Smart Beacon Market by Component (Hardware and Software), Application (Tracking & Tracing, Engagement, Position & Navigation, Analytics, and Others), Protocol (iBeacon, Eddystone, and Others), End-use (Retail, Manufacturing, Logistics, Real Estate, Healthcare, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Global Smart Beacon Market Analysis

The global smart beacon market is predicted to garner $17,497.4 million in the 2021–2028 timeframe, growing from $2,332.0 million in 2020, at a high CAGR of 29.6%.

Market Synopsis 

Increasing adoption of in-store marketing by retailers, rising need for spatial data for advertisement, and increasing penetration of Bluetooth technology equipped smartphones are the key factors anticipated to drive the smart beacon market.

However, battery maintenance issues and short-range capabilities of smart beacon devices may restrain the growth of the global industry during the forecast period.

According to the regional analysis of the market, the North America smart beacon market is anticipated to grow at a CAGR of 29.1%, by generating a revenue of $6,068.1 million during the review period.

Smart Beacon Overview

Beacons are small wireless transmitters that transfer signals to other proximate mobile devices with the aid of low-energy Bluetooth technology. Beacon is an advanced location technology utilized in proximity marketing. It connects and transfer data to other mobile and smart devices, enabling accurate and convenient location-based search and interaction.

In retail industry, smart beacons are a type of Bluetooth technology that detects nearby smartphone users. Beacon technology, first launched by Apple in 2013, collects data on users entering a specific location. It then sends customised alerts to customers' smartphones when they opt-in to receive notifications, with the purpose of persuading them to make a purchase in-store. Additionally, digital customisation provides the user with a better customer experience.

Covid-19 Impact on Smart Beacon Market

COVID-19 has negatively impacted various industries, including retail and manufacturing. Owing to this impact, beacons industry sales faced slowdown in last couple of years. During pandemic, many consumers changed their preference from in-store shopping to online shopping. Companies and brands expedited the process of digital presence in the wake of social distancing. According to retail industry estimates, in 2020, around 12,000 stores were permanently closed in the U.S. These closures have drastically impacted the sale of smart beacons. However, as vaccination drive is on the rise across the world, store openings are outpacing the closures since mid-2021. 

Small and medium enterprises have been the backbone of several developed and emerging economies. As economies are on the verge of recovering from the pandemic, retailers are beginning to re-open stores. Also, most of the shoppers prefer shopping in stores with touchless checkout options. To help adapt to these changing circumstances, smart beacon in retail industry is anticipated to foster the market growth in the future. Furthermore, with the help of beacon technology, governments across the world have taken steps to deploy various measures to avoid close contact. For example, the Bangalore government in India has installed numerous beacon devices to prevent close passenger contact and mitigate the spread of COVID-19 infection at the airport.

Increasing Adoption of Proximity Marketing Solutions in Retail is Likely to Drive the Market Growth

Businesses and marketers spend billions of dollars each year on internet advertising and linking the online marketing with offline attributions has become crucial among marketers. Beacon technology aids shops and other entities to increase footfall and attract more customers. In retail industry, beacons enable mobile phones, tablets, and other devices to send data and information when in close proximity to a beacon. When beacon devices were introduced in 2013, proximity marketing became an industry trend that was widely adopted by the industry's behemoths. In 2019, Amazon, one of the world's largest retailers, used beacons to track attendees at one of the company's largest Amazon web services conferences. Instead of sending individualised messages, Amazon later announced that the sensors were used to anonymously track foot activity and obtain insights about crowd behaviour. Moreover, utility of internet of things (IoT) and data driven decision making in retail sector will enhance the sale of smart beacons in the coming years. These developments are anticipated to propel the growth of smart beacons over the forecast period. 

To know more about global smart beacon market drivers, get in touch with our analysts here.

Maintenance Issue and Mandatory Application Download are Likely to Restrain the Growth of the Global Industry

Limited range, mandatory application download, and other maintenance issues may restrict the growth of the smart beacon market in the short term. Customers have to install a specific mobile application to be able to experience proximity marketing with beacons. Moreover, users can only receive beacon notifications if their Bluetooth and Wi-Fi are enabled, as well as the appropriate application is installed on their smartphones. Also, most beacons are battery-powered, which may cause maintenance issue owing to fast power drainage and short life cycle. Also, because of the limited range of beacons, it is difficult to determine where they should be placed to ensure complete coverage of a particular area. In light of all these factors, the deployment of smart beacons is affected, resulting in a low level of demand.

Increasing Use of Wearable Devices such as Smart Watch among Users likely to Aid the Growth of Smart Beacon Market

Smart beacons may be employed in a variety of ways in the future. Smart watches can be used in conjunction with beacons to provide client updates. It would be more convenient to use a smart watch instead of pulling out one's phone every time there is a notification. Smart beacons are now frequently employed in places including airports, hospitals, restaurants, industries, schools, and shopping malls, which are likely to interact with wearable devices that people are wearing. Moreover, growing utility of wearable devices and use of beacons in healthcare facilities will support hospital staff with indoor navigation capabilities and expedite the process of meeting and helping patients.

To know more about the global smart beacon market opportunities, get in touch with our analysts here.

Source: Research Dive Analysis

The software sub-segment is predicted to have a fastest growing market share in the global market with a revenue of $880.9 million in 2020 and register a revenue of $6,805.4 million during the forecast period, growing at a CAGR of 30.2%. Beacon software is able to provide correct information to consumers in interactive way via variety of media format such as texts, sound, or video. With increasing demand for in-store analytics to improve store operations and enhance customer experience, the growth in the sub-segment is expected to gain momentum.  

The hardware sub-segment is predicted to have a highest market share in the global market with a revenue of $1,451.1 million in 2020 and register a revenue of $10,692.0 million during the forecast period, growing at a CAGR of 29.4%. The primary beacon hardware providers in the development of new devices are Kontakt.io, Gimbal, and Estimote. Developments in strong, robust, and long-lasting beacons are likely to boost beacon sales and maintain the sub-segment's market dominance in the long run.

Source: Research Dive Analysis

The analytics sub-segment is predicted to be the fastest growing segment in the global market with a revenue of $261.9 million in 2020 and register a revenue of $2,211.4 million during the forecast period, growing at a CAGR of 31.6%. Beacon analytics, or the analysis of data collected through smart beacons will assist retailers in developing better business insights, improving shop layout, and maintaining service standards and operations that will benefit both customers and merchants. With increasing demand for customer data for behavioural analysis by the retailers, the growth in the sub-segment is expected to propel further in the coming years.

The tracking & tracing sub-segment is predicted to have a dominating market share in the global market with a revenue of $829.9 million in 2020 and register a revenue of $6,118.3 million during the forecast period, growing at a CAGR of 29.4%. In several industries smart beacon can be used as active tags which function to transmit positioning data at specific intervals. It helps operators or forklift trucks to find the products they are looking for and identify accurately. Thus, growing adoption of beacons for tracking & tracing in transportation and logistics will sustain the growth of the sub-segment over the forecast period.

Source: Research Dive Analysis

The Eddystone protocol of the global smart beacon market is projected to have the fastest growth and surpass $3,437.8 million by 2028, with an increase from $435.0 million in 2020. 
An Eddystone beacon is the one that works on Android, iOS, and any other platform that supports Bluetooth smart beacons. Moreover, the growing penetration of Android enabled smartphones and other mobile devices worldwide is likely increase the growth of the sub-segment in the coming years.

The iBeacon sub-segment of the global smart beacon market is projected to register a substantial revenue of $12,894.8 million by 2028, with an increase from $1,745.0 million in 2020. Apple, a consumer electronics company designed the iBeacon protocol, which was first introduced in 2013. Several companies have since developed iBeacon-compatible hardware transmitters, also known as beacons, which are a type of Bluetooth low energy (BLE) gadget that broadcasts its identity to adjacent portable electronic devices. Owing to being the first developer of beacon technology, iBeacon has garnered substantial market share and likely to sustain the growth over the forecast period.

Source: Research Dive Analysis

The healthcare sub-segment of the global smart beacon market is projected to have the fastest growth and surpass $1,942.1 million by 2028, with an increase from $229.6 million in 2020. Beacons are likely to offer not only monetary benefits by also numerous intangible benefits to the healthcare industry. Beacons will improve the safety by tracking infants, confused patients, and also entry access. Moreover, it will keep track of patient falls and give alerts, as well as make it simpler for nurses to complete their regular tasks. The numerous benefits offered by smart beacons are likely to push the growth of beacons in the healthcare sub-segment.

The retail sub-segment of the global smart beacon market is projected to register a substantial revenue of $5,129.2 million by 2028, with an increase from $713.3 million in 2020. Retailers are increasingly using smart beacons as a location-based proximity marketing solution, to improve customer experience, increase revenue, and enhance operational efficiency. Moreover, the use of smartphones has completely transformed the way people shop, owing to the increasing development in retail sales. Also, Swirl Networks Inc., a marketing technology company, reports that over 70% of shoppers believe that beacon-triggered information boosted their likelihood of making an in-store purchase.

Source: Research Dive Analysis

The Smart Beacon in Asia-Pacific to be the Fastest Growing

The Asia-Pacific smart beacon systems market value was estimated at $733.2 million in 2020 and is projected to register a revenue of $6,019.10 million during the forecast period. Due to the high traction of beacon technology and the growing need for technologically enhanced marketing platforms among end users to grab market shares, Asia-Pacific is projected to see tremendous development. Due to the increased penetration of beacon technology in India and Australia for various applications, the Asia-Pacific region is projected to see considerable growth. The market is still in its infancy and holds a huge amount of potential for this region.

Competitive Scenario in the Global Smart Beacon Market

Product launches and mergers & acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Smart beacon market share has been accounted by key players including Estimote, Kontakt.io, Aruba, Sensoro, Vision IOT, Gimbal, Sensorberg, Glimworm, Blueup, and BlueCats, among others. Also, smart beacon market is a fragmented and accounted by numerous players. Product innovation, joint ventures & partnerships, and acquisitions of smaller players are the key strategies deployed by the major players. In spite of negative Covid-19 impact on smart beacon market, the companies are instrumental in executing several growth strategies, anticipating the potential prospects of smart beacons in the future.

In April 2020, Estimote, Bluetooth location beacon start-up, launched a new product designed for curbing the spread of COVID-19 virus. The company developed range of wearable devices that will enhance workplace safety for workers who have to be co-located at a physical workplace and maintain social distancing measures.

In January 2019, Kontakt.io, smart beacon manufacturer, released the first button-equipped Bracelet Tag BT18-3. This tracking device delivers real-time location information to safeguard the user's safety and security.

Porter’s Five Forces Analysis for the Global Smart Beacon Market:

• Bargaining Power of Suppliers: In the case of smart beacons, currently there are large number of suppliers offering beacon’s primary components such as battery, central processing unit (CPU), and radio. Most of the developed countries rely on the import of such components from other countries including China and other Southeast Asian countries. Given the constrain on domestic supply of beacon components, global suppliers currently have substantial bargaining power in the market. 
  Thus, the bargaining power of the suppliers is moderate.
• Bargaining Power of Buyers: The market is fragmented with few players and no major player. Switching cost of beacons is low as customers have more power to negotiate for lower prices and better deals. With increasing buyers for beacons in several industry verticals, bargaining power of buyers is more in current scenario.
  Thus, the bargaining power of the buyers is high.
• Threat of New Entrants: Beacons are impacted by government rules and regulations such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States. Low initial investment and demand for innovative proximity marketing technologies, on the other hand, are boosting start-up growth.
  Thus, the threat of the new entrants is moderate.
• Threat of Substitutes: Smart beacons provide amazing capabilities and value when compared to alternatives such as Global Positioning System (GPS) or Near Field Communication (NFC) technologies. NFC and GPS, as alternatives to proximal marketing, have drawbacks such as limited range and high cost of technology. Smart beacons are a far more affordable and practical instrument for nearby marketing.
  Thus, the threat of substitutes is low.
• Competitive Rivalry in the Market: The smart beacon market is highly fragmented, with many small firms. Few large companies, on the other hand, are aggressively investing in beacon technology offering better hardware, support, and expertise than their cheaper counterparts. 
  Therefore, the competitive rivalry in the market is moderate.