ABI: Bluetooth Will Become Critical Feature of Mobile Internet Devices
September 19, 2008 // Published as a news service by IHS
The market for mobile Internet devices (MID) - the new class of Internet-connected products offering "always-on" web browsing, photography and video, navigation, games, social networking and voice communications - is forecast to grow at a spectacular compound annual growth rate (CAGR) of 167% over the next five years, according to ABI Research.
Analysts said that impressive growth will be paralleled by the penetration of several wireless technologies that are integral to the MID's functions, including Wi-Fi, Bluetooth and eventually ultra-wideband (UWB).
"All mobile Internet devices [MIDs] will feature Wi-Fi from the start," said ABI Research senior analyst Douglas McEuen. "That is the essential form of wireless connectivity that no MID will be without. But in addition, ABI Research expects to see Bluetooth reach a 95% penetration rate by the end of 2008."
While many MIDs will include voice capabilities, analysts said these devices are larger than mobile phones, and for convenience some users will also carry a low-cost phone.
However, many consumers still want an all-in-one device, and the handset/headset configuration enabled by Bluetooth will meet their needs. That will be one of the main rationales for its early adoption in MIDs.
More enhanced forms of connectivity are in the pipeline, too. Analysts said the first to reach the market will be "Bluetooth over (IEEE) 802.11," also known as AMP - alternate media access control (MAC) PHY. It involves a software addition that will allow the device’s Bluetooth circuits to piggyback on its much faster Wi-Fi connection when it is necessary to transmit large amounts of data.
By 2011, UWB will be added to the mix. "Ultra-wideband [UWB] offers an 'on steroids' version of Bluetooth," said McEuen, "Today it is just a wireless USB [universal serial bus] replacement, but the chips are getting smaller and more powerful and they are aiming for the portable device market. In a few years, it can be really useful in the MID market."
Source: ABI Research.