British manufacturer Monitor Audio is showing the CPC-120, which as far as I know is the world's smallest speaker for in-ceiling/-in-wall installation (see photo for size comparison). The speaker in the CPC-120 measures only 2" in diameter and becomes almost invisible when installed. Obviously a 2" speaker is not capable of producing much bass, so combine it with a subwoofer for full range sound. It's available in four finishes, gold, silver, chrome and brushed chrome and is designed for background music or whole house music systems. The speakers are well made with nice fit and finish, typical for Monitor Audio. The suggested retail price of the CPC-120 speakers is $160/pair. 
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