The smart speaker market in India will post 'ultra-growth' in the next two to three years with more players foraying into the segment, though Amazon’s market position should remain strong during that period, thanks to a larger product portfolio and stronger content ecosystem
Smart speaker sellers in India surpassed a million shipments for the first time, in 2020. The industry had shipped approximately 650-700,000 units of smart speakers in 2019.
According to a report by market research firm techARC, e-commerce giant Amazon led the market with 79% market share in terms of volume shipments. The company was followed by Google and Xiaomi at 11% and 8% market share, respectively. The remaining 2% was captured by Apple, with its new HomePod and HomePod Mini smart speakers.
In terms of overall value, the smart speaker market in India touched ₹463.4 crore (approximately $63.6 million). The report said the smart speaker market in India will post “ultra-growth" in the next two to three years with more players foraying into the segment, though Amazon’s market position should remain strong during that period, thanks to a larger product portfolio and stronger content ecosystem.
The company also accounted for three of the top five best selling smart speakers in India. The Echo Dot (3rd Gen) and Echo Dot (4th Gen) were the top two smart speakers in India, followed by the Google Home Mini and the Xiaomi Mi Smart Speaker. The Chinese company shipped 75000 units of its smart speaker, which was announced during the second half of the year. Interestingly, the report also noted that over 40% of all smart speakers sold in India last year were sold during the fourth quarter.
The smart speakers market in India has mostly been run by Amazon and Google for the past few years. However, brands like Xiaomi, Bose and Sony have been entering the segment recently, with newer speakers powered by Amazon and Google’s voice assistants.
Industry experts had said the increase in customs duties on Printed Circuit Board Assembly (PCBA) announced in the Union Budget earlier this month, could make it more difficult for companies to keep prices in check. The report said most of the opportunity for smart speakers remains in the sub- ₹5000 segment.