Bluetooth in Automotive Market Size, Share & COVID-19 Impact Analysis, By Application Type (Communication, Infotainment, and telematics), By Sales Channel Type (OEM and Aftermarket), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles), and Regional Forecast, 2020-2032

The global Bluetooth in automotive market is projected to grow from USD 15.33 billion in 2019 to USD 30.8 billion in 2032, exhibiting a CAGR of 6.0% in forecast period.

The global impact of COVID-19 has been unprecedented and staggering, with the demand for Bluetooth in vehicles witnessing a negative impact across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 4.1% in 2020 as compared to the average year-on-year growth during 2016-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Bluetooth is the most-trusted wireless connection in the world that allows electronic devices to connect and interact with each other. It can be found in various gadgets, such as smartphones, speakers, laptops, and automobiles. Bluetooth technology is progressively growing in the automotive industry. Bluetooth-compatible devices should be close to each other and can participate in wireless two-way communication. Bluetooth in automotive allows users to access their mobile phones through the in-car infotainment system. Apparently, in recent years, major automobile manufacturers around the world have provided Bluetooth as a factory-installed function. The use of this technology in the infotainment system allows passengers and drivers to listen to music and provides information while driving.

Besides that, once connected to Bluetooth, the driver can use the various applications to navigate, check road conditions, view the latest weather reports, and find information such as movie showtimes and restaurant locations etc. Overall, the use of this technology enhances the driving experience. Furthermore, the growing scope of research and development has also expanded the industry's array of products and services. The rise in the level of disposable income and the growing urbanization has led to the growth of the global market.

Bluetooth in Automotive Market to Decline amid COVID-19 Pandemic

The COVID-19 pandemic has had a rapid and serious impact on the globally integrated automotive industry. The massive disruption of Chinese parts exports, the interruption of mass manufacturing throughout regions, and the closure of assembly plants has put tremendous pressure on industries that have responded to the decline in global demand, and may lead to an increase in collaboration among various players as well as forward integration in order to boost the market share. Also, this market is inevitable as the market is primarily driven by the increasing sales and production of automobiles. Owing to the extended duration lockdowns and closing of manufacturing units, the production and sales of vehicles experienced a sharp decline in various regions of the world. However, the market is expected to register an optimistic growth during the forecast period as the automotive companies are strongly working on the advancement and deployment of Bluetooth systems in their upcoming vehicle models.

LATEST TRENDS

Development of Bluetooth Low Energy Technology to Boost the Market Growth

The automotive industry is going through an ultimate revolution as connectivity, electrification, and autonomous driving has become an essential part of vehicles. Automobiles are evolving from being merely a transportation medium to offering an in-car experience. Although many comfort and convenience features have been provided, the latest developments in the automotive system provide comfortable and fine-tuned settings to its occupants. The increased expectations of the consumers to access their vehicles from their smartphones and customize their overall in-car experience is insisting the automakers install Bluetooth in their vehicle models.

One of the significant advancements driving this transition is developing an energy-saving technology called Bluetooth Smart or Bluetooth Low Energy (BLE). With BLE, the product can run with very little power so that a single rechargeable battery can last for months or even years. The adoption of Bluetooth low energy technology in vehicles was introduced during the upgradation of the car access system, which enabled the phone-as-a-key function for passive-entry and passive activation systems, thereby offering a new user experience around the digital keys and digital profiles. Moreover, the development of protected car access applications has led to the development of corresponding specifications, which will ensure the safety and accuracy of the phone-as-a-key solution.

DRIVING FACTORS

Integration of smartphone connectivity in cars may drive the market growth

The Bluetooth market in the global automotive market is very dynamic and is expected to show significant growth during the forecast period. The development of this market is mainly affected by the growth in demand for smartphone functions from cars and other vehicles. In addition, the use of this technology makes vehicle diagnostic analysis possible, thereby improving the vehicle's safety. Automotive Bluetooth acts as a connection between the automotive and the telecommunication industry. The synchronization of smartphones and infotainment systems such as Apple CarPlay, Spotify, and Android Auto is expected to increase the demand for Bluetooth in automotive. Therefore, an increased number of manufacturers are integrating this technology in vehicles to fulfill the increasing demand and maintain their position in the market.

Increased Investment in Smart Vehicles to Promote the Market Growth

The increase in automakers' investment in smart vehicles and intelligent transportation systems are the major factors driving the strong growth of global market. Also, the increasing adoption of automation in vehicle systems is also driving the growth of global market.

Moreover, the manufacturing companies are investing a high percentage in research to develop technologically advanced systems. Automotive electronics involve various technological systems focused on improving and automating vehicles for a safer and better driving experience. Besides, autonomous driving technologies such as infotainment, V2X Communication, and telematics radically take over traditional automotive technologies. The automotive sector is experiencing a widespread adoption of vehicle electrification and automation. Therefore, increasing automation and the use of digital solutions in vehicles are subsequently leveraging Bluetooth in automotive market growth. 

RESTRAINING FACTORS

Limitation of Coverage May Restrain the Demand for Bluetooth in Automotive

The limitations of coverage and slow data transfer of Bluetooth technology coupled with poor security of its operations may hamper the growth of the market. Also the risk of data hacking as someone can easily transfer the virus to our system or access data from your system using Bluetooth connection. This may cause hindrance in the market growth.

SEGMENTATION

By Application Type Analysis

Infotainment in Automotive Dominates the Market

Based on application type, the market is segmented into communication, infotainment, and telematics. The infotainment segment holds the largest market share in the global market. The infotainment system is known as a combination of auto systems that are used to provide information and car entertainment to the occupants in vehicles by video or audio interface control elements such as bluetooth system, button panel, touch screen displays, voice commands, among others. The infotainment system is one of the fastest-growing technologies in the automotive industry. Most of the vehicles nowadays have infotainment systems. This system allows one to connect to personal navigation systems and smartphones with the help of Bluetooth connection. Moreover, the manufacturers are developing advanced and multifaceted infotainment systems into their new vehicles to fulfill consumers' demand. Thus, these factors are significantly boosting the growth of the market across the world.

By Sales Channel Type Analysis

OEM Segment holds the Largest Market Share

Based on the sales channel type, the market is segmented into OEM and aftermarket. The original equipment manufacturers (OEM) segment accounts for the largest share in the global market.

The major global Bluetooth OEM manufacturers in the automotive market are Ford, Volvo, GM, Volkswagen, Nissan, Honda, Toyota, and FCA. Bluetooth OEMs comprises numerous companies and organizations engaged in the development, design, manufacturing, as well as marketing, and sales of automobiles. Global manufacturers are also focusing on innovating technologies to improve customer safety and driving experience by developing systems such as telematics, driver assistance systems, and vehicle infotainment systems.

However, in the last few years, the aftermarket automotive solutions have developed significantly, adding connectivity and services to automobiles. They offer customized solutions to the end-users as per their requirements. The aftermarket has expanded its capabilities to provide the end consumers high-quality replacements.

By Vehicle Type Analysis

Passenger Cars Segment holds the Largest Market Share

Based on the vehicle type, the market is segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles. The passenger cars segment accounts for the largest share in the global market due to the higher production of passenger cars globally and rapid adoption by consumers. The growing demand for in-vehicle entertainment systems such as call, hands-free audio streaming, and application control.

In commercial vehicles, Bluetooth is used for fleet management functions to supervise, coordinate and promote various transportation and transportation-related activities. By maximizing the use of resources such as vehicles, fuel, spare parts cost-effectively, this effectively helps reduce and minimize the overall costs. Therefore, the use of this technology in commercial vehicles is growing rapidly, which drives the growth of the market.

REGIONAL INSIGHTS:

The market size in Asia Pacific stood at USD 7.76 billion in 2019. The region holds dominance in the global market due to high sales and production of vehicles and the rapid adoption of advanced technologies in cars, especially in countries such as China, Japan, and India. Automobile companies are focusing on expanding the production by adopting various entertainment and connectivity technology in manufacturing plants in the region. Moreover, the New Energy Vehicle (NEV) directive launched by the Ministry of Transport of China in 2017 is expected to stimulate the production and demand of electric vehicles and autonomous vehicles in the country, which will further create opportunities for automakers to install technologically advanced equipment and components in the vehicles.

North America Bluetooth in automotive market is also a well-developed market in terms of revenue, increasing deployment of smart infotainment and telematics application systems in vehicles. The market in Europe is also expected to exhibit decent growth in the region due to government electric mobility initiatives. The rest of the world market is growing at a higher growth rate, mainly due to increasing demand for Bluetooth enabled entertainment systems in passenger cars in the Middle East and Africa.

KEY INDUSTRY PLAYERS

Panasonic Corporation is a Key Player in the Market

Panasonic Corporation is a leading global company developing various electronic technologies and solutions for customers in consumer electronics, housing, automotive, and B2B businesses. The automotive business segment includes in-vehicle infotainment systems, in-vehicle electronic equipment, and electric systems. The company also provides innovative components and solutions to change the way of life on the road, reduce the burden on drivers and promote environmentally friendly vehicles.

Also, many other companies are focusing on growth strategies, such as product launches, product approvals, etc., as well as acquisitions, partnerships and cooperation. These activities are paving the way for expanding the business and customer base of market participants.

LIST OF KEY COMPANIES PROFILED:

• Panasonic Corporation (Kadoma, Osaka, Japan)


• Harman international (Stamford, United Kingdom)


• Cypress Semiconductor Corporation (California, United States)


• intel technologies (California, United States)


• LG Electronics Inc. (Seoul, South Korea)


• Qualcomm Technologies, Inc. (California, United States)


• Samsung Electronics Co Ltd. (Suwon-si, South Korea)


• Sony Corporation (Tokyo, Japan)


• Texas Instruments Incorporated (Texas, United States)

KEY INDUSTRY DEVELOPMENTS:

• May 2019 – Panasonic Automotive introduced new friction-free connectivity solution Panasonic Corporation, a leading global supplier of automotive infotainment and connectivity system solutions, demonstrated its new frictionless connectivity solution, which is a safer way to automatically pair mobile devices with vehicles.


• May 2019 – Qualcomm launched a new platform for infotainment control Qualcomm has launched a new auto platform from infotainment to autonomous control. The company held a virtual automotive summit – 'Automotive Redefined,' in January this year. In this event, Qualcomm launched several technologies and announced partnerships aiming to position the company as a complete vehicle platform technology supplier.

REPORT COVERAGE

The bluetooth in automotive market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation