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Research Outline

Prepared for Stuart A. | Delivered November 25, 2020

Smart Speaker Market

Goals

To provide a detailed overview of the smart speaker market. A current valuation of the market and its growth rate along with a competitive analysis of the leading operators in the market will be provided. The research will also focus on providing information on the target audience, current users and thier usage practices for the device. An industry outlook, in the form of trend analysis will also be completed. Finally, where available, information on smart speaker retailers and their practices in selling the devices.


Early Findings

Market Valuations and Growth

  • Global Market
    • Estimates of the value of the global smart speaker market in 2020 varies between US$2.7 billion to US$5.7 billion, to US $7.1 billion on the higher end of the scale.
    • Robust projected market growth is consistent across all estimates. One estimate is projecting a market value of $19 billion by 2027 at a Compound Annual Growth Rate (CAGR) of 31.9% over the period 2020-2027.
    • A second estimate projects a market value of US$11 billion by 2023 with a CAGR of 24.5%, while a third projects a market value of US$15.6 billion by 2025, a CAGR of 17.1%.
  • US Market
    • The US Market for smart speakers is currently valued at $825.4 million.
  • China
    • Smart speakers are forecasted to account for a market valuation of US$3.2 billion by 2027 with a CAGR of 30.8% over the period 2020-2027.

Forecasted Smart Speaker Shipments

  • Canalys estimates a doubling of the global installed base for smart speakers from 320 million in 2020 to 640 million in 2024. An estimated 163 million units is expected to be sold in 2021, a growth rate of 21%.
  • Forecasted global demand in 2020, excluding Mainland China, is estimated at approximately 70 million units, with a growth rate of 3%, increasing to 90 million units in 2021.
  • Mainland China is forecasted to have 73 million shipments in 2021, compared to 60 million units in 2020 with a growth rate of 16% for that year.
  • In Europe, the market is expected to grow to 185.5 million units in 2023, from 107.8 million units in 2019, a CAGR of 14.5%.

Leading Operators

  • The leading operators in the smart speaker market are Amazon, Harman International, Apple, Sonos, Alphabet, Bose, Sony, Onkyo, Panasonic, and SK Telecom.
  • Amazon dominated the smart speaker market with the largest market share at 53%, followed by Google with 30.9%, Sonos with 4.7% and Apple with 2.8%. Other market operators accounted for 8.5%.

Summary

  • In the initial hour of research, the focus was placed on determining the market valuations and projected growth for smart speakers on a global and selected market basis. Information was also sourced regarding the installed base for smart speaker devices, also on a global and selected market basis, as well as identifying the leading operators in the vertical and the leading market share by operators.
  • We propose to continue the research by providing a competitive analysis of the leading players identified, an industry outlook, in the form of a trend analysis, pain points and opportunity analysis, and demand and threat analysis will also be completed, along with a detailed look at the users of smart speakers. The various research paths to be undertaken are provided below.