Wi-Fi Indoor Location in Retail Might Reach $2.5 Billion by 2020

But technology is in precarious position



picture: Aruba Networks
picture: Aruba Networks
Wi-Fi indoor location application revenues will reach $2.5 billion by 2020, according to ABI Research's latest report. This report considers the use of Wi-Fi indoor location in retail and public venues.

precarious position
"Wi-Fi, as an indoor location and analytics tool, is in a very precarious position," says Patrick Connolly, Principal Analyst at ABI Research.

"Apple continues to create roadblocks, while BLE beacons have not only taken mindshare but also budgets. However, Wi-Fi is ubiquitous on smartphones and available in over 50% of major retail stores in the US, giving it unparalleled reach. Previously it was an expensive and inaccurate technology but Wi-Fi access point vendors like Zebra and Cisco have all upped their game on retail analytics, while start-ups like Euclid have helped to drive adoption worldwide."

Wi-Fi's superior penetration means it is a far better technology than BLE beacons for in-store analytics today. While proximity advertising is stealing the headlines, retailers are finally waking up to in-store analytics, which represents a major evolution on people counting and loyalty programs. This data will streamline store layouts, improve staff management, measure advertising campaign performance, enhance loyalty/reward programs and form the backbone of new smartphone services.

Companies with advanced technologies in this space have started to use hybrid systems, combining Wi-Fi with BLE, camera analytics and other technologies.

Thursday, October 29th 2015


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