Wireless Speaker Market

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 music industry's growth heavily impacts the development of related products and services, such as wireless speakers. The music industry is witnessing a drastic shift in the trend of consumers shifting from physical media to streaming and digital media. As of 2019, streaming media has become the largest revenue source, with more than 341 million paid subscription users.

In 2023, global recorded music revenues increased by 10.2% to reach USD 28.6 billion. This marked the 9th consecutive year of growth and represents a higher performance than the 9% rise observed in the previous year. Moreover, the global number of paid music streaming subscriptions has exceeded 500 million for the first time. Subscription streaming has experienced a growth rate of 11.2%. Furthermore, streaming services such as Apple Music, Spotify, Pandora, and YouTube, among others, are attracting more consumers by offering affordable subscription services. Therefore, healthy growth in online music streaming is likely to affect the market positively during the forecast period.

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 Wi-Fi segment is the most significant contributor to the market. The Wi-Fi speaker market witnessed growth due to increased demand for smart speakers. Investor trust in the sector would be enhanced by the integration of futuristic ideas into mainstream voice-first and related technologies. As a result, the Wi-Fi speaker market is expected to experience a rise in Venture Capital (VC) funding. New firms are anticipated to develop smart speakers with advanced features, while existing companies will continue to develop their product lines with enhancements. This, in turn, will expedite the market growth during the forecast period. The market is divided into Wi-Fi-only and hybrid speakers based on the type of connectivity technology. Based on the room placement of the Wi-Fi speakers, the market is divided into single-room and multi-room Wi-Fi speakers.

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. The smart speakers segment includes speakers with multiple connectivity options. Smart speakers have been witnessing massive popularity among end-users across the world. Several vendors have entered the market with their smart speakers to capture the growing popularity of voice-first technology among end-users. Moreover, smart speakers are the latest and fastest-growing trend in the tech world. The smart speaker is a speaker that can support Bluetooth, Wi-Fi, NFC, and speakerphone and can be controlled by applications. Inbuilt voice recognition enables it to identify commands and act on them. Currently, vendors such as Amazon, Google, Apple, and Alibaba Group are offering smart speakers in the market.

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 market. In today's scenario, the leading vendors are offering enhanced audio quality, performance, durability, and versatility of products. These appliances are endorsed largely because of their great value for money, owing to the excellent performance and results they offer to customers worldwide. The premium models are priced above USD 200 and incorporate the latest technologies being invented by vendors. These include consistency in sound, coverage uniformity, built-in speakerphones, and water-resistant and dust-resistant features, increasing consumer preference.

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

The residential segment dominates the global market. Residential wireless speakers find their application as home speakers in different households. These devices are utilized for music streaming via smartphones or PCs. Some households may have more than one wireless speaker installed. Multi-room wireless speakers are also gaining popularity and boosting market growth. Bluetooth-only speakers are considerably much simpler than any other device. Also, Bluetooth speakers prove to be an ideal option in cases where there is a lack of sufficient space to place large stereo systems. With hybrid speakers' increasing popularity, most individuals recognize its benefits. These speakers are the most versatile devices an individual uses, and they are gaining more prominence among the residential segment.

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. The purpose of online sales is primarily because vendors highly promote the concept and use of voice-first devices and Bluetooth technology through social media. The primary reason for the growth in online stores is that they offer numerous options compared to retail stores. Several avid e-tailing service users seek to buy these devices online because of the ease of accessibility and convenience afforded by such channels. Some vendors provide YouTube videos (video tutorials) and assist beginners in gaining knowledge regarding the setup and work of voice-assistant speakers.

Additionally, online prices are lower than in retail stores because of the discounts vendors offer to promote their products. The prominent selling vendor Amazon is the world's largest e-commerce player. These factors drive the demand for smart speakers through online channels.

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.