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Business Outlook for Smart Speaker Market and Business Recovery

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A smart speaker is defined as a wireless speaker which is connected to the internet and is powered by artificial intelligence (AI). Natural Language Processing (NLP) is the core part of artificial intelligence that enables human-to-machine interaction. According to the market database, the machine-to-human interaction is facilitated by different Intelligent Virtual Assistants (IVAs). Smart speakers make use of voice commands to carry out a bouquet of tasks. These tasks can include listening to music, ordering food, online shopping, audiobooks, check weather information, daily reminders, gather the latest news, and much more. The increased market penetration for voice over command strategy can be mapped through Global Market Database. The cloud based market research tool studies the shift in line with changing market trends.

Once the devices are activated by the voice command, the instructions are transformed using an internal processor and the queries are routed to a digital server. Market analysstates that the digital server analyses the query and fetches the relevant data to close the request. Market intelligence tools indicate that the digital server and the smart speaker have memories to record the user’s queries for better voice recognition and analyzing the patterns using machine learning (ML) to enhance the user experience. The consumer has the autonomy to delete the data stored in the memory which boosts the positive business outlook.

Market research tools suggest that smart speakers are broadly used in smart homes, consumer applications, smart offices, smart hotels, and more. These smart speakers when integrated within the office, home, or a hotel can control different Internet of Things (IoT) enabled devices such as smart lightbulbs, thermostats, Televisions, and more. Such a wide array of benefits has generated great demand for these devices since their introduction in the year 2014. The value chain for this market and the rise in demand associated with this product can also be studied using Global Market Database. The market research tool provides free market data across 600+ markets and 12 different industries.

 

Breakdown by Component:

 

According to market research tools, based on the different components the smart speakers are comprised of hardware components and software components. Market analysis states that the hardware components are further divided as speaker driver, connectivity IC, processor, audio IC, memory, and microphone. Market database suggests that the speaker driver is an important component of the device as it converts electric audio signals to sound waves. Enhancement in this part has led to the better sound quality of the speaker. According to market research tools, the integration of connectivity across several platforms is a factor that boosts demand.

Market database states that the connectivity Integrated Circuits (IC) are dedicated electronic connections which enable the internet connectivity of the device. In the absence of robust connectivity ICs, the device is unable to provide the data in a short amount of time. The growth of ICT-based technologies in everyday life and their adoption by the population within a region can also be studied through market research platforms like Global Market Database. The free market data collected can be used to shape both tactical as well as strategic decisions.

According to the market database, the in-built processors are used to send and receive the queries from the digital servers. Market research tools also state that a faster processing rate is essential to have a competitive edge in the market and avoid any downtime. Audio Integrated Circuits (ICs) are useful for amplitude control. These dedicated electronic circuits provide the user to control the voice of the device and manage the different sound modes. The prominent semiconductor modules and their demand across the value chain can be studied through Global Market Database. The cloud based market research tool studies the growth in upcoming market numbers.

Market anlysis states that in-built memory is used to store the list of queries for faster translation and voice recognition. The physical memory can be saved by the integration of cloud storage with the device. Finally, according to secondary research via market intelligence tools, the microphone acts as the physical medium to enable human-to-machine interaction. The output from the microphone is directed towards the software modules to undergo Natural Language Processing (NLP).

According to the procured market database, the software segment is expected to grow at a faster rate in the next decade. This is due to constant innovations by the market players to integrate multiple functionalities in the device which will rapidly change the business outlook. To enable this a large amount of data which is known as big data needs to be processed constantly. This additional processing capacity is provided by advanced software programs which make use of complex machine learning and artificial intelligence scripts. All these factors have contributed towards an optimistic business outlook for smart speakers.

 

A plethora of IVAs:

 

According to the market database, based on the different types of Intelligent Virtual Assistants (IVAs), the market is divided into Alexa, Siri, Google Assistant, Cortona, Xiao AI, AliGenie, Duer OS, and other local players in different regions. Market research tools state that Alexa has commanded a significant share in the market as it holds the first mover’s advantage. According to market research, Alexa was released in the year 2014 and since then has undergone various transformations to be available in different forms and sizes.

Alexa has also penetrated different regions across the globe and is now programmed in a great number of languages to support localization. Market database states that this has allowed Alexa to capture a great amount of data from varied demographics and enhance the overall user experience. The rapid adoption rate of technologies like Alexa can be studied through Global Market Database. The drivers for this market can also be studied using this market research tool.

Market database states that Google Assistant has captured the attention in Europe and selected APAC regions. Within the APAC region, according to free market data from platforms like Global Market Database– China is dominated by two native players which include Xiao AI and AliGenie. These devices have captured a great portion of the population and able to transform data at large scales.

 

Growth Catalysts Smart Speaker Market:

 

According to the market database, a rapid demand for multi-functional devices to undertake different tasks at the same time has supported the growth of the smart speaker market. A rise in the number of smart homes which are integrated with smart speakers has contributed towards a positive business outlook. Market database states that the market players have started to roll out different variants which support multiple languages and dialects. Market research tools indicate that such upgrades have allowed to tap the underpenetrated markets and drive growth. Supplementary technologies such as cloud computing, Natural Language Processing, Machine Learning, 5G, and cybersecurity have supported the demand for smart speakers. The demand for supplementary technologies across the demographics can also be studied through Global Market Database. Customized market research reports based on client requirements can be procured through this market intelligence tool.

 

Market database suggests that cloud computing has allowed the storage of big data on the cloud architecture and accesses the data from remote locations. Market research states that this is has led to faster response time and improved reliability. Greater research activities in the field of Natural Language Processing have augmented the human-machine interaction scope. Advanced machine learning abilities are used to generate accurate user insights and predict consumer behavior for faster responses. According to the market database, the onset of the next-gen wireless technology (5G) is poised to accelerate the use cases of smart speakers. The impact of 5G on the smart speaker market can be mapped through Global Market Database.

The cloud based market research tool provides relevant and free market data which can be utilized to make a competitive analysis. Market database states that the 5G spectrum is expected to house trillions of IoT-enabled devices to facilitate smoother communication between the connected devices. Data privacy is a critical issue of internet-enabled devices and advances in cybersecurity are expected to tackle the vulnerabilities in the digital system according to the market database. Furthermore, smart speakers are now equipped with the ability to secure sensitive information with biometric and facial recognition.

 

A large number of industries have started to bundle smart speakers in their service offerings to enhance the user experience. To drive business recovery in the post-COVID scenario, the industries have started to adopt digital solutions to stay relevant. For instance, the hospitality industry has started to integrate smart speakers in the guest rooms to control the temperature, TV volume, and other amenities. Market research states that this has allowed for a more interactive experience for the consumer.

 

Smart Speaker Market in North American Region Analysis:

According to the market database, this region has commanded a greater share in the market due to various technological advancements. In the North American region, the countries such as U.S, Canada, and Mexico have shown greater acceptance of smart solutions in their daily lives. A regional competitive mapping for technology adoption can be obtained through Global Market Database. The cloud based market research tool studies the shift in line with changing market trends.

According to the U.S household’s free market data in March 2018, more than 40% of the consumers in the U.S used smart speakers in their day-to-day lives. Another factor that has contributed towards the business recovery is greater disposable income in this region. According to Organization for Economic Cooperation and Development (OECD) in 2016, the household disposable income in the U.S increased by 1.5%.

Market database states that the U.S.A is base on major market players and has supported the research activities to drive innovation in the sector. According to free market data from market research tools, a great number of products are shipped from the U.S.A to around the world. For instance, a major player in the U.S in the year 2019, introduced a range of smart speakers at different price points and was the first smart speaker to deliver an immersive three-dimensional audio experience.

 

Smart Speaker Market in APAC Region Analysis:

Market database states that the region is expected to be the fastest-growing and a significant contributor in the smart speaker market. According to market research tools, China, Japan, and India are expected to lead the growth in this region. Market database states that this is due to the increased population density and rise in digital users. Market research also suggests that China has crafted prominent indigenous smart speakers to cater to a large population in the country. Furthermore, the advantage of local language support and ease of use has supported the demand in this region. According to the market database, China is also attributed as the manufacturing hub for various products and this has allowed deploying cost-friendly solutions. Such a mix of factors has contributed towards an optimistic business outlook for this region.

The major focus to add innovative features has led to greater acceptance by the consumers. For instance, a major player in China in the year 2020, launched a smart speaker with an 8-inch full view touchscreen display. The speaker was also equipped with greater range to facilitate far-field communication. Focus on security was accompanied by improved facial and biometric authentication.