Research analysts have projected the global wireless speakers market to reach revenues of more than $27 billion by 2023
According to a new study, the development of wireless connectivity technologies such as Bluetooth and Wi-Fi is driving the growth of the global wireless speaker market.
Research analysts have projected the global wireless speakers market to reach revenues of more than $27 billion by 2023, growing at a CAGR of approximately 17% during the forecast period.
They said that the increasing adoption of smart homes and implementation of connected devices is contributing to the revenues in the global market.
In addition, the proliferation of online retailers such as Amazon, JD.com, and eBay is helping in the evolution of the global market, the researchers added.
North America that occupied the majority of the market share in 2017 is predicted to grow at a CAGR of approximately 14% during the forecast period. Increasing penetration of smart devices across North America will further push the growth of the market in this region, the study report said.
Amazon, Google, Apple, Sonos, and HARMAN Kardon are the leading companies operating in the North American market.
Growing prominence of voice searches driving demand for innovative speakers
The researchers observed that the usage of voice search is witnessing an unprecedented growth among consumers worldwide.
As per the study, increasing adoption of this technology is driving the development of voice assistant technology in the global market. Apple’s Siri, OK Google, and Amazon’s Alexa are some of the most popular voice assistant technology available in the market.
Wide use of voice assistant technology as a personal assistant, fun and entertainment, general information, and local information provider will boost the global wireless speaker market during the forecast period, the study report noted.
Wi-Fi speaker segment dominates market share
By connectivity type, the global wireless speaker market is segmented into Bluetooth speaker (traditional Bluetooth speaker, waterproof Bluetooth speaker, and rugged Bluetooth speaker) and Wi-Fi speaker (Wi-Fi only speaker, hybrid speaker, smart speakers, non-smart speakers, single-room speaker, and multi-room speaker).
The Wi-Fi speaker segment, which dominated market share in 2017, is expected to grow at a CAGR of around 20% during the forecast period.
Thanks to the growing demand for the smart speaker, this segment is growing both in terms of unit shipment as well as revenue in the global market.
The study report also pointed that increasing popularity of multi-room speakers will add to the growth of the Wi-Fi wireless speaker market.
Wireless speakers extensively used for commercial purpose
Amongst the residential and commercial end-users, the later segment occupied a significant portion of the market share in 2017, and is predicted to grow at a CAGR of around 9% during the forecast period.
The study found that extensive use of wireless speakers by various offices, small retail stores, home offices, educational institutions, and others is contributing to revenues in this segment in the global market.
Moreover, these devices is gaining immense popularity among smart offices, small home offices, and educational institutions globally, as stated in the report.
Futuristic inventions that are likely to woo more investors
Analysts are of the opinion that various futuristic inventions in the mainstream voice-first and complementary technologies may be able to win investors’ confidence and boost VC funding in the global market during the forecast period.
Therefore, leading vendors are focusing on integrating advanced features and developing their product portfolio with upgrades to gain a larger global wireless speaker market size over the next few years, they said.
Also, top companies are said to be adopting innovative technologies to reduce price range of these speakers. Besides, these speakers are being designed with high battery backup to attract new consumers in the global wireless speaker market.