Bluetooth Market Growth Rate Slowing

Complications arising from integration trends and new Bluetooth standards hitting the market.

by / August 1, 2007

Bluetooth had another successful year in 2006, and it will have continued success in 2007, led by its increasing penetration into mobile phones, reports In-Stat ( However, market growth for Bluetooth products is beginning to slow, and it will see some complications arising from integration trends and new Bluetooth standards hitting the market, the high-tech market research firm says. The market for Bluetooth chips is also in flux.

"The Bluetooth silicon market is beginning to see some consolidation, as larger silicon vendors add new capabilities, such as Wi-Fi and GPS, to their chip portfolios, either by internal development or acquisition," says Brian O'Rourke, In-Stat analyst. "The goal is to create combined radio silicon that is being demanded by mobile phone vendors."

 Recent research by In-Stat found the following:

  •  Growth of Bluetooth devices will increase by 34% in 2007, slowing from the recent past.
  •  Wireless chip companies are seeking to offer integrated radio chips with Bluetooth, Wi-Fi, GPS, and FM.
  •  New low power and high data rate Bluetooth standards will emerge over the next two years.
  •   According to recently conducted In-Stat surveys, France, Germany and the UK have the highest percentages of those extremely or very familiar with Bluetooth. Korea and Japan had the lowest percentages, while the US was in the middle. 

The research, "Bluetooth 2007: Silicon Integration and New Standards Complicate the Worldwide Market" (#IN0703629MI), covers the worldwide market for Bluetooth in PCs, PC peripherals, consumer electronics, communications, automotive, industrial/medical, and other applications. It contains analysis and five-year forecasts for all Bluetooth-enabled products. Annual Bluetooth chip shipments and revenue forecasts by type through 2011 are also provided, including shipment and revenue forecasts for Bluetooth over UWB and ULP Bluetooth silicon. The research also contains responses on Bluetooth and wireless headsets from three In-Stat surveys: domestic phone and web surveys, and an international web survey of Japanese, Korean, German, French, and British consumers. Brief profiles of major Bluetooth silicon suppliers are also provided. In addition to the report, Brian O'Rourke, the report's author, and other In-Stat analysts provide consulting services on a variety of technical and market topics regarding the semiconductor and electronics industries.