Ever since its introduction is 2013, iBeacon technology has been consistently growing and today it plays a significant role in the global IoT infrastructure. With its innate ability to deliver contextual, timely and personalized mobile experiences, the technology has witnessed widespread adoption and growth on both business and customer fronts. In fact, the technology has gained so much popularity that beacon-based proximity solutions are being leveraged across 19 industry verticals and it is forecasted that 400 million beacons will be deployed by 2020, according to ABI research. In this post, we bring to you the top beacon trends, from, future growth trends to customer behaviour patterns to success metrics from major beacon projects.
1. Huge future growth potential
Being the most popular and promising proximity sensor in the market today, the global beacon market is witnessing rapid growth and is expected to surge across several areas, from, beacon investments to beacon deployments. According to Proxbook, there are now 8,273,500 proximity sensors deployed globally out of which 6,061,500 are beacons. Below are some of the latest industry growth trends for the beacon market:
[Tweet “The global iBeacon market is set to grow at a staggering CAGR of 200.3% between 2014 and 2019”]
2. Retail to be a front-runner in beacon deployments
Given today’s omnichannel retail space, it has become increasingly critical for retailers to connect with customers in both the digital and physical worlds and beacons are one of the surest bets to engage customers across these two channels in the most efficient and seamless way. Here are some interesting statistics about beacons in the retail industry:
[Tweet “70% of #retailers to use #beacons over the next 5 years”]
3. Growing customer acceptance towards proximity solutions
Given the engaging, personalized and timely experiences that beacons enable, more and more customers are embracing the technology and are willing to share location and personal information in exchange for enhanced and relevant experiences. Interesting insights about customer behaviour with regards to beacons and proximity solutions are as follows:
[Tweet “22% of customers are happy to share some data in return for personalized customer service or product”]
4. Advancements in technology
The beacon-based proximity industry has been making big strides technologically in order to make it more accessible and functional to users. The introduction of Google’s Eddystone beacon format on Chrome is a huge step for the proximity market as it addresses one of the biggest barriers to beacon adoption – the need for an app. Now, with Eddystone beacons, the proximity market is expected to witness a significant uptick.
In addition to Eddystone, the announcement of the upcoming Bluetooth 5 standard is expected to further strengthen the proximity market. Bluetooth 5 is forecasted to potentially transform IoT interactions through its increased range, speed and broadcast capacity.
Interesting numbers about Eddystone and Bluetooth 5 are discussed below:
[Tweet “How #Eddystone and #Bluetooth 5 will drive the beacon market”]
5. Promising industry trends
Not only has the number of beacon solution providers increased, but the nature and scope of proximity solutions developed and delivered has also significantly widened. All this has led to close to 19 industry verticals adopting beacon-based proximity solutions.
Below are some impressive numbers about beacon solution providers and industry adoption, all of which indicate a promising future for the beacon industry:
6. Project success on the rise
Beacon-based projects are certainly moving from early stage pilots to full-fledged deployments. Beacon-based initiatives are now moving towards establishing and successfully fulfilling business metrics, be it driving online engagement or store footfalls or even sales conversions. While there are close to 19 diverse industry verticals leveraging beacons, retail still remains the pioneer in beacon-based initiatives. To better understand the nature and scope of success related to beacon deployments, here are two beacon projects from the retail industry that saw impressive results:
As indicated by the various metrics in this blog, the proximity industry headed by beacons is definitely gaining momentum. As the industry moves into its growth phase, certain key areas of focus have emerged, as mentioned below:
– Shifting focus on retargeting –Beacon-based initiatives are shifting their focus from pure couponing solutions to retargeting efforts across several platforms. There has been an overall shift in using the technology to drive brand value through curated mobile experiences in-store. The data granularity that beacons provide is also helping stores to precisely retarget customers and drive store visits.
– Tapping into existing beacon infrastructure – As beacon-based initiatives surge, there has been a realisation across the industry to further tap existing beacon infrastructure and data in order to serve unique and differentiated experiences. Players are also looking at newer monetization channels with the current infrastructure. This could also be one of the reasons for the growth in beacon-networks.
[Tweet “Top iBeacon Trends for 2016”]
Thus, as beacons continue to prove their value to customers and businesses alike, it is only a matter of time before beacons and proximity solutions become ubiquitous.
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