One market report after another predicts that strong smart speaker growth will continue for the foreseeable future. One of the more recent reports, published by Transparency Market Research suggests 18% CAGR in the smart speaker market between 2018 and 2026. If the estimates prove accurate, the market could be worth in excess of $18 million just four years from now.
That is a lot of money being spent on smart speakers. Obviously, millions of homes have to be equipped with smart speakers to create that sort of value. So what’s the deal? Why have so many people already invested in smart speakers, and why will so many more over the next four years?
Vivint Smart Home says that part of it could be novelty. People enjoy the thought of being able to speak to an electronic device and have it retrieve the latest headlines or weather report. But novelty only goes so far. There has to be some other functionality that makes the smart speaker attractive.
Smart Home Integration
It turns out that there is plenty of functionality built in to the modern smart speaker. At the top of the list is the ability to integrate it with smart home technology. Take the two biggest names in smart speakers right now: Google and Amazon. Device manufacturers are falling all over themselves to make their devices compatible with smart speakers from these two brands.
Are you interested in smart lighting? No big deal. Go down to the local big-box hardware store and buy a couple of smart light bulbs or lighting fixtures. Chances are that every product on the shelf will be compatible with either Google, Amazon, or both devices. You just take them home, install them, and program them with your smartphone.
The typical smart speaker can be integrated with your thermostat, your lights, and even your smart door lock. Pretty much any smart device in your home can be programmed and accessed via voice command, as long as it is compatible with a smart speaker capable of acting as a central hub.
The Personal Assistant Feature
Smart home integration is just one aspect of improving the value of a smart speaker. A typical smart speaker can also be utilized as a personal assistant. Think about the implications of that for just a minute.
Imagine you are in the kitchen, working on a brand-new recipe, when you suddenly discover the need to convert from one measurement to the next. No need to grab your phone or tablet. Just ask your smart speaker to do the conversion for you. In seconds, you have the answer.
Meanwhile, your elderly parents will be taking their medications in a couple of hours. You do not have to remember. Why? Because you have programmed your smart speaker to alert you and your parents when the time comes. Today, you are home to make sure they take their medications. Tomorrow, when you are not home, the smart speaker will still be there to remind them.
Getting Better Every Day
Ongoing market research recognizes that smart speaker technology is getting better every day. As the market remains competitive, manufacturers are working on all sorts of things from natural language processing to advanced artificial intelligence and deep learning. With every advancement comes greater functionality.
Seeing how far smart speakers have come just in the last five years explains why they are so popular. It explains why millions of homes already have smart speakers while millions more are expected to get them within the next 4 to 5 years. It is all about the smart speaker now.