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[XGNews]: The sharp drop in Amazon Alexa equipment shipments in 2021 led to a decline in the smart speaker market

The following is the [XGNews]: The sharp drop in Amazon Alexa equipment shipments in 2021 led to a decline in the smart speaker market recommended by xgapn.com.

San Francisco, April 28 (ACE) according to omdia’s quarterly report on smart speakers in the fourth quarter of 2021, the sharp decline in Amazon Alexa device shipments led to the “correction” of the U.S. smart speaker Market in 2021, and the market sales recovered a more normal growth rate after the record shipments in 2020.

Further analysis of the report shows that the total shipments of smart speakers in the U.S. market in 2021 decreased by nearly 30% compared with 2020. This is mainly due to the fact that the shipments of Amazon Alexa smart speakers in 2021 decreased by nearly 51% compared with the previous year.

Blake Kozak, senior chief analyst of omdia smart home, said that in view of the changes in consumers’ buying habits during the COVID-19, this sharp decline should not be surprising. 2020 should be regarded as an extreme anomaly of smart speaker penetration. In fact, the market size and growth in 2019 are similar to that in 2021, indicating that the market has adjusted in the past year.

Not all market participants saw shipments shrink last year. Although Amazon experienced a sharp decline in shipments in 2021 compared with 2020, Google achieved a year-on-year increase of 2% in shipments in the same period, while Apple’s shipments increased by about 51% year-on-year.

Table 1: U.S. smart speaker market share by platform, 2021 (in thousands). Source: omdia.

In the fourth quarter of 2021, Amazon experienced a sharp year-on-year decline of about 78%, reducing its share in the U.S. smart speaker market to 38% from 65% in the same period last year. On the contrary, although the shipments of Google and apple decreased by about 35% year-on-year in the fourth quarter of 2021, the market share of Google and apple increased. In the fourth quarter of 2021, Google’s share of smart speaker shipments in the United States was 47%, while Apple’s share doubled from the previous year to about 14%.

Amazon and Google’s own brand smart speaker shipments continue to be basically the same. Last year, Amazon’s smart speakers shipped 18.8 million units in the U.S. market, while Google’s smart speakers shipped 14.5 million units. The gradual growth of Google’s smart speaker shipments is consistent with a recent omdia consumer survey, which found that year-on-year changes in regular use are more favorable for apple and Facebook.

In terms of smart speaker design in the U.S. market, the shipment of smart speakers with display screen in 2021 was about 14 million, down from 17.5 million in 2020. Although the shipment of smart speakers with display screen decreased year-on-year in 2021, the size of the smart speaker Market with display screen in the United States last year was almost twice that of 2019, when the shipment of smart speakers with display screen was only 7 million units. Despite the slowdown in growth last year, with the end of the trend of “voice as a new user interface”, omdia expects smart speakers with display screen to continue to occupy more share in the whole smart speaker market. On the contrary, omdia believes that the screen in the whole family can be used as a supplement to voice.

Although the U.S. smart speaker market shrank rapidly last year compared with 2020, the prospect of the market is still bright. Omdia is still optimistic about the use cases and adoption rate of smart speakers. These devices will still be the cornerstone of smart home in the next few years.

[Note: omdia is a world leading technology research institution formed by the merger of the research departments of informa Tech (ovum, heavy reading and tractica) and the acquired IHS Markit technology research department.]

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