Published Date : 2025-Mar-21
The global smart beacon market is experiencing rapid growth due to increasing demand for proximity marketing, indoor navigation, and real-time tracking solutions. With industries like retail, logistics, healthcare, and smart cities integrating IoT-powered beacon technology, the market is expected to expand significantly in 2025.
Here’s a look at the top companies leading this transformation.
Smart beacon can augment or personalize the in-store experience by reaching consumers with location-based content near the vicinity. This technology opens new possibilities for marketers and companies to engage customers in contextually appropriate manners using low-energy Bluetooth connections with consumer smartphones. This new technology that communicates with smartphones via apps directs customers towards products or provides details about company's business. Smart beacons have the potential to enable marketers to reach customers in a more effective and efficient way with location-based and interest-based content. This is therefore propelling the growth of the smart beacon market.
The smart beacon market demand has grown to a very large extent as they are quite simple to install and deploy. Just a few minutes is all it takes. It implies that any business or company can apply these beacons for business purposes like malls, airports, restaurants, and museums, among others.
Below are some of the driving factors of the smart beacon market:
As the penetration of smartphones in the world is growing, it will not be hard to presume smart beacons market would have a significant role when businesses would look for how to talk to customers. Over 4.4 billion active social media users worldwide in 2021 and among them, almost 490 million users are depending on beacon-based location-based service. Location-based service has become a feature of mobile applications so naturally enough, there is an interest in using actual locations to deliver relevant messages to consumers. It could be through GPS, Wi-Fi, or Bluetooth signals but the fact remains that firms need to find user location accurately and deliver service or product notifications based on the customer's geo-location through their smart devices.
Since increasingly more businesses support location-based services, they require accurate information concerning where the consumer is so they can deliver services accordingly. Currently, using today's GPS capability, businesses do not accurately inform user location in indoor settings and therefore physical retail stores cannot supply product promotions by way of their apps.
On the other hand, with smart beacons, businesses can now precisely know where all consumers are and send them respective notifications – if they are in a restaurant, museum, park, or shopping mall. Businesses no longer need to worry about customers getting away from them if there are "smart" devices nearby because location-based services will allow them to approach and interact with their target market further driving smart beacon market growth.
The smart beacon market will grow to USD 2041.9 billion by 2034, at a CAGR of 55% for the period from 2025 to 2034. Growing need for smart beacon applications in retail and smart cities, growing use of smart beacons in sports & entertainment centers, and growing use of smart beacons by government agencies are the key drivers of the smart beacon market in different regions. In 2020, North America held the highest share of the worldwide smart beacon market because of large-scale adoption of smart beacons by retailers and enterprises across sports & entertainment facilities. Increased adoption of smart beacons in retail is anticipated to propel the smart beacon market in the world over the forecast period. Furthermore, rise in e-commerce transactions via smart beacons is fueling demand for smart beacons globally. U.S. and Canadian retailers are employing smart beacons as a powerful marketing device to target their potential customers nearby without any challenge.
Retailers have begun integrating smart beacons into their mobile apps to support location-based services, which enables them to drive huge numbers of customers into nearby stores that are equipped with smart beacons. In addition to that, intense presence of the market participants operating in the region, high consumer-consciousness, and early adoption of sophisticated technology are fueling the North America smart beacon market.
More than 30% of mobile phone users are utilizing location-based services on their smartphones numerous times a day as of 2020 which only indicates that marketers know very well the significance of businesses to better connect with consumers. That is why companies are embracing technologies such as iBeacon, one of the flagship products in the smart beacon industry. iBeacon is a technology powered by Bluetooth that interacts with smartphones, allowing people to receive messages from interior spaces. It can be employed to send messages of special offers or discounts that are applicable to their location.
This allows physical stores to compete with online stores by providing customers with reasons why they should go inside the store instead of purchasing products online. Stepping into a store will automatically make users eligible for special offers and this matters to business owners that desire to boost profits rapidly. Consequently, the market for smart beacon is bound to experience a significant growth pace in demand for smart beacon. But companies do not have to restrict iBeacon messaging to coupons or discounts because there are other ways it can assist companies to engage consumers using their smart devices. For example, if you are in a coffee shop, you could receive a message that you should order a beverage. Or if you happen to be near a shop, you can receive an alert with the new products available that may interest you.
As many marketers are leveraging iBeacon to send out notifications about potential sales like those on Black Friday or Cyber Monday, it is fueling the growth of the smart beacon market. When customers are within shops, they will likely go to several sections and browse through several products so sending appropriate messages can generate more traffic for companies. What matters is that marketers should be capable of sending personalized messages based on the location of customers since physical stores work differently from online stores.
Smart beacons advantage retailers are by tailoring their relationship with customers according to behavior so that they can provide a personalized shopping experience according to a consumer's location which is the same reason why there are still brick-and-mortar stores. For instance, if a customer is in the lady’s department of a department store and notice something that grabs his attention but walk past it, there may be another product he will notice later. To prevent losing potential customers forever, companies are using smart beacons effectively to remind potential customers when he is near that specific product. This technology is also rational for loyalty programs because it can assist stores in knowing how frequently frequent customers come to their establishments and whether they need to offer them more perks, so they continue purchasing from a specific company or brand.
Shoppers can be sent reminders about reward points so users that have not been there in a long time will be prompted to come in. If customers buy whenever they visit a store, the business can provide them with discounts and coupons to help boost their income. Beacons are not just useful for retailers but also for consumers as it enables them to get personalized promotions that they may be interested in which enhances their relationship with a specific brand or company. Hence, it is shaping the smart beacon market growth.
One of the key drivers that have been behind consistent growth in the presence of smart beacons is being credited to its capacity to meet the needs that are increasing for organizations. As they provide a deeper understanding of customers and users, these devices have played an instrumental role in proving immense value to organizations.
Companies are dependent mostly on available information about trends, tastes, customer behavior, and other current market data while endeavoring to formulate their business strategies. Although there has been a remarkable rise in awareness among companies regarding the possible advantages of implementing smart beacons, it is surprising to see that over half the companies in the manufacturing sector do not implement beacons within their organizations for several reasons.
Among the issues being raised, one of the main reasons assigned for not using these devices is data security and privacy concerns. This trend is primarily being witnessed among new companies who are beginning to start up with smart beacons deployment. However, with the passage of time, it becomes necessary for organizations to identify benefits of this technology which include increased customer experience, productivity among the staff and greater customer targeting utilizing location-based details. While smart beacons were around for several years now, of late, they have commenced generating interest in companies operating within various industries, which are willing to use such devices to satisfy their own company objectives.
Experts are foreseeing that in the next few years there could be a remarkable increase in the number of firms wanting to utilize smart beacons for their operations. As increasingly more individuals learn about its most important advantages, there is going to be an explosion in demand for these gadgets in the coming few years.
Furthermore, organizations are likely to spend more on research and development processes in the context of deploying smart beacons in various geographies. Market intelligence further asserts that while the deployment of smart beacon technology keeps gathering momentum among consumers, the big players in the smartphone space have been paying increasing attention to integrating such technologies into their existing offerings. Although this growth in demand from companies will continue to be a key driver of expansion in the next few years, experts say it will also lead to more competition between vendors selling solutions based on this technology. Nonetheless, a few recent trends in the market including the potential increase in use of smart beacons and concentration on application development on Bluetooth Low Energy (BLE) platforms is most likely to continue fueling growth in the next few years.
The worldwide smart beacon market is anticipated to see a rise in demand from various industry verticals resulting in greater revenue prospects for vendors providing solutions based on this technology.
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