Bluetooth Integrated Circuit (Ic) Market Analysis APAC, North America, Europe, Middle East and Africa, South America - China, US, Japan, South Korea, UK - Size and Forecast 2024-2028

Bluetooth Integrated Circuit Market Size 2024-2028

The Bluetooth integrated circuit market size is estimated to grow by USD 23.9 billion, at a CAGR of 10.87% between 2023 and 2028. The growth of the market depends on several factors, including an increasing number of smart devices and applications, the high demand for Bluetooth-enabled gaming accessories, and the rising integration of Bluetooth ICs in automobiles. Bluetooth refers to the standardized protocol that facilitates the transmission of data wirelessly over different communication networks. It permits electronic devices to interact and connect with other electronic devices. The secure protocol is ideal for short-range, low-power, and inexpensive wireless transmission between electronic devices. The Bluetooth IC finds a broad range of applications in electronic devices such as smartphones, loudspeakers, cars, and laptops.

What will be the size of the Market During the Forecast Period?

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Market Dynamics

In the market, investment drives innovation, propelling the development of modern technology and IoT devices. With sensing technology revolutionizing industrial activities and smart city projects, demand for Bluetooth-enabled device surges, spanning from automotive entertainment to diagnostic devices. The adoption of Bluetooth version 5 amplifies connectivity, facilitating seamless communication among smartwatches, consumer electronic devices, and more. Challenges include optimizing short wavelength radio frequency range and ensuring compatibility across diverse Bluetooth sensors and microcontroller codes. Nonetheless, producers anticipate sustained growth, fueled by the expanding application of Bluetooth technology across global markets. In the realm of the market, investment in modern technology drives the development of products catering to various sectors, from consumer electronics to industrial activities. The proliferation of IoT devices and sensing technology fuels demand for Bluetooth Integrated Circuits (ICs), particularly in smart city projects and automotive entertainment systems. Diagnostic devices leverage short wavelength radio frequencies within the Bluetooth technology spectrum, facilitating seamless connectivity and data exchange. With the advent of Bluetooth version 5, producers are poised to capitalize on the expanding market for Bluetooth ICs, catering to diverse applications including smartwatches, sensors, and consumer electronic devices. As the market evolves, the demand for efficient microcontroller code and advanced wireless equipment drives innovation in Bluetooth ICs, positioning the global Bluetooth IC market for continued growth and expansion.

Key Market Driver

The increasing number of smart devices and applications is driving growth in the Bluetooth IC market segment. Smart devices connect users with other devices through protocols such as Bluetooth, which is an interactive device. These devices interface humans and technology and bridge the gap between the digital and physical world through the Internet of Things (IoT). The market has been growing on the back of increased consumer interest as well as increasing dependency on connected devices.

Moreover, smart devices offer various benefits, including optimized decision-making, ease of handling emergencies, cost-cutting, remote control access, enhanced quality of living, time management, commercial benefits, and better safety and security. This is expected to result in significant growth over the forecast period in the market. The increasing automation of industrial processes; mechanization of the workforce; government-driven initiatives, such as smart cities; and rising demand for smart homes are expected to drive the growth of the market during the forecast period.

Significant Market Trends

The advancements in audio devices is a primary trend in the market. The market is severely affected by a shortage of supply and demand. The demand for ICs can differ because of consumer trends, economic conditions, and the industry's distinct characteristics. When demand outpaces supply, it can lead to shortages and increased prices.  By contrast, if supply outstrips demand, it may lead to overcapacity, price erosion, and a build-up of stocks. Volatility may arise due to the rapid pace of technology development in the IC sector.

Moreover, newer technologies may render existing ICs obsolete or less desirable, causing shifts in market demand. Maintaining market shares may be a challenge for companies that have not adapted to new technology or invested in R&D. Economic factors, such as recessions, currency fluctuations, trade policies, and geopolitical events, can impact the market. As a result, manufacturers, distributors, and component suppliers may be affected by reduced overall demand for electronics and interconnectors during an economic downturn. Thus, fluctuation in supply and demand may negatively impact the growth of the market in focus during the forecast period.

Major Market Restrain

The impact of technology chasm is a major challenge in the market. The difference between the design and production units of semiconductor foundries is a technological chasm. Fabless semiconductor foundries primarily face this challenge. In the fabless semiconductor foundry model, firms only do the designing in-house. On the other hand, the production is done on an outsourcing basis. A chasm is a fissure or a difference that develops between two factors. The technology gap is growing, given the increasing importance of reducing IC node size.

However, the errors can be solved in real-time only if the two units work closely. Fabless foundries are contradictory to this requirement. It is proving difficult to reduce this gap as more and more advances in the field of semiconductor fabrication occur. This chasm can increase the product development lifecycle since errors will take time to correct. This will affect the overall value chain of the foundry. This will indirectly have a negative effect on the market during the forecast period.

Customer Landscape

The market research report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Customer Landscape

Market Segmentation

By Class Type

The market share growth by the class II segment will be significant during the forecast period. The Internet of Things (IoT) devices, sensing technology, industrial activities, and automotive entertainment are major sectors benefiting from this wireless connectivity. Bluetooth technology is increasingly used in healthcare, with applications ranging from diagnostic devices and automation in hospitals to home care, wearable health monitors, and remote appointments.

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Class II segment showed a gradual increase in the market share of USD 8.90 billion in 2018. Class II devices have an operating range of nearly 10 to 20 meters and a power rating of 2.5 mW (milliwatts). Laptops, computers, Bluetooth headsets, and headphones are broadly included in the second category of Bluetooth devices. Several of the main suppliers that offer Bluetooth ICs are Renesas Electronics Corporation and Qorvo Inc. These applications include industrial automation, asset tracking, wireless sensors, and control systems. Such factors will increase this segment's growth during the forecast period.

By Application

Based on application, the market has been segmented into beacons, audio devices, smart homes, automotive, and others. 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, 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.

Regional Overview

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APAC is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. A major reason for the dominance of APAC is the presence of many consumers, electronic device manufacturers, and automotive OEMs. The consumption and sale of chips in this region are growing because of the significant number of such manufacturing units. Companies have been able to establish production centers in this area thanks to the availability of materials, as well as lower labor costs. The high concentration of several electronics manufacturers in countries such as Japan, South Korea, and Taiwan is another major reason for APAC's dominance in the market.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Asahi Kasei Corp. - The company offers Bluetooth IC products such as AK4389 and the AK3941.

Infineon Technologies AG - The company offers Bluetooth IC products such as CYW20706, CYW20719, and CYW20735.

Microchip Technology Inc. - The company offers Bluetooth IC products such as RN4678, BM83, and BM78.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Amped RF Wireless Technology
• Analog Devices Inc.
• MediaTek Inc.
• Murata Manufacturing Co. Ltd.
• Nordic Semiconductor ASA
• NXP Semiconductors NV
• ON Semiconductor Corp.
• Panasonic Holdings Corp.
• Qorvo Inc.
• Qualcomm Inc.
• Realtek Semiconductor Corp.
• Renesas Electronics Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• Class Type Outlook  
  • Class I
  • Class II
  • Class III

• Application Outlook  
  • Beacons
  • Audio devices
  • Smart homes
  • Automotive
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Argentina
    • Brazil

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Market Analyst Overview

The market thrives on innovation and connectivity, catering to diverse sectors like medical technology, wearable electronics, and smart home technology. With a focus on Bluetooth capabilities, the market witnesses a surge in demand for wearable health monitors and smart wearable electronic devices, particularly amid the pandemic. Investments in miniaturization of ICs drive the development of energy-efficient Bluetooth low energy solutions, enabling seamless connectivity for health & fitness devices and remote controls. Market participants like Qualcomm and Texas Instruments lead strategic activities, from new product launches to collaboration and investments, positioning the Canada Bluetooth IC market for growth. As automakers and tier-1 suppliers embrace Bluetooth technology for automotive applications, including infotainment systems and automated piloted parking, the market landscape expands, driven by technological advancements and the proliferation of low-power wireless technologies.

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What are the Key Data Covered in this Market Forecast Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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