For years, Bluetooth® technology has been synonymous with consumer devices in traditional markets, such as audio, automotive, connected devices, and phones, tablets, and PCs, where it has become a required feature that customers expect. But the integration of Bluetooth technology hasn’t stopped there. Now, Bluetooth is a go-to solution for emerging markets — such smart home, smart building, smart industry, and smart city — and new data forecasts that the technology will thrive in these areas over the next five years.
According to the 2019 Bluetooth Market Update, which is supported by forecasts from ABI Research and insights from several other analyst firms, new trends in emerging Bluetooth markets show increased global adoption of Bluetooth technology across commercial and industrial sectors. Here are a few of the highlights of the 2019 update for each of the emerging markets.
Bluetooth in the Smart Building
Data outlined in the 2019 Bluetooth® Market Update indicates that location services will dominate smart building forecasts through 2023. Thanks to recent advancements in the technology, Bluetooth technology is powering new location services capabilities in a variety of smart buildings. From wayfinding to space utilization, Bluetooth enabled solutions help create operational efficiencies and improve the occupant experience. And the January 2019 release of a new direction finding feature will only increase momentum in and adoption of Bluetooth location services .
Connected lighting solutions are also on the rise with leading manufacturers announcing long-term product plans for lighting automation and control systems. With a 6.5x projected increase in annual shipments and a 46% CAGR through 2023, commercial building automation and security solutions are likely to see continual growth over the next five years
Retailers continue to use Bluetooth technology to enable personalized promotions and wayfinding services that create better shopper experiences, increase sales, and reduce operating costs. Healthcare facilities combat cost pressures, provide better patient care, and improve operational efficiencies by using Bluetooth to monitor patients, track assets, and advance emergency services.
Bluetooth in the Smart Industry
Bluetooth® technology is leading a convergence of industry and information that is paving the way for an industrial IoT revolution, helping manufacturers drive new levels of efficiency, productivity, and safety.
Asset tracking and management solutions enable manufacturers and distributors to optimize inventory management and increase operational efficiencies. Growing at an annual rate of 47% and forecasted to account for 70% of market shipments in 2023, commercial deployments of Bluetooth asset tracking and management solutions are setting the pace for the smart industry.
According to recent trends, enterprise wearables are also gaining significant traction. Comprising 34% of smart industry device shipments in 2019, enterprise wearables, such as scanners, hearables, trackers, and other equipment, will continue to see strong growth with a 28% CAGR over the next five years.
Bluetooth in the Smart Home
Whether connecting TVs to soundbars or PCs to keyboards, Bluetooth® technology has been at the heart of the connected home for years. Annual shipments of connected home devices surpass home automation by more than 3:1. Even with home automation exceeding 21% CAGR through the next five years, annual shipments of connected home devices, from tools and toys to gaming systems and TVs, will approach 900 million by 2023.
The 2019 Bluetooth Market Update also highlights that smart appliance has become the fastest growing home automation device category. While smart lighting is expected to see 4.5x growth, smart appliances show the strongest potential with a 59% CAGR over the next five years – reaching 54 million devices shipped each year by 2023.
Bluetooth in the Smart City
Bluetooth® technology is connecting tomorrow’s smart cities to enhance the visitor experience, improve the quality of life for citizens, and create a more business-friendly environment.
Bluetooth enabled location services and connected device networks are well positioned to support a wide range of smart city use cases over the next five years. Location services deployments in smart city venues lead the forecast as Bluetooth location services in airports, stadiums, hospitals, retail malls, tourism centers, and museums transform how visitors interact with a smart city. At the same time, asset management solutions increase utilization of smart city resources to help lower operational costs.
Gartner is predicting that the revenue for IoT applications will be $53.2 billion in 2023, growing at an 11% CAGR from 2018 through 2023.
Gartner, March 2019
Trending Up and Expanding Out
While Bluetooth® technology has played an integral role in traditional markets, securing global brand recognition and solidifying its position as an expected feature in new consumer devices, Bluetooth solutions also fill a critical role in emerging commercial and industrial markets around the world. All forecasts predict that Bluetooth technology will continue to power the expansion of emerging markets for the foreseeable future.
For more trends and forecasts in emerging Bluetooth markets, and new data and insights in traditional consumer markets, download the 2019 Bluetooth Market Update.