The global micro-location technology market size was valued at USD 23.54 Billion in 2022 and is likely to reach USD 114.37 Billion by 2031, expanding at a CAGR of 19.2% during 2023 – 2031. The market's growth is attributed to the growing adoption of mobile phones and the increasing importance of asset management.
Rising need for asset management in various industries is expected to fuel market growth. Micro location technology provides users with real-time positioning of assets such as digital assets, staff personnel, returnable transport assets, manufacturing assets, and in-transit assets to increase productivity and efficiency of operation and manage assets more effectively.
Micro-location technology is utilized in identifying the indoor location of any equipment, object, or people. It uses several communication technologies such as Near Field Communication (NFC), Bluetooth, Beacon, and Wi-Fi to track the location of objects or any other equipment. Micro-location allows businesses to send information, personal messages, or discount offers to help the customer save time and money and possibly make informed and better decisions.
Growing adoption of mobile phones is estimated to boost the demand for micro-location technology. This technology is utilized in location-based mobile advertising by various industries to boost sales. Mico-location technology uses near-field communications (NFC), Bluetooth, Wi-Fi, and beacon technology of mobile phones. Thus, with an increase in mobile phones, the demand for micro-location technology is anticipated to increase.
Impact of Artificial Intelligence (AI) on Micro-Location Technology
AI-powered micro-location technology has an immense future in several industries as location data is a valuable source of information for healthcare, logistics, retail, BFSI, sports, and entertainment industries. It provides personalized and relevant advertisements based on the user’s location and context. Artificial Intelligence-powered micro-location technology analyzes foot traffic patterns of consumers in a store or shopping mall and predicts which products a customer is likely to buy based on their location and past purchasing behavior. AI-powered micro-location technology uses trilateration techniques to track objects and is useful for businesses that need to monitor employees or customers in real-time, such as in healthcare and logistics.
The COVID-19 pandemic hampered the demand for micro-location technology. The retail industry showed a sharp downfall across the globe due to preventive measures by the government such as social distancing and imposition of lockdown, which significantly hindered the demand for micro-location technology. Micro location technology is widely used in the retail industry for proximity marketing and asset management as it is a wireless distribution of advertising content to consumers for boosting sales. For instance, global retail sales fell by 2.9% during the COVID-19 pandemic.
Micro-location Technology Market Dynamics
Major drivers
Inefficiency of GPS technology in indoor premises is estimated to boost the demand for micro-location technology. GPS only determines geo-location while outdoors on the other part micro-location technology determines location more precisely, both indoors and outdoors, which encourages people to adopt this technology to track objects, people, and other equipment more accurately in indoor spaces.
Growing adoption of micro-location technology in the retail industry is projected to drive the market. Retailers are adopting this technology to increase sales and foot traffic across physical stores by delivering promotional content to consumers based on their location. For instance, companies such as Victoria’s Secret, Gap, and Best Buy have already implemented micro location-based technology into their mobile advertising campaigns to drive in-store traffic.
Existing Restraints
Lack of awareness regarding the benefits of using micro-location technology hampers the market. Micro-location is primarily used by retailers and other sectors for proximity marketing for advertisement purposes. With the lack of awareness regarding the technology, these retail shop owners can lose their potential customers which leads to hampering the market for micro-location technology.
Emerging Opportunities
Increasing emphasis on Industry 4.0 and connected IoT devices is expected to create a lucrative opportunity in the market. Micro-location technology is used in Industry 4.0 with IoT-connected devices to keep track of industrial assets such as construction equipment in construction and architecture.
Scope of the Micro-Location Technology Market Report
The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Micro-Location Technology Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Technology (Near Field Communication (NFC), Beacons, RFID, and Others), Application (Proximity Marketing and Asset Management), and Industry Vertical (Healthcare, Logistics & Transportation, BFSI, Sports, Entertainment, and Commercial)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Cisco Systems, Inc.; Hewlett Packard Enterprise Development LP; Sewio; Kontakt.io; Siemens; CenTrak, Inc.; Zebra Technologies Corp.; Estimote, Inc.; Humatics Corporation; Apple Inc.; and Ruckus Network Inc.
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Market Segment Insights
Technology Segment Analysis
Based on technology, the micro-location technology market is segregated into near-field communication (NFC), beacons, RFID, and others. The beacons segment held a large market share in 2022 owing to detecting users precisely, even in locations with limited internet access such as indoor spaces or underground stations. Beacons detect users more precisely as they use smartphone's Bluetooth and Wi-Fi technology to produce latitude and longitude data, and app-specific data. This technology helps companies to track and target customers and deliver applicable advertisements, offers, and messages instantly, to boost sales. This in turn results in encouraging companies to adopt beacon technology for micro-location technology.
The near-field communication (NFC) segment is estimated to witness a high CAGR growth during the assessment period due to the increasing adoption of NFC technology for marketing purposes. Proximity marketer uses NFC to interact with potential consumers by advertising content through app notifications and messages based on their current location. It enables a seamless exchange of information between consumers and shop owners with just a tap on NFC stickers placed on OOH displays or products, which is estimated to boost the demand for NFC in micro-location technology.
Application Segment Analysis
In terms of application, the global market is bifurcated into proximity marketing and asset management. The proximity marketing segment dominated the global market in 2022 owing to create a personalized experience for customers, enhancing their overall customer experience, and boosting sales. Companies are widely utilizing micro-location technology for proximity marketing to pull customers into their business by sending offers, information, or personal messages based on their location. This in turn is expected to boost the demand for this technology in proximity marketing.
Industry Outlook
Based on the industry outlook, micro-location technology is categorized into healthcare, logistics & transportation, BFSI, sports, entertainment, and commercial. The commercial segment accounted for a major market share in 2022 due to the increasing adoption of micro-location technology for marketing purposes. Restaurants and hotels are using this technology to reach out to consumers walking nearby hotels and restaurants with discount offers, for creating business. For instance, in 2021, Hilton Hotels implemented micro-location technology with their Hilton Honors app to send notifications and messages to guests or hotel employees for meal advertisements and other issues.
The logistics & transportation segment are anticipated to grow at a quick pace over the projection period owing to the rising adoption of micro-location technology for asset management. Logistics & Transportation uses this technology to minimize asset loss as every year equipment and shipments are lost or stolen. Moreover, it offers indoor location tracking, which is used in warehouses to locate goods and other equipment. This increased demand for micro-location technology for asset management in logistics & transportation.
Regional Outlook
In terms of region, the micro-location technology is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America dominated the market in 2022 due to the presence of established market players such as Cisco Systems, Inc., Apple Inc., and Zebra Technologies Corp. Moreover, retail companies in the region are adopting micro-location technology for proximity marketing, which enhances sales by increasing foot traffic in physical stores.
Asia-Pacific is estimated to witness considerable CAGR growth during the projection period owing to the growing penetration of smartphones and the increasing need for micro-location technology in several industry verticals in the region. The growing penetration of smartphones in the region is projected to boost the demand for micro-location technology in the region as it is utilized in mobile advertising by various industries to boost sales and customer experience. This technology requires mobile phones as it functions through Wi-Fi, NFC, Beacons, and Bluetooth of mobile phones. Thus, increasing demand for smartphones is projected to boost the demand for micro-location technology.
Segments
The micro-location technology market has been segmented on the basis of
Technology
- Near Field Communication (NFC)
- Beacons
- RFID
- Others
Application
- Proximity Marketing
- Asset Management
Industry Outlook
- Healthcare
- Logistics & Transportation
- BFSI
- Sports
- Entertainment
- Commercial
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Key players competing in the global market are Cisco Systems, Inc.; Hewlett Packard Enterprise Development LP; Sewio; Kontakt.io; Siemens; CenTrak, Inc.; Zebra Technologies Corp.; Estimote, Inc.; Humatics Corporation; Apple Inc.; and Ruckus Network Inc.
These companies adopted development strategies including collaboration, product launches, mergers, acquisitions, partnerships, and production expansion to expand their consumer base worldwide. For instance,
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On April 11, 2023, Kontakt.io announced a partnership with Signify to incorporate BLE-powered connected lighting. This BLE-powered connected lighting comes with cloud services and IoT sensors that track the real-time location of BLE tags carried by staff, patients, and medical devices.
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On September 20, 2021, Kontakt.io introduced Nano Tag, the world’s smallest BLE beacon. It is used by healthcare staff to prevent patient wandering and elopement by location tracking.
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