Nearly two billion Bluetooth chipsets are forecast to ship in 2014 alone, according to new market data released by ABI Research. More than half will be found in wireless handsets. In the same year, almost 1.5 billion Wi-Fi chipsets are expected to ship and again, more than one third of that total will be used in handsets.

“Several factors are driving the strong growth in Bluetooth and even more in Wi-Fi chipset markets,” notes Practice Director Philip Solis. “Average selling prices for both technologies continue to fall. Wi-Fi will get a big boost from Wi-Fi Direct, which allows direct peer-to-peer communication between devices at short range. Finally, the ubiquitous Bluetooth is increasingly found in combination with a variety of other technologies, including FM radio, GPS and Wi-Fi.

"Combining Bluetooth with other technologies in a single chipset helps reduce costs,” says Solis. “It also saves space in devices such as handsets where that may be a precious commodity. In 2014, Bluetooth will be found in 70 percent of all handsets and 83 percent of all netbooks.”

Bluetooth will also increasingly be supplemented by the newer “BLE” or Bluetooth Low-Energy.

ABI Research’s “Short Range Wireless Forecasts” database provides market data and projections for Bluetooth, NFC, UWB, ZigBee and Wi-Fi for enabled equipment shipments, chipset shipments and associated revenues. The forecast database examines connectivity uptake in end-equipment markets such as mobile handsets and notebooks, and includes analysis of vertical markets such as industrial and commercial. It includes forecasts for integrated chipset shipments of multiple connectivity standards as well as an analysis by user segment.

In this edition, the structure of the data has been thoroughly revised to better reflect the changing dynamics of the market.

This product is included in two ABI Research Services, Short Range Wireless and Semiconductors, which also include Research Reports, Research Briefs, ABI Vendor Matrices, ABI Insights, and analyst inquiry support.