Smart Speaker Market Survey: Chinese Companies Dig More Share from Google Amazon

Amazon and Google are ceding their market share of smart speakers to Chinese rivals in 2019, according to a survey released today by Strategy Analytics. The report notes that 146.9 million related units were sold last year, up 70 percent from 2018. Amazon’s share of Alexa was 26.2% (approximately 38.5 million units), down from 33.7% (49.5 million units) in 2018.

Smart Speaker Market Survey: Chinese Companies Dig More Share from Google Amazon

(From: Amazon, via VentureBeat)

Google Assistant Smart Speaker’s 2019 market share was 20.3% (29.8 million), down from 25.9% (38 million) last year.

Meanwhile, Chinese smart speaker makers, led by Baidu, Alibaba and Xiaomi, all gained market share growth in 2019, with Apple in sixth place with 4.7% (6.9 million units).

David Mercer, vice president of Strategy Analytics, attributed this to weak demand for Google and Amazon’s smart speakers in North America and Europe, which led consumers to buy other brands.

Amazon and Google continued to lead in North America and Europe in 2019, accounting for more than three-quarters of total smart speaker sales, but the two tech giants’ market share declined slightly.

At a time of strong sales in the U.S. and Europe, Amazon shipped about 15.8 million units, up 16% year-on-year. Google shipped 13.9 million units, up 20% year-on-year.

For competitors, resources must be focused on specific smart speaker customer segments and use cases to maximize revenue and profit.

Smart Speaker Market Survey: Chinese Companies Dig More Share from Google Amazon

(Photo from: Strategy Analytics)

During the same period, Baidu shipped 5.9 million (up 171% YoY), Alibaba 5.5 million (up 94%), Xiaomi 4.7 million (up 167%), and Apple 2.6 million (up 65%).

In a November report, Canalys attributed Amazon’s continued strong growth to the Tool Echo upgrade, which allows users to depreciate and buy new products.

Alibaba’s Tmall Elves continued to perform well, and Baidu and Xiaomi have reached in-depth cooperation with more partners.

In April, Canalys predicted that the U.S. would continue to install its smart speaker base. However, the growth rates in China, South Korea and Japan can also reach 166% (from about 20 million to 59.9 million units), 132% and 131%. The Canadian market is expected to grow by 80 per cent, followed by Germany (?49%) and the UNITED Kingdom (-47%).

Finally, Market and Markets analysts expect the entire segment to be worth $11.79 billion by 2023.