Beacon Market Size, Share & Industry Analysis, By Component (Hardware and Platform / Software Development Kit (SDK)), By Connectivity Type (Bluetooth Low Energy (BLE), Wi-Fi, Hybrid and Others), By Deployment (Indoor and Outdoor), By End-use (Residential and Commercial) and Regional Forecast, 2019-2026

The global beacon market size was valued at USD 1.36 billion in 2018 and exhibiting a CAGR of 48.9% during the forecast period. The market is projected to reach USD 31.61 billion by 2026 and further expand to USD 231.36 billion by 2031. North America dominated the Beacon Market with a market share of 43.38% in 2018.

Beacon is a wireless transmitter device that operates on low-energy Bluetooth, Wi-Fi or hybrid technology to transfer information to nearby smart devices such as smartphones, tablets and others. The Beacon generate information in the form of promotional notifications, videos, coupons, URL forms, and others. Beacon devices are enabled with “received signal strength indicator” (RSSI) estimates and generally used for applications such as mapping and location-based services. Technically, Beacon transmit multiple type of signals namely radio, ultrasonic, optical, and laser that helps to search and identify the location of the device to perform a task. 

Key players in this market are emphasizing on integrating advanced communication technologies in beacon devices to meet the rising demand from various industries. At present, one of the key trends in the Beacon market includes the rising adoption of Bluetooth smart technology, loop technology, and over-the-air (OTA) technology based on AI capabilities. Beacon are experiencing rising demand from industries such as retail, hospitality, transportation and logistics, entertainment, BFSI, and others.

Companies including Apple, Inc. and Google LLC have developed their own advanced Beacon protocol namely iBeacon and Eddystone respectively. Both protocols are operated through different platforms as per the customer or user preference. One of the key functionalities of Beacon is, it does not require an internet connection to connect with the users' smartphone. Smartphones near the proximity range of Beacon can pick up signals without any internet connection. Several manufacturers are developing Beacon with cloud storage capability to enhance the customer experience.

Further, key beacon manufacturers are focused on developing Beacon based on hybrid technology. In hybrid technology, single Beacon can be connected to multiple smartphones through connectivity platforms including Wi-Fi, Bluetooth and others simultaneously. Beacon are also used to generate graphical data and used in applications like analytics, indoor navigation, location-based services, asset tracking, and others. The government in developing countries including China, Japan, India and others are focusing on installing smart Beacon at airports, bus stands, and railway stations among others. For instance, in October 2018, high-precision indoor positioning Beacon were installed at Narita Airport, Tokyo, Japan by NTT Corp and GiPStech. Moreover, with the introduction of several government initiatives like smart city projects, key players in the market are developing IPIN systems for establishing connection between Beacon and connectivity modules, across public places including airports and commercial centers.

Further, several key manufacturers are integrating cloud platforms and related technologies with Beacon to deliver advanced solutions to their customers. With the development of Beacon based on cloud platform capabilities, users would be able to track, navigate, interact, secure, and analyze data on their smartphones.

MARKET DRIVERS

“Rising Integration of Advanced Communication Technologies are Leading Towards the Adoption of Beacon”

The rising adoption of advanced communication technologies such as Bluetooth, Wi-Fi, NFC (near-field communication), RFID (radio-frequency identification) and others along with rising popularity of IoT technology are few of the key drivers promoting the beacon market growth.

Also, rising demand for Beacon based on advanced Bluetooth technology including Bluetooth 5.2, Bluetooth 5, and Bluetooth 4, from various industries such as transportation and logistics, entertainment and others is expected to boost the adoption of Beacon. According to an annual report of Bluetooth SIG, Inc., in 2018, around 4.0 billion Bluetooth devices were manufactured. This has made Bluetooth technology a global enabler of the Beacon market. With the increasing market popularity of Bluetooth technology-enabled devices, the market for Beacon is expected to grow with a substantial CAGR during the forecast period.

“Increasing Government Initiatives in Ongoing Smart City Projects to Boost the Market”

Under smart city projects by the government, Beacon are being deployed in public zones for providing location-based services, city promotions, generic surveys, and other marketing activities. Additionally, in smart city projects, Beacon are used to enhance the security system and infrastructure assets by increasing interaction with the users in its proximity zone. With the growth of various smart city projects across the world, the Beacon market is projected to experience growing deployment during the forecast period. For instance, during 2015-2020, the government of China is focusing on investing in the development of around 500 countries under the smart city project “PATH”. Similarly, during 2016-2017, the Indian government initiated a “Smart City Mission” for building 100 Smart Cities enabled with advanced devices and related technologies.

SEGMENTATION

By Component Analysis

 “Rising Demand for Location-based Services Anticipated to Boost the Market Growth”

Based on component, the market is classified into hardware and platform/software development kit (SDK). Among them, the hardware segment is expected to hold a dominant beacon market share during the forecast period. Beacon hardware devices can be easily installed across any location with minimum complexity. The demand for the Beacon is rising primarily from industries such as retail, transportation and logistics, and others, owing to the increasing emphasis on location-based applications and services. Key players in the Beacon market are focusing on adopting hybrid communication technologies to integrate with Beacon. 

These advanced Beacon are prominently developed for location-based services and are being installed in public places like shopping complexes, airports, amusement parks, trade fairs, stadiums, events, conferences, and others. The factor mentioned above is likely to help this segment earn high beacon market share in the forecast period as well.

Whereas, the platform/software development kit (SDK) segment is expected to grow at a stagnant CAGR during the forecast period. Key companies in this market are providing platforms or SDKs to the users to customize the software according to their requirements. Both the hardware and platform/SDKs are necessary to setup beacon system. Providers are offering both components as well as standalone software and hardware products to the end-users.

By Connectivity Type Analysis

“Increasing Popularity of Upcoming Bluetooth 5.0 and Bluetooth 5.2 Technology would help to Fuel the Demand for Beacon”

Based on connectivity type, the Beacon market is categorized into Bluetooth low energy (BLE), Wi-Fi, hybrid and others (NFC or RFID). Out of these, the Bluetooth low energy (BLE) segment is projected to grow at a healthy CAGR during the forecast period. One of the most energy-efficient technologies for Beacon is Bluetooth, due to which the BLE segment is majorly contributing to the Beacon market growth.

Additionally, Bluetooth has a wide range of around 80 to 100 meters and provides a stable and established ecosystem for Beacon connectivity due to which BLE Beacon are broadly adopted among various industries. BLE Beacon are deployed in a wide range of indoor applications. In recent years, Bluetooth technology has transformed intensely, enabling the maturation and growth of the Beacon industry. With the help of the emerging IoT standards, Bluetooth is rapidly replacing ongoing technologies and strengthening beacon solutions. Bluetooth is also being used in combination with Wi-Fi as a hybrid communication technology in beacon devices. The increasing adoption of Bluetooth 5.0 and 5.2, would help to attract high Beacon market revenue during the forecast period.

By Deployment Analysis

“Growing Smart City Projects Expected to increase the deployment of Outdoor Beacon”

Based on deployment, the market is segmented into indoor and outdoor. The outdoor segment is expected to hold a dominant beacon market share during the forecast period. This is owing to the rising demand for Beacon in ongoing smart city projects across various countries such as China, India, U.K., and others. According to the Consumer Technology Association, the global investment for the development of smart city projects is expected to reach a value of around USD 34.35 billion, by the end of 2020. 

Similarly, Beacon are highly preferred to be deployed in public places to provide enhanced location-based services, generic public surveys, city promotions, and other marketing activities. With the rising investment for smart city projects in developed countries such as U.K., Germany and developing countries, the demand for the Beacon is also expected to rise with a decent growth rate.

Further, Beacon based on the indoor environment are expected to grow with a steady CAGR during the forecast period, owing to the development of the home automation market and related technologies. Beacon are deployed in a residential environment to provide information related to buildings, society, parking, and other household activities.

By End-use Analysis

“Rising Demand from Retail, Transportation & Logistics Industries aid to Drive the Beacon market”

Based on end-use, the market is bifurcated into the residential and commercial segments. The residential segment is expected to grow with a gradual CAGR during the forecast period. This is owing to the limited availability of the products in the market for residential applications.

On the other hand, the commercial segment is expected to dominate the market during the forecast period. The rising development of IoT standards in commercial centers and offices is projected to increase the deployment of Beacon during the forecast period. Under the commercial segment, the market is sub-segmented into retail, hospitality, entertainment, healthcare, banking, financial services, insurance (BFSI), transportation & logistics, and others (education, etc.). The retail industry is expected to dominate the market during the forecast period. This is owing to the rising number of digitalized offline stores including apparel, footwear, food & drinks, electronics, sports equipment and others. Additionally, indoor Beacon are also anticipated to see strong demand from the retail industry. This demand is primarily due to the growing emphasis of enterprises on in-store analytics to enhance the customer experience and engagement.

Global retail players are deploying Beacon in their retail stores to increase daily footfall and generate high Beacon market revenue. For instance, in November 2013, Beacon were first deployed in the United States, by Titan in their Manhattan retail stores, for maintenance services. Furthermore, Beacon are also being deployed in offline retail stores to offer customers with in-store notifications about product reviews, ongoing offers, and customized deals.

Furthermore, companies operating in the Beacon market are focused on forming a strategic partnership with other players to cater to the demand for customized Beacon from retail stores. For instance, in April 2018, Cassia Networks, a Bluetooth IoT solution provider, completed a partnership with Kontakt.io. With this partnership Cassia Networks started to provide enhanced Beacon offerings based on Bluetooth technology to its customers.

REGIONAL ANALYSIS

The beacon market research report covers information on different regional segments including North America, Asia Pacific, Europe, Middle East & Africa, and Latin America. Among all the regions, North America is expected to hold the highest market share during the forecast period. In 2018, North America generated a prominent revenue in the market. This is attributed to the strong presence of key players in the region as well as the rising adoption of core communication technologies such as Bluetooth, NFC, Wi-Fi, and ongoing IoT (internet of things) technology. Other key drivers for this market include increasing investment by North American countries and rising demand for proximity tools in the retail and public sector. For instance, during 2016-2018, in the U.S., various large offline retailers namely Walmart, Target, and Macy’s invested extensively to deploy Beacon based on proximity sensors in their business stores. This deployment of Beacon will help them boost their location-based marketing strategies and provide a customized shopping experience to their customers.

Whereas, Asia Pacific (APAC) region is expected to grow with the highest CAGR during the forecast period. This owing to the increasing demand for location-based services from industries including transportation & logistics, entertainment and education & research sectors. To cater to the increasing demand for Beacon from these industries, several companies in APAC are focusing on developing and introducing advanced beacon devices. The Beacon market growth in countries like India, China and Korea are expected to expand with an exceptional CAGR during the forecast period owing to the rising investments by government and foreign investors in various smart city projects. Furthermore, with the rise in customer expenditure, offline retailers are also focusing on deploying outdoor Beacon in their stores to gain more customers. 

Further, according to various secondary sources, in India, customer expenditure is expected to reach a market value of USD 3,600 billion by the end of 2020. Similarly, in India, Kochi’s Lulu International mall deployed advanced technologies including digital Beacon, automatic number plate recognition (ANPR) and geo-fencing technology to actively engage with mall visitors and notify them about the latest promotional activities and deals available nearby.

In Europe, the market size is significantly compelled by increasing strategic activities by major companies in countries such as Germany, U.K., Spain, France, Italy, and others. The growth in this region is the result of the rising demand for Beacon from the retail industry. Key offline retailers in this region are focused on deploying advanced Beacon to increase their productivity. For instance, in May 2017, Tesco PLC, U.K. based offline retail company, deployed Beacon in all of their Tesco Lotus stores.

The factors mentioned above will help to assist in contributing to the development of market growth globally. Furthermore, market in MEA and Latin America is expected to grow at a steady CAGR. This is owing to investments and initiatives taken by government and global players. For instance, IBM Corporation is planning to introduce data centers in Brazil by the end of 2020. This would provide various market opportunities in Brazil for the development of various sectors including retail malls, IT and tech parks, transportation and logistics and others.

KEY INDUSTRY PLAYERS

“Key Players including Kontakt.io, Estimote Inc., and Others are Targeting on Enhancement of their Product Portfolio”

Kontakt.io emerged as one of the major player holding the prominent Beacon market revenue, in 2018. Under their wide product portfolio, the company offers technologies that include Bluetooth low energy (BLE) tags and proprietary Bluetooth enabled Beacon, sensors, internet of things (IoT) platform and others. The company also offers Beacon software that aids users in developing applications including outdoor and indoor navigation, retail selection and payments and healthcare monitoring. Kontakt.io is currently focused on the development of the product based on location data insights. 

The company sells Beacon and related technologies to its customers to offer services including process and asset tracking and location and contextual aware applications. Kontakt.io is currently planning on investment and development of location-based services. The company offers Beacon fully configurable with API (auto-import to web panel) and is compatible with cloud platform. The company invested around USD 5.0 million for the development of Beacon market globally. In February 2019, Kontakt.io launched “Simon”, sensor analytics and location-based software suite. This software suite is developed for safety and efficiency applications in operational environments.

LIST OF KEY COMPANIES PROFILED :

• Accent Advanced Systems, SLU.


• Aruba Networks, Inc.


• Blue Sense Networks


• BlueCats


• Estimote, Inc.


• Gelo, Inc.


• Glimworm Beacon


• Kontakt.io


• Sensorberg GmbH

REPORT COVERAGE

The report presents a comprehensive assessment of the global Beacon market by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views. Furthermore, the report offers a detailed analysis and information as per market segments, helping our readers to get a comprehensive overview of the global market. The study also covers volume/shipment information (million units) for beacon devices at global and regional level.

Report Scope & Segmentation

INDUSTRY DEVELOPMENT:

• October 2018 –  BlueCats launched Beacon equipped with Over the Air (OTA) technology. These advanced Beacon help to provide Advanced Encryption Standard (AES) Encryption module. These advanced devices are enabled with PLUS Location Engine that helps to forward data to the cloud and run the platform automatically.


• January 2017 – Aruba Networks, Inc. launched its Beacon technology in the Americas Mart in Georgia and Atlanta which are the major wholesale trade centers in the U.S. The company aimed at providing Beacon navigation facilities such as NFC and Wi-Fi technology for the target locations.


• June 2017 – Aruba Networks, Inc. launched a hybrid asset tracking solution. This tracking solution is developed in integration with wireless network platforms, which is based on the internet of things (IoT) technology. This is expected to have a positive impact on Beacon offerings of the company.