Bluetooth 5.0 Market

Bluetooth 5.0: The Next Step in Wireless Connectivity

Bluetooth 5.0 is the latest version of the Bluetooth wireless communication standard. It was officially released in December 2016 and brought with it significant improvements in terms of speed, range, and data capacity. With its faster speed and longer range, Bluetooth 5.0 has opened up new possibilities for IoT devices, smart homes, wearables, and other connected devices.

One of the main advantages of Bluetooth 5.0 is its increased speed. It offers up to 2Mbps data transfer rate, which is twice as fast as its predecessor, Bluetooth 4.2. This means that data can be transferred more quickly between devices, resulting in faster file transfers and improved audio and video quality.

Another key improvement of Bluetooth 5.0 is its increased range. It offers up to four times the range of Bluetooth 4.2, with a maximum range of around 800 feet (240 meters) in open air. This makes it possible to connect devices in larger areas, such as a whole house or a large outdoor space.

Bluetooth 5.0 also has an increased data capacity, thanks to its ability to transmit eight times as much data as Bluetooth 4.2. This makes it possible for devices to handle more data-intensive applications, such as streaming high-quality audio and video content.

One of the most exciting new features of Bluetooth 5.0 is its support for mesh networking. This enables devices to be connected in a network, allowing them to communicate with each other even when they are out of range of the main device. This makes it possible to create large-scale networks of devices, such as smart homes or commercial IoT applications.

Another key advantage of Bluetooth 5.0 is its low power consumption. This makes it ideal for use in small, battery-powered devices such as wearables, health monitors, and other IoT devices. With its low power consumption, Bluetooth 5.0 can provide long battery life without sacrificing performance.

Dynamics of Bluetooth 5.0 Market

Drivers in Bluetooth 5.0 Market

The Bluetooth 5.0 market is influenced by several factors, including drivers and restraints. One of the drivers of this market is the increasing investments in IoT devices, especially for automating industrial activities. This has led to the rising demand for audio devices, automotive entertainment and diagnostic devices, smart city projects, automation, and wearable electronics integrated with Bluetooth capabilities. Additionally, the COVID-19 pandemic has further increased the demand for hands-free medical technology, such as wearable health monitors, which has boosted the adoption of the Internet of Medical Things (IoMT) and IoT connectivity.

Restraints in Bluetooth 5.0 Market

However, one of the restraints of the Bluetooth 5.0 market is packet interference, which has been a significant challenge for any wireless technology in providing reliable data communication. Wireless technologies, like Bluetooth and Wi-Fi devices, share a transmission medium, which increases the likelihood of data packet collisions. This problem is particularly challenging in busy radio environments, but Bluetooth technology addresses this challenge by using spread spectrum techniques to reduce the risk of collisions. Despite this, packet interference continues to be a significant restraint for the Bluetooth 5.0 market.

Moreover, Bluetooth 5.0 doubles the data transmission rate from 1Mbps to 2Mbps, which has enabled quick and reliable over-the-air firmware updates for mobile devices, and rapid uploading of accumulated sensor data. This feature is especially useful for products, such as security systems and medical equipment, where speed is crucial. It provides developers with the ability to create products that can completely revolutionize the way data is transmitted to devices.

Opportunities in Bluetooth 5.0 Market

The adoption of Bluetooth location service devices presents a significant opportunity for the market. Bluetooth technology is widely used as a solution for accurate indoor location services, such as personal item finding, asset tracking, and digital key services. A Bluetooth device can determine the presence, distance, and direction of another device, providing a flexible solution for building managers and owners to scale indoor positioning services according to changing needs. The Bluetooth market update report of 2021 highlights that 79% of Bluetooth location service implementations include indoor navigation. The Bluetooth 5.0 market share is expected to witness significant growth during the forecast period, driven by increasing demand for audio devices, automotive entertainment, and diagnostic devices. Sensing technology investments for automation and growing dependency on dual audio streaming have also contributed to market growth. However, the reduction in battery life of smart and portable devices and the unavailability of proper data pack transmitting possibilities are significant market growth barriers. Yet, a surge in adoption of quality Bluetooth technology services and wireless technology is expected to propel Bluetooth 5.0 market growth in the forecast period.

Real-time locating systems (RTLS) solutions for tracking things and people are rapidly growing due to Bluetooth technology. Commercial and industrial facilities have started shifting towards Bluetooth asset management solutions for optimizing resource and inventory control. Among Bluetooth location services solutions, RTLS and tags have become major drivers of continued growth.

Bluetooth 5 has doubled the data transmission rate to 2Mbps without increasing power usage, speeding up data transmission and reception. This improvement allows for quick and reliable over-the-air firmware updates for mobile devices and quick uploading of accumulated sensor data. Engineers can now create solutions that rethink how data is transmitted to devices, especially in cases where speed is crucial, such as security and medical equipment. Using Bluetooth 5 at 2Mbps across a close range can provide wearable devices with faster software updates through wireless, without compromising the device battery life for end-users.

Challenges in Bluetooth 5.0 Market

Security and access concerns are one of the major challenges faced by the Bluetooth technology. Although Bluetooth has become widely popular for facilitating short-range communication between devices such as headphones, controllers, and automobiles, it has been found to be vulnerable to various flaws and hacks in recent years. In fact, several security vulnerabilities such as denial of service (DoS) via firmware deadlocks and crashes and arbitrary code execution were discovered in 2021, leading to concerns over the safety of Bluetooth-enabled devices.

One of the significant security concerns with Bluetooth is the possibility of attackers intercepting and manipulating communication between devices, allowing for theft of sensitive data or unauthorized access to systems. For example, cyber adversaries can exploit vulnerabilities in key fobs designed to wirelessly unlock products, such as mobiles, laptops, and building security access, to gain unauthorized access. In recent years, there have been instances of millions of smart cars being demonstrated as vulnerable to such attacks.

To address these security challenges, the Bluetooth technology is constantly evolving, with the latest version, Bluetooth 5.0, introducing several security features. These security features include improved encryption algorithms and the use of secure connections to prevent unauthorized access. In addition, Bluetooth 5.0's advertising extensions allow for a data packet with up to 255 octets, reducing the need for broadcast time and enabling more effective use of broadcasting channels in the 2.4GHz band. This feature is expected to accelerate the development and use of beacon-based "connectionless" services, such as location or proximity services, discovery services, way-pointing services, asset tracking services, and more.

Overall, while security and access concerns continue to pose a significant challenge for Bluetooth technology, ongoing development and the introduction of new security features such as those in Bluetooth 5.0 are expected to enhance the safety and reliability of Bluetooth-enabled devices.

Ecosystem of Bluetooth 5.0 Market

The retail and logistics industries are projected to hold the largest market share during the forecast period. Bluetooth technology can significantly benefit retailers and landlords, particularly shopping centers and retail parks, by providing targeted advertising and marketing. It enables personalized alerts to be automatically sent to shoppers' mobile devices, and Wi-Fi can track their movements. Bluetooth can also help landlords understand consumer behavior and preferences. Moreover, Bluetooth technology can replace the use of internet data for communicating about shipments within a given facility, and it can identify areas where repetitive data occurs.

The hardware component of Bluetooth 5.0 is expected to have the fastest growth rate during the forecast period. This includes system-on-chip (SoC), radio frequency (RF), development boards, sensors, and controllers. The increase in demand for high-speed, secure, and reliable wireless communication technology has led to more opportunities in Bluetooth 5.0 technology solutions, resulting in various use cases.

The device networks application is expected to have a higher compound annual growth rate (CAGR) during the forecast period. Bluetooth mesh networking enables communication between many-to-many devices, making it suitable for creating control, monitoring, and automation systems where tens to thousands of devices must communicate securely and reliably. It is enhanced for large-scale device networks used in whole-building automation. The device networks segment is expected to hold the largest market share because of its use cases. Lighting control systems and wireless sensor networks are examples that are driving the growth of device network implementations. Furthermore, the data transfer segment is expected to grow fastest during the forecast period, especially in sports and fitness, health and wellness, and PC peripherals and accessories. The rise in consumer use of smartwatches for sports and fitness has contributed to this segment's growth.

During the forecast period, North America is expected to dominate the global Bluetooth 5.0 market, as it is one of the most technologically advanced regions in the world, comprising of the US and Canada. The region has sustainable and well-established economies, which enable them to invest heavily in R&D activities, leading to the development of new technologies. North America has a high adoption rate of advanced technologies such as IoT, wearable technology, smart cities, smart agriculture, and autonomous/connected cars, all of which require reliable and fast connectivity, provided by Bluetooth technology. The US and Canada are the top countries in this region for Bluetooth 5.0, and the market expansion is being driven by the increasing acceptance rate of advanced products and systems, particularly Bluetooth 5.0 solutions.

The Asia Pacific region is expected to witness impressive growth rates during the forecast period, with Japan estimated to reach $1.4 billion at a significant CAGR of 15.6%. China and Japan collectively accounted for around 62.1% share during the forecast period, with India and the Rest of Asia-Pacific expected to witness considerable CAGRs of 12.6% and 17.3%, respectively. The region's growth is due to the presence of rapidly digitalizing economies such as Japan, India, and China.

In Europe, the improved endorsement of foreign direct investment in digitalization, particularly in countries that are actively pushing digitalization in their economies, such as Germany, France, the UK, and the rest of Europe, has led to the exposure of data integrational facilities, promoting automated data integrational processes. This trend is expected to continue during the forecast period, actively assisting the region in encouraging the use of Bluetooth 5.0 in various digital communications.

Bluetooth 5.0 has revolutionized wireless connectivity by providing data transfer speeds of up to 2 Mbps, which is twice the speed supported by Bluetooth 4.2. With the increasing investments in sensing technology for automating industrial activities, the demand for Bluetooth 5.0 is expected to grow over the forecast period. Industrial automation sensors are essential in producing wireless Bluetooth devices that are intelligent and automated, making products highly efficient and effective.

The growth of the Bluetooth 5.0 market can also be attributed to the increasing demand for smart sensor-enabled wearable devices and the growing technological advancements in industrial sensors. With the latest version of Bluetooth, dual audio has been introduced, allowing two wireless headphones to be connected simultaneously to the same device. This feature has increased the demand for an enhanced version of Bluetooth like Bluetooth 5.0, which can pair two pairs of headphones at once and also share the audio between two different sets of Bluetooth speakers.

The retail and logistics segment is expected to witness the most significant market revenue due to the technologies that have significantly boosted retailers and landlords. Bluetooth technology can be used to send customized messages to shoppers' mobile phones and track customers' movements around the mall, just like Wi-Fi. Moreover, it aids landlords in understanding client preferences and routines. Bluetooth technology also eliminates the need for logistics service providers to use the internet to send shipments to other areas of a facility, and it enables logistics providers to spot locations with repeating data. All these factors are responsible for the growth of this segment.

Dominating Companies in Bluetooth 5.0 Market

• QUALCOMM
• NORDIC SEMICONDUCTOR
• MEDIATEK
• STMICROELECTRONICS
• NXP SEMICONDUCTORS
• MICROCHIP TECHNOLOGY
• ON SEMICONDUCTOR
• TEXAS INSTRUMENTS
• SYNOPSYS
• QORVO
• INFINEON TECHNOLOGIES
• SILICON LABS
• REALTEK
• BROADCOM
• RENESAS
• GOODIX TECHNOLOGY
• TELIT
• ESPRESSIF SYSTEMS
• FEASYCOM
• ATMOSIC TECHNOLOGIES
• CEVA
• LAIRD CONNECTIVITY
• VIRSCIENT
• INVENTEK SYSTEMS
• INSIGHT SIP
• Taiyo Yuden

Recent Developments in Bluetooth 5.0 Market

• In 2021, Infineon Technologies AG, a leading semiconductor solutions provider, announced the acquisition of Cypress Semiconductor Corporation, which offers a range of connectivity solutions, including Bluetooth. The acquisition is aimed at expanding Infineon's portfolio of high-performance solutions for the IoT, automotive, and industrial sectors.
• In 2020, Dialog Semiconductor, a provider of power management and connectivity solutions, announced the acquisition of Adesto Technologies Corporation, which offers a wide range of wireless connectivity solutions, including Bluetooth 5.0. The acquisition is aimed at strengthening Dialog Semiconductor's position in the IoT market.
• In 2019, NXP Semiconductors, a provider of secure connectivity solutions, partnered with Microsoft to develop a new range of Bluetooth 5.0 solutions for the IoT. The partnership is aimed at offering secure, end-to-end solutions for the growing number of IoT devices in use.
• In 2018, Qualcomm Technologies, Inc., a provider of wireless technologies, announced a partnership with Google to integrate Bluetooth 5.0 technology into the Android operating system. The partnership is aimed at enhancing the user experience for Android users by enabling faster data transfer and improved reliability.
• Also in 2018, Nordic Semiconductor, a provider of ultra-low power wireless solutions, announced a partnership with iBasis, a provider of global connectivity solutions, to develop a new range of Bluetooth 5.0 solutions for the IoT. The partnership is aimed at offering reliable, low-power solutions for the rapidly growing IoT market.
• Dialog Semiconductor acquires Adesto Technologies Corporation: In February 2020, Dialog Semiconductor, a provider of power management, connectivity, and audio chips, announced that it had acquired Adesto Technologies Corporation, a provider of innovative custom integrated circuits and embedded systems for the Industrial Internet of Things (IIoT) market. The acquisition was aimed at strengthening Dialog's position in the IIoT market, where Bluetooth 5.0 is a key enabling technology.
• Silicon Labs acquires Redpine Signals: In June 2020, Silicon Labs, a provider of silicon, software, and solutions for a smarter, more connected world, announced that it had acquired Redpine Signals, a provider of advanced wireless connectivity solutions for the IoT market. The acquisition was aimed at enhancing Silicon Labs' portfolio of wireless connectivity solutions, including Bluetooth 5.0.
• Qualcomm partners with LIFX: In January 2021, Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, announced a partnership with LIFX, a provider of smart lighting solutions. The partnership was aimed at enabling LIFX to integrate Qualcomm's Bluetooth mesh networking technology into its products, allowing for enhanced connectivity and control of smart lighting systems.
• Avnet partners with Trusted Objects: In February 2021, Avnet, a global technology solutions provider, announced a partnership with Trusted Objects, a provider of secure firmware and security services for IoT devices. The partnership was aimed at offering a complete end-to-end secure solution for IoT devices, including support for Bluetooth 5.0 connectivity.

Overall, Bluetooth 5.0 is a significant step forward in wireless connectivity. With its faster speed, longer range, increased data capacity, mesh networking support, and low power consumption, Bluetooth 5.0 is poised to revolutionize the way we connect and communicate with our devices. As more and more devices adopt this new standard, the possibilities for IoT and other connected technologies are endless.