The global smart beacon market size was valued at USD 5.42 billion in 2022. It is projected to reach USD 6.90 billion by 2031, growing at a CAGR of 32.65% during the forecast period (2023–2031).
Bluetooth low-energy beacons, also known as smart beacons, use Bluetooth technology to transmit signals repeatedly nearby. Smart beacons allow the transmission of various notifications, some of which are conditional on the device's proximity to the beacon. A smart beacon is an indoor positioning system that communicates with a customer's smartphone to determine its location. It enables mobile apps to comprehend users' micro-local market position and serve relevant content. To better target their customers, businesses in the micro-location and mobile proximity industry are constantly improving the quality and depth of the data analytics they offer. Smart beacons are regularly utilized in a wide variety of IoT applications, particularly in large industries like retail and logistics.
|Market Size||USD 6.90 billion by 2031|
|Fastest Growing Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Smartphones and other mobile devices can capture beacon signals, and distance is estimated by measuring received signal strength. The strength of signals depends on the proximity of sending and receiving devices. Interestingly, both make use of beacons for commercial and economic purposes. The goal is to make shopping easier for prospective customers, improve services, and help boost sales. The use of smart beacons is proving to be a game-changer in the realm of technology. Successful business use cases in retail stores, airports, and other locations around the world, as well as the aggressive promotion of beacon technology by multinational technology companies like Google Inc. and Apple Inc., point to a bright future for the smart beacon market.
Beacon technology transmits the data to the appropriate mobile application, which stores the user's data after it is linked to the beacon. A data breach could expose this information. Some factors restraining the development of the global smart beacon market include a scarcity of technological resources for implementing smart beacons and worries about privacy and security. Increased mobile phone use may expose users to security risks, such as location tracking, personal information access (via apps), and mobile malware. These threats are exacerbated by the increasingly sophisticated nature of mobile phones.
Smart cities require devices capable of two-way communication and data generation, all of which must be automatically monitored, analyzed, and reported. An ecosystem is essential for smart cities, and smart beacons play a role in developing these ecosystems. There are more than 8.2 billion Bluetooth-enabled gadgets in use today, per kontakt.io. Thanks to Bluetooth's low power consumption, widespread adoption, and ever-expanding features, millions of devices are networked in smart cities. Artificial intelligence, machine learning, big data, and blockchain are some of the cutting-edge technologies used to construct these "smart cities." More and more of the world's "smart cities" are implementing these technologies due to their widespread use in other fields. More and more money is being put into green and sustainable technologies, which has accelerated their adoption by smart cities.
The global smart beacon market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Europe is the most significant shareholder in the global smart beacon market and is expected to grow during the forecast period. The expansion of major corporations' strategic initiatives in European nations like Germany, the United Kingdom, Spain, France, Italy, and others is a crucial factor propelling the continent's market. Rapid development in this area can be attributed to the rising need for smart beacons in the retail sector. Key offline retailers in this region are concentrating on adopting cutting-edge beacons to increase their efficiency. To better target their customers, businesses in the micro-location and mobile proximity industry are constantly improving the quality and depth of the data analytics they offer. Smart beacons are regularly utilized in a wide variety of IoT applications, particularly in large industries like retail and logistics.
North America is expected to grow during the forecast period. It is because smart beacons are becoming increasingly commonplace in consumer-facing and service sectors like retail, public transportation, logistics, and the hospitality industry. The expansion of the region's market was fueled, in part, by the rising prevalence of digitalization across sectors and the adoption of business intelligence by merchants. Another factor contributing to the expansion of the regional market is the presence of significant industry players providing diverse solutions. Smart parking systems, smart homes, virtual power plants, smart offices, and smart factories can only exist with the requisite infrastructure. It can be costly to set up the infrastructure required for these technologies.
The growing popularity of beacon technology in countries like India and Australia, among others, bodes well for Asia and the Pacific region. Beacon-based attendance tracking is more time and labor-efficient than manual methods. Additionally, it eliminates the need for a physical attendance sheet in favor of data collected automatically and spatially. This market has a lot of untapped potential because it is still in its infancy. And several mall-based retail chains have successfully implemented technologies like beacons, showing that mall developers in India have found appropriate technological solutions. Drivers in both cities will also likely retain their navigation signal underground in Australia.
The smart beacon technology market is least developed in LAMEA (Latin America, the Middle East, and Africa). Rapid development in this area can be attributed to the rising need for smart beacons in the retail sector. Key offline retailers in this region are concentrating on adopting cutting-edge beacons to increase their efficiency. Since beacons are inexpensive individually and can use preexisting infrastructure, the logistics industry can keep its initial investments and running costs to a minimum.
The global smart beacon market is segmented by beacon standard, connectivity type, offering, and end-use.
Based on the beacon standard, the global smart beacon market is bifurcated into iBeacon and eddystone.
The iBeacon segment is the highest contributor to the market and is expected to grow during the forecast period. Since the introduction of iBeacon, many companies have developed beacons—iBeacon-compatible hardware transmitters that broadcast their presence to nearby mobile devices over Bluetooth low energy (BLE). Because Apple Inc. was the pioneer in the beacon industry, iBeacon currently holds a sizable market share and is anticipated to expand further over the forecast period. IBeacon uses Bluetooth low-energy proximity sensing by broadcasting a unique identifier that can be read by any app or OS that supports Bluetooth low energy. Additionally, when combined with the right app, iBeacon can function as an indoor positioning system, enabling mobile devices to ascertain their general location or environment.
Based on connectivity type, the global smart beacon market is bifurcated into Bluetooth low-energy and hybrid.
The Bluetooth low-energy segment is the highest contributor to the market and is expected to grow during the forecast period. The Bluetooth Special Interest Group developed and promoted Bluetooth Low Energy, a wireless personal area network technology with novel applications in the medical, fitness, beacon, security, and home entertainment sectors. Although it is incompatible with standard Bluetooth, Bluetooth Basic Rate/Enhanced Data Rate and LE coexist. Bluetooth Smart denotes a low-power-only device that must function in a range of another Smart or Smart Ready device.
Based on the offering, the global smart beacon market is bifurcated into hardware, software, and service.
The hardware segment is the highest contributor to the market and is expected to grow during the forecast period. Smart Beacon and Beacon Pro are currently used in various settings, including airports, museums, hospitals, offices, stores, college campuses, and more. Wayfinding is the ideal application of their features; however, their battery life, signal interval, and transmission power are all designed to deliver high performance in various use cases. Market researchers predict an increase in the use of smart beacons in supermarkets, department stores, hypermarkets, and discount outlets. It's useful for monitoring customer foot traffic, directing customers to specific store sections, notifying them of deals and special offers, drawing them to in-store events, and increasing sales.
Based on end-use, the global smart beacon market is bifurcated into retail, transportation & logistics, and public gathering & spaces.
The retail segment is the highest contributor to the market and is expected to grow during the forecast period. Beacons are Bluetooth-enabled devices that communicate with mobile phones inside the building, giving stores the ability to send instantaneous messages to customers based on their precise location in the store. There are three distinct ways in which beacons can help businesses. First, they make it possible for a store to communicate with customers based on their precise geographic locations instantly.