging technologies. Aside from the increased consumer preference for smart speakers, the main drawbacks associated with the market are data privacy and security. These devices have access to personal information stored on the server, such as contact details, banking details, and login credentials that raise security concerns.
Devices in a smart home can access sensitive data such as videos, photos, personal information that can be accessed and manipulated from anywhere. In 2019, a survey conducted in the United States indicated that non-smart speaker users are more concerned about data and privacy reasons, such as the risk of hacking (63%), smart speakers being constantly listening (55%) and being monitored by the government (40%) Compared with 2017, it is 41%, 36% and 34% respectively. For smart speaker users, they also agree with the above data and privacy issues. If the security aspects are not addressed, these issues may hinder the market growth.
A 2019 survey indicated that Amazon Alexa/Echo captured 70% of the U.S. market, followed by Google Home (25%) and Apple HomePod (5%), mostly because of entry-level devices like the Google Home Mini Sales are very high, and smart speakers, including the Amazon Echo Dot, are reasonably priced. Likewise, the surge in the use of smart voice assistants has in turn propelled the smart speaker market growth.