What you need to know
- The smart speaker market could grow by more than 20% by 2025.
- That's according to new research from Counterpoint.
- The market is being buoyed by a focus on affordability and devices like the HomePod mini.
A focus on affordability and speakers like the HomePod Mini could see the smart speaker market grow by 20% by 2025.
According to Counterpoint Research:
Smart speakers have gained prominence in recent years due to the rapid growth of the smart home market. A smart speaker is defined as a speaker that is Wi-Fi-enabled, offers interactive functions through voice commands, and acts as a control hub for a smart home. The first smart speaker was Echo, launched by Amazon in November 2014. It quickly became popular in the US. Smart speakers started to take off in China in 2018.
According to Counterpoint estimates, global smart speaker shipments are expected to grow at a CAGR of 21% over the 2020-2025 period, driven by rising consumer awareness, competitive offerings, and technological advancements.
Counterpoint says the main drivers of this will be the proliferation of smart home products like smart TVs and home automation products like smart lights, lock, cameras, and kitchen appliances, many of which thrive when controlled by a smart speaker that serves as a hub.
Other factors include the development of better AI and machine learning, and the entry of "internet giants" such as Google, Amazon, and of course, Apple. Another major factor is a focus on affordability, and Counterpoint notes that Apple has dropped its large HomePod in favor of the smaller and cheaper HomePod mini, one of the best smart speakers available.
The growth of smart speakers with displays is also expected to be a factor, which is interesting because it is rumored that Apple is working on a HomePod with a display.