Beacon Market to Grow by USD 31.34 Billion by 2027

The global beacon market size is estimated to grow by USD 31.34 billion from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of about 58.12% during the forecast period. Augmented adoption of beacon technology by diversified end users is driving market growth, with a trend towards rising demand for indoor positioning and indoor navigation (IPIN) systems.

IPIN technology utilizes sensors, magnetic positioning, and Bluetooth Low Energy (BLE) technology to provide precise indoor positioning. Notable organizations, including Apple, American Airlines, Lord and Taylor, Walmart, The Coca-Cola Company, Macys.com, and Beiersdorf AG Nivea, have already adopted this technology for various applications. IPIN apps, which use location data to engage consumers, offer real-time directions, location-based advertising, social networking, and real-time tracking. While Global Positioning System (GPS) is effective for outdoor environments, it falls short for indoor positioning. Indoor location-based services (LBS) employ a combination of technologies, such as WiFi, infrared, ultrasound, WLAN modems, magnet positioning, radio frequency identification (RFID) tags, and BLE beacons, to track people or objects indoors and offer navigation within buildings. The increasing demand for IPIN technology, confined to limited spaces, is expected to boost the market's growth during the forecast period.

iBeacon technology, utilizing Bluetooth smart signals, is trending in proximity marketing. This geolocation method sends promotional notifications to smart devices within the proximity zone. IBeacons consume battery and require managing assets for optimal resource usage. Beacon protocols like Eddystone ensure safety and security concerns are addressed. Proximity marketing in shopping malls and transportation and logistics is growing, with nascent stage technologies like Ultra-Wideband and Zigbee emerging. Coin-sized and keychain beacons offer convenience, while plug-in beacons cater to larger spaces. Communication range and competitive strategies are key benchmarks. Data security and wireless networks are important considerations. Beacons are used in shopping carts and wayfindr for impairments, providing audio-based directions. Market penetration and evaluation in mature segments and emerging lucrative markets are ongoing. Competitive assessment and technological advancements continue to shape this industry.