Smart speaker shipments increased by 16% in the US during 2Q21

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Summary

Smart speaker shipments slowed in the US during 2Q21, with year-over-year (YoY) growth of just 16%, while quarter-over-quarter (QoQ) shipments declined by 27%. Most of the slowdown can be attributed to the Amazon Alexa platform (including own-branded and third-party-branded speakers), which saw a decline of 31% QoQ for smart speaker shipments in the US. In fact, Google’s smart speakers claimed the number one spot, beating out Amazon during the quarter by about 800,000 shipments.

Despite a slow quarter for Amazon, 1H21 still belongs to the Alexa platform, which was estimated to have a share of 42%, giving the brand a slight advantage over Google (37% share) and Apple (21% share).  

Apple continues to grow by triple digits

Since 4Q20, Apple’s smart speakers have increased by triple digits each quarter in the US, and 2Q21 was no different. Omdia estimated the HomePod and HomePod Mini both outsold all other models of smart speakers in the US during 2Q21. The Google Mini was ranked third overall, with about 777,000 shipments, followed by the Echo Dot (3rd Generation) with 730,000 shipments in the US.

Apple’s smart speakers have continued to grow at historic rates. In fact, Apple’s market share of US smart speakers has increased from 9.6% in 1H20 to 21% in 1H21, a YoY shipment increase of about 245%. The discontinuation of the original HomePod may have contributed to the spike in growth, as Apple enthusiasts rushed to buy the remaining stock. Nonetheless, as the new smart home application layer Matter takes shape, Apple will likely benefit the most of the three major US brands which are Apple, Google, and Amazon. However, to maintain momentum, Apple will need to release another speaker. For example, a portable speaker or speaker with a display could push Apple to new levels. 

Smart speakers with a display have been slow in 2021

In the US, shipments of smart speakers with a display were down 48% QoQ and down 1.9% YoY (2Q21 relative to 2Q20). Yet, 1H21 relative to 1H20, smart speaker shipments with a display have increased by about 67%. As such, this slowdown could be a market correction for the strong growth of speakers with a display that happened during the pandemic, rather than a broader indication of declining interest from consumers. Nonetheless, Omdia expects smart speakers with displays will continue to rise, especially as new models that have unique features come to market, like the Google Nest Hub (2nd Generation).

Slowdown is inevitable

The smart speaker market has been consistently growing over the past several years, but a slowdown is inevitable, especially as household penetration nears 60% in the US. However, brands have been especially innovative in this category, bringing new designs to market with product refreshes that add value. Nonetheless, we will continue to see an increase in the number of homes adding to existing smart speakers or replacing, meaning the penetration of households could start to diminish post-2025.

Table 1: US smart speaker market shipments by platform, 2Q21 (thousands)

Source: Omdia

Appendix

Author

Blake Kozak, Senior Principal Analyst, Smart Home

[email protected]