LONDON--(BUSINESS WIRE)--Technavio analysts forecast the indoor location-based services (LBS) market in SEA to reach USD 260.5 million by 2020, growing at a remarkable CAGR of almost 90%, according to their latest report.
The research study covers the present scenario and growth prospects of the indoor LBS market in SEA for 2016-2020. Retail, aviation, healthcare, government and public safety organizations industries are the largest revenue contributors to the market, with retail industry holding the majority of the market share.
Technavio ICT analysts highlight the following four factors that are contributing to the growth of the indoor LBS market in SEA:
- Rapid adoption of smartphones
- Growth of proximity-based mobile advertising business
- Increased use of beacons
- Increased use of big data analytics
Rapid adoption of smartphones
The growing demand for smartphones has led to the introduction of new smartphone models in the market by OEMs (original equipment manufacturers) and the development of rich and more compelling apps by application developers. Smartphone sales have increased tremendously, reaching approximately USD 2.8 billion in shipments in 2014. Also, due to mobile Internet that provides real-time information and context-aware services by leveraging cloud technology, highly personalized location services have been provided to retailers. These solutions help to maintain high customer engagement, thereby increasing retail sales.
According to Rakesh Panda, a lead analyst at Technavio for M2M and connected devices, “Widespread installation of cellular and BLE technologies has the capability to deliver enhanced customer experiences and engagement. The high penetration of smartphones with increasing activity around mobile location-based services and location-enhanced marketing is driving the indoor LBS market growth.”
Growth of proximity-based mobile advertising business
“Proximity-based mobile marketing and advertising provides numerous opportunities for businesses and benefits for customers to achieve a rich customer experience and engagement in shopping activities. Depending on the user’s location, the required information about the nearest restaurants, services, shopping malls, bars, and lounges is delivered to customers through the proximity marketing service,” says Rakesh.
Proximity-based solutions provide not only relevant offers and information to customers but also help companies to track data regarding people at different venues and locations and discover common traffic patterns to understand and analyze consumer buying behavior. For example, hospitality venues use ‘customer flow’ data in order to determine the optimal cleaning schedules for restrooms and other areas.
Increased use of beacons
With technological advancements, business marketers have to incorporate these advances into their marketing strategies to reach the target audience with the relevant advertisements and content. This business activity can be easily achieved through the adoption of beacon-triggered marketing. A beacon is a low-cost device that is attached to store shelves to ensure effective communication with customer smartphones. This is used to enhance indoor maps, payment services, and other location-sensitive product catalogs.
“Beacon-triggered marketing, an accurate model of proximity marketing, works by utilizing the Bluetooth signal from a beacon located with the store. These beacons provide the right message to the specific customer at exactly the right time. Due to the beacon’s easy deployment and inexpensive features, the adoption rate has increased significantly,” says Rakesh.
Increased use of big data analytics
Big data analytics provides enriching insights into consumer buying patterns so that retailers can increase sales volume and enhance customer search experiences. With indoor location-based technology, store owners can retrieve a shopper’s search information and offer unique incentives to bring a strong value-added component in their digital and CRM strategies.
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