Fairfield Market Research
Smart Beacon Market

Smart Beacon Market

Global Industry Analysis (2018 - 2021), Growth Trends, and Market Forecast (2022 - 2029)

Published Date: Upcoming | Format:

Industry: Information & Communications Technology | Author Name: Mohit

Smart beacons can enhance or customize the in-store experience by targeting consumers with location-based content in proximity to the area. This technology brings new opportunities for marketers and businesses to engage customers in contextually relevant ways using low-energy Bluetooth connections with consumer mobile phones. This innovative technology which interacts with smartphones through apps guides customers toward products or offers information about company's business. Smart beacons can help marketers engage customers more efficiently and effectively with targeted content that is relevant to their location and interest.

The demand for smart beacons has increased to a great extent as they're very easy to set up and install. All it takes is just a couple of minutes. It means any type of business or company can use these beacons for commercial purposes such as malls, airports, restaurants, and museums, among others.

Some Distinct Functionalities of Smart Beacons:

  1. Personalized sales promotion
  2. Customer Engagement
  3. Location-based Analytics
  4. Contextual Relevant Content Delivery​

Smartphones to Play Key Role in Demand for Smart Beacons

With the continuous increase in smartphone penetration across the globe, it is safe to assume that smart beacons will have a significant role in how companies can engage customers. As of 2021, more than 4.4 billion users are active social media users worldwide and among them, almost 490 million are using beacon-powered location-based services. Location-based service is an integral part of mobile apps these days so it's no surprise that marketers are keen on leveraging real-world locations to create personalized messages for consumers. Whether it's through GPS, Wi-Fi, or Bluetooth signals, what matters is that businesses need to identify user location accurately and push service or product notifications depending on the customer's geo-location through their smart devices.

With more companies opting for location-based services, they must get accurate information regarding where consumers are located so they can offer service accordingly. With current GPS technology, businesses are not able to accurately determine user location indoors which means bricks-and-mortar retailers cannot offer product promotions through their apps.

On the other hand, with smart beacons, businesses can now precisely know where each consumer is located and send them corresponding notifications – whether they're in a park, museum, shopping mall, or restaurant. Businesses no longer need to worry about missing out on potential customers as long as there are "smart" devices around because location-based services will allow them to reach out and interact with their target audience.

iBeacon to Dominate the Global Smart Beacon Market

As of 2020, More than 30% of mobile users are making use of location-based services via their smartphones many times every day which only shows that marketers are aware of how important it is for businesses to engage more effectively with consumers. Therefore, more companies are adopting technologies like iBeacon. iBeacon is a Bluetooth-powered technology that communicates with smartphones, letting users receive messages from indoor spaces. It can be used to send notifications on special offers or discounts which are relevant to their location.

This enables brick-and-mortar stores to compete with online retailers by giving customers reasons why they should come inside the store rather than buy products online. Entering a store automatically means users will have access to exclusive promotions and this is important for business owners who want to grow profits quickly. But businesses do not need to limit iBeacon messaging only to coupons or discounts since there are more ways it can help companies engage consumers through their smart devices. For instance, if you're in a coffee shop, you might get a notification that it's time to order a drink. Or if you're in the vicinity of a store, you might get an alert with the latest items available which might spark your interest.

Today, large number of marketers are using iBeacon to push notifications regarding potential sales such as during Black Friday or Cyber Monday. When consumers are inside stores, they will most likely visit multiple sections and look at various products so sending relevant messages can drive more traffic for businesses. What is important is that marketers need to be able to send personalized messages depending on where customers are located because brick-and-mortar stores operate differently than online stores.

Increasing Focus of Retailers on Understanding Consumer Behavior to Spur Demand for Smart Beacons

Smart beacons benefit retailers is by personalizing their relationship with customers based on behavior, allowing them to offer a unique shopping experience based on a consumer's location which is the same reason why brick-and-mortar stores still exist. For example, if a user is in the women's section of a department store and see an item that catches his attention but passes it by, there might be another product he will be interested in later. To avoid losing potential customers for good, businesses are effectively using smart beacons to remind potential customers when he is in the vicinity of that product.

This technology also makes sense for loyalty programs since it can help retailers understand how often regular customers visit their stores and determine whether they need to give them more benefits to keep them buying from a certain company or brand. Retailers can send notifications regarding reward points so users who haven't been in for a while will be encouraged to visit. If customers make purchases each time they come in, the company can send them coupons and discounts to increase their revenue.

Beacons don't only benefit retailers; consumers also benefit from this technology since it allows them to receive personalized offers that might interest them which helps strengthen their bond with a particular brand or business.

Current And Future Scenario of Global Smart Beacon Market

One of the major factors that have been responsible for steady growth in the presence of smart beacons is being attributed to its ability to address the needs that are growing for businesses. While providing a better understanding of customers and users, these devices have been instrumental in delivering immense value to organizations.

Businesses rely heavily on existing data regarding trends, preferences, customer behavior, and other real-time market information while working towards developing their business strategies. Even though there has been a significant increase in awareness among companies about the potential benefits of deploying smart beacons, it is interesting to note that more than half the companies across the manufacturing domain do not use beacons in their organizations due to various reasons.

Among the concerns that are being raised, one of the primary factors attributed to not implementing these devices is data security and privacy issues. This trend is mainly being observed among young companies who are just starting up with smart beacons deployment. However, over some time it becomes imperative for businesses to recognize potential benefits offered by this technology which include enhanced customer experience, increased productivity among employees and better targeting customers using location-based information. Although smart beacons have been around for quite some time now, they have recently started garnering attention from businesses across different industries who are showing interest in deploying these devices to meet their own business goals.

Experts predict that over the next few years there might be a significant rise in the number of companies looking to use smart beacons for their business. With more and more people becoming aware of its key benefits, there is expected to be a surge in demand for these devices over the coming few years. In addition, organizations are expected to invest more money into research and development activities concerning deploying smart beacons across different geographies. Market intelligence also suggests that as the adoption of smart beacon technology continues gaining traction among consumers, major smartphone players have been focusing more on incorporating these technologies within their existing products. While this increase in demand from businesses is likely to continue being an important factor driving growth over the coming years, experts believe that it will also result in increased competition among vendors offering solutions based on this technology. However, several recent developments in the market such as the potential expansion of usage of smart beacons and focus on the development of applications based on Bluetooth Low Energy (BLE) platforms is likely to keep driving growth over the coming few years.

The global smart beacon market is expected to witness a surge in demand from different industry verticals leading to increased revenue opportunities for vendors offering solutions based on this technology.

Key Elements Included In The Study: Global Smart Beacon Market

  • Smart Beacon Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value, 2018 - 2021
  • Market Value at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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