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The Bluetooth integrated circuit (IC) market size is estimated to grow at a CAGR of 11.38% between 2022 and 2027. The market size is forecast to increase by USD 23.12 billion. 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.
This Bluetooth IC market report extensively covers market segmentation by class type (class I, class II, and class III), application (beacons, audio devices, smart homes, automotive, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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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 Bluetooth ICs 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 global bluetooth integrated circuit (IC) 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.
The advancements in audio devices is a primary trend in the Bluetooth IC market. The IC 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 IC 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 n the growth of the market in focus during the forecast period.
The impact of technology chasm is a major challenge in the Bluetooth IC 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, Bluetooth IC 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 global Bluetooth integrated circuit (IC) market during the forecast period.
The market share growth by the class I segment will be significant during the forecast period. These devices have the highest transmission power, typically up to 100 mW (20 dBm). They have the longest range, allowing them to reach a distance of up to 100 meters in plain sight. Class, I Bluetooth devices offer a significantly extended range compared to class II and III.
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Class I segment showed a gradual increase in the market share of USD 14.84 billion in 2017 and continued to grow by 2021. Class I Bluetooth devices are commonly used in industrial and commercial settings where robust wireless communication is necessary. Their use is mainly for wireless sensors, asset monitoring systems, automation system applications as well as machine-to-machine communication. Class I Bluetooth is also favored in audio devices like high-quality wireless headphones, speakers, and sound systems. As the market for wireless audio devices expands, the demand for Class I Bluetooth solutions also surges, which is expected to positively impact the growth of the global market in focus during the forecast period.
The specifications of the chip used in the device shall be referred to as a Class II Bluetooth device. 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.
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, 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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APAC is estimated to contribute 42% 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 Bluetooth 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 global Bluetooth ICs market.
APAC manufacturing activities were adversely impacted in 2020 and early 2021 due to the COVID-19 pandemic. However, in 2021, the industrial sector began to recover slowly, due to the resumption of production activities and rapid vaccination campaigns. The advent of smart city projects in countries such as China and India will also positively impact regional market growth during the forecast period.
The Bluetooth IC Market industry report includes the adoption lifecycle of the market, 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 growth strategies.
Global Bluetooth IC Market Customer Landscape
Vendors 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 vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The Bluetooth IC market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Bluetooth IC Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 11.38% |
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Market growth 2023-2027 |
USD 23.12 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
9.26 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 42% |
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Key countries |
US, China, Japan, South Korea, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Amped RF Wireless Technology, Analog Devices Inc., Asahi Kasei Corp., Infineon Technologies AG, MediaTek Inc., Microchip Technology 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., Silicon Laboratories Inc., STMicroelectronics NV, TELINK SEMICONDUCTOR CO. LTD., Texas Instruments Inc., and Toshiba Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Class Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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