The proximity space is growing at a rapid pace, according to the latest from ABI Research.
In its report published on July 30, BLE Tags: The Location of Things (LOT), ABI Research reveals that beacon hardware shipments will top 400 Million units in 2020, while breaking U.S. $1 Billion in revenue.
ABI Research Principal Analyst Patrick Connolly comments, “BLE Beacons are cropping up everywhere, with particularly strong growth coming in Enterprise / Industrial, IoT and connected home, as well as more established markets like retail and personal asset tracking.”
The report also postulates that despite the billion-dollar revenue opportunity with beacon hardware, the real opportunity is in network management and analytics, since “retail will be a tough business for beacon start-ups, especially when the majority of future revenues are in advertising.”
While we’ve seen early success in beacon-based advertising, and also the negative effects of over-saturation, any beacon platform that relies on advertising as its revenue model must carefully consider how, where and when it is reaching the audience.