Retailers to spend more than $2bn on IoT by 2020

Retailers will spend on hardware such as Bluetooth beacons and RFID tags

Retailers embracing Internet of Things (IoT) technologies are expected to spend about $2.5bn (£1.6bn) on hardware and installation costs by 2020, Juniper Research predicts.

This estimate is four times that of the $670m the analyst expects will be spent on IoT this year.

Retailers' hardware spend will include such technologies as Bluetooth beacons, which push information to customers' Bluetooth devices; and radio frequency ID tags, which deliver data to retailers regarding their products, Juniper Research stated.

Businesses planning to use IoT to create a connected environment in-store and online are positioned to capitalise on the opportunity and gain market advantage, according to the research.

Steffen Sorell, author of the report, said: "Retailers such as Zara and Target are already taking advantage of the benefits offered by RFID asset tracking.

"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."

The research body added that with the number of connected devices set to hit 38.5 billion in 2020, strategies and attitudes regarding cybersecurity must be altered.

It continued that going forward, IoT security solutions must be prepared to identify inevitable network breaches, as opposed to just focusing on access prevention.

Additionally, Juniper found that 70 per cent of IoT devices are predicted to be non-consumer.