The consumer Bluetooth market is still experiencing post-pandemic challenges as the demand for consumer electronics remains below pandemic levels, and large chipset inventories persist, according to ABI Research’s report on opportunities and challenges in the Bluetooth consumer market.
However, the market is expected to recover from its recent downturn, supported by innovations such as Bluetooth Low Energy (LE) audio and channel sounding. ABI Research anticipates a noticeable increase in demand in the consumer Bluetooth market by the end of 2024, projecting shipments of Bluetooth-enabled devices to reach 4.7 billion by 2028. Nonetheless, disparities within the sector are likely to continue.
“Some Bluetooth consumer segments are already witnessing strong growth and reassuring stability,” explained David Ball, Research Analyst at ABI Research. Innovation is a significant driver of this growth, with examples such as Bluetooth LE audio, which introduces advancements in low-power wireless listening and Auracast broadcast audio capabilities.
“With high accuracy ranging capabilities well suited for keyless entry and smart tracking applications, channel sounding is expected to stimulate Bluetooth® chipset shipments for automotive access, smart tracking, and indoor positioning applications,” added Ball.
Forecasts show an 8% compound annual growth rate (CAGR) for Bluetooth-enabled personal tracking device shipments between 2023 and 2028.
The integration of Bluetooth with other wireless technologies remains a crucial aspect of the Bluetooth consumer market. Companies that successfully combine Bluetooth innovation with advancements in other wireless technologies are more likely to achieve broader applications for their products, stand out in a competitive market, and meet consumer demands.
For instance, Qualcomm’s S7 Sound Platform merges Bluetooth and low-power Wi-Fi in a single chipset, allowing users to switch to Wi-Fi streaming and maintain connectivity beyond Bluetooth’s range. Additionally, the increasing availability of Bluetooth combo and multi-protocol integrated circuits (ICs) incorporating Wi-Fi, 802.15.4, and ultra-wideband (UWB) technology will create new value propositions.
While innovation is enhancing prospects for many Bluetooth consumer market segments, some markets, such as PC accessories, which experienced a surge in demand during the pandemic, have significantly weakened over the past year, exacerbated by a decline in the broader PC market.
Another key challenge for Bluetooth in consumer markets is competition with other wireless protocols. UWB is a notable competitor, particularly for applications like keyless entry, smart tracking, access control, and potentially audio applications in the future. “It is not as simple as there always being direct competition between the short-range wireless technologies. Bluetooth will likely be deployed alongside UWB, particularly in products requiring extended range capabilities, while multi-protocol ICs combining the best of all these technologies will continue to flourish,” said Ball.
In light of post-pandemic recovery, innovation-led growth, and interactions with complementary and competitive wireless protocols, the Bluetooth consumer market is undergoing a distinct period of change. “For companies to remain successful within the consumer market, they must be responsive to new opportunities, conscious of evolving challenges, and aware of the disparate dynamics between different Bluetooth consumer market segments,” Ball concluded.
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