The smart speaker market contracted during 2Q22, posting a decline of 14% year-over-year (YoY) according to Omdia’s latest quarterly smart speaker tracker with consumers turning off Apple Home Pod speakers big time Vs a massive uptake in demand for Amazon Echo speakers.
Based on data from the US market the research group released their latest filings as Amazon rolled out a new range of Echo Dot speakers with significantly improved functionality.
Although Amazon-branded smart speakers grew 33% during the quarter relative to last year, other brands like Google and Apple were down 31% and 57%, respectively.
Omdia analysts claim that the penetration rate for smart speakers went from 36% in 2017 to just 52% as of 2021.
indicating that brands are less active relative to previous years.
As of April 2022, more than 35 smart speaker models have been discontinued. 46 (63%) of brands haven’t released a new smart speaker since 2019, and 34 (46%) of brands haven’t released a new smart speaker since 2018.
Teik Chuan Goh Research Analyst, Omdia said: “With the number of smart speaker releases fading, Omdia believes new use cases will be introduced to the market, now that there is a sizable installed base. This high penetration rate could reduce demand for replacement speakers while promoting new opportunities like senior care, healthcare monitoring and security features/services.”
In 2Q22, France, Germany and the UK, recorded 3.6 million smart speaker shipments, with Amazon representing about 80% of shipments. For South Korea, China and Australia represented 21 million smart speaker shipments.
Goh said “The next step for smart speakers will be far more difficult and controversial – trying to make an assistant more active in the home without invading privacy or becoming a nuisance. In short, a more proactive and intelligent digital assistant is up next for smart speakers, but will it be enough to reenergize the stalling industry?”
