A smart speaker is a wireless and smart audio playback device with multifunctional connectivity. Such speakers have different features that maximise the ease of use and attached to multiple audio sources with additional functionality. Some of the smart speakers also have voice-activated digital assistants that can serve as hubs for home automation.
What are opportunities that will drive the growth for smart speakers?
Smartelctra
The global market size of the smart speaker was US$ 1.5 billion in 2018 and is expected to reach US$ 8 billion by 2025.
Some of the driving factors behind the global smart speaker market growth are the emergence of smart home devices, the rise in demand for multifunctional speakers, the rising income levels, and inclination towards smart gadgets. The increasing demand for multifunctional devices worldwide is expected to drive the smart speakers market further.
Smart speakers can also act as a hub for connecting to different digital channels, TVs and devices. Smart speakers deliver digital streaming services with voice control features.
The flipside of the smart speaker market growth faces some significant obstacles. So far, privacy and security are one of the biggest challenges. The general lack of compatibility between smart speaker products and other connected devices is another key issue for the industry. Additionally, the high prices are expected to hinder the market growth of smart speakers.
The leading suppliers, including Amazon, Google and Apple, have built their products to communicate with other compatible devices and also use proprietary system software.
Haseeb
Smart speakers companies are increasing the focus on improving customer experience generating enormous market growth opportunities. The rise of smart speakers tends to be correlated with the rising subscribers to services such as Netflix, Amazon Prime and other entertainment platforms.
Besides, the deployment of the 5G network is expected to boost online streaming, which will create more market growth opportunities for smart speakers.