Retailers who use beacons have expanded beyond single-store pilot programs to large-scale proximity marketing campaigns that span multiple locations, as worldwide deployments of mobile-based sensors rose 20 percent to 6.2 million
"Every advertiser has an understanding of where consumers are located through their devices translated as specific GPS coordinates,” says Jim Kovach, vice president of business development at CrowdOptic, an augmented reality technology firm that has worked with L’Oreal, Sony and IMG.
Beacons have been generating buzz since 2013, when Apple first introduced iBeacon technology. And while it may have appeared for a time that this new way of connecting with customers might be slow to catch on, today it’s catching fire. This year began with BI Intelligence reporting that beacons would be driving billion in retail sales by 2016, up from billion this year. Then last month came the big news that Apple and IBM have teamed up on a host of new apps incorporating analytics and iBeacons. And just last week, Ad Age reported on the impending reinvention of retail by digital technology, as the physical and digital worlds converge in stores.
These are enough to guess the market size for beacons in the years to come.
According to a Business Insider Report, the beacon installed base will see a five-year compound annual growth rate (CAGR) of 287%. There will be about million active beacons overall by year end 2018, with million of these in use by retailers. Also, the beacon installed base should continue to double every six months through 2016.