Retailers seeking to capitalize on the Internet of Things (IoT) will spend some $2.5 billion in hardware and installation costs in 2020, nearly a fourfold increase over this year’s estimated $670 million spend, Juniper Research predicts.
The hardware spend includes Bluetooth Beacons, which enable visibility over footfall and push relevant information customers’ smartphones, and radiofrequency ID (RFID) tags, which aid in real-time asset tracking.
Linking the hardware elements of RFID tags, beacons and connected consumer electronics, such as wearables, with software analytics promises in-depth business insight and an enhanced customer experience.
“Retailers such as Zara and Target are already taking advantage of the benefits offered by RFID asset tracking,” noted Steffen Sorrell, author of a Juniper Research report into the topic.
“Meanwhile the beacon industry is expanding rapidly; used as a method to provide consumers with contextually relevant information in conjunction with their smartphone or wearable will enormously enhance the in-store experience,” he added.
Juniper Research also found that with the number of connected units within the IoT forecast to reach 38.5 billion in 2020, attitudes and methods with regards to cyber security will have to undergo fundamental change.
“The IoT security model will require robust means of identifying inevitable network breaches. Should suspicious activity be detected, parts of the network can then be ‘shut off’ in a similar fashion to marine vessel bulkheads to prevent attack spread,” the report further stated.