Smart speakers will be the technology highlight in 2018

Knowledge• January 6, 2018 15:18

Research from analyst firm Canalys shows that smart speakers will be the fastest growing new technology device category in 2018, surpassing wearables, AR and VR.

Google and Amazon are two of the factors helping to boost the smart speaker market.

According toPhoneArena, smart speaker sales will beat out sales of wearables, augmented reality (AR) and virtual reality (VR) — three of the technologies predicted to grow rapidly in a market where smartphones have started to slow down.

Canalys predicts total smart speaker sales will reach 56.3 million units in 2018, with Google and Amazon expected to lead the way with their Google Home and Echo speakers. Apple is also expected to release its high-end Siri-powered HomePod speaker in early 2018. The US will be the largest market for smart speakers, with 38.4 million units sold, accounting for 68% of the total.

Smart speakers have grown faster than any other consumer technology that has emerged in recent years, including AR, VR, and even wearables, according to a report from Canalys. 2017 was a big year for developers to promote smart speakers, especially with the efforts of Google and Amazon. This will grow in 2018, creating new business opportunities such as advertising, content subscriptions, premium services, and enterprise solutions.

According to Canalys, this technology is still in transition and investment will increase as many new companies join this ecosystem.

The focus here is clearly on monetization. At the end of 2017, Google and Amazon estimated that their Google Home and Echo devices were costing them the same or even losing money, according to Canalys. But next year, the companies will be looking to make more money.