|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD 1.25
Billion
|
|
CAGR
(2023-2028)
|
3.40%
|
|
Fastest
Growing Segment
|
Beacons
|
|
Largest
Market
|
North
America
|
Market Overview
Global Bluetooth IC Market
was valued at USD 1.25 Billion in 2022 and is anticipated to project robust
growth in the forecast period with a CAGR of 3.40% through 2028, The increase in demand for
smart high-performance wireless sensors in Bluetooth ICs for better wireless
connectivity in wireless audio devices such as speakers and headsets is the
primary factor driving the Bluetooth ICs market growth. The increased adoption
of Bluetooth ICs in smart wearable electronic devices such as smartphones,
laptops, and smartwatches, as well as in automotive infotainment systems for
low-cost wireless communication also enhances the Bluetooth ICs market revenue.
The rise in financial
investments by governments globally in IoT-based device technology and
increased demand for this device in smart homes or smart city projects is
expected to pave new opportunities for the Bluetooth ICs industry. Furthermore,
technological advancements help manufacturers to integrate more functionality
into smaller devices which fuels the demand for Bluetooth IC in a variety of
applications such as healthcare, automotive, and others. Bluetooth low-energy
IC is also used in automotive vehicles. Bluetooth IC communicates the authentic
codes by using smartphones. A driver can activate interior or exterior
lighting, adjust seat positions, and HVAC settings. Bluetooth IC devices also
assist to provide vehicle diagnostic information such as tyre pressure, fuel
level, battery health, and temperature, as well as automated piloted parking. However,
the combination of Intellectual Property blocks for System-on-Chip design, the
possibility of connection failure, the low bandwidth of Bluetooth in certain
conditions, and the continuous development of wireless communication technology
all hamper the development of the Bluetooth IC chip market.
Key Market Drivers
The
Growing Investment In IoT Devices
The Market CAGR for
bluetooth IC is driven by the growing investment in IoT devices. The growing
investments in sensing technology for automating industrial activities have led
to the enhanced revenue growth of the loT connectivity industry. The market is
undergoing a constant expansion due to the growing demand for audio devices,
smart city projects, automotive entertainment and diagnostic devices,
automation, and wearable electronics integrated with Bluetooth capabilities.
Increased the demand for hands-free medical technology in hospitals and in-home
use. Wearable health monitors, including blood glucose and blood pressure
monitors, have become more common in enhancing home care. More hospitals have
adopted IoT connectivity to track resources and make remote appointments. These
trends will continue to expand as the pandemic subsides, making healthcare more
accessible.
Additionally, customers'
increased use of smart wearable electronic devices is a key driving factor in
the market's growth. Increasing financial investments in IoT-based device
technology, increased demand for smart wireless sensors, increased demand for
better wireless connectivity in wireless devices, miniaturization of ICs,
demand for high-performance Bluetooth ICs in audio products such as speakers
and headphones, and increased demand for Bluetooth ICs in applications such as
smart homes, automotive, and industrial, consumer electronics and more are
expected to propel the growth of the bluetooth IC market revenue.
Increasing
adoption of smart wearables
The rising trend of
earphones, wireless headphones, and speakers' connectivity creates a huge
demand for bluetooth chips. As per the report published by Bluetooth SIG, the
firm that authenticates Bluetooth devices, more than 50% of headphones in the
market are wireless, and around 90% of speakers on the market will be wireless
by 2023. Several companies are introducing advanced Bluetooth 5.0-based devices
in the market. For instance, in June 2022, Hammer, a manufacturer of consumer
audio products and fitness bands, introduced the Hammer KO Unisex Bluetooth 5.0
Sports Truly Wireless Earbuds with touch control in India. It includes touch
sensors that detect touch. The Hammer KO Unisex Bluetooth 5.0 Sports Truly
Wireless Earbuds feature touch control and a secure fit. It supports Bluetooth
V5.0, which offers twice the transmission speed and twice the stability with no
signal loss or music dropouts.
Increasing adoption of
smart wearables. The utilization of digital gadgets worn by patients to monitor
their health has become increasingly prevalent, particularly during a crisis,
including the pandemic. Wearable gadgets, including smartwatches and fitness
trackers, are the most obvious utilization of loT technology. In the consumer
electronics market, wearables have surpassed smartphones in popularity. These
devices deliver amazing ways to complete basic chores, including checking
messages and measuring physical activity. The pandemic has increased the usage
of smart wearables for tracking and examining health data. The wearable
industry has grown dramatically in response to the growing requirement for
health evaluations at any given time. IoT is rising, powering wearables in
health care. The Internet of Health Things guides the interconnection of
medical tools and applications with healthcare communication technology.
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Key Market Challenges
The
Bluetooth IC Market: A Macro Perspective
To understand the
challenges facing the global Bluetooth IC market, we must first gain insight
into its current state.
As of my last knowledge
update in September 2021, the global Bluetooth IC market had already achieved
remarkable growth. It was estimated to be worth over $3.5 billion and was
projected to experience a compound annual growth rate (CAGR) of around 14% over
the following five years. This market serves a wide range of applications, from
consumer electronics (headsets, speakers, and wearables) to industrial and
automotive sectors (IoT devices, automotive infotainment, and industrial
sensors).
Challenges
Facing the Global Bluetooth IC Market
Increasing
Competition
One of the primary
challenges in the Bluetooth IC market is the intensifying competition among
manufacturers. With the increasing demand for Bluetooth-enabled devices,
numerous companies have entered the market, leading to price wars and margin
pressures. This competition can make it difficult for smaller players to
survive and for established players to maintain profitability.
To address this challenge,
companies must focus on innovation, product differentiation, and exploring
niche markets where they can add unique value. Quality, reliability, and
after-sales support also become crucial factors in a competitive environment.
Evolving
Bluetooth Standards
Bluetooth technology
continually evolves with the introduction of new standards and protocols. While
these advancements bring improved performance, they also pose challenges for
Bluetooth IC manufacturers. They must adapt their chip designs to support the
latest Bluetooth versions, leading to increased development costs and the need
for ongoing research and development.
Staying updated with
Bluetooth standards is crucial for manufacturers to ensure compatibility and
performance. However, this also requires substantial investment in R&D to
keep pace with the rapid changes in Bluetooth technology.
Power
Consumption
Power consumption is a
critical concern, particularly for battery-operated devices like wearables,
wireless earbuds, and IoT sensors. Reducing power consumption in Bluetooth ICs
is essential to extend battery life and ensure optimal device performance.
Low-energy Bluetooth (LE
Bluetooth or Bluetooth Low Energy) has been a significant development in
addressing this challenge. Manufacturers must continue to optimize chip designs
to minimize energy consumption while maintaining performance, and explore innovations
like energy harvesting to further extend battery life.
Interference
and Spectrum Congestion
As the number of wireless
devices continues to grow, the radio spectrum becomes increasingly congested,
leading to potential interference issues. Bluetooth ICs operate in the 2.4 GHz
ISM (Industrial, Scientific, and Medical) band, which is shared with various
other wireless technologies, including Wi-Fi and Zigbee.
Interference and spectrum
congestion can degrade the quality of Bluetooth connections. Bluetooth IC
manufacturers must implement advanced interference mitigation techniques and
adapt to regulatory changes to ensure reliable and interference-resistant communication.
Security
and Privacy
Security and privacy
concerns in Bluetooth communications pose a significant challenge. Bluetooth
connections are vulnerable to eavesdropping and cyberattacks, which can
compromise sensitive data and user privacy. As more devices become
interconnected, the need for robust security becomes paramount.
Bluetooth IC manufacturers
must continually improve the security features of their chips. This includes
encryption, authentication, and secure key management. Implementing these
security measures at the chip level can help mitigate potential threats.
Standardization
and Compatibility
The Bluetooth ecosystem is
characterized by a diverse range of devices, each with its own unique
requirements and specifications. Ensuring compatibility and seamless
communication between different Bluetooth-enabled devices can be a challenge.
Manufacturers must adhere
to Bluetooth SIG (Special Interest Group) standards and compatibility
guidelines to address this challenge. They should also participate in
interoperability testing and collaboration to ensure that their Bluetooth ICs
work well with a variety of devices from different manufacturers.
While Bluetooth ICs have
become more affordable over the years, cost remains a challenge, particularly
for manufacturers of budget or mass-market devices. In price-sensitive markets,
manufacturers must balance the need for cost-effective solutions with the
performance and features expected by consumers.
To address this challenge,
Bluetooth IC manufacturers should optimize their production processes, leverage
economies of scale, and explore cost-effective semiconductor fabrication
technologies. Strategic partnerships and collaborations can also help reduce
costs and improve market competitiveness.
Environmental
Considerations
The production, use, and
disposal of Bluetooth ICs and devices have environmental implications. As
environmental consciousness grows, manufacturers face the challenge of
developing sustainable products and minimizing electronic waste (e-waste).
Addressing
this challenge involves
Using recyclable and
eco-friendly materials in chip manufacturing. Designing Bluetooth ICs with
improved energy efficiency to reduce power consumption during device use. Encouraging
the development of devices that have longer lifespans to reduce e-waste. Promoting
recycling and responsible disposal of electronic devices at the end of their
life cycle.
These measures align with
sustainability and corporate social responsibility goals and help meet the
demands of environmentally conscious consumers.
Regulatory
Compliance
Bluetooth ICs and devices
must adhere to various regulatory requirements and standards, including radio
frequency (RF) and electromagnetic compatibility (EMC) regulations.
Non-compliance can lead to delays in product launches and increased costs for
redesign and testing.
Bluetooth IC manufacturers
must keep abreast of regulatory changes and ensure that their products meet the
necessary certification requirements. This requires ongoing testing and
validation to maintain compliance with regional and international regulations.
Potential
Impacts on the Bluetooth IC Market
The challenges outlined
above have the potential to impact the growth and evolution of the global
Bluetooth IC market in several ways: Intense competition may lead to
consolidation in the industry, with larger players acquiring smaller ones to
reduce competition.
Price Pressures: The
competitive environment may result in price pressures and thinner profit
margins for manufacturers.
Innovation Focus: The need
to address challenges can drive innovation, leading to the development of more
advanced and efficient Bluetooth ICs.
Improved Security:
Heightened security concerns may drive the development of more secure Bluetooth
ICs.
Environmental
Responsibility: Manufacturers may invest in sustainable practices to meet
environmental expectations and regulations.
Regulatory Compliance:
Stricter regulations may necessitate more rigorous compliance processes and
validation.
Conclusion
The global Bluetooth IC
market has experienced significant growth and innovation, driven by the
increasing demand for wireless connectivity in various applications. However,
the market is not without its challenges, ranging from competition and power
consumption to security and environmental considerations. Addressing these
challenges requires ongoing research and development, adherence to standards
and regulations, and a commitment to sustainability and innovation. As the
Bluetooth IC market continues to evolve, manufacturers, regulatory bodies, and
industry stakeholders will play a crucial role in navigating these challenges
and ensuring the market's continued growth and success.
Key Market Trends
The Bluetooth Integrated
Circuit (IC) market is a key player in the realm of wireless technology,
enabling the seamless and convenient communication between various devices.
This market has witnessed substantial growth, with Bluetooth technology
becoming a ubiquitous part of our daily lives. To understand the future of the
global Bluetooth IC market, we must examine the emerging trends that are
shaping its evolution and the various applications across industries.
Emerging
Trends in the Global Bluetooth IC Market
Bluetooth
5.0 and Beyond
Bluetooth technology is
continuously evolving, with each new version bringing enhancements in terms of
speed, range, and connectivity. Bluetooth 5.0, introduced a few years ago,
significantly improved data transfer rates and range, making it ideal for applications
in the IoT and smart home domains.
Beyond Bluetooth 5.0,
Bluetooth 5.1, 5.2, and future iterations are set to introduce even more
advanced features. Bluetooth 5.2, for example, includes improved location
services and enhanced support for IoT devices. These advancements are poised to
expand the potential applications of Bluetooth ICs, from asset tracking and
indoor positioning to smart lighting and health monitoring.
Low
Energy and Ultra-Low Energy
Low energy consumption is
a paramount trend in the Bluetooth IC market, particularly for battery-powered
devices like wearables, wireless earbuds, and IoT sensors. Bluetooth Low Energy
(LE) technology, introduced with Bluetooth 4.0, and later iterations like
Bluetooth 5.0, focuses on minimizing power consumption.
The next evolution in low
energy Bluetooth is ultra-low energy, which aims to further reduce power
consumption. This trend allows devices to operate for extended periods on a
single battery charge, making Bluetooth ICs more appealing for remote and battery-sensitive
applications.
Mesh
Networking
Mesh networking is a
significant trend in the Bluetooth IC market, with Bluetooth Mesh gaining
prominence. This technology enables multiple devices to form a self-healing,
decentralized network where each device can communicate with others. It's
particularly valuable for applications in smart lighting, industrial
automation, and building automation.
Bluetooth Mesh opens the
door to more extensive and complex IoT applications by allowing devices to
relay messages, ensuring robust network coverage even in large and challenging
environments. This trend positions Bluetooth ICs as a preferred choice for scalable
and reliable mesh network deployments.
Dual-Mode
ICs
Dual-mode ICs are becoming
increasingly popular, providing support for both Bluetooth and Wi-Fi
connectivity. These chips offer a versatile solution for devices that require
seamless switching between different wireless technologies. Dual-mode ICs
enable faster and more reliable data transfer for multimedia and data-intensive
applications.
This trend caters to the
demands of devices like smartphones, tablets, and laptops, which often require
simultaneous Wi-Fi and Bluetooth connections. By incorporating both technologies
into a single chip, dual-mode ICs offer enhanced convenience and efficiency.
Integration
with AI and Voice Assistants
The integration of
Bluetooth ICs with artificial intelligence (AI) and voice assistants is another
transformative trend. Bluetooth-enabled devices are now designed to work
seamlessly with popular voice assistants like Siri, Google Assistant, and
Amazon Alexa. This integration enables hands-free control and voice-activated
commands. These advancements have expanded the application of Bluetooth ICs in
smart speakers, smart displays, and automotive infotainment systems. As AI and
voice recognition technologies continue to improve, Bluetooth ICs are set to
play a more integral role in the voice-controlled future.
Segmental Insights
Application Insights
The Beacon segment has become more popular owing to
the high speed and increased range of the Bluetooth 5. X version. Bluetooth ICs
allow beacons to communicate with mobile devices over a short range and give
information about the location of the device.
The multimedia transfer segment is expected to grow at
the highest rate during the forecast period. Multimedia such as images,
graphics, audio, electronic signals or video, and hypertext are transferred by
using the Bluetooth version. Beacon technology has gained traction across
various industries, including retail, hospitality, healthcare, and
transportation. Beacons are used for proximity marketing, indoor navigation,
asset tracking, and other location-based services. As the adoption of beacon
technology has expanded, the demand for Bluetooth ICs to power these devices
has increased. Beacons have been incorporated into the larger Internet of
Things ecosystem, where devices communicate and share data via a wireless
network. In order to offer reduced power consumption, extended range, and
improved features, Bluetooth IC manufacturers have introduced integrated
circuits that are specifically optimized for beacons. These advancements have
driven the demand for Bluetooth ICs in beacon applications, which will boost
the growth of the global market focus during the forecast period.
The demand for Bluetooth ICs in the context of audio
devices has been significant and continues to grow. With Bluetooth, it is
possible to connect devices like headphones, speakers, earbuds, soundbars, and
audio receivers anywhere in the world with ease. The wireless headphones and
earbuds market has experienced significant growth in recent years. Consumers
are increasingly adopting these wireless audio solutions for convenience,
portability, and improved aesthetics, which will positively impact the growth of
the global market focus during the forecast period.
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Regional Insights
In North America, the
Bluetooth IC market is predicted to grow at the fastest rate over the forecast
period. The growing use of wireless devices, together with the implementation
of smart buildings has fueled the Bluetooth IC market share in this region.
The Asia Pacific is
projected to grow at a rapid pace owing to the rising adoption of Bluetooth
technology in various applications such as consumer electronics, retail, and
transportation in this region. China, Japan, and South Korea have a key market
for the Bluetooth IC market. Furthermore, the Governments and financial
institutions investing in IoT system development also facilitate the Bluetooth
IC market growth in this region over the forecast period.
Recent Developments
- June 2022:released its new
Bluetooth Location Services solution, which employs special, low-power
Bluetooth devices to simplify Angle of Arrival (AoA) and Angle of Departure
(AoD) location services. This unique platform integrates hardware and software
to deliver energy efficiency by combining Silicon Labs' BG22 SiP modules and
SoCs, which can work for around 10 years on a coin cell battery, with
progressive software that can track assets, enhance indoor navigation, and
locate tags with sub-meter accuracy.
- October
2020:STMicroelectronics unveiled its new BlueNRG-LP Bluetooth® LE
System-on-Chip (SoC), which uses the most recent Bluetooth technologies to
extend communication range, enhance throughput, reinforce security, and save
power. The ultra-low-power radio is optimized to consume as little as 3.4mA in
receive mode, 4.3mA when sending, and less than 500nA passively waiting for
wake-up events, reducing the battery size required in most applications by half
and extending runtime.
- In February 2019, American
Semiconductor Inc., an industry leader in physically flexible ICs, launched
AS_NRF51822 FleX BLE IC, a fully flexible Ultra Bluetooth IC. The
Semiconductor-on-Polymer (SoP) chip scale packaged system on chip supports
Bluetooth Low Energy communication. FleX BLE IC operates from 1.8-3.6V and
features an ARM CortexTM M0 processor, 256KB embedded Flash memory, 32KB RAM,
encryption coprocessor, temperature sensor, and 10-bit analog-to-digital
converter. This FleXTM emiconductor-on-PolymerTM (SoP) wafer level chip scale
packaging process is used to convert standard CMOS products into robust, thin,
and flexible form factors.
Key Market Players
- Microchip Technology Inc
- Texas Instruments Incorporated
- STMicroelectronics
- Silicon laboratories Inc.
- MediaTek Inc.
- Qualcomm Incorporated
- Maxim Integrated
- Toshiba Corp.
- Nordic Semiconductor
|
By Type
|
By
Application
|
By
Region
|
- Bluetooth
- Bluetooth
Low Energy
- Bluetooth
Classic
- Others
|
- Smart
Homes
- Beacons
- Audio
Devices
- Human
Interface Devices (HID)
- Health
& Fitness
- Remote
Controls
- Automotive
- Industrial
- Others
|
- North
America
- Europe
- South America
- Middle
East & Africa
- Asia
Pacific
|
Report
Scope:
In this report, the Global
Bluetooth IC Market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- Global Bluetooth IC Market,
By Type:
o Bluetooth
o Bluetooth
Low Energy
o Bluetooth
Classic
o
Others
- Global Bluetooth IC Market, By Application:
o Smart
Homes
o Beacons
o Audio
Devices
o Human
Interface Devices (HID)
o Health
& Fitness
o Remote Controls
o Automotive
o Industrial
o
Others
- Global Bluetooth IC Market, By Region:
o North
America
§ United
States
§ Canada
§ Mexico
o Asia-Pacific
§ China
§ India
§ Japan
§ South
Korea
§ Indonesia
o Europe
§ Germany
§ United
Kingdom
§ France
§ Russia
§ Spain
o South
America
§ Brazil
§ Argentina
o Middle
East & Africa
§ Saudi
Arabia
§ South
Africa
§ Egypt
§ UAE
§ Israel
Competitive
Landscape
Company
Profiles: Detailed analysis of the major companies presents in
the Global Bluetooth IC Market.
Available
Customizations:
Global Bluetooth IC Market
report with the given market data, Tech Sci Research offers customizations
according to a company's specific needs. The following customization options
are available for the report:
Company
Information
- Detailed
analysis and profiling of additional market players (up to five).
Global Bluetooth
IC Market is an upcoming report to be released soon. If you wish an early
delivery of this report or want to confirm the date of release, please contact
us at [email protected]