Telephony Only The Beginning For Bluetooth In The Vehicle, Says ABI

Oyster Bay, NY - May 22, 2003; Nearly 20% of all new vehicles worldwide will contain embedded Bluetooth hardware by 2007, according to the findings of a new Allied Business Intelligence Inc (ABI) study. Future Bluetooth-based automotive applications are poised to deliver new opportunities to all facets of the industry, from silicon vendors and hardware manufacturers to automakers and gasoline retailers.

DaimlerChrysler's UConnect hands-free car kit, will serve as Bluetooth's US automotive introduction. Meanwhile in Europe, certain Audi, BMW, Peugeot, and Saab models currently offer Bluetooth hands-free car kits as options.

Bluetooth silicon costs run approximately $6, making the technology extremely attractive to automakers, and ABI predicts costs will continue to fall. Besides cost, the key automotive driver is Bluetooth's proliferation into an increasing number of mobile handsets. Just recently, Sprint announced the first CDMA phone to feature Bluetooth connectivity. Since Bluetooth car kits are relatively simple and inexpensive to install, OEMs will proactively install them, realizing the growing probability they may be federally mandated.

While the first wave of Bluetooth devices in the vehicle will center around telephony, newer applications will soon follow. These include remote vehicle diagnostics, lower-cost telematics services, advanced automotive safety systems, vehicle-to-vehicle communications, and remote audio and video downloads into the vehicle, among others.

The new report, "Automotive Wireless Networks: Examining The Proliferation of WLAN and PAN Technologies Into The Automotive Platform," provides a comprehensive analysis of current and future automotive Bluetooth and 802.11 applications, from telephony and music downloading, to telematics and electronic toll collection. The report, prepared by ABI Director of Automotive Technologies, Frank Viquez, also supplies projections for Bluetooth and 802.11 automotive node and device shipments, and provides analyses of key market participants.

Allied Business Intelligence Inc. is an Oyster Bay, N.Y.-based technology market research firm founded in 1990. ABI publishes research and technology intelligence on the wireless, automotive, electronics, networking and energy industries. Details can be found on the web at alliedworld.com or by calling 516-624-3113.