Smart speaker shipments in India for the year 2020 crossed 1 million-mark for the first time, market analyst techArc stated in its latest report. Data shows that smart speaker shipments were the highest in the country in the fourth quarter of 2020 at 403 thousand units. In terms of value, smart speakers worth Rs 463.4 crore (US $63.6 mn) were shipped during this period. Notably, Alexa-enabled Amazon Echo speakers dominated the market in terms of both shipments and value (in Rs) in 2020.
Following Amazon (80 percent market share), Google managed 11 percent market share by volume in 2020. Notably, Xiaomi secured the third spot with 8 percent market share while stood ahead of Google in terms of value with 10 percent share. Apple speakers took the fourth spot in terms of volume (2 percent share) and value (3 percent share).
While analysing India's smart speaker market, Faisal Kawoosa, Founder and Chief Analyst at techArc said, "The market is unfolding in India as a result of which we will see many more players foraying into this category in next two years, leading to it peak fragmentation." He added that consumers would pick smart speakers that will easily last for years, indicating that companies will need to market their devices accordingly.
Due to its aggressive pricing and user-friendly features, Amazon Echo speakers led Amazon to the top spot - securing a massive market share in terms of value and volume. It also indicates that consumers prefer speakers under the Rs 5,000 bracket. However, Apple still made a good start in the speaker category in 2020 as the company's HomePod and HomePod Mini smart speakers started selling in India in October. Within just one-quarter of shipments, Apple's share was 2 percent in overall units.
The report states that Google would need to revisit its strategy about smart speakers like other hardware products including Pixel smartphones. Though the company managed the second spot by volume in 2020, it could face serious competition from other existing and new entrant players.