Wireless Speaker Market Size, Share & Trends Analysis Report By Connectivity (Bluetooth, Wi-Fi), By Product Type (Standard, Soundbars, Smart), By Price Range (Low-end, Mid-range, Premium), By End-User (Residential, Commercial), By Distribution Channel (Online, Offline) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global wireless speaker market size was valued at USD 36.92 billion in 2023. It is estimated to reach USD 209.27 billion by 2032, growing at a CAGR of 21.16% during the forecast period (2024–2032). The global wireless speaker market is primarily driven by the surge in online music streaming, especially among millennials and Gen-Zs who require good quality sound audio. Moreover, the emergence and growing popularity of voice-first technology in the past few years are estimated to create opportunities for market expansion.

Wireless speaker systems are loudspeakers that receive audio signals via radio frequency (RF) waves instead of audio cables. The two most prevalent RF frequencies that support audio transmission to wireless loudspeakers are a variant of Wi-Fi IEEE 802.11 and Bluetooth, respectively. Wireless speakers generally use the same signal frequency range as cordless telephones, which is 900 MHz. Aside from the RF standard implemented, these speakers are distinguished primarily by their intended application.

Portable wireless speakers for outdoor use are typically designed to focus on durability, portability, and battery life, whereas stationary wireless speakers emphasizing sound quality are intended for home audio or surround sound systems for television and video. Types for special applications, such as impermeable speakers for use in the shower and voice assistant speakers, can combine the properties of the two former types.

Highlights

• Wi-Fi dominates the connectivity segment
• Residential dominates the end-user segment
• Online channel dominates the distribution channel segment
• North America is the highest shareholder in the global market

Market Dynamics

Global wireless speaker market drivers

Growing online music streaming

The development of related products and services, such as wireless speakers, is significantly influenced by the music industry's expansion. The music industry is currently experiencing a significant shift in consumer behavior, as they transition from physical media to streaming and digital media. With over 341 million paid subscription users, streaming media has emerged as the most significant revenue generator as of 2019.

Global recorded music revenues increased by 10.2% in 2023, reaching USD 28.6 billion. This year marked the 9th consecutive year of growth, surpassing the 9% increase that was observed in the previous year. In addition, the number of paid music streaming subscriptions worldwide has surpassed 500 million for the first time. The growth rate of subscription streaming has been 11.2%. Additionally, streaming services, including Apple Music, Spotify, Pandora, and YouTube, are enticing a greater number of consumers by providing affordable subscription services. Consequently, the market is anticipated to experience a favorable impact during the forecast period as a result of the robust expansion of online music streaming.

Global wireless speaker market restraint

Low internet penetration in developing economies 

The low penetration of fast internet connections and smart homes in developing economies is an issue the market will face while marketing these devices in developing economies such as India. According to the UN Broadband Commission for Sustainable Development report, six countries, including India, Indonesia, Nigeria, Pakistan, Bangladesh, and China, together account for over 50% of the offline global population. Although internet access is improving in these countries, the major issue remains with connectivity and speed. The low internet penetration is projected to hamper the market expansion in these economies.

Global wireless speaker market opportunities

Popularity of voice-first technology 

Voice-first technology is used mostly by the current generation, which is growing around devices that can reply to queries. Using voice to interface with consumer products like tablets, computers, smartphones, and other wearable devices has become common. Voice-first technology significantly impacts consumers worldwide, especially in developed parts such as the US and other European countries. Moreover, in the current scenario, it is finding its application among consumers and becoming the mainstream technology used in several consumer devices.

One such embedment has been observed in various product segments of consumer devices such as speakers. Voice-first devices include voice-assistant speakers such as the ones offered by Amazon (Echo, Echo Dot, and Tap) and Google (Home) and allow the voice command capabilities to be applied directly. The next generation of consumers would expect AI voice interaction. Over 50% of all human interaction with computers will be voice-assisted by 2025. This, in turn, will create several opportunities for the market in the upcoming years.

Regional Analysis

North america dominates the global market

Based on region, the global wireless speaker market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global wireless speaker market shareholder and is anticipated to expand substantially during the forecast period. The North American wireless speaker market is a mature and significant segment of the global market. Factors such as millennials' high spending power, increased smartphone adoption, inclination toward new technology, and high urbanization are driving the growth of the wireless speaker market in North America. The millennials mainly drive the market, and they can be termed as a digital generation as they are tech-savvy, and most of them are addicted to their smartphones.

The United States wireless speakers market is the largest in North America. The high adoption rate of smart home devices, coupled with strong consumer demand for high-quality audio products, drives the market. In 2019, about 96% of the US population was estimated to listen to music and spent more than 25 hours a week. Similarly, more than 1.15 trillion on-demand tracks were streamed in audio and video format across several platforms in the country in 2019. This trend of on-demand streaming is boosting the sale of wireless speakers nationwide. The US is witnessing the greater use of voice technology in facilitating e-commerce. The total voice commerce market value in the US is expected to reach USD 45 billion by 2023. These factors are expected to drive the demand for smart speakers, which, in turn, will drive the market revenue for wireless speakers during the forecast period.

Canada's wireless speaker market, while smaller in market size compared to the U.S., also shows robust growth. The increasing penetration of high-speed Internet and the rising trend of smart home adoption are key drivers. Canadian consumers are increasingly adopting wireless speakers for their ease of use and incorporation with smart home systems. Moreover, the prominent market players in this market are launching their new products with better features, which is estimated to create opportunities for market growth. For instance, in May 2024, Sonos introduced the Roam 2, a redesigned version of its well-received Roam portable speaker, in Canada. The Roam 2 features many enhancements, such as simplified controls and faster setup, catering to those who desire superior music performance in a tiny speaker.

Asia-Pacific is witnessing rapid urbanization among all other geographies. According to the World Bank, the number of urban households in the region will rise by about 68% from 2010 to 2030. The urbanization of developing nations in Asia-Pacific is expected to bolster demand for wireless speakers. Developed markets in Europe and North America cannot keep pace with emerging markets in Asia-Pacific, as markets in nations such as China and India are growing both in consumption size and purchasing power.

China's wireless speaker market is a leading market in the Asia-Pacific region due to its large population and rapidly growing middle class. China is expected to add 400 million consumers whose annual income is more than USD 8,000. Higher disposable incomes mean increased consumption and a growing preference for differentiated and value-added products. Moreover, the country's technological advancements and high consumer demand for innovative electronics contribute significantly to market growth. Chinese companies like Xiaomi, Huawei, and Alibaba have entered the wireless speaker market, offering affordable and technologically advanced products. Moreover, the integration of smart speakers with other smart home devices is a major trend driving market expansion.

The Indian wireless speakers market is primarily driven by increasing internet penetration and growing smartphone usage. The rise in disposable income and the younger population's preference for technologically advanced gadgets contribute to market growth. Major international brands like JBL, Sony, and Bose, as well as local players like boAt and Zebronics, are competing for market share. These key players are introducing new products, thereby driving the regional market growth. For instance, in July 2023, Sony unveiled the release of the SRS-XB100 in India. This compact wireless speaker is equipped with a Sound Diffusion Processor, stereo compatibility, and a design that is both waterproof and dustproof.

Thus, the factors above are estimated to expedite the Asia-Pacific wireless speaker market.

Analyst’s Perspective

As per our research analyst, wireless speakers are becoming an essential tool in the commercial end-user sector, driven by the need for flexible, high-quality audio solutions that enhance customer experiences, facilitate communication, and support dynamic work environments. As technology advances, the integration of smart features, improved connectivity, and sustainable practices will further solidify the role of wireless speakers in the commercial landscape. Businesses that adopt these innovations will be better positioned to meet the changing customer and employee demands, ultimately driving growth and success.

Segmental Analysis

The global wireless speaker market is segmented by connectivity, product type, price range, end-user, and distribution channel.

Based on connectivity, the global wireless speaker market is divided into Bluetooth and Wi-Fi. 

The market is primarily driven by the Wi-Fi segment. The market for Wi-Fi speakers experienced expansion as a result of the growing demand for smart speakers. The integration of futuristic concepts into mainstream voice-first and related technologies would increase investor confidence in the sector. Consequently, it is anticipated that the Wi-Fi speaker market will see an increase in Venture Capital (VC) funding. It is anticipated that new companies will introduce smart speakers with sophisticated capabilities, while existing companies will continue to improve their product lines. This, in turn, will accelerate the market's expansion during the forecast period. The market is segmented into Wi-Fi-only and hybrid speakers according to the connectivity technology. The market is segmented into single-room and multi-room Wi-Fi speakers based on the placement of the speakers in the room.

Based on product type, the global wireless speaker market is segmented into standard, soundbars, and smart speakers. 

The market's largest revenue contributor is the smart speaker segment around 10 billion. Speakers with numerous connectivity options comprise the smart speakers segment. Smart speakers have been experiencing significant growth in popularity among consumers worldwide. In order to capitalize on the increasing popularity of voice-first technology among end-users, numerous vendors have introduced their own smart speakers to the market. Additionally, smart speakers are the most recent and fastest-growing trend in the technology industry. The smart speaker is a speaker that can be controlled by applications and supports Bluetooth, Wi-Fi, NFC, and speakerphone. It is capable of recognizing commands and responding to them due to its inbuilt voice recognition. At present, smart speakers are being sold by a variety of vendors, including Alibaba Group, Apple, Google, and Amazon.

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 is the most popular product on the market. In the current market, the most prominent suppliers are providing products that have improved audio quality, performance, durability, and versatility. As a result of the outstanding performance and outcomes that they provide to customers all over the world, these home appliances are recommended primarily due to the fact that they offer an excellent value for the money. The premium models have a price tag that is greater than two hundred dollars and incorporate the most recent technologies that providers are developing. Consistency in sound, uniformity in coverage, built-in speakerphones, and features that are resistant to dust and water are some of the features that are increasing consumer preference.

Based on end-users, the global wireless speaker market is bifurcated into residential and commercial segments. 

On a global scale, the residential sector is the most dominant segment. Wireless speakers designed for residential use are utilized in a variety of households as home speakers. With the help of these devices, music can be streamed through mobile devices or personal computers. There is a possibility that some households have more than one wireless speaker installed. Additionally boosting market growth and gaining popularity are wireless speakers that can be used in multiple rooms. Speakers that only use Bluetooth functionality are significantly less complicated than any other device. Additionally, Bluetooth speakers are an excellent choice for situations in which there is insufficient space to accommodate the installation of large stereo systems or other audio equipment. The majority of people are aware of the advantages that hybrid speakers offer, as their popularity continues to rise. These speakers are the most versatile devices that an individual can use, and they are gaining more and more popularity among the residential market segment.

Based on distribution channels, the global wireless speaker market is bifurcated into online and offline channels. 

In terms of market contribution, the online channel segment is the most significant. The primary reason for the existence of online sales is that vendors are actively promoting the idea of voice-first devices and Bluetooth technology through various social media platforms. One of the primary reasons for the expansion of online stores is that, in comparison to traditional retail stores, they provide a greater variety of options. There are a number of people who are avid users of e-commerce services who are interested in purchasing these devices online because of the ease of accessibility and convenience that such channels provide. In order to help novices acquire knowledge about the installation and operation of voice-assistant speakers, certain vendors offer video tutorials on YouTube; these videos are available to the public.

As a result of the discounts that vendors offer in order to promote their products, the prices that are offered online are lower than those that are offered in retail stores. The most prominent online retailer in the world, Amazon, is also the largest e-commerce player in the world. The demand for smart speakers through online channels is significantly influenced by these factors.

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.