The Global Beacon market is expected to grow at a compound annual growth rate of 41.91% to reach a market size worth US$14,078.993 million by 2027. This market was valued at US$1,215.257 million in 2020. Beacons are small, low-cost devices that use Bluetooth Low Energy to broadcast Bluetooth Low Energy Signals or Bluetooth Smart signals (BLE). Compatible mobile apps can listen for signals from nearby beacons and initiate a sequence of interactions, such as sending a promotional notification, video, URL form, and more.
Analysts anticipate that the market will grow due to the increased application of Beacon across different industry verticals during the forecast period.
Due to features such as higher accuracy in comparison to alternative geolocation methods, minimal battery consumption, and the ability to work in the lack of an internet connection, beacon technology is widely employed in a range of industries, including retail, and healthcare, travel & tourism, and education. The adoption of Bluetooth smart technology, loop technology, and artificial intelligence-based over-the-air (OTA) technology is one of the important market trends gaining popularity. Companies are progressively adopting technology to improve their market position. For example, in October 2019, Uber announced the release of Beacon 2.0, an improved version of its multicolored Beacon gadget that would sit on the car’s dashboard and will flash a certain hue that riders choose in the app to help them find the proper car in busy settings. Passengers are also advised to fasten up, carefully close car doors, & depart curbside, according to the digital screen on the Beacon.
In addition, the growing need for geospatial data, which can be utilized to assess the present demographic trend, is propelling market research in many applications forward. The expedition of administrative chores, such as attendance tracking, is one of the most common uses of beacon technology in higher education. Monitoring attendance with beacons improves efficiency and saves time. It also substitutes a physical attendance sheet with information that is spatially and automatically sensed. For example, through an in-house created mobile application, the Hong Kong Polytechnic University uses iBeacons for attendance and other activities.
Moreover, the global beacon sector is booming due to an increase in company expenditure on proximity marketing. For instance, 15 McDonald’s stores in Istanbul adopted a new proximity marketing technique involving beacons to boost customer relationships and sell a new coffee-flavored drink line. Employee monitoring, asset management, safety, and resource optimization are all factors contributing to the market’s growth. Apple Inc. and Google LLC, for example, have developed enhanced beacon protocols dubbed iBeacon & Eddystone, respectively.
The data security and low broadcasting range of Global Beacon can act as a constraint for market growth at a global level.
Data security problems associated with wireless networks and the Internet of Things are limiting the market (IoT). Information is delivered straight to the relevant mobile application using beacon technology, which subsequently retains all of the user’s personal information. Additionally, the growing number of cybersecurity risks aimed at organizations via IoT devices is likely to stymie beacon market growth over the projection period. Furthermore, because beacons cannot connect to the network on their own, the maximum range allowed in beacons is insufficient for broadcasting signals on a large scale, and they must be monitored through a centralized system. When beacons disappear, one should inspect physically or examine beacon detection data offline, but when there are a high number of beacons, one needs to investigate more thoroughly.
By technology, the Bluetooth segment is anticipated to witness a significant market share during the forecast period.
Bluetooth is expected to account for a significant part of the market and will likely dominate the industry over the projected period. Bluetooth is among the most power-efficient Beacon technologies, and the BLE category has contributed significantly to the market’s growth. Furthermore, because Bluetooth has a reach of 80 to 100 meters and a well-established ecosystem for Beacon communication, BLE Beacons are frequently employed across industries. Indoor BLE beacons are used in a variety of applications. Bluetooth technology has evolved dramatically in recent years, allowing the Beacon sector to mature and thrive and hence is increasingly replacing existing technologies and boosting beacon solutions with the support of developing loT standards. In beacon devices, Bluetooth is also used in conjunction with Wi-Fi as a hybrid communication method. During the projection period, the increasing deployment of Bluetooth 5.0 and 5.2 might aid in attracting high Beacon market revenue.
By end-user industry, the retail segment is anticipated to witness a significant market share during the forecast period.
Due to the increased need for customer analysis, the Retail segment is expected to rise rapidly during the projection period. This is due to an increase in the number of digitalized offline stores, such as fashion, footwear, food and beverages, electronics, sports equipment, and other items. Additionally, the retail industry is expected to place a high demand on indoor beacons. This demand is mostly driven by businesses’ increasing reliance on in-store analytics to improve customer experience and engagement. Beacon is being used by global retail companies to improve daily footfall and create significant Beacon market revenue.
For example, Beacon was first deployed in the United States in November 2013 by Titan at their Manhattan retail outlets for maintenance services. In addition, Beacon is being used in offline retail locations to provide customers with in-store updates about product reviews, ongoing specials, and personalized bargains. Smart beacons, which monitor a customer’s in-store mobility, have changed how businesses sell in the market. Beacon technology is being used by big stores such as Lord& Taylor, Timberland, Urban Outfitters, and others to give a better consumer experience. This technology allows merchants to track and attract customers to in-store events, promotions, and coupons, allowing them to match customer needs and create an online-to-in-store experience.
According to regional analysis, the Global Beacon market in the Asia Pacific is expected to hold a significant share during the projected period.
Significant growth is projected in the Asia-Pacific region. This is due to the rising demand for location-based services in businesses such as transportation and logistics, entertainment, and education and research. Several firms in APAC are concentrating on developing and introducing improved beacon devices to meet the growing demand for beacons from these industries. Sydney joined Brisbane in launching the novel Waze-designed technology in February 2020, which provides phone navigation devices with a Bluetooth connection even when GPS service is unavailable. Furthermore, mall developers in India have discovered acceptable technological solutions, and numerous mall-based shop chains have effectively adopted technologies such as beacons. In 2019, Quest Mall, for example, launched a mobile app with a variety of features to improve user engagement. Users receive push notifications of numerous ongoing discounts provided by different brands/stores within the mall via the app, which is coupled with Bluetooth Beacons. It also includes interactive user games and features such as the Walk-n-Win, which functions like a pedometer and counts the steps performed by patrons/customers inside the mall.
The Global Beacon market was positively affected by COVID-19. Governments are putting beacons in public spaces as a safety measure. Market players will benefit from AI and machine learning, as well as Bluetooth-enabled low-energy beacons. For example, Estimote Inc. used its technical capabilities to develop a new technology called “Proof of Health” in April 2020, which is specifically designed to prevent COVID-19 spread. The company has introduced a unique range of wearables that can increase employee safety in the workplace for individuals who need to be co-located when social distance and physical isolation are in place.