Enterprise Adoption Will Start in 2019 With Hospitality,
Communications and Remote Healthcare Applications
STAMFORD, Conn.--(BUSINESS WIRE)--Aug. 24, 2017--
End-user spending for the worldwide virtual
personal assistant (VPA)-enabled wireless speaker market is forecast
to reach $3.52 billion by 2021, up from $0.72 billion in 2016, according
to Gartner, Inc.
"The market for VPA-enabled wireless speakers, such as the Amazon Echo
devices and Google Home, is expanding rapidly with more vendors, device
types and use cases," said Werner
Goertz, research director at Gartner. "We expect a temporary slowing
of growth in 2018, as other devices, such as lighting systems, hubs and
Wi-Fi mesh devices, adopt VPA functionality, especially in connected
Beginning in 2019, third-generation VPA speaker products will start
shipping with some artificial
intelligence (AI) functions running on the device rather than in the
cloud. Gartner expects these AI-enabled VPA speakers to use edge-device,
machine-learning capabilities to enhance latency, alleviate
privacy/security issues and utilize bandwidth more efficiently.
VPAs in the Enterprise
Although the VPA speaker is currently thought of as a consumer device,
in 2019, starting with the hospitality and remote healthcare industries,
enterprise adoption will drive further market growth through a
fragmented portfolio of specialist devices.
"In healthcare, remote diagnostics and elder care applications will be
enabled by VPA speakers. The cost of hardware and services will, at
least in part, be subsidized by healthcare ecosystem partners who are
likely to gain substantial efficiencies, and encourage patient
adoption," said Ranjit
Atwal, research director at Gartner. "Specialist VPA speakers with
custom-made hardware and software configurations will roll out in the
retail sector in 2020 and beyond. New self-service, voice-based shopping
and payment experiences will be enabled, reducing friction in the
bricks-and-mortar as well as e-commerce shopping environments."
By 2020, Enterprises' Data Privacy Will Not Be a Concern for 90
Percent of the Target Market
"Concurrent with the introduction of the Amazon Echo in 2014 were
reports about personal devices 'snooping' on private conversations in
the home," said Mr. Goertz. "Understandably, consumers raised concerns
about intrusions into private conversations."
Although concerns over privacy have little technical merit — the device
has no processing capability unless the trigger word is recognized —
market psychology is a current obstacle. Gartner believes that by 2020,
such concerns will have largely been mitigated through educational
efforts, adoption by peers and regulatory approvals of the device
category. By that time, lingering concerns will be confined to a
percentage of the market that is small enough to be insignificant.
More detailed analysis is available to Gartner clients in the report "Forecast
Snapshot: VPA-Enabled Wireless Speakers, Worldwide, 2016-2021."
Additional analysis on AI and other emerging trends will be presented
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Source: Gartner, Inc.
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