2014 looks like a breakout year for indoor location technologies in retail environments, with early adopters entering the final stages of a technology adoption cycle and shifting from trials to full-scale deployments, according to ABI Research.
In the latest edition of its quarterly Market Data “Location Technologies,” ABI provides forecasts for the adoption and revenue for indoor location technologies across 11 major retail verticals.
“We can clearly see major grocery and pharmacy chains really pushing towards this technology,” Patrick Connolly, senior analyst at ABI, said in a statement. “These are very competitive verticals, which can benefit significantly from identifying and targeting loyal customers. Both already have large loyalty and advertising/offers deals in place and from a practical point of view, in-store items can be difficult to find. All of this makes indoor location a perfect fit.”
In the fast-food retail space, where indoor location was not originally envisioned as having huge success, a small percentage improvement in queue lengths can translate into millions of dollars, ABI says. A number of chains are now testing the technology for that purpose, the firm says
“With a number of initial trials now moving into full deployments, what we are seeing is broad regional and vertical adoption,” Dominique Bonte, vice president and practice director at ABI, said in a statement. “The arrival of low-cost BLE [Bluetooth low energy] beacons and Wi-Fi solutions will help to catalyze adoption in 2014, removing many of the [capital expenditure] barriers that exist.”