Drive TimeAn Interview With Phil Magney
 The number of cars worldwide equipped with Bluetooth technology is on the rise. In the fall of 2008, iSuppli, global supplier of market intelligence related to consumer electronics, predicted the number of U.S. car manufacturers “aggressively adopting” Bluetooth wireless connections would rise from around 55 percent in 2008 to 82 percent in 2009. We caught up with Phil Magney, vice president of automotive research at iSuppli, to find out how iSuppli’s forecast has played out in a difficult economy. Has the adoption of Bluetooth technology in the automotive industry risen as quickly as you predicted?
There is significant growth in North America and worldwide. Where we are now in the United States with regard to ’09 is at 81 percent, meaning that 81 percent of the vehicles for sale offer it either as standard or optional equipment. In actual sales, in calendar year ’08, in terms of the OEM market in the United States, 20 percent of the vehicles sold had Bluetooth, and that’s 3 million vehicles. Now for ’09, that number jumps to 29 percent. What factors have contributed to this rise?
Automakers know that the demand for Bluetooth is growing rapidly; therefore, most (U.S.) models at least offer it. They are offering it at pretty much all price points – it’s no longer a luxury thing. There are nearly two dozen states in the United States that have some sort of ban on using your handset in a moving vehicle, which creates a need for handsfree calling. And, of course, Bluetooth is one of the most convenient methods of doing that. It’s a low-cost, universal solution to an immediate need. In what other ways are car manufacturers using Bluetooth technology, beyond hands-free calling?
Not all, but some of the systems on the market support the transfer of stereo signals. Depending on the type of Bluetooth system, if it supports the audio profile and your mobile phone can play music, then you can have that music played through the audio system without having to connect it with a cable. There is also the ability to transfer data from the phone to the vehicle using Bluetooth. For example, you can transfer the contacts on your phone to the system in the car, then access them by voice. What do you predict beyond 2009 for the U.S. market?
For 2010, we are projecting that 38 percent of vehicles sold will have Bluetooth. For 2011, 47 percent; for 2012, 55 percent; for 2013, 62 percent; and for 2014, it’s projected at 68 percent. Has the slowing U.S. and global economy affected the rate of growth of Bluetooth technology?
The actual number of cars sold with Bluetooth as a percentage stays the same, but in terms of the actual number, it’s a lower number because auto sales have declined. But with that said, the rate of growth in Bluetooth (adoption) has exceeded any slow down in auto sales. Leigh Ann Woodruff, a writer and editor specializing in business profi les, spoke with Phil Magney, vice president of automotive research at iSuppli. Universal Connection An Interview With Rolf Nilsson
Changing the way people connect has been a hallmark of Bluetooth technology since its inception more than 10 years ago. Using Bluetooth technology to change the way factory floors, industrial environments and medical facilities handle information and communications has been a hallmark of Sweden’s connectBlue since its founding in 2000. And in many ways, the company and the technology have grown up together. “Because of our familiarity with telecommunications,” says company president Rolf Nilsson, “we (were) close to Bluetooth at an early stage. And because we came from the field of industrial automation, we thought that it would be possible for Bluetooth to be used for applications other than headsets, PCs and cell phones. “Initially, we introduced products that used Bluetooth technology to replace the cables between PCs and industrial equipment,” he continues. “But we also discovered that Bluetooth was very useful for other purposes, such as industrial controls and monitoring devices.” But connectBlue’s early days were not without challenges. “At first it was quite hard to convince people to use wireless for these types of applications,” Nilsson explains. “But we knew that Bluetooth was a good technology, and we were able to make it work very well in these environments.” The company quickly moved beyond its initial applications into the medical sector, again proving the viability of Bluetooth technology in demanding environments that require a robust wireless standard. “Our customers have requirements that are different from Bluetooth’s volume users,” Nilsson points out. “Medical applications require high levels of reliability and availability. The connection has to be there 24/7/365; there is no room for missed links or delays.” Nilsson acknowledges the help and support the Bluetooth SIG has provided since connectBlue became a member of the SIG in 2000. “In a way, though,” he adds, “the success of Bluetooth and the SIG made some things harder (for us) as well as making some things easier. The SIG has been very effective in marketing the general (consumer) functionality of Bluetooth, but there remains a perception that some people still aren’t aware of Bluetooth’s uses beyond 10-meter ranges.” Nilsson feels that this is on the brink of changing, both for Bluetooth technology and for connectBlue’s core market. “With Bluetooth Core Specification V3.0 + HS and the discussions of upcoming low energy uses, I feel that by the end of 2010 a large portion of industry will come to see that Bluetooth works and works quite well in their environments,” he says. Keith Ferrell, a regular contributor to SIGnature, writes extensively on business and technical topics. He spoke with connectBlue president Rolf Nilsson.
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