International. The most recent report from the company GlobalData: 'Smart Speakers - Thematic Research' states that almost every leading technology company is already producing a smart speaker or developing one, and Facebook is the latest to enter the fray (launching its Portal device). The appetite for smart speakers is also not limited by geography, with China in particular emerging as a major market.
Ed Thomas, Principal Analyst for Technology Thematic Research at GlobalData, commented: "It was only four years ago that Amazon introduced the Echo, the first wireless speaker to incorporate a voice-activated virtual assistant. Initial reactions were muted, but the device and Alexa virtual assistant it contained quickly became a phenomenon, with a level of demand that even surprised Amazon."
Smart speakers give companies like Amazon, Google, Apple, and Alibaba access to a wealth of highly valuable user data. They also allow users to feel comfortable interacting with artificial intelligence (AI) tools in general, and virtual assistants in particular, increasing the likelihood that they will use them in other situations, and locking customers into a broader ecosystem, making it more likely that they will purchase complementary products or access other services, as online stores.
In terms of the competitive landscape for smart speakers, Amazon was the pioneer and is still a dominant force, although its advantage as a first engine has been eroded over the past year. Its closest rival is Google, but none of the companies are present in the fastest-growing geographic market, China. Alibaba is the leading player there, and Xiaomi also performs well.
Thomas concluded: "With big names like Samsung and Microsoft, which are expected to launch smart speakers in the coming year, the competitive landscape will continue to fluctuate. We are likely to see two distinct markets emerge: the cheap, impulse-buying end of spectrum, used by suppliers to power their ecosystems; and the more expensive luxury end, where greater emphasis is placed on sound quality and aesthetics. "This is the area of the market that Apple is targeting for the HomePod and early indications are that this is where Samsung's Galaxy Home will also look to make an impact."
Information based on the GlobalData report: Smart Speakers.
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