The global beacon market was valued at US$ 1,124.5 Mn in 2016 and is projected to register compound annual growth rate (CAGR) of over 16.05% from 2018 to 2026, according to a new report published by Transparency Market Research (TMR) titled “Beacon Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018–2026.” The beacon market is expected to grow significantly due to increased cost efficiency and long life duration. The report suggests that the rising integration of IoT and beacon technology is expected to boost the beacon market at the global level for the forecast period 2018-2026.
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Additionally, beacon based solutions are gaining popularity in retail applications, which holds a significant share in the market. For instance, Kroger, a significant player in the retail industry in the U.S. has adopted beacon powered smart shelf technology in its stores, whereby the company gets to understand the frequency of a customer’s purchase with respect to a particular product that is kept on the shelf. Furthermore, in May 2017, Tesco, a prominent retail player placed beacons in all of its Tesco Lotus stores in Thailand, which helped them in carrying out promotional activities and notifying the customers about the latest discounts and coupons. Furthermore, this initiative by the company helped it to analyze and understand customer preferences, which will help it to further strengthen its market penetration. Such developments are expected to have a positive impact on the global beacon market.
Mandatory requirement to turn Bluetooth on can hinder growth of the global beacon market
Growth of the beacons market can be hampered due to the compulsion of Bluetooth being turned on in order to make the beacon device work. Furthermore, the probability of a consumer keeping the Bluetooth switched on all the time is significantly low. However, adoption of beacons is increasing due to the increasing mobile user base globally and the enhanced user experience provided by beacons. For instance, in one of its reports, Bluetooth Special Interest Group, a global organization which takes care of Bluetooth standards, discussed that beacon devices would reach a count of 565 million units in 2021 from 8.2 million in 2016.
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Prominent adoption of beacons in retail sector
On the basis of end-use industry, the global beacon market is segmented into retail, advertising, manufacturing, transportation & logistics, healthcare and others. Others include sports industry and museums. The retail segment is predicted to have a significant share over the forecast period. Multiple benefits of adopting beacon technology such as providing navigation, getting reviews, customized offers, and prompts are projected to have a positive impact on the global beacon market. Due to the location and user priority based offers, beacon technologies are seeing significant adoption in the retail sector as users are getting offers according to their previous track records of purchases, helping the retailers to design customized offers according to the needs of a customer. However, the advertising industry is expected to expand at the highest CAGR over the forecast period from 2018 to 2026.