AI Speaker Market Dominated by US and China, 70% High Growth Last Year... Samsung to Launch Soon

[Asia Economy Reporter Joselgina] The global smart speaker market, virtually dominated by American and Chinese companies, recorded a remarkable growth of 70% last year. This year is also expected to break the record for the highest sales ever, and the latecomer Samsung Electronics is set to join the global speaker competition by launching the AI speaker 'Galaxy Home Mini' later this month.

According to market research firm Strategy Analytics (SA) on the 17th, the global smart speaker market in 2019 recorded shipments of 146.9 million units. This is the largest scale ever, about 70% higher than the previous year. Among companies, Amazon's dominance stands out. Amazon, which took the lead by introducing AI speakers earlier, ranked first last year with a market share of 26.2%. Google followed in second place with 20.3%.

However, although Amazon and Google succeeded in maintaining their rankings, they could not withstand the offensive of Chinese companies that emphasized price competitiveness. Amazon's market share fell by about 7 percentage points from 33.7% the previous year. Google also dropped more than 5 percentage points from 25.9% the previous year, facing a fall to the 10% range. On the other hand, the market shares of Chinese companies such as Baidu, Alibaba, and Xiaomi all jumped compared to a year ago.

SA stated, "The release of smart speakers with improved functions and audio performance in the fourth quarter of last year contributed to the increase in global shipments," and added, "Although there was supply confusion at the beginning of the year due to the impact of the novel coronavirus (COVID-19), the smart speaker market is expected to set new records this year as well."

The competition among IT giants surrounding the smart speaker market is becoming increasingly fierce. Companies are accelerating moves to strengthen platforms, such as Google partnering with YouTube and Spotify. Moreover, Samsung Electronics' entry is also anticipated this year.

Samsung Electronics, a latecomer, is expected to unveil the AI speaker 'Galaxy Home Mini' later this month. Previously, Samsung Electronics and the three domestic mobile carriers included the Galaxy Home Mini as one of the pre-order benefits for the Galaxy S20 series. Considering that the activation date is on the 27th, the release in February is almost certain.

In particular, the Galaxy Home Mini is attracting market attention for its 'strong connectivity' compared to competing products. Samsung Electronics is building a solid ecosystem based on smartphones, home appliances, IT devices it produces, and the AI platform Bixby, and it also allows control of other companies' products. On the other hand, Amazon does not have its own mobile operating system (OS) or smartphone. Google also operates only on devices with which it has direct partnerships.

Apple is also expected to unveil an affordable HomePod within the year. Since Apple's higher prices have been considered a weakness compared to competitors, this can be read as a signal that Apple is intensifying its attack on the growing smart speaker market. Last year, Apple's global smart speaker market share ranked sixth at 4.7%.