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The beacon market size is forecast to increase by USD 90.41 billion, at a CAGR of 77.6% between 2023 and 2028. The market's expansion hinges on multiple factors, notably the widespread adoption of beacon technology across various user groups, the advantages offered by proximity beacon marketing, and the rising uptake of high-end smartphones in developing markets. The increased utilization of beacon technology caters to diverse end users, enhancing connectivity and customer engagement. Proximity beacon marketing presents significant benefits, enabling targeted and personalized marketing strategies based on customer proximity. Furthermore, the growing popularity of premium smartphones in emerging economies fuels market growth, indicating a broader shift towards advanced mobile technology solutions. Even leading location-based search and advertising service providers face accuracy issues in terms of providing the exact location of the point of interest. These trends collectively contribute to the market's evolution, emphasizing the importance of innovative technologies and tailored marketing approaches for businesses and consumers alike.
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The market is driven by audio-based directions that enhance user experiences, along with advancements in wireless transmitters and compact solutions like Coin-Sized Beacons, Keychain Beacons, and Plug-in Beacons. Recent technological developments such as Smart Beacons and Eddystone beacons are reshaping proximity-based interactions, fueling Market Penetration and Market Diversification efforts. However, challenges like Data security concerns and Impairments persist, requiring solutions in wireless networks and smart devices. Additionally, expanding into untapped geographies demands thorough Competitive Assessment & Intelligence and innovative manufacturing capabilities to address market complexities effectively. Our researchers analyzed the data with 2023 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Augmented adoption of beacon technology by diversified end users is the key factor driving the growth of the market. Beacons are increasingly being used in various end-user industries such as retail, hospitals, medical facilities, banks and museums. For example, retailers have installed beacon devices in their stores to improve the customer experience. As a customer enters or approaches the store, the beacon emits radio signals to locate the consumer and update the associated merchant's information in the app. These devices help retailers identify customers based on their interests, location, and potential. The above-mentioned advantages of beacons make them highly advantageous for retailers. Hence, the increasing adoption of beacons by the retail industry is expected to increase significantly during the forecast period.
The adoption of beacons in logistics and transportation is the primary trend in the market. Beacon technology is used in the logistics and transportation industry to improve the customer and end-user experience. In logistics, shipments arrive at various warehouses and distribution channels and are shipped. They move via different modes of transport such as trucks, rail cars, and cargo planes to get around. Therefore, it becomes difficult to track these shipments when they are transported by different routes. This tracking problem can be overcome by placing a BLE-enabled sensor on each shipment. This can be detected by beacons placed at each junction in the supply chain.
Moreover, in transportation, beacons are installed at airports and on trains and buses, mainly to help navigate information on timetables and guidance to passengers. It also helps drivers to locate places available nearby for parking and to keep themselves informed about transit updates. For instance, beacons installed at bus stations/stops notify passengers whenever a bus approaches the bus station or stops. Thus, the increasing adoption of beacons in the logistics and transportation industry is expected to support the growth of the market during the forecast period.
Inaccuracy in signals and location-based search results are major challenges to the growth of the global market. Signals emitted by BLE beacons can be absorbed by structures such as large buildings and bridges. Since Bluetooth signals, unlike Wi-Fi, are easily jammed by physical objects, this leads to signal interference and jitter, ultimately causing data stability issues triggered by beacons. Also, the real-time information provided by location-based search providers must be highly accurate and reliable. The accuracy of real-time location-based search results is measured by the relevance of the information provided by search providers.
However, due to the scarcity of regional service providers, location-based search providers are unable to provide accurate data. For instance, the search result for a restaurant, hospital, or museum may display a location that is incorrect. Thus, the lack of accuracy in location-based search results is a major challenge for the market, which will affect the growth of the market during the forecast period.
In the realm of beacon technology, audio-based directions offer a hands-free and intuitive wayfinding experience. Wireless transmitters power these systems, enabling seamless communication with devices. Specialized variants like Coin-Sized Beacons, Keychain Beacons, and Plug-in Beacons cater to diverse needs, highlighting recent developments and technological advancements in the field. The evolution of Smart Beacon solutions reflects competitive strategies focused on Market Penetration and Market Diversification, targeting untapped geographies with Competitive Assessment & Intelligence driving manufacturing capabilities. These efforts lead to pioneering product developments despite inherent complexities in beacon technology such as Eddystone beacons and iBeacon technology. Addressing Impairments and Data security concerns is crucial in Wireless networks integrated with smart devices to ensure secure data transmission and user privacy.
The market share growth by the iBeacon segment will be significant during the forecast period. Apple Inc. introduced iBeacon in 2013 at the Worldwide Developer Conference in San Francisco. iBeacon is used to provide location-based services and information to iPhones and other iOS and Android devices using BLE wireless technology.
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The iBeacon segment was valued at USD 1.44 billion in 2018. iBeacons contain combinations of numbers and letters divided into specific groups. Each beacon has a unique code and the mobile application only activates when it sees data related to that beacon. Additionally, iBeacons are used by a variety of end users such as retail, hotels and hospitality, airports, hospitals and healthcare, banks, and museums. Therefore, growing demand for iBeacons from various industries for business growth increased customer loyalty and a better understanding of customers which will boost the growth of the global market during the forecast period.
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North America is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is anticipated to account for the largest share of the global market during the forecast period. This is due to the presence of established companies such as Estimote Inc., Gimbal, Inc., and Radius Networks Inc. in the region, especially in Canada and the United States. Additionally, North America has seen an increase in beacon adoption due to technological advances introduced by incumbent providers in the region. Therefore, beacon innovations from established companies will have a positive impact on the North American market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Blesh - The company offers data analytics platforms, IOT solutions, location intelligence platform apps, and Blesh SDK. Also, the offerings of the company include a smart key fob as a beacon itself, as it works with Bluetooth Smart aka Bluetooth Low Energy.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative market research and growth analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. In market growth analysis, data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market is rapidly evolving with the advancement of Bluetooth smart signals and innovative geolocation methods. Proximity marketing, facilitated by beacon protocols like iBeacon technology, has become a cornerstone of modern marketing strategies. Major cities like Istanbul are embracing beacon technology for managing assets, ensuring safety, and optimizing resources.
While battery consumption remains a concern, recent developments have focused on minimizing energy usage. Technologies such as Ultra-Wideband, Zigbee, and Coin-Sized Beacons are reshaping communication range and enhancing wireless networks. The market is witnessing emerging lucrative markets and mature segments, leading to Market Penetration and Market Diversification efforts. Competitive Assessment & Intelligence is crucial, considering the complexities and disaster prevention aspects associated with beacon technology. Overall, the beacon market presents untapped geographies and opportunities for pioneering product developments.
Moreover, the market continues to expand, driven by the increasing demand for promotional notification solutions in various sectors. In retail, shopping carts and baskets equipped with beacons enhance the shopping experience by providing personalized offers based on the proximity zone of the customer. Innovations like Wayfindr help users navigate spaces efficiently, although challenges like impairments require solutions such as audio-based directions. Amid this growth, data security concerns remain paramount, urging businesses to integrate security measures into their wireless networks and smart devices. Beacons play a crucial role in pinpointing physical location data, often leveraging cloud infrastructure for streamlined operations.
Similarly, while the market is still in a nascent stage, increased focus on transportation and logistics applications, fueled by mergers & acquisitions, sets strategic benchmarks for industry growth. Diverse beacon types like Keychain Beacons and Plug-in Beacons offer versatility for different use cases, driving evaluation and exploring new manufacturing capabilities. The beacon market's trajectory underscores its potential to revolutionize industries across sectors, signaling a dynamic landscape ripe for further innovation and development.
Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 77.6% |
Market growth 2024-2028 |
USD 90.41 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
59.6 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 47% |
Key countries |
US, China, UK, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accent Advanced Systems SLU, ams OSRAM AG, Apple Inc., ASSA ABLOY AB, Beacon Biosignals Inc., Beacon Platform Inc., Blesh, BlueCats Australia Pty Ltd., BlueUp Srls, Chengdu JAALEE Technology Co. Ltd., Estimote Inc., G24 Power Ltd., Hewlett Packard Enterprise Co., Infillion, Kontakt Micro Location Sp. Z.o.o, KS Technologies Inc., Leantegra Inc., MOKOSmart, Radius Networks Inc., and Texas Instruments Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecasting period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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