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Why is smart speaker in China unable to rise?
China has made remarkable strides in the tech sector, particularly excelling in internet-related industries with platforms like Alibaba for e-commerce, Baidu for search engines, and iQiyi for video streaming. Yet, despite these achievements, China has lagged behind in the global smart speaker market, unlike the U.S., where Amazon Echo and Google Home dominate. Bloomberg highlighted this gap in coverage on July 16, prompting us to explore why China hasn't embraced smart speakers as enthusiastically.
The AI-powered audio equipment market in China remains nascent. According to Counterpoint Research, only an estimated 2 million smart speakers are projected to enter the Chinese market this year, far fewer than the 14 million expected in the U.S. Gartner's Tracy Tsai noted that the current speech recognition technology in China isn’t fully developed, making it challenging for smart speakers to accurately understand and respond to commands in conversational Chinese—a critical barrier to widespread adoption.
Yu Kai, the CEO of Horizon Robotics and a former leader of Baidu’s Deep Learning Institute, added another perspective: the lifestyle of many Chinese consumers doesn't lend itself to the use of smart speakers. "Young professionals are often too occupied with work and commuting to engage with such devices," he explained. This contrasts with the U.S., where smart speakers are often used by families at home.
Chinese consumers prefer investing in mobile devices that allow them to stay connected on the go. For instance, Baidu’s iQiyi dominates the video streaming space, with 70% of users preferring to watch videos on their smartphones or tablets. In contrast, Netflix users are more likely to stream content on televisions.
Despite this, major Chinese tech companies are preparing for a push into the smart speaker market. JD.com aims to produce 1 million smart speakers by the end of the year, while Counterpoint projects that China could see 22 million smart speaker sales by 2020. Companies like Alibaba and Tencent are already testing voice-activated programs, and Baidu showcased its own smart speaker prototype at a recent AI expo, answering common queries like "What’s the weather like today?"
Conexant Technologies is also collaborating with over 60 Chinese firms to enhance smart audio device capabilities. However, some experts believe AI integration might not necessarily rely on standalone speakers. Instead, smart home appliances could play a larger role. Last year, Chinese consumers accounted for 65% of global smart home purchases, a number expected to grow to 9.51 million units by 2020. For example, refrigerators from brands like Midea and JD.com now feature built-in cameras that can recognize food items and prompt users to eat healthier options. Zhang Chen, CTO of JD.com, emphasized that the true value lies in integrating AI seamlessly into everyday life.
Smart TVs and boxes are another area of focus. China’s leading platform, Sofa Butler, offers comprehensive resources on smart TV ecosystems, including reviews, software updates, and community discussions. As AI continues to evolve, the potential for smart devices to transform daily life in China seems boundless, even if smart speakers haven’t yet found their footing in the country.