Next-Gen Asset Tracking Infrastructure worth US$4.5 Billion by 2022 but Consolidation is Looming

ABI Research forecasts that Bluetooth hardware infrastructure for asset tracking will reach US$2.3 billion by 2022, which will represent 52% of the total infrastructure of asset tracking market. However, UWB is the fastest growing technology in this environment with a compound annual growth rate of 52% between 2017 and 2022.

ABI Research forecasts that Bluetooth hardware infrastructure for asset tracking will reach US$2.3 billion by 2022, which will represent 52% of the total infrastructure of asset tracking market. However, UWB is the fastest growing technology in this environment with a compound annual growth rate of 52% between 2017 and 2022.

Major beacon companies arrived late to target the asset tracking space because they were focusing on consumer-facing applications. This has given rise to customized solutions from companies like Fathom, Quuppa, Onyx Beacon, Bluvision, H&D Wireless and PLUS Location Systems. This market is characterized by many small-to-medium sized suppliers that are steadily obtaining deployments with local customers.

However, these vendors will struggle to generate scale in the long term. Targeting small to mid-size businesses across a variety of segments and use cases is a good starting point for these companies, but it will not be enough for them to survive in such a highly competitive landscape. Asset tracking customers often have specific requirements and ask for highly customizable equipment, which most  vendors could hardly cope with in the long-run.

This trend means market consolidation is looming and survivors will be pushed to come up with more hybridized technologies that will allow them to generate the required scale. These players will also have to adapt their business models and align their strategy if they want to maximize profits from their innovative technologies. "Asset tracking as a service is becoming increasingly popular as an alternative to the traditional model whereby vendors ship their solutions as a one-time sale opportunity," concludes McLaughlin.     

These findings are from ABI Research's Indoor Positioning & RTLS: Technology Infrastructure, Applications, and Revenues report. This report is part of the company's Location Technologies research service, which includes research, data, and analyst insights. 

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