Global Wireless Speaker Market Worth USD 121.58 Billion By 2031 | CAGR of 14.16%

Introduction

Wireless speaker systems consist of transducers that receive audio signals via radio frequency (RF) waves instead of audio cables. The two most common RF frequencies that facilitate audio transmission to wireless loudspeakers are an IEEE 802.11 variant of Wi-Fi and Bluetooth, respectively. In addition to the RF standard implemented, these loudspeakers are distinguished by their intended application. Portable wireless speakers for outdoor use are typically designed to focus on durability, portability, and battery life. In contrast, stationary wireless speakers emphasizing sound quality are intended for home audio or television surround sound systems.

Market Dynamics

Rising Internet Penetration Drives the Global Market

Broadband and Internet connectivity have grown internationally in recent years. Diverse nations striving to advance their digital economies are working diligently to expand internet access and deploy LTE networks. Statistics indicate that in 2019, there were approximately 4.39 billion internet users. In 2019, there were approximately 3.5 billion social media consumers or approximately 45% of the world's population. The Internet's rising prevalence has bolstered the concept of "connected dwellings." The global demand for smart speakers is increasing due to the growing prominence of connected homes.

Popularity of Voice-First Technology Creates Tremendous Opportunities

The current generation primarily utilizes voice-first technology, which is maturing around query-responsive devices. Using voice to interface with consumer products such as computers, tablets, smartphones, and other wearable devices has become common. Voice-first technology significantly impacts consumers worldwide, particularly in developed regions such as the United States and Europe. Moreover, in the current context, it is being adopted by consumers and becoming the predominant technology used in various consumer devices.

A similar embedding has been observed in various consumer device product segments, such as speakers. Voice-first devices include voice-assistant speakers such as those offered by Amazon (Echo, Echo Dot, and Tap) and Google (Home) and permit the direct application of voice command capabilities. The following cohort of consumers would anticipate voice interaction with AI. By 2025, more than fifty percent of all human-computer interactions will be voice-assisted. In turn, this will create numerous market opportunities in the future years.

Regional Analysis

North America is the most significant global wireless speaker market shareholder and is anticipated to exhibit a CAGR of 9.88% during the forecast period. The United States is the dominant market in the region for these speakers. The market is primarily boosted by millennials, who can be classified as a digital generation because they are tech-savvy and devoted to their smartphones. In 2019, an estimated 96% of the US population listened to music for over 25 hours per week. In 2019, more than 1.15 billion on-demand audio and video tracks were transmitted across multiple platforms in the United States. Nationwide, the trend of on-demand streaming is increasing demand for wireless speakers. In addition, the United States is observing an increase in the use of vocal technology to facilitate e-commerce. The total market value for voice commerce in the United States is anticipated to reach USD 45 billion by 2023. Consequently, these factors are anticipated to drive the demand for smart speakers, which, in turn, will drive the revenue of the wireless speaker market over the forecast period.

Asia-Pacific is estimated to exhibit a CAGR of 20.41% over the forecast period. Asia-Pacific has the highest rate of urbanization among all other regions. According to the World Bank, the number of urban households in the area will rise by roughly 68% between 2010 and 2030. Urbanization in Asia-Pacific's developing nations is anticipated to increase demand for wireless speakers. Developed markets in Europe and North America cannot keep up with emergent markets in Asia-Pacific, as China and India's markets continue to expand in consumption size and purchasing power. For example, China is anticipated to add 400 million consumers whose annual income exceeds USD 8,000. In addition, increased consumption and a growing preference for added-value products are two effects of higher discretionary income. Wireless speaker demand is expected to grow slowly in India, Malaysia, and Indonesia over the forecast period, in contrast to the region's other major markets—China, Australia, Japan, and South Korea.

Key Highlights

• The global wireless speaker market was valued at USD 92 billion in 2022. It is estimated to reach USD 121.58 billion by 2031, growing at a CAGR of 14.16% during the forecast period (2023–2031).
• Based on connectivity, the global wireless speaker market is divided into Bluetooth and Wi-Fi. The Wi-Fi segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 16.22% over the forecast period.
• Based on product type, the global wireless speaker market is segmented into standard, soundbars, and smart speakers. The smart speaker segment is the largest revenue contributor to the market and is projected to exhibit a CAGR of 18.45% over the forecast period.
• Based on the price range, the global wireless speaker market is divided into low-end, mid-range, and premium wireless speakers. The premium wireless speaker dominates the global market and is predicted to exhibit a CAGR of 16.92% over the forecast period.
• Based on end-user, the global wireless speaker market is bifurcated into residential and commercial. The residential segment owns the highest market share and is projected to exhibit a CAGR of 14.64% over the forecast period.
• Based on distribution channels, the global wireless speaker market is bifurcated into online and offline channels. The online channel segment is the highest contributor to the market and is anticipated to exhibit a CAGR of 15.73% over the forecast period.
• North America is the most significant global wireless speaker market shareholder and is anticipated to exhibit a CAGR of 9.88% during the forecast period.

Competitive Players

1. Alibaba Group
2. Alphabet (Google)
3. Amazon.com
4. Apple
5. Samsung Electronics, Sonos Inc.
6. Bose Cooperation
7. Sony
8. Altec Lansing
9. Artis
10. Bang & Olufsen
11. boAt Lifestyle
12. Creative Technology
13. DOSS Audio

Recent Developments

• March 2024- UBON launched a new range of wireless speakers with built-in microphones, specifically developed for the Holi season.
• April 2024- Noise expanded its range of products by introducing a wireless speaker called the Noise Sound Master.

Segmentation

1. By Connectivity
   1. Bluetooth
   2. Wi-Fi
2. By Product Type
   1. Standard
   2. Soundbars
   3. Smart
3. By Price Range
   1. Low-end
   2. Mid-range
   3. Premium
4. By End-User
   1. Residential
   2. Commercial
5. By Distribution Channel
   1. Online
   2. Offline