Retail indoor location market to reach $5 billion in 2018

ENGLAND: Apple’s acquisition of WiFiSLAM illustrates how 2013 will be a breakout year for indoor location as initial trials shift to technology deployments, application development, and revenues.

ABI Research’s latest report “Indoor Location in Retail: Where Is the Money?” provides a complete overview of all major technologies, revenue opportunities and competitive environment.

“Analyzing across 10 retail sectors, we are seeing a lot of cross pollination as companies combine handset and infrastructure based Wi-Fi, Bluetooth, and sensor location technologies. The emergence of public venue small cells and carrier Wi-Fi will also create a new wave of opportunity,” commented Patrick Connolly, senior analyst. “As a result, we expect to see a flurry of acquisitions and partnerships in 2013, as major players start to make their moves.”

In support of these technologies, ABI Research is also forecasting smartphone retail apps to break 1 billion downloads, while indoor maps will break 1 million buildings, over the forecast period.

Discussing revenue opportunities, practice director Dominique Bonte said: “Proximity and in-store analytics services will emerge as leading revenue generators in 2013. As retailers launch smartphone apps, in-store hyperlocal, aisle-level search will also become much more prevalent. Longer term, in-store advertising will represent a great way for retailers to maximize brand advertising/shopper marketing revenues, increase basket size, and improve customer engagement.”