The global Wi-Fi analytics market size was valued at USD 13,043.15 million in 2022. It is estimated to reach USD 85,911.25 million by 2031, growing at a CAGR of 23.3% during the forecast period (2023–2031). Many efforts made by governments around the world to create smart cities are enhancing the application and are anticipated to accelerate the growth of the Wi-Fi analytics market.
Wi-Fi analytics collects information from Wi-Fi access points that can be applied to corporate operations, building designs, and marketing campaigns. Analytics related to presence and analytics related to marketing are the two types of data gathered over Wi-Fi. Wi-Fi access point data, known as Wi-Fi analytics, can inform and enhance physical layouts, marketing campaigns, and corporate processes. Wi-Fi analytics offers a bridge for businesses looking to reduce the gap between offline and online visibility into visitor behavior.
Wi-Fi analytics uses Wi-Fi networks to gather data about Wi-Fi gadgets like laptops and smartphones and includes in-depth knowledge of gadget activity. Such device behavior data consists of details about the Wi-Fi network's coverage area and information about internet-related activities. Wi-Fi analytics will enable businesses to create detailed consumer profiles and better understand patron behavior.
|Market Size||USD 85,911.25 million by 2031|
|Fastest Growing Market||Europe|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
To improve the travel experience for tourists, several governments have launched various efforts to install free Wi-Fi in public spaces and on public transportation. For instance, the government of India has set a goal to facilitate the deployment of five million public Wi-Fi hotspots by 2020 and ten million by 2022 under the National Digital Communications Policy of 2018. Additionally, many nations aim to offer public Wi-Fi to provide digital governance and promote data innovation among the general populace. The installation of public Wi-Fi allows mobile users to travel the nation with data connectivity, enhancing the quality of their calls and giving tourists real-time traffic updates.
Additionally, deploying public Wi-Fi in malls, transportation hubs, and other public locations fuels the expansion of the Wi-Fi analytics industry. Additionally, many efforts made by governments around the world to create smart cities are enhancing the application and are anticipated to accelerate the growth of the Wi-Fi analytics market.
One of the most widely utilized forms of communication in the world is the use of mobile phones. Smartphone usage has significantly increased in recent years, and by 2020, it is predicted that there will be 6.1 billion of them worldwide. Worldwide vendors also release hundreds of applications for entertainment, gaming, music, and health and fitness. For instance, research by the Associated Chambers of Commerce and Industry of India predicted that by 2020, there would be an 84% increase in smartphone users in India. It is resulting in the market's expansion. The demand for these devices has grown globally due to the drop in the price of smartphones and tablets and several technological improvements in smartphones.
The techniques used to provide better visibility into wireless network performance and to address network-related issues are known as Wi-Fi analytics standards. The main goal of Wi-Fi analytics standards is to protect the privacy and security of mobile devices using public Wi-Fi. Additionally, numerous nations worldwide have reported various security and privacy problems regarding using free and public Wi-Fi, which hinders the market's expansion. The Health Insurance Portability and Accountability Act (HIPAA), the Gramm-Leach-Biley Act, and the Homeland Security Act are among the industry laws that must be followed by sectors that depend on information, including healthcare, BFSI, and government. These regulations do not outline the precise security procedures that firms must adopt.
As a result, this restrains the adoption of Wi-Fi analytics solutions because it necessitates creating and applying necessary regulations, principles, and standards.
One of the most valuable inventions of recent decades, the Internet of Things (IoT), has given rise to billions of IoT-based devices worldwide. It is expected to continue to expand dramatically in the years to come. Additionally, smart objects use IoT to connect to smartphones and other mobile devices via various applications. For example, a poll predicts that by 2020, there will be 26 million connected gadgets, which are expected to encompass a variety of smart objects, including home appliances, sports equipment, medical devices, and programmable power outlets.
Additionally, the market is expanding due to numerous new applications that the leading mobile application manufacturers have released, such as IoT and mobile-connected smart devices. For instance, Apple recently introduced the "Homekit" product, which gives users wireless and electronic control over their home equipment.
Based on region, the global Wi-Fi analytics market is bifurcated into North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa.
North America is the most significant Global Wi-Fi Analytics Market shareholder and is estimated to exhibit a CAGR of 21.8% over the forecast period. The North American region's market is expanding due to numerous Wi-Fi analytics vendors, ongoing adoption of cutting-edge technology for customer attraction in retail, and high awareness of targeted marketing. Additionally, local consumers' widespread use of tablets and smartphones is anticipated to propel the expansion of the market in North America. The market in this region has grown due to various reasons, including the presence of numerous Wi-Fi analytics vendors and the availability of qualified technical knowledge. Additionally, North American businesses are investing in location-based services and utilizing Wi-Fi technologies as they become more conscious of the need to analyze client presence and activity patterns. As a result, there is an increased need for Wi-Fi analytics tools to help analyze client data gathered from such Wi-Fi networks.
Additionally, market vendors are attempting to expand their market presence by purchasing businesses in other areas and expanding their product lines. This tendency is also anticipated to accelerate North America's market expansion. Thus, it is projected that the increased need for customer engagement, customer experience management, and footfall analysis will propel market expansion in North America.
Europe is anticipated to exhibit a CAGR of 22.5% over the forecast period. Future growth of the region's Wi-Fi analytics market is anticipated to be supported by several government programs to provide Wi-Fi connectivity in public spaces, including parks, libraries, and buildings. The expansion of this market in Europe is driven by the expansion of the retail industry and the increased adoption of new technologies for consumer tracking and attracting. The demand for this industry in the European region is also driven by the requirement for monitoring consumer behavior in smart cities, sporting stadiums, and retail settings. Furthermore, European businesses are implementing various business tactics, including partnerships, acquisitions, and others, to increase their market position in the Wi-Fi analytics market.
Asia-Pacific has emerged as one of the fastest-growing regions in the global market. The Asia-Pacific area is experiencing substantial development potential due to rising technology spending in nations like Japan, China, and India and SMEs' demand for affordable analytical software and services. Due to the low cost of deployment and maintenance, businesses in this region are also switching from on-premises to cloud-enabled Wi-Fi analytics, fueling the market's expansion. The market for Wi-Fi analytics in China is anticipated to increase as urbanization continues to rise. The expansion of the Wi-Fi analytics market in India is anticipated to be fueled by the rising adoption of new technologies and the widespread use of mobile phones.
Furthermore, the market in the Asia-Pacific region is anticipated to rise because of the rising need for enhanced marketing activity efficiency. According to Accenture, 79% of even the least Wi-Fi-interested shoppers, age 45+, are favorably impacted by in-store Wi-Fi availability. Once more, this is anticipated to spur the adoption of Wi-Fi analytics. Additionally, several Wi-Fi analytics companies with a significant customer base in North America are growing their operations throughout Asia-Pacific, opening up lucrative market potential.
In LAMEA, the demand for Wi-Fi analytics is anticipated to rise as the use of smartphones, tablets, other mobile devices, and the internet increases throughout the area. Additionally, the demand for digitalizing commercial spaces and providing customers with personalized marketing fuels the expansion of the market in this region. Additionally, vendors in the Wi-Fi analytics market are improving their products specifically for this area by designing the Wi-Fi analytics solution to suit the various Latin American regulations regarding the proper use of data in each country, allowing to implementation of various opt-in options to legalize and validate terms and conditions, as well as conditions for using Wi-Fi. These qualities should also help the LAMEA region's market flourish.
The global Wi-Fi analytics market is bifurcated into component, deployment, application, and industry vertical.
Based on the component, the global market is bifurcated into service and solution.
The solution segment dominates the global market and is projected to exhibit a CAGR of 22.4% over the forecast period. A Wi-Fi analytics solution makes collecting demographic data, examining consumer behavior, and focusing advertising pitches on demographics easier. It aids in tracking customer movement within a few-foot radius, enabling real-time hyper-local marketing communications. Wi-Fi Analytics combines marketing tools, location analytics, social networking, and data interrogation to assist businesses in gaining digital insights into real-time data meant for developing highly tailored experiences for customers in their locations.
Businesses use Wi-Fi analytics to learn more about patron behavior at their location and collect information from unrelated devices. Data on people counting, cross-shopping, dwell time, bounce rate, passing traffic, and other topics are included. This solution also aids in tracking how recently and frequently visitors return to a particular location and how frequently they do so. Such information assists businesses in creating detailed client profiles using the data gathered. Thus, it is anticipated that during the projected period, these advantages of Wi-Fi analytics solutions will propel the segment's expansion.
Based on deployment, the global market is segmented into on-premises and cloud.
The on-premises segment dominates the global market and is predicted to exhibit a CAGR of 21.4% during the forecast period. The Wi-Fi analytics on-premise deployment approach enables the installation of the solution. It permits applications to function on systems existent in an organization's premises rather than putting them on server space or the cloud. These solutions have improved security features, encouraging their use in big institutions and other data-sensitive businesses where security is a top priority. Continuous systems and on-premises solutions known for superior server maintenance make installing these Wi-Fi analytics easier. Additionally, the on-premises deployment approach is very helpful in large businesses because it requires a sizable investment and necessitates the acquisition of connected servers and a system management solution. Additionally, greater data security than cloud-based solutions encourages businesses' adoption.
Based on application, the global market is bifurcated into Wi-Fi Presence Analytics and Wi-Fi Marketing Analytics.
The Wi-Fi presence analytics segment owns the highest market share and is predicted to exhibit a CAGR of 22% over the forecast period. Wi-Fi presence analytics, also known as location analytics, is the term used to describe customer behavior data that is gathered and monitored utilizing customers' mobile devices and access points at the company's physical site. Organizations increasingly use data better to analyze foot traffic patterns and behavior in brick-and-mortar environments as mobile devices proliferate. Due to probe requests, a smartphone with Wi-Fi can be utilized as a consumer presence indication. A mobile device's media access control (MAC) address can be used to identify it. When a mobile device's Wi-Fi is turned on, it broadcasts a signal with its MAC address, which looks for a Wi-Fi access point. In this manner, the Wi-Fi access point and Wi-Fi analytics platform identify distinct users and gather user information.
The expansion of this market sector for Wi-Fi analytics is primarily driven by the demand for customers' vital demographic data, including dwell times, first-time visitors, popular visit times, customer repeat rates, daily customers vs. passersby, and anticipated lifetime visits. Due to client privacy concerns, this data type is anonymous, yet it can still be highly helpful for organizations. For instance, measurable data can be used to assess marketing initiatives. A business can obtain a precise picture of traffic counts during lunch hours if it is attempting to enhance daily lunchtime visits. Additionally, as more users connect to the Wi-Fi access point, the business may create detailed client profiles. Wi-Fi presence analytics can be quite helpful, offering businesses a precise understanding of their clients and their activity in commercial settings.
Based on industry vertical, the global market is divided into retail, hospitality, sports and entertainment, transportation, healthcare, and others.
The retail segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 21.5% over the forecast period. Wi-Fi analytics are being embraced by the retail sector largely for data-driven customer service and satisfaction improvements, market expansion, and data exchange. Wi-Fi analytics solutions are also in great demand due to developments brought about by collaborations between forward-thinking FinTechs and retail establishments. Due to the increased usage of Wi-Fi analytics solutions in the retail industry to enhance the customer shopping experience, the retail sector is predicted to expand significantly in the global market.
Additionally, many e-commerce companies use online marketing analytics solutions to track client website navigation data. Acquired data is utilized to generate insights and make decisions to boost business revenue. Wi-Fi analytics is giving retailers the tools they need to transform data into useful insights, and the global retail industry is utilizing current analytics solutions independently. Wi-Fi analytics aids in-store retail in comprehending the customer's viewpoint by examining their prior shopping experiences based on their mobile phone history.