Auto industry slow to adopt Bluetooth

Edited by the Electronicstalk editorial team Jul 19, 2005

A new study indicates strong reluctance by too many automotive players to meet the large and ever growing opportunity for in-vehicle hands free cellphone use.

The new Strategy Analytics "Wireless technology trends and implications for the automotive market" study indicates strong reluctance by too many automotive players to meet the large and ever growing opportunity for in-vehicle hands free cellphone use.

Simultaneously, these players are overly focused on post-2009 potential automotive wireless applications.

The Bluetooth competitor gap is set to keep on widening unless other players start following the market lead set by Daimler Chrysler, BMW, Ford and PSA, in addition to automotive Bluetooth suppliers, Parrot, Nokia and Motorola.

The dynamic automotive Bluetooth market is set to almost triple in 2005, and double again in 2006.

Very clear market leadership is being established early.

Although over 20 OEM brands offer Bluetooth, for the majority of OEMs this tends to be only on selected models.

Viable opportunities for DSRC, Wi-Fi, UWB and ZigBee will not start to emerge until at least 2008-2009; and each technology will require costly evaluations into standards, technical issues and business case development.

"OEMs now need to quickly react to consumer demand and start rolling out Bluetooth across model ranges and geographic regions".

"Although Bluetooth will be unchallenged as the wireless technology to deliver in-vehicle hands free voice communications, automotive companies are in danger of examining market opportunities driven by technology instead of consumer interest", says Joanne Blight, Director, Automotive Multimedia and Communications Practice.

"There is too much automotive focus on long-term wireless technologies that have yet to emerge into the market and currently have no clear commercially viable applications".

"Bluetooth does face strong competition in the in-vehicle audio entertainment market, and yet there is far too little focus on the role of Bluetooth in relation to iPod, compressed audio format CD players, satellite radio and other, USB-enabled portable devices".