With retailers around the world adopting Bluetooth beacons, the global market for these devices is predicted to grow at an astonishing annual rate of almost 223% between 2016 and 2020.
The market for Bluetooth beacon devices is primarily driven by growing demand among organised retailers, according to market research firm Technavio.
“The retail sector is the biggest end-user for Bluetooth beacons. Retail stores use the devices for several applications such as in-store analytics, indoor navigation, and contactless payments,” explained Sunil Kumar Singh, a lead analyst at Technavio who specialises in research on computing devices.
Bluetooth beacons can help retailers increase customer engagement and sales by connecting with consumers via their smartphone to provide in-store information and offers.
By allowing retailers to offer targeted discounts and loyalty points to consumers based on their buying patterns and preferences, the technology has already helped many stores increase sales.
Surveys indicate that around 70% of shoppers use the personalised messages generated by these beacons to make their purchasing decisions, Technavio said.
And it’s not just retailers that are waking up to the potential of these devices; they are used in a wide range of sectors including sports, manufacturing, telecommunications, airlines, IT, logistics, hospitality, health and wellness.
Looking ahead, Technavio said that the growing preference for multichannel marketing is a significant trend that will influence the growth potential of the Bluetooth beacons market over the next few years.
Leading vendors in the market are Plus Location Systems, Estimote, Qualcomm, Kontakt.io and PayPal, according to the report.