SOURCE: IDC

After a notoriously delayed start, the Bluetooth semiconductor market is poised to achieve significant growth.

According to IDC, the market is expected to reach $2.6 billion in revenue by 2006, up from $76.6 million in 2001. Widespread adoption will begin in 2003.

"IDC foresees Bluetooth will become a checklist item within cellular handsets, handhelds, and notebook PCs especially as the roll-out of 2.5G/3G cellular networks and improved coexistence with 802.11b/g wireless LAN spark accelerated adoption," said Ken Furer, analyst for IDC's semiconductor research.

The largest segment within the forecast period will be cellular handsets with 51% of Bluetooth revenues in 2006; this includes both add-on and embedded chips.

Headsets, which will be used primarily for cellular handsets, will grow to be the second-largest usage area with $440 million in Bluetooth semiconductor revenue.

Rounding out the top-five technologies are desktop PCs, notebook PCs, and accessories.

"Add-on modules will still represent the majority of Bluetooth semiconductor revenues for the next couple years; however, embedded form factors will become predominant by 2005," Furer said.

Complete details on Bluetooth semiconductor growth can be found in IDC's report Worldwide Bluetooth Semiconductor Market Forecast and Analysis, 2001- 2006 (IDC #27462).

This report examines all Bluetooth baseband, RF, and related memory semiconductor products going into key consumer and enterprise application markets. For more information, contact Jim Nagle at 1-800-343-4952 extension 4549 or at jnagle@idc.com.