Jiwei Consulting：Bluetooth technology releases more potential, the application market achieves growth against the trend

JW insights)think：
– The rapid development of the Bluetooth chip industry，BLE chip market has great potential for development。
– Wearables are a key driver of market growth，TWS Bluetooth headset chip is particularly prominent。
– Multi-potential Bluetooth market application boost，Will achieve growth against the trend。
Bluetooth chip is a collection of circuits that integrate Bluetooth functions，For short-range wireless communication。Divided according to the Bluetooth transmission standard，Bluetooth chips can be divided into classic Bluetooth chips and BLE (Bluetooth Low Energy) chips。If divided by the application category of Bluetooth，Mainly audio streaming equipment、data transmission、positioning service，And Mesh network, etc.。

Gartner data show，2020Global Bluetooth chip manufacturers' annual revenue was US$2.034 billion，2019$1.814 billion per year，12.1% increase。2020The top five Bluetooth chip manufacturers in terms of revenue in the year are：Qualcomm、Nordic（Nordic Semiconductor）、Apple、Hengxuan Technology (BES)、Infineon Technologies。
From the overall bluetooth chip global market pattern，JW insights thinks，Participants in the Bluetooth chip industry are mainly foreign semiconductor manufacturers，Qualcomm、Texas Instruments、Dialog、Nordic、MediaTek etc.；Broadcom integration、Actions Technology、Hengxuan Technology、Zhuhai Jerry、Zhongke Lanxun etc.。in addition，Tai Ling Wei、Bluetooth chip start-ups represented by Taoxin Technology，Enter the market through vertical products，In a specific direction (e.g.：Low-power Bluetooth chip (BLE)) and application scenarios have good competitive strength。
With the evolution of the Bluetooth standard, Bluetooth applications experience different scenarios
With the evolution of the Bluetooth standard，Experienced different scenarios in Bluetooth applications。
4.0Bluetooth before the version is mainly used for computers，Mobile phones and other devices，As an interface for data and audio transmission。Benefit from being a standard mobile phone，Bluetooth has an obvious advantage in the Internet ecosystem。
4.0/4.2Version application scenarios are mainly various small interconnected devices，Smart home，Smart buildings, etc.，Drive wearable，The wave of smart home and other fields，Giving birth to a large number of Internet of Things application companies based on connection and data、Module Company。
5.0And the release of version 5.1 in addition to bringing qualitative changes to efficiency and user experience in traditional applications，It also brings a broader application space to Bluetooth，Including networking and location services。Application scenarios have also been extended to smart cities、Industrial Interconnection、car、Various scenes such as medical treatment。
The Bluetooth BLE chip market has great potential for development
Bluetooth low energy chip technology is low cost、short distance、Interoperable robust wireless technology，Working in the license-free 2.4GHz ISM radio frequency band，Has BLE4.0，BLE4.1，BLE4.2，BLE5.0，BLE5.1，Multiple protocol versions such as BLE5.2。
In the Bluetooth low energy chip market，There are two different chip designs, single-mode and dual-mode。Single-mode Bluetooth chip refers to a chip that only supports low-power transmission function，In addition to supporting low-power transmission, dual-mode Bluetooth，Also supports classic Bluetooth transmission，This makes the Bluetooth chip compatible with versions below 4.0。

Image Source：Bluetooth Technology Alliance

Bluetooth Technology Alliance(Bluetooth SIG)2021 Bluetooth market report forecast，Until 2025，The annual shipments of Bluetooth devices will grow from 4 billion units in 2020 to more than 6 billion units，2020-2025The compound annual growth rate (CAGR) during the period was 10%。Shipments of Bluetooth low energy single-mode devices are expected to more than triple in the next five years。Bluetooth low energy will continue to have a decisive impact on the market，Expected by 2025，96%Bluetooth devices will include Bluetooth Low Energy。

From the perspective of BLE chip manufacturers，Nordic、Dialog、The three overseas BLE chip manufacturers of Texas Instruments together account for 61% of the global BLE chip market share，Among them, Nordic accounts for 40%，Ranked first。From the perspective of market share，Domestic BLE is still in its infancy stage of development，Compared with the performance of overseas Bluetooth chip manufacturers，The BLE products of domestic Bluetooth chip manufacturers still have a big gap。

But with domestic demand driven and policy driven，Domestic high-end BLE import substitution opportunities are gradually highlighted。JW insights analyzes and thinks，TWS Bluetooth headset chip is an opportunity for domestic and foreign manufacturers to narrow the gap，If domestic chip manufacturers can seize the opportunity in front of the huge market，Accumulate technology and market foundation，Or will become the industry leader。

Wearables are a key driver of market growth

The Bluetooth Technology Alliance released the "Newest Information on the Bluetooth Market in 2021" said，Although the outbreak of the new crown epidemic has delayed the growth of Bluetooth device shipments in 2020 by one year，Markets such as smartphones and automobiles are not performing well，However, some markets such as wearable devices and positioning systems have achieved substantial growth。

IDC "China Wireless Headphone Market Quarterly Tracking Report，2021"The second quarter of the year" shows，2021China’s wireless Bluetooth headset market shipped 53.74 million units in the first half of the year，Year-on-year increase of 26.8%。in，The growth rate of true wireless headsets leads the overall Bluetooth headset market，202136.25 million units shipped in the first half of the year，Year-on-year increase of 32.1%。

Looking specifically from the Chinese market，IDC expects，2021China’s Bluetooth headset market shipped 120 million annually，26% year-on-year increase。

JW insights thinks，Market shipments of Bluetooth headsets in wearable devices have grown significantly。The last two years，Focused by manufacturers、Driven by falling prices and new features and new forms，Bluetooth headsets will maintain relatively rapid growth。
Simultaneously，JW insights thinks，2021Affected by the epidemic in the year, superimposed cars "lack of cores"，Car production cut，This will in turn lead to a reduction in the demand for Bluetooth chips in the automotive electronics market。

Multi-potential market applications will help achieve contrarian growth
It is not difficult to see the main trends in the field of Bluetooth solutions highlighted in the "New Bluetooth Market 2021 Information"，Bluetooth location services in the future、LE Audio technology application direction、The market prospects for commercial interconnected lighting are promising。

01 Bluetooth location service devices will rebound and show an upward trend in the next five years
The outbreak of the new crown epidemic and the resulting travel and work restrictions have led to a decrease in the deployment of Bluetooth location services in the short term。However，As the market continues to be interested in asset tracking and indoor positioning use cases，Analysts expect the deployment of Bluetooth location services to rebound by the end of 2021，And achieve a compound annual growth rate of 32% from now to 2025。also，Expected to 2025，The deployment of Bluetooth medical location services will increase 5 times。

02 LE Audio will drive substantial growth in future sales and use cases
The completion of LE Audio technical specifications in 2021 is expected to further strengthen the Bluetooth ecosystem，And drive greater demand for Bluetooth headsets and speakers，Expected between 2021 and 2025，Annual shipments of Bluetooth audio transmission equipment will increase by 1.5 times。JW Insights expects to support LE Audio in the new version of Android in 2022。

03 Bluetooth commercial interconnection lighting becomes mainstream
The main task of the Bluetooth device network is to support building automation、Control and operational efficiency，The popularity of LED、Higher energy efficiency、Faster deployment capabilities and higher quality user experience are driving the demand for commercial interconnected lighting solutions。Expected to 2029，Revenue in this market will reach 19.1 billion U.S. dollars。Commercial interconnected lighting and smart home solutions are the fastest growing areas of Bluetooth device network solutions，Its compound annual growth rate in the next five years is expected to reach 34%。

Summarize
Overall，Bluetooth Low Energy first broke out in the wearable field，The future explosion point is mainly concentrated in the application field of the Internet of Things technology，like：Smart home、Smart Building、Smart City、Intelligent industry and other fields。According to the development history of Bluetooth technology，Long term，Experiential consumption driven by new technology functions、Application demand will be an important driving force for the continued growth of the Bluetooth market。