The Bluetooth chip market is expected to grow by 21 percent from 2011 and reach US$4.3 billion this year thanks to demand from mobile device makers, according to ABI Research.
"Bluetooth market growth continues to be driven largely by the smartphone sector, with an extra push coming from other major markets such as laptops and media tablets," said Peter Cooney, wireless connectivity practice director. "The emergence of Bluetooth Smart and increasing Bluetooth adoption in new markets will be a major driver in future growth."
Revenues from the Bluetooth market, including standalone and combo ICs, are forecast to grow at a compound growth rate of over 20 percent to reach almost US$12 billion by 2017.
Industry leader Broadcom had over 40 percent market share in 2011 and is expected to increase this somewhat in 2012 as its combo ICs continue to gain traction, particularly in the smartphone market.
But the manufacturer can expect more competition from its rivals in the coming months.
"Platform integration is also set to change the market place considerably as Qualcomm's Snapdragon 4 (with integrated connectivity) has entered the market and is rapidly being adopted; other platform suppliers such as MediaTek are developing more integrated solutions," continued Cooney. "Samsung's recent move to become a platform solution supplier is also set to shake up the market in the next few years."
For Broadcom to stay ahead in the market, ABI Research points out that the vendor can develop new combo packages, adding technologies such as NFC.
Sign up for Computerworld eNewsletters.