Chicago-based research firm Arizton has a new report revealing that the smart speaker market was $991 million in 2016 and will grow to $4.8 billion in 2022. Arizton also provided Voicebot with the 2019 mid-point forecast of $2.6 billion. The estimates reflect a 30.45% compound annual growth rate (CAGR).
3 Trends Behind Smart Speaker Adoption
Arizton researchers suggest three trends are driving rapid smart speaker adoption:
- Increase in voice searches – Growing use of voice for search increases consumer interest in voice solutions beyond the smartphone.
- Increase adoption of smart homes – The convenience of voice control for popular smart home devices
- Popularity of voice-first technology – Consumers want more voice assistant access to computing and smart speakers fill that need in the home.
This data also suggest 2017 smart speaker sales were $1.29 billion. Voicebot pricing breakdown data translates this revenue into 23.8 million devices sold in 2017. This number reflects all smart speakers sold globally. Forrester’s estimate for 22 million Echo unit sales in 2017 indicate a higher overall smart speaker sales volume.
Estimates Re-affirm Voicebot Estimates
The 2016 sales number from Arizton can also be used to estimated 2016 smart speaker sales of 10.8 to 12.9 million units. That comes much closer to the Voicebot and Morgan Stanley estimates for 2016 while most other analyst forecasts place sales in the 6-7 million unit range.