Smart Speaker Market Growth - 2024 Forecast

Recent data released by Canalys indicates substantial expansion in smart speaker sales within Mainland China during the current year. The market is projected to experience growth in 2020, benefiting from the successful management of the COVID-19 pandemic in recent months. Conversely, the remainder of the world – where the virus continues to pose challenges – is anticipated to see only a 3% increase in sales this year.

According to the firm’s analysis, the worldwide market is poised for accelerated growth, reaching 163 million units in 2021, representing a 21% overall rise. Despite a reduction in spending on discretionary items, extended periods of lockdown in numerous regions may encourage more consumers to contemplate integrating new devices into their homes – or upgrading existing, older models.

The smart speaker sector has seen considerable activity in recent months. Major companies including Amazon, Google, and Apple have all unveiled updates or additions to their smart speaker offerings. Google recently updated its entry-level Home products with revised hardware and a new designation, now known as the Nest Audio. Several Echo devices have also been refreshed, and Apple has at last launched the highly anticipated – and more affordable – HomePod mini.

Canalys points out that Apple is the sole member of the three leading U.S. technology companies to market its own smart speakers in Mainland China, and the new pricing strategy could assist the company in expanding its presence within that market.

“The US $99 price range currently lacks significant competition in China, yet remains attractive to Apple’s customer base,” explains analyst Cynthia Chen in a press statement. “Apple should leverage this opportunity to increase adoption of its music and other in-home services.”