Bluetooth IoT Market Set to Nearly Quadruple by 2024 as Smart Home Exceeds 800 Million Device Shipments

The smart home market is forecasted to account for over 13% of Bluetooth device shipments by 2024, equating to over 815 million Bluetooth-enabled products at this time, finds global tech market advisory firm ABI Research. The tremendous growth in a wide range of device types, including smart lighting, voice-control front ends, smart appliances and sensors, among others, many of which support Bluetooth, is propelling the market to grow from 250 million units in 2019 to become one of Bluetooth’s largest market opportunities over the next five years.  

“The smart home market is beginning to ramp up, and strong growth for wireless devices and services is anticipated over the next few years as an increasing number of homes deploy solutions,” says Andrew Zignani, Principal Analyst, ABI Research. Bluetooth, thanks to its unique benefits such as low power consumption, audio capabilities, widespread presence in mobile devices, and mesh networking support, ensure the technology is extremely well placed to take advantage of a vast number of opportunities across a wide range of device types. “Bluetooth’s growing presence in voice control front ends from the likes of Amazon, Alibaba, Google, Baidu, and Xiaomi makes up a significant portion of this growth, alongside increased traction within smart lighting, smart appliances, door locks, sensors, and many other device types,” Zignani adds.

However, it is not just Bluetooth that will take advantage of this vast increase in devices. Wi-Fi, 802.15.4, and Z-Wave smart home products are all anticipated to see device shipments grow between now and 2024. “The smart home market is made up of numerous different device types, each with their own specific throughput, power, range, and topology requirements. Smart lighting device shipments will break the 300-million-unit barrier by 2024, with 60% of these based on 802.15.4 technology. Bluetooth and Wi-Fi will account for 30% and 8%, respectively. Likewise, Wi-Fi will be nearly ubiquitous in smart appliances alongside Bluetooth, while 802.15.4 and Z-Wave will gain traction in low power sensor devices,” adds Zignani.

Beyond the smart home, opportunities for Bluetooth within the IoT will include beacons and personal trackers, healthcare devices, commercial building automation and lighting, as well as several different types of wearable devices, including smartwatches and fitness trackers. These will soon begin to open increased opportunities for likes of Nordic Semiconductor, Dialog Semiconductor, Cypress (recently acquired by Infineon), Silicon Labs, NXP, Microchip, Espressif Systems, MediaTek, Qualcomm, Broadcom, STMicroelectronics, Telit, TI, Redpine Signals, On Semiconductor, u-blox, and Atmosic.

These findings are from ABI Research’s Wireless Connectivity Technology Segmentation & Addressable Markets market data report. This report is part of the company’s Wi-Fi, Bluetooth and Wireless Connectivity research service, which includes research, data, and Executive Foresights. Market Data spreadsheets are composed of deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight where opportunities lie.