The smart display market is expected to register a CAGR of 7% during the forecast period 2020 - 2025. A smart display is a smart speaker with a touchscreen that adds extra functions to the smart speaker technology, allowing users to do watch videos and place video calls.
- Moreover, the rising penetration of the Internet of Things is one of the major factors driving the adoption of smart home devices contributing to the transition of the home from traditional to a smart internet-connected one. Thus, the adoption of smart home devices would fuel the growth of the smart display in smart homes.
- From January 2018 to May 2019, the number of smart home devices supported by Google Assistant has risen from around 1,500 to 30,000. The rise in the number of the smart home devices has encouraged other vendors to invest in this technology.
- Further, the growing demand for smart and connected home products is encouraging the manufacturers to add new functionality, greater reliability, higher product utilization.
- For instance, in January 2020, Google's Nest Hub added a brand new media view that allows the user to change the music volume or turn off the TV without having to walk into every room. Such
- However, the high cost of advanced smart displays and the threat to cybersecurity are limiting the growth of this market during the forecasted period.
Key Market Trends
North America Occupy Significant Market Share
- North America currently occupies the largest market share due to the presence of the vendors such as Amazon.com, Inc, Google, LLC, and Facebook, Inc, and others. Also, the Amazon.com, Inc, was the first company to launch a smart display in 2017.
- These companies are trying to capture the market with product launches. For instance, in October 2018, Google launched Google Home Hub, a virtual assistant enabled smart display that consists of a new feature called Ambient EQ.
- Further, according to the Consumer Technology Association, smart home device sales in the United States were 1.3 USD billion in 2016 and in 2019 was 4.5 USD billion. The increase in smart home devices is one of the major factor that is contributing to the growth of the smart display market.
- Also, the rapid internet penetration in the region is also aiding the growth of smart homes which in return is expected to have a positive outlook on the smart display market as well. For Instance, the total number of IoT devices in 2017 was 2.9 billion and according to Cisco reports there will be 5 billion IoT devices by 2022 in North America.
- All the above factors are expected to further boost the market in the region.
Asia- Pacific to Witness Fastest Growth
- Asia-Pacific is expected to witness the fastest growth of the market studied mainly due to the rising production of consumer electronics and the increasing demand for wireless connectivity.
- Also, the companies in these regions are focusing on launching their products to get competitive advantages in the smart display market.
- For instance, Chinese tech giant Xiaomi is preparing to launch its first smart display "Smart Display Speaker Pro 8" in 2020 which will bring the company on the same lines as devices like the Google Nest Hub, Amazon Echo Show and Facebook Portal.
- Also, the companies are trying to increase their geographic presence by launching their products in the Asia-Pacific region. For instance, Amazon has launched the Echo Show 5 in India in May 2019. With such product launch in emerging nations such as India, companies are also trying to increase awareness about the smart display in the region.
The smart display is a concentrated market owing to the presence of a few companies that have a global presence. Demand for advanced features in the smart display is expected to create various opportunities for this market and thus encouraging companies to enter the market. The companies are launching new products and are collaborating with other companies to expand their presence. Few recent developments are:
- January 2020 - Google upgraded smart display by adding sticky notes and speed dial card. Smart Display sticky "household notes" appear with a signature yellow background that identifies the author and when it was created.
- September 2019 - Facebook announced that with its product Portal Mini and Portal TV, the company entered the European region. This helped the company to expand its geographic reach.
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