While the Chinese market was among the most competitive, both Google and Amazon had no presence there, the company noted in its forecast.
"The growing installed base of smart speakers is an opportunity to create new business models and to drive profit beyond music and audio content streaming services," said Canalys senior analyst Jason Low.
"Smart assistants are becoming a conduit to offer services, such as assisted living, healthcare and government services.
China's smart speaker installed base is expected to reach 59.9 million units by the end of 2019.
"Local vendors are bullish about China's smart speaker market, and their aim for this year is to keep growing their respective installed bases in the country by shipping more devices into households, said Low.
"Hardware differentiation is becoming increasingly difficult, and consumers have higher expectations of smart speakers and smart assistants. Vendors will need to focus on marketing the next-generation 'wow factor' for their respective smart assistants and voice services to change consumers' perception and drive greater adoption."
The company said the extended ICT industry should be cognisant of the size and speed of the smart speaker market growth, as well as the rising use of smart assistants.
"Vendors want smart assistants to be the default option for channelling vital information and communication duties for the masses, allowing for new service integration, such as digital health and assisted living," said Low.
"Extended technology players in the fields of security, finance, health, data analytics and others should be on the lookout for new opportunities arising from this trend."