$23.3 billion up for grabs in smart speaker market
According to predictions from Allied Market Research, the global smart speaker market was worth $4.4 billion in 2017 and is poised to grow to $23.3 billion by 2025. For Google parent Alphabet (GOOGL), the smart speaker market presents another outlet for the company to grow its non-advertising business. Google captured 30% of the global smart speaker market in the fourth quarter, which ended in December, coming in behind Amazon (AMZN) with a 35.5% market share, according to Strategy Analytics estimates. Alibaba (BABA) and Baidu (BIDU) captured 7.3% and 5.7% of the global smart speaker market in the December quarter, respectively.
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Google Home speaker users more satisfied than Amazon Echo users
Although Amazon controls the largest share of the smart speaker market, Google leads in customer satisfaction. According to a Kantar study cited by Digital Trends, Google Home speaker users reported higher satisfaction with their device than Amazon Echo speaker users. IDC predicts that some 144.3 million smart speakers will be sold globally in 2019. Uptake of smart speakers is expected to continue, and annual sales of smart speakers are forecast to exceed 240 million units by 2023.
Google can count on high customer satisfaction to defend market share
The huge growth and revenue potential in the smart speaker market is attracting more players to the business. Facebook (FB), which launched a display-enabled smart speaker called Portal last year, is one of the new entrants in the smart speaker market and a challenger to Google and Amazon.
As competition heats up in the smart speaker market, pressure is mounting on market leaders like Amazon and Google to defend their turf. For Google, the high customer satisfaction with its Home speaker product will come in handy in its campaign to defend its smart speaker market share.