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Beacon Technology Market Overview
The global beacon technology market is expected to witness notable growth during 2020–2030, on account of the rising adoption of smartphones, increasing penetration of the internet of things (IoT) technology, increase in investments in proximity marketing and surging demand for sensor-based electronics in various industries, including banking, financial services, and insurance (BFSI), healthcare, automotive, and retail.
Beacons are small wireless transmitters that use Bluetooth low energy (BLE) technology to send signals to smart devices by conducting location-based search. Most of the beacons come in a standard size of a Wi-Fi router, and use proximity technology to detect human’s presence in nearby areas with an average range of 70 meters. After detecting human presence, these get activated and record human actions to deliver contextual, personalized, and informational experiences. The technology has proved quite effective in reaching customers and is increasingly being adopted in industries such as retail, healthcare, and BFSI.
On the basis of type, the beacon technology market is categorized into iBeacon, Eddystone, and AltBeacon. Among these, the AltBeacon category is expected to witness the fastest growth during the forecast period, owing to the increasing adoption of AltBeacon, which is an open and interoperable proximity beacon that can be incorporated as a feature in any BLE-compliant device.
Based on technology, the beacon technology market is categorized into BLE, Wi-Fi, ultrasound, and combined technology. Among these, the market is expected to witness the fastest growth in the Wi-Fi category, as Wi-Fi-enabled beacons are gaining traction in public venues such as stadiums, hotels, and restaurants for uninterrupted connectivity. Beacons are used in such venues to facilitate proximity-based interaction.
On the basis of deployment, the beacon technology market is categorized into on-premises and cloud. Between the two, the cloud category is expected to demonstrate faster growth during the forecast period, due to the increasing demand for cloud-enabled BLE networks. A cloud-based BLE network locates customers more accurately, enhances scalability, and simplifies the data management through network-managed virtual beacons.
Based on end users, the beacon technology market is categorized into retail, healthcare, automotive, transportation & logistics, BFSI, and others. Among these, the retail category is leading the market due to the high adoption of the technology among retailers, as beacon transmitters help them improve customer reach and enhance customer experience. Retailers use beacons to provide customers with information on products, flash sales, customized deals, and other offers to encourage product purchase. In addition, the technology helps retailers to create enhanced online and in-store customer experience.
Geographically, North America leads the beacon technology market. This can be mainly attributed to the early adoption of the technology in numerous industries across the region. Besides, the government in the region is focusing on smart city initiatives, which, in turn, is resulting in the deployment of BLE devices.
Beacon Technology Market Dynamics
Increase in investments in proximity marketing by various industries is the key factor driving the growth of the beacon technology market, globally. Proximity marketing has gained traction among businesses in recent years, as it helps in improving customer relationship, increasing conversion rate, enhancing personalized experience, and providing real-time marketing experience. Globally, more than 75% of customers use smartphones and other smart devices to search products. Thus, beacon technology can be leveraged by companies for improved customer reach. The technology does not work on the internet, so smart devices can easily catch beacon signals and store data. Thus, increasing investments in proximity marketing is resulting in the adoption of beacons, which, in turn, is supporting their market growth.
Expansion in organized retail stores is offering ample growth opportunities to the players operating in the beacon technology market. Organized retail stores, such as departmental stores, supermarkets, and hypermarkets, are expanding rapidly, further resulting in the demand for beacon technology. If a customer enters with smartphone in a retail store, beacon device emits radio signals to locate the customer. Through this, retailers analyze their data. Further, based on the activities and movement of customers, retailers send targeted messages such as discounts and offers to their customers to increase the conversion rate.
Beacon Technology Market Competitive landscape
Owing to the presence of numerous market players, the beacon technology market is highly competitive in nature. Due to the increasing adoption of the technology, players in the market are focusing on mergers and acquisitions and new product developments to stay ahead of the curve.
For instance, in March 2018, proximity technology provider Kontakt.io. partnered with wireless technology provider Cassia Networks to enable its customers of infrastructure management/location engine solutions to monitor and manage their BLE devices more efficiently. With this, all the customer data scanned and received from Cassia routers will be sent to Kontakt.io’s cloud, which, in turn, will provide customers access to last-seen beacons and the battery level of their beacons.
Some of the key players operating in the global beacon technology market are Apple Inc., BlueCat Networks Inc., Google LLC, Radius Networks Inc., Madison Beacons, Glimworm Beacons, Kontakt.io, and Texas Instruments Inc.
Beacon Technology Market Segmentation