Automotive Bluetooth Market Set To Accelerate

New SBD report plots positive future for in-car wireless systems

Progress in providing in-car Bluetooth connectivity for mobile telephones has been slower than early industry predictions, but leading technical consultancy SBD expects availability to extend to many more models in the next two to five years.

In its newly published report The impact and opportunities for Bluetooth and other wireless technologies in the car, SBD shows how the high cost of Bluetooth systems and issues of compatibility with different telephone handsets has contributed to low consumer uptake since the technology was introduced to the automotive market by BMW in 2002. Today just 16 of Europe’s principle car makers offer Bluetooth hands-free kits within their model ranges.

However, with market penetration of Bluetooth-enabled mobile phones set to rise above 50 per cent by 2007, the adoption of the technology on higher-volume models becomes a stronger economic prospect. The cost of Bluetooth chips should fall and consumer awareness of the benefits of the technology should rise.

SBD believes these factors will lead to the first vehicles with Bluetooth fitted as standard within their audio systems being launched within the next two years.

As a consequence, more car makers are likely to abandon embedded car telephone equipment in favour of wider application of Bluetooth systems.

SBD’s critical analysis of the technology concludes that to achieve initial success, basic standards of in-vehicle Bluetooth operation and ease of use will need to be established. Consistent operation for all telephones will be key in building consumer confidence, rather than enabling enhanced features that can only be accessed by a limited number of users. This issue will have an impact on the introduction of additional profiles for Bluetooth users, as at any time there will be handsets on the market that will not be able to support them.

Report author and SBD Head of Telematics David McClure said: "Increased availability of compatible handsets is important for vehicle manufacturers in developing their Bluetooth strategy, but they will also need some reassurance that Bluetooth is more user friendly before making it available to all their customers."

Looking further to the future, SBD also anticipates Bluetooth could next be developed for wireless streaming of music from digital players and potentially for connection to portable navigation systems, although this could conflict with manufacturers’ interests in equipping vehicles with embedded sat-nav equipment.

The report also looks at how Wi-Fi could in future link car users with internet access "hot spots" or with their own home network and also the prospects for alternative wireless technologies to be adopted for automotive applications. In the short and medium term, however, it concludes Bluetooth will be the principle technology, adopted primarily for communications functions.