Boston, MA - March 10, 2005 -- The new Strategy Analytics forecast, `In-vehicle Communications and Automotive Bluetooth Market 2004-2011,' establishes 2005 as the year Bluetooth hits the mainstream. Volume shipments for automotive Bluetooth have started to build, doubling and even quadrupling in some regions during 2005, as the technology finds its way into an increasing number of mainstream vehicles.

The penetration of Bluetooth cellular phones increased from 5 percent in North America and 7 percent in Europe in 2003, to 10 percent and 19 percent, respectively, in 2004. This growth in Bluetooth cellular handsets, coupled with increasing consumer awareness, more stringent hands-free regulations, and the rollout of wireless solutions by car makers, will result in 2005 being the year automotive Bluetooth arrives in Europe and North America, followed closely by Japan in 2006.

However, hurdles remain, including slow progress on address book synchronization issues, strong price competition between wired and Bluetooth hands-free systems and mixed messages from academic research as to whether cellular phone use should be completely banned while driving.

"With the increase in product availability, market awareness, and the stabilization of protocol implementations, the dynamics of the Bluetooth market are moving towards scale economies and cost reduction," says Clare Hughes, Analyst, Automotive Multimedia & Communications Service. "Currently, 21 automotive brands offer Bluetooth in 2005-up from only 6 brands in 2003. Bluetooth has moved from BMWs into the lower-priced Ford Focus, Fiat Multipla and Citroen C4."

By 2011, more than 98 Million units, representing $40 Billion in systems, will be shipped across North America, Europe and Japan. Additionally, the automotive Bluetooth cellular phone market is set to reach 55 Million units, or $20 Billion.

Source: Strategy Analytics