Smart Beacon Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The smart beacon market is expected to register a CAGR of 54.05 % during the forecast period. Beacon technology enables smartphones, tablets, and other devices to perform actions close to a beacon. Because of characteristics such as the increased probability of successful sales, improved customer relationships, enhanced tailored experience, and real-time & affordable nature when compared to traditional marketing, proximity marketing has seen increased investment. Furthermore, increased mobile penetration promotes the expansion of proximity marketing.

Key Highlights

• The increasing need for spatial data, which can be used to analyze the current demographic trend, is driving the growth of the market studied in various applications. One of the most widespread usages of beacon technology in higher education is the expedition of administrative tasks, such as attendance monitoring. Attendance monitoring via beacons increases efficiency and saves time. It also replaces a physical attendance sheet with spatially and automatically detected attendance information.
• Increasing globalization and demand from the automobile sector will emerge as key market development drivers. Increasing emphasis on business intelligence to achieve a competitive edge, increased usage of spatial data in analytics, rising demand for smart beacons for indoor navigation, and expanding industrialization would contribute to the market's growth.
• Moreover, by creating virtual perimeters around real-world geographic areas to communicate with users in those areas, players are focused on innovating advanced geofence technology and spatial data for increasing the audience reach and capturing telematics around hundreds of thousands of points of interest in the smart connect platform.
• The lack of information and technological skills will hamper the market's expansion. Technical obstacles, interoperability concerns, and bluetooth low energy technology's restricted sensing capabilities may slow the market's development pace even more. Large-scale technology restrictions in developing nations, and increased security and privacy concerns, may further challenge market expansion.
• During the COVID-19 Pandemic, the market is hampered due to the closure of many retail stores and the close of various end-user industries. Post-pandemic, the market is growing rapidly with the reopening of stores and resuming of various end user activities. With the increased mobile penetration, the market is propelling further.

Smart Beacon Market Trends

Retail End-User Segment is Expected to Hold Significant Market Share

• Owing to the increasing growth in retail sales, smartphones have entirely revolutionized how people shop. Retailers are now utilizing the location-based proximity marketing solution called Beacon technology to improve the customer's experience, drive revenue, and increase operational efficiency.
• Beacon technology (Bluetooth low energy (BLE) beacons) is incredibly effective for creating a cohesive online and in-store experience. By tracking a customer's in-store movement, retailers can deliver targeted information and discounts depending on which products the customer is perusing.
• Since proximity beacons track client positions, merchants may deliver highly relevant and tailored messages at approximately the appropriate time. For example, greeting a customer as they enter the retail store, or if a consumer is in a specific department store section, the bluetooth beacon can activate offers matched with that area.
• Using smart beacons in retail allows companies to learn more about their customers. Retail beacons can record information such as when consumers shop, how long they stay in the store, and what they generally purchase. This data may be used by businesses to improve their beacon marketing efforts and make in-store improvements.
• Large stores might be difficult to navigate, but retail beacons can help by directing shoppers to their desired items. For example, Gatwick Airport uses hundreds of beacons to provide interior navigation and augmented reality wayfinding service that directs travelers to specified places across the airport terminal. Similarly, Target leverages proximity beacons to assist shoppers in finding products on their in-app shopping lists by mapping paths for them.
• The increase in the number of retail stores across the globe increases the usage of smart beacons. According to USDA Foreign Agricultural Service, In 2022, around 13 million traditional retail grocery stores in India. Since 2013, this retail model has had strong and continuous development, including kiranas or corner shops. Additionally, this supermarket store design accounts for a sizable percentage of the retail grocery business. In comparison, modern merchants in this sector have around 8.4 thousand stores across the country over the same period.

Asia Pacific is Expected to be the Fastest Growing Market

• The Asia Pacific region is expected to witness significant growth due to the increasing traction of the beacon technology in India and Australia for various applications. The market is still developing and has much potential in this region.
• The growth of the organized retailing industry across the region is expected to create new potential for the smart beacon business. An increase in disposable income, a higher living standard, the rise of consumerism, technological influence, and the arrival of international merchants fuel the expansion of the organized retail business across the region.
• Additionally, as beacon technology makes organized retail outlets smarter, demand for beacon technology would likely expand in the region's supermarkets, department stores, hypermarkets, and discounters.
• Beacons are becoming vital to enterprises' technical innovation and digital marketing strategy, allowing industries to create corporate analytics while serving customers. They aid in collecting contextually relevant customer data, improving the accuracy of promotional offers and marketing. Beacons can be utilized by venue owners and sports teams in proximity-based initiatives to generate new income through impulsive purchases and sponsor integrations.
• Countries like India conduct much cricket matches in the Asia Pacific region in the stadium. Beacons can be placed at various locations within a structure or an area within a stadium to cover specific zones extending up to 75 meters with unique Bluetooth signals, allowing a participating fan's smartphone or wearable device to communicate with it and thereby identify their seat.
• Moreover, mall developers in India have found appropriate technology solutions, and several retail chains in malls have successfully implemented technologies, such as beacons.

Smart Beacon Industry Overview

The smart beacon market is highly fragmented with the precence of major players like Aruba Networks (Hewlett Packard Enterprise Development LP), HID Global Corporation, Leantegra Inc., Cisco Systems Inc., and Kontakt.io Inc. Players in the market are adopting strategies such as partnerships, megers and acquisitions to enhance their product offerings and gain sustainable competitive advantage.

• August 2022 - HID Global, one of the global leaders in trusted identity and RFID tracking solutions, announced that the Belgian national railway company, NMBS/SNCB, has successfully deployed a real-time location service platform with HID BEEKs Bluetooth Low-Energy (BLE) beacons to accurately monitor train location and ensure on-time departures.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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