Table of Contents
Executive Summary
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- The market
- Smart speakers could reach one in two homes by 2023
- Voice’s influence will be seen in the smart home and wearable categories
- Promising signs emerging of voice powering purchasing
- In-car use of voice control can be a key moment
- Gains in AI capabilities can propel voice control’s potential longer term
- Impact of COVID-19 on Voice Control
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- Figure 1: Expected impact of COVID-19 on Voice Control, short-, medium- and long-term, [1 June 2020]
- Companies and brands
- Google introduces new services and capabilities for Assistant
- Amazon announces new devices for Alexa
- Facebook pushes its Portal device in time of lockdown
- Samsung eyes retail partnerships to raise Bixby’s profile
- The consumer
- Use of voice sees steady growth
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- Figure 2: Historical use of voice commands to control a device April-17 to January-20
- Voice controlled smart speaker ownership hits nearly one in four households
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- Figure 3: Ownership of voice-controlled smart speakers, April 2018-January 2020
- Across the board, non-users struggle to see the benefit of voice technology for them
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- Figure 4: Non-users of voice commands – reasons for not using the technology, January 2020
- Smart speakers overtake smartphones as the primary interface for users of voice control
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- Figure 5: Devices used with voice control, June 2019 and January 2020
- Amazon Echo still dominates the market
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- Figure 6: Smart speaker usage by brand, January 2020
- Playing music and basic information searches still dominate in usage activities
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- Figure 7: smart speaker activities, January 2020
- Consumers currently find assistants helpful, though more can be done in promoting discovery
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- Figure 8: Attitudes to voice assistants January 2020
- What we think
The Impact of COVID-19 on Voice Control
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- Short-, medium- and long-term impact on the industry
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- Figure 9: Expected impact of COVID-19 on Voice Control, short-, medium- and long-term, [27 April 2020]
- Opportunities and Threats
- Voice could have greater purpose under lockdown
- Providing a quick fix for new routines
- Lockdown could be more conducive to repeat purchasing through voice
- Voice can play a key role in consumer tech brands’ push into healthcare
- Voice can help open up services to the isolated and disadvantaged
- Shifts in consumer behaviour
- Growing health concerns could promote less tactile interactions
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- Figure 10: Concern of being exposed to the coronavirus 30 April, 2020 Mintel tracker
- Isolated people relying more on tech
- Looking to tech for local information
- Impact on key consumer segments
- Voice speaker purchases may plateau in the short term for younger audiences
- Higher income households are interested in voice and can spend on little luxuries
- Families can rely on their assistants to take some of the strain
- How a COVID-19 recession will reshape the market
- Device sales will be suppressed…
- …but resilient groups could be warm targets
- Drawing parallels with other technologies can help predict the impact on voice
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- Figure 11: Value of mobile phone sales, 2008-13
- Impact on the marketing mix
- Lack of in-store access could stall higher-end smart speaker sales
- Lockdown offers potential to reach disconnected families
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- Figure 12: Advertising spend for connected home products 1 March 2020- 19 May 2020
- COVID-19: Market context
Issues and Insights
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- Voice can build on simple interactions to prove its value in commercial applications
- The facts
- The implications
- Voice can work hand-in-hand with other new technologies to evolve out-of-home
- The facts
- The implications
The Market – What You Need to Know
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- Amazon drives smart speaker market
- Smart speakers could reach one in two homes by 2023
- Voice’s influence will be seen in the smart home and wearable categories
- In-car use of voice control can accelerate wider use of the technology
- Signs of growing consumer confidence in purchasing via voice
- Increased visibility for brands via voice
- Concerns about privacy can hamper voice’s potential
- Advancements in AI capabilities can propel voice control’s potential in the longer term
Market Overview
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- Voice platforms and ecosystems
- Amazon Alexa and Echo devices
- Google Assistant and Google Home/Nest
- Siri and Apple HomePod
- Samsung Bixby
- Microsoft Cortana
- Voice-controlled smart speakers
- Speakers now in one in four homes
- Organic discovery will continue to fuel further growth
- Accessible pricing means low barriers to entry and multiple device ownership
- Smart speakers with high-end audio capabilities getting the voice treatment
- Voice in smartphones, tablets and PCs
- Siri paves the way for voice on demand
- Google Assistant leads the way in Digital Assistant IQ test on Smartphones
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- Figure 13: Questions answered correctly by category of digital assistants July 2019
- Voice in the smart home
- Voice’s interaction with smart home devices set to unlock occasions for interaction
- Amazon’s Alexa everywhere vision key to driving growth
- Voice in wearable technology
- Smartwatches driving voice in the wearables market
- Hearables broaden out-of-home voice possibilities
- Voice and AR in smart glasses could be a powerful combination
- Voice in the car
- In-car interfaces key in driving a behaviour change
Market Drivers
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- Promising signs for voice’s potential in making purchases
- The advertising landscape for voice platforms
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- Figure 14: Amazon Music paid media opportunities 2019-2020
- …but in-skill purchasing paves way for developers to generate revenue
- Voice could play a part in assisted living with older demographics
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- Figure 15: Age structure of the UK population, mid 2018 and mid 2043
- UK and Local Government look to use technologies in providing elderly care
- Personalised experiences, compatibility and sentient voice experiences look set to power discovery
- Next generation AI powered chatbots indicate future of personal assistants
- Privacy concerns fuel consumer wariness around voice technology
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- Figure 16: Attitudes towards data privacy March 2020
- Strides in Artificial Intelligence can help shape the user experience
- Social platforms providing voice activated commerce opportunities
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- Figure 17: Snapchat AR lens promoting DC Comics film Shazam April 2019
- Filing of patents relating to voice indicates the scope of future services
- Sentiment analysis will lead to more nuanced conversations
- In-game advice on the cards
- Voice looks set to power innovations in gaming and entertainment
- Tech Giants collaborate on Project Connected Home over IP
Companies and Brands – What You Need to Know
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- Google introduces new services and capabilities for Assistant…
- …and announces new smart home partnerships
- Apple updates its CarPlay features
- UK Government adds official advice to Alexa and Google Assistant
- Amazon targets high end speaker market with release of Echo Studio
- Samsung Announces new Galaxy Buds+
Launch Activity and Innovation
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- Advancements in AI look to power next generation voice companions
- Q, the world’s first genderless voice, launches in 2019
- Amazon’s Alexa to offer NHS healthcare advice
- More advanced health features are in the pipleline
- BBC to launch its own digital voice assistant…
- ...and launches interactive news bulletins on smart speakers
- YouTube launches free music streaming service on Google Home
- Google introduces new services and capabilities for Assistant
- Smart speakers as storytellers
- Developers target in-car situation as a key voice situation
- Amazon partners with high end car manufacturers to offer Alexa voice assistant in vehicles
- Apple updates in-car interface CarPlay with iOS 13
- GDS adds 12,000 pieces of information to Alexa and Google Assistant
- Amazon adds high-end audio capabilities with the launch of Echo Studio
- …and launches a suite of technologies to push Alexa further into consumers lives
- Digital payments can help foster commerce opportunities
- Vodafone lets customers make phone calls via Alexa
- New Assistant functionality for Assistant at CES 2020
- Assistant to be embedded across in-home devices
- Facebook looks to crowdsource development of its speech recognition engine
- Samsung eyes retail partnerships to raise Bixby’s profile
- Galaxy Buds+ arrive
The Consumer – What You Need to Know
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- Use of voice sees steady growth
- Voice controlled smart speaker ownership hits nearly one in four households
- Across the board, non-users struggle to see the benefit of voice technology for them
- Smart speakers overtake smartphones as the primary interface for users of voice control
- Increasing voice use via wearables amongst key demographics
- Amazon Echo still dominates the market
- Consumers still more comfortable using voice in the home
- In-car moments can be key for voice
- Playing music and basic information searches still dominate in usage activities
- Ease of use and product quality feature highly in product considerations
Smart Speaker Ownership and Use of Voice
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- Use of voice sees steady growth
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- Figure 18: Historical use of voice commands to control a device April-17 to January-20
- Voice controlled smart speaker ownership hits nearly one in four households
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- Figure 19: Ownership of voice-controlled smart speakers, April 2018-January 2020
- Ownership skews younger but older generations are engaged
- Lowest-income households significantly less likely to own
- Families are key targets
Barriers to Using Voice Control
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- Across the board, non-users struggle to see the benefit of voice technology for them
- Concerns about privacy still a factor in voice use
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- Figure 20: Non-users of voice commands – reasons for not using the technology, January 2020
- Reasons for not using voice can be multifaceted
Interest in Future Use of Voice Control for Non-users
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- Nearly half of non-users express no interest in using voice control in the future
- There to be convinced
- A personal touch can make voice relatable for the currently disinterested
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- Figure 21: Interest in using voice commands to control a device in the future January 2020
Devices Used with Voice Control
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- Smart speakers overtake smartphones as the primary interface for users of voice control
- Increasing voice use via wearables amongst key demographics
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- Figure 22: Devices used with voice control, June 2019 and January 2020
Smart Speaker Brand Ownership
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- Amazon Echo still dominates the market
- Amazon responding to competitors’ points of difference…
- …but opportunities remain for specialist brands to make an impression
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- Figure 23: Smart speaker usage by brand, January 2020
Locations for Voice Control Use
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- Consumers still more comfortable using voice in the home
- In-car moments can be key for voice
- In-car presents a unique platform for voice to display its usefulness
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- Figure 24: Locations of voice control use January 2020
Smart Speaker Activities
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- Playing music and basic information searches still dominate in usage activities
- Families taking the opportunity to save time and effort
- Food delivery could be better suited to voice purchasing
- fmcg will be the starting point for voice-led retail propositions
- Personalisation of experience will increase voice’s potential
- Comparison sites with richer voice interaction could save consumers time and money
- Local search will play a role in unlocking voice potential
- Voice retail will need to overcome consumer concerns on privacy
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- Figure 25: smart speaker activities, January 2020
Smart Speaker Purchase Drivers
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- Ease of use and product quality feature highly in product considerations
- Ethical credentials can help brands set themselves apart
- Differentiation is crucial as consumers choose their ecosystem
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- Figure 26: Factors influencing consumer decision making for smart speakers January 2020
Attitudes to Smart Speakers
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- Consumers currently find assistants helpful, though more can be done in promoting discovery of functionality
- Appetite for instruction among busy households and full-time workers
- Voice has a visibility problem for marketers
- Screen-based speakers will help make voice shopping more appealing
- Promoting localised deals and offers can bring useful personalisation
- The sensory nature of voice can be elevated for impact
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- Figure 27: Attitudes to voice assistants January 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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