The smart speaker shipments crossed 10 lakh for the first time in India in 2020, generating Rs 463.4 crore ($63.6 million) in sales last year, a new report said on Wednesday.
Amazon led the segment both in value and volume market shares (80 percent market share) while Google managed 11 percent market share by volume in 2020.
The new entrant Xiaomi was at the second spot by market value share (10 percent) and third by volume (8 percent share).
Apple made a good start in this category in 2020 as its 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. Over 84 percent of Apple smart speaker shipments were of the Homepod Mini model.
“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 its peak fragmentation. Thereafter, consolidation will start, leaving behind the serious players alone,” said Faisal Kawoosa, Founder and Chief Analyst, techARC.
Nearly 40 percent of smart speakers were shipped in the festive quarter (Q4) alone.
Among the best-selling top five smart speakers, Amazon Echo devices featured at No 1, 2, and 5 ranks. Google managed the third position while Xiaomi’s smart speaker also featured in the top five sellers for 2020.
In its first year in this category, Xiaomi shipped more than 75,000 units.
According to the report, the opportunity lies in under Rs 5,000 segment.
“Consumers are preferring to buy smart speakers priced under Rs 5,000 where Amazon Echo Dot devices are priced. Speakers with displays are still a niche,” the report mentioned.
Google has to revisit its strategy about smart speakers like other hardware products including Pixel smartphones, it added.
