mart speakers are now used by more than 60 million U.S. adults with a 40% annual growth rate and there are twice as many monthly active users of voice assistants on smartphones. The adoption rate of voice is actually faster in many countries that have more recently gained access to Amazon Alexa and Google Assistant. Voice assistants quickly transitioned from a novelty to a robust and active consumer engagement channel.
There is a new report by OC&C that reveals voice commerce reached nearly $2 billion in the U.S. in 2017. More surprising to some is that it is projected to reach $40 billion in the next five years. That is an 86% compound annual growth rate (CAGR). And, it's not just a U.S. phenomenon. In the U.K. voice shopping is expected to climb from just $200 million to $5 billion in that same period.
Voice assistants are destined to become a big part of consumers’ lives and represent both a big opportunity and a threat for brands. Why? Purchases that occur today through physical stores, websites and apps will materially shift to voice commerce over the next three years. Brands can take advantage of these changing consumer preferences or cede a rapidly growing sales channel entirely to their competitors.