Bluetooth IC Market

Market CAGR for bluetooth IC is driven by the growing investment in IoT devices. The growing investments in sensing technology for automating industrial activities have led to the enhanced revenue growth of the loT connectivity industry. The market is undergoing a constant expansion due to the growing demand for audio devices, smart city projects, automotive entertainment and diagnostic devices, automation, and wearable electronics integrated with Bluetooth capabilities. Increased the demand for hands-free medical technology in hospitals and in-home use. Wearable health monitors, including blood glucose and blood pressure monitors, have become more common in enhancing home care.

Additionally, customers' increased use of smart wearable electronic devices is a key driving factor in the market's growth. Increasing financial investments in IoT-based device technology, increased demand for smart wireless sensors, increased demand for better wireless connectivity in wireless devices, miniaturization of ICs, demand for high-performance Bluetooth ICs in audio products such as speakers and headphones, and increased demand for Bluetooth ICs in applications such as smart homes, automotive, and industrial, consumer electronics and more are expected to propel the growth of the bluetooth IC market revenue.

The rising trend of earphones, wireless headphones, and speakers' connectivity creates a huge demand for bluetooth chips. As per the report published by Bluetooth SIG, the firm that authenticates Bluetooth devices, more than 50% of headphones in the market are wireless, and around 90% of speakers on the market will be wireless by 2023. Several companies are introducing advanced Bluetooth 5.0-based devices in the market. For instance, in June 2022, Hammer, a manufacturer of consumer audio products and fitness bands, introduced the Hammer KO Unisex Bluetooth 5.0 Sports Truly Wireless Earbuds with touch control in India.

It includes touch sensors that detect touch. The Hammer KO Unisex Bluetooth 5.0 Sports Truly Wireless Earbuds feature touch control and a secure fit. It supports Bluetooth V5.0, which offers twice the transmission speed and twice the stability with no signal loss or music dropouts.

Increasing adoption of smart wearables. The utilization of digital gadgets worn by patients to monitor their health has become increasingly prevalent, particularly during a crisis, including the pandemic. Wearable gadgets, including smartwatches and fitness trackers, are the most obvious utilization of loT technology. In the consumer electronics market, wearables have surpassed smartphones in popularity. These devices deliver amazing ways to complete basic chores, including checking messages and measuring physical activity. The pandemic has increased the usage of smart wearables for tracking and examining health data.

The wearable industry has grown dramatically in response to the growing requirement for health evaluations at any given time. IoT is rising, powering wearables in health care. The Internet of Health Things guides the interconnection of medical tools and applications with healthcare communication technology.

The Global Bluetooth IC Market Industry is significantly influenced by the rapid expansion of Internet of Things (IoT) applications. As industries adopt IoT technologies, the demand for Bluetooth ICs is likely to increase, facilitating communication between devices. This trend is particularly evident in sectors such as healthcare, where Bluetooth-enabled medical devices are becoming commonplace. The market is expected to grow substantially, with projections indicating a rise to 42.1 USD Billion by 2035. This growth is indicative of the increasing reliance on interconnected devices, which require robust Bluetooth solutions for effective data transmission.

The Global Bluetooth IC Market Industry is closely tied to the growth of the consumer electronics market. As smartphones, tablets, and other portable devices become ubiquitous, the demand for Bluetooth ICs is likely to rise. Consumers increasingly seek devices that offer seamless connectivity and enhanced functionality. This trend is reflected in the market's projected growth, with a significant increase expected in the coming years. The integration of Bluetooth technology in consumer electronics not only enhances user experiences but also drives innovation in product development, further fueling the demand for Bluetooth ICs.

Technological advancements in Bluetooth technology are propelling the Global Bluetooth IC Market Industry forward. Innovations such as Bluetooth 5.0 and beyond offer enhanced range, speed, and energy efficiency, making them attractive for various applications. These advancements enable devices to connect more efficiently, thereby improving user experiences. As manufacturers adopt these new technologies, the market is poised for growth, with a projected CAGR of 12.41% from 2025 to 2035. This evolution in Bluetooth technology not only supports existing applications but also opens avenues for new use cases across diverse sectors.

The automotive sector is increasingly adopting Bluetooth technology, significantly impacting the Global Bluetooth IC Market Industry. With the rise of connected vehicles, Bluetooth ICs are essential for enabling hands-free communication, navigation, and entertainment systems. This trend is likely to continue as consumers demand more integrated solutions in their vehicles. The market's growth in this sector is indicative of a broader shift towards smart transportation solutions. As automotive manufacturers incorporate advanced Bluetooth features, the market is expected to benefit from this trend, contributing to the overall expansion of the industry.

The Global Bluetooth IC Market Industry is experiencing a notable surge in demand for wireless connectivity solutions. As consumer electronics become increasingly integrated with smart technologies, the need for Bluetooth-enabled devices is expanding. For instance, the proliferation of smart home devices, wearables, and automotive applications is driving this trend. In 2024, the market is projected to reach 11.6 USD Billion, reflecting a growing preference for wireless communication. This shift towards wireless solutions not only enhances user convenience but also aligns with the global push for seamless connectivity across various platforms.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American bluetooth IC market will dominate due to the increasing development of lots and growing utilization of wearable devices in countries across the region. Moreover, the US bluetooth IC market held the largest market share, and the Canada bluetooth IC market was the fastest-growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: BLUETOOTH IC MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe bluetooth IC market accounts for the second-largest market share due to the rising utilization of hands-free headsets, connected watches, and various wireless devices in countries across the region. Smart home technology, wearable technology, and other smart devices are being utilized more frequently across the region. Further, the German bluetooth IC market held the largest market share, and the UK bluetooth IC market was the fastest-growing market in the European region.

The Asia-Pacific bluetooth IC Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the growing development of consumer electronics and automotive industries in countries across the region. Moreover, China bluetooth IC market held the largest market share, and the India bluetooth IC market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the bluetooth IC market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the bluetooth IC industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the bluetooth IC industry to benefit clients and increase the market sector. Major players in the Bluetooth IC market, including STMicroelectronics (Netherlands), Toshiba Corporation (Japan), Qualcomm Incorporated (US), Texas Instruments Incorporated (US), and Nordic Semiconductor (Norway) and others, are attempting to expand market demand by investing in research and development operations.

Nordic Semiconductor ASA is a provider of semiconductor devices. The company offers designing, marketing, and delivering integrated circuits (ICs), mobile apps, integrated solutions, and related intellectual property. The company's products include low-energy components, bluetooth mesh, ANT, 2.4 GHz proprietary and others. Its products find application in manufacturing personal computer (PC) accessories, gaming controllers, sports and health monitors, education, industrial products, and other applications. In February 2019, Nordic Semiconductor introduced the nRF52811 System-on-Chip (SoC). This fully featured connectivity solution supports Bluetooth 5.1 direction finding and various popular low-power wireless protocols for applications such as gateways for smart homes and industrial products.

The SoC enhanced Nordic's well-known nRF52 Series platform by launching a device that manages to combine the low cost of Nordic's entry-level nRF52810 SoC with the multiprotocol support of Nordic's mid-range nRF52832 and advances nRF52840 SoCs.

Qualcomm Inc designs and develops wireless telecommunication products and services. The firm offers integrated circuits and system software for mobile devices and other wireless products. Its product offerings such as consumer wireless devices, cellular modems, radio frequency transceivers, application processors, power management and wireless connectivity integrated circuits. The company's products find applications in mobile devices, laptops, tablets, cellular handsets, cameras, servers, wireless devices and network infrastructure equipment, routers, access points, wearable devices, voice and music devices, gateway equipment, consumer electronic devices, desktop computers, and IoT devices.

In April 2022, Qualcomm acquired Arriver from SSW Partners to boost Qualcomm Technologies' ability to provide open, fully incorporated, and Advanced Driver Assistance System (ADAS) solutions to automakers and Tier-1 suppliers at scale.