Smart Retail Beacons Market Size, Share, Analysis, Trends, Growth, 2032

Smart Retail Beacons Industry Prospective:

The global smart retail beacons market size was worth around USD 19.06 billion in 2023 and is predicted to grow to around USD 1,000.63 billion by 2032 with a compound annual growth rate (CAGR) of roughly 55.28% between 2024 and 2032.

Request Free Sample

Smart Retail Beacons Market: Overview

Smart retail beacons are a special segment of the broader smart beacons industry. It refers to a modern and growing Bluetooth technology that allows retailers to improve customer experience and deliver targeted consumer awareness. Small retail beacons are compact devices powered by Bluetooth Low Energy (BLE) technology. They are placed at strategic locations in retail stores or environments.

When a consumer with a beacon-compatible modern device is detected near the beacon, retailers can send customized information related to products, thus influencing consumer behavior. For instance, product retailers can send messages about any ongoing discount or offer regarding the product.

Smart retail beacons are becoming increasingly popular among product sellers since the technology allows brands to provide customized and filtered information to customers nearby, thus enhancing their chances of making a sale. However, the cost of technology implementation and limited awareness could inhibit the smart retail beacons industry’s growth rate.

Key Insights:

• As per the analysis shared by our research analyst, the global smart retail beacons market is estimated to grow annually at a CAGR of around 55.28% over the forecast period (2024-2032)
• In terms of revenue, the global smart retail beacons market size was valued at around USD 19.06 billion in 2023 and is projected to reach USD 1,000.63 billion by 2032.
• The smart retail beacons market is projected to grow at a significant rate due to the growing competition in the retail industry.
• Based on the offering, the hardware segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the beacon standard, the iBeacon segment is anticipated to command the largest market share.
• Based on region, Europe is projected to dominate the global market during the forecast period.

Request Free Sample

Smart Retail Beacons Market: Growth Drivers

Growing competition in the retail industry to drive market demand rate

The global smart retail beacons market is expected to grow due to the rising competition in the retail industry. Growing consumerism has influenced several companies to enter the retail market. For instance, the fashion and apparel industry is one of the most competitive retail sectors globally. The industry is filled with several brands operating at domestic and international levels.

Moreover, changing consumer behavior is encouraging more companies to enter the industry with every passing year. The growth trend is observed across the board. Luxury fashion houses are quickly expanding to new and emerging markets. The clothing industry is also highly influenced by the impact of fast fashion on consumer spending habits.

The most prominent and globally popular fast-fashion companies include names such as Zara, H&M, Fashion Nova, New Look, Uniqlo, and others. Similarly, retailers of other popular consumer products are also experiencing growing competition. In such cases, brands seek solutions that allow them to stand out from the rest of the competitors. Smart beacons facilitate measures through which companies can deliver improved shopping experiences.

Increasing use of smart technologies among consumers to encourage higher market adoption

The success of smart retail beacons depends on the number of other intelligent technologies the tool can connect to deliver information. Modern buyers are increasingly investing in digital solutions such as smartphones, smartwatches, and others.

The products available in the global smart retail beacons market are expected to gain higher momentum as the adoption rate of intelligent digital solutions continues to rise. In 2023, more than 4.29 billion people worldwide had access to smartphones.

On the other hand, around 22% of the global population uses a messaging-enabled smartwatch. Factors such as the increasing launch of affordable digital products along with rising disposable income and propelling the sale of smart gadgets through e-commerce channels will ultimately help the sale of retail beacons in the future.

Smart Retail Beacons Market: Restraints

Cost-related technology limitations will restrict the market expansion rate

The global industry for smart retail beacons is expected to be restricted due to the high cost of implementing the technology. Retail beacons must be equipped with durable and high-performance sensors to detect environmental data and respond quickly based on the information obtained.

Additionally, the cost increases further due to expenses associated with building the back-end infrastructure required for the successful use of beacons. The installation of modern hardware and software devices that support beacon functionalities can be expensive.

Smart Retail Beacons Market: Opportunities

Growing pop-up shop culture in the retail industry to generate higher growth opportunities

The global smart retail beacons market players must target the rising pop-up shop culture worldwide. It refers to the rising trend of temporary retail stores showcasing the selling of the products for a limited time during a festival, show, or any such public gathering. Pop-up retail shops are an excellent way of reaching consumers with limited investments.

Moreover, most pop-up stores offer exclusive products and can benefit from using retail beacons. The technology can be leveraged to educate the customers with a simple text about the brand and products available for sale.

Integration of virtual reality (VR) and augmented reality (AR) with beacon technology will be fruitful in the future

Smart retail beacon technology can be integrated with other advanced engineering solutions to improve customer experience. Integrating VR and AR systems along with beacon functionalities can be used to promote products in a novel way. For instance, virtual reality can be used to connect customers with virtual fitting rooms (VRF) once the beacon infrastructure has attracted customers to make a purchase.

Smart Retail Beacons Market: Challenges

Privacy infiltration due to beacons is a major challenge for industry players

The global smart retail beacons industry is projected to be challenged by concerns over privacy infiltration with the use of the technology. For instance, customers may get offended when they receive unsolicited messages from retailers. Moreover, complex regulatory policies governing citizen privacy can further complicate the process of implementing beacon systems.

Smart Retail Beacons Market: Segmentation

The global smart retail beacons market is segmented based on offering, connectivity type, and beacon standard.

Based on the offering, the global market segments are software, hardware, and services. In 2023, the highest demand was registered in the hardware segment. The rising demand for beacon technology across retail stores is driving the segmental demand.

The software segment is expected to be fueled by the rising investments in upgrading product performance by improving product range, response time, and other key aspects. The average cost of an advanced beacon can reach up to USD 100.

Based On connectivity type, the global smart retail beacons industry is divided into hybrid and Bluetooth low-energy.

Based on the beacon standard, the global market divisions are Eddystone and iBeacon. In 2023, the highest revenue-generating segment was iBeacon. Since the introduction of the technology, several compatible hardware transmitters have been introduced in the market. iBeacon was launched by Apple Inc. and the products hold over a major portion of the market share. The maximum range of iBeacon can reach up to 70 meters.

Smart Retail Beacons Market: Report Scope

Smart Retail Beacons Market: Regional Analysis

Europe to deliver the highest result during the forecast period

The global smart retail beacons market is expected to be propelled by Europe during the projection period. Countries such as the UK, France, Germany, Italy, Spain, and others will contribute to the regional market expansion. One of the major growth propellers in Europe is the extensive use of beacons among offline retail shops.

Market study indicates that brick-and-mortar-based retail brands are increasingly adopting beacon systems to attract new customers by integrating novel technologies.

North America is expected to generate significant revenue in the smart retail beacons industry. The US will emerge as the leading regional player. Several key players in the smart retail beacon sector are located in the US. For instance, Apple Inc.-owned iBeacon originates from the US. Moreover, the greater use of smart consumer electronics such as intelligent watches, smartphones, and other tools has encouraged retail brands to invest in beacon systems.

Asia-Pacific is another growing market as per industry research. Regional awareness around the benefits of retail beacons has been growing steadily. Moreover, the expansion of international apparel brands across Asian countries can generate more opportunities for beacon developers. The highest growth is expected to be registered in mall-based product retailers during the forecast period.

Smart Retail Beacons Market: Competitive Analysis

The global smart retail beacons market is led by players like:

• Accent Systems
• Aruba Networks (Hewlett Packard Enterprise)
• Zebra Technologies
• HID Global Corporation
• IndoorAtlas
• Cisco Systems. Inc.
• Fujitsu Components Asia Pte Ltd
• Leantegra Inc.
• Estimote Inc.
• Kontakt.io Inc.
• Bluvision
• Gimbal Inc.
• Jaalee Technology
• Sensoro Co. Ltd
• infsoft.

The global smart retail beacons market is segmented as follows:

By Offering

• Software
• Hardware
• Services

By Connectivity Type

• Hybrid
• Bluetooth Low-Energy

By Beacon Standard

• Eddystone
• iBeacon

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa