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Indoor location market shows high competition

Posted: 11 Jun 2012     Print Version  Bookmark and Share

Keywords:Indoor location  CRM  analytics 

ABI Research forecasts a major advancement in customer analytics, store optimisation, proximity advertising, couponing, and CRM using indoor location technologies launched by major US retail brands in 2012 and 2013.

Competition is said to be vicious in the Rs.24,752.48 crore ($5 billion) market, with over 30 big name IC vendors, start-ups, carriers, handset OEMs, and infrastructure providers (Wi-Fi, small cell, DAS, etc.) all fighting to win this space. While Google and other industry giants loom large, retailers will want to maintain control of in-store data, advertising, and CRM. As a result, start-ups and infrastructure providers will see significant success, noted ABI. Carriers will also have a role to play, particularly with the onset of small cells.

Competition is emerging between handset-based and dedicated infrastructure-based approaches. Ultimately, both have a role to play, depending on the application. Research forecasts over 2,00,000 installations of infrastructure equipment by 2017, across Wi-Fi, Bluetooth, etc., with over 80 crore branded application downloads.

Senior analyst, Patrick Connolly, states, "Revenues will come from multiple sources, including advertising, infrastructure deployments/service fees, and application management. However, analytics is the area best placed for initial uptake, representing the path of least resistance. Long term, advertising will play a major part, with in-store offers/couponing representing over 40 per cent of revenues in 2017."

For more statistics and forecasts, click here.

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