Bluetooth chip revenues set to double

16 Dec 2008

The steady and unabated deployment of Bluetooth applications in a variety of business and consumer devices will mean revenues for Bluetooth semiconductor makers will double to US$3.3bn by 2012.

According to IDC, worldwide Bluetooth semiconductor revenue is expected to grow from US$1.7bn in 2007 to US$3.3bn by 2012, representing a compound annual growth rate (CAGR) of 14.5pc.

Bluetooth will continue to be identified with mobile phones and mobile headsets, but will find a growing footprint in other applications such as PC and PC peripherals, car audio kits, personal navigation devices, and fitness and medical devices.

“Mobile handset growth is expected to slow with the economic downturn, but the Bluetooth semiconductor attach rate with mobile phones will continue to climb over the next five years,” said Ajit Deosthali, research manager for Short Range Wireless Semiconductors at IDC.

According to IDC, the Bluetooth attach rate with mobile handsets will continue to grow, climbing beyond 70pc by 2012.

It said Bluetooth headsets represent the next big opportunity for innovation and differentiation for silicon providers, as safety concerns and adoption of hands-free legislation are increasing.

Mobile phone platforms, including smart phones, will lead to Bluetooth integration with other radio technologies, such as WLAN and FM.

By John Kennedy

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years