June 1 2003

Although Bluetooth was initially conceptualised as a universal wireless cable replacement technology - a function which remains its primary objective - it has also attracted attention as a potential technology for more formalised wireless networking applications. The technology’s increasingly low power consumption and relatively robust modulation technique are driving the development of new application areas.

According to latest findings released by Frost & Sullivan, the international marketing consulting company, Bluetooth has progressed beyond its simple cable replacement origins, with numerous different deployment models anticipated from the home and office, through to specific industrial solutions and commercial environment uptake.

Michael Wall, Industry Analyst at Frost & Sullivan, has issued an upbeat assessment of the market’s future. “We believe that there is strong growth potential in the Bluetooth network infrastructure market. In light of the omnipresence of Bluetooth devices, such as notebook PCs, cellular phones and PC accessories, the emphasis will be on providing software and services that take advantage of this ubiquity.”

Hardware such as access points and dedicated controllers will, however, still remain an important part of the market, specifically in the vertical and niche application where it can add the most value.

The decision of the Bluetooth Special Interest Group (SIG) to increase the bandwidth of Bluetooth to over two mbps in the next release of the technology will significantly spur adoption of Bluetooth networking equipment.

Frost & Sullivan has issued bullish comments on the prospects for revenues and shipments in the Bluetooth market. In 2001, global shipments of Bluetooth access point products totalled around 8000 units, generating revenues of around US$4 million. This is forecasted to increase to over 200,000 units per annum by 2006, equating to revenues in excess of US$40 million.

Global shipments of Bluetooth access controller and server products stood at around 1000 units in 2001, generating revenues of around US$3 million. This is forecast to increase to over 11,000 units per annum by 2006, equalling revenues above the US$11 million mark.

The potential for business to leverage greater benefits from the implementation of wireless networks, such as the enhanced employee productivity and flexible working patterns associated with wireless networking technology, is propelling the growth in the Bluetooth network implementation in the enterprise.

In the corporate space, the Bluetooth networking market is likely to be driven by niche applications of the technology, with individual networks tailored to the needs of specific organisations. “We expect to see more products become available that are configured for vertical markets such as healthcare, finance, transportation and manufacturing,” Mr Wall notes.

“Trials have shown that Bluetooth can exist alongside the increasing deployment of WLAN networks in these same environments. However, at present the number of Bluetooth devices is not sufficient to justify such implementations within most organisations. The development of more specific Bluetooth applications with clear benefits to business, such as Bluetooth based wireless public branch exchange (PBX) systems, may change this situation over time,” he continues.

In the automotive and industrial sectors, Bluetooth is increasingly perceived as a way of wirelessly enabling diagnostics systems, sensor monitoring systems or command and control functions.

“In the industrial sectors,” Mr Wall reports, “some form of Bluetooth transceiver can be built into operational machinery or into the sensor system that monitors it. From these nodes, status reports can be sent to either a mobile client device or an access point located in close proximity. The low power of Bluetooth, its robust frequency hopping modulation and its falling costs may make it an attractive technology for this sector.”

Meanwhile in the automotive sector, Bluetooth is being investigated as part of the diagnostic systems located both within the car and in the garage/workshop. The increasingly sophisticated on-board technologies features, including computers and engine management systems, will prompt wireless enablement of systems allowing easier monitoring and modification via the software.

Frost & Sullivan is confident that the home gateway sector will steadily gain in prominence. Bluetooth access points compatible with cable modems are already available on the market and by 2003, the study expects to see the first generation of these products where the Bluetooth subsystem is integrated directly into the set top box or the cable modem, removing the need for a separate access point.

Base stations that can act as both a data access point and cordless telephony unit will allow users to achieve both voice and data wireless connectivity through one product. At present, Bluetooth cordless telephony products are too expensive to penetrate this market to any serious degree, but falling subsystem costs should improve this situation by 2004.

Europe is still leading the way in terms of development activities and adoption rates of access points and network controllers, with demand in Asia and North America fairly weak. This trends is line with the relevant region’s ranking in the overall geographical league table. The booming WLAN equipment market continues to influence demand for Bluetooth network infrastructure, however, hostility from WLAN developers prevalent throughout 2001 appears to have subsided.


 

Search For More Info

Web www.cellular.co.za