Demand for Bluetooth products escalates as the wearables market gains traction.
The first Bluetooth headset was presented by GN (Great Northern Telegraph Company or GN Store Nord) in 2000. For a long time thereafter, the Bluetooth headset market remained an immature technology with lots of limitations such as poor power efficiency, short range, and poor transmission speed. However, with the development of the technology and increased demand, it has undergone significant maturation over the past few years.
By end of 2013, the number of Chinese members in the Bluetooth SIG had already reached about 5,000. With so many Bluetooth product manufacturers, the competition is intense.
Even as the price of Bluetooth chipsets has dropped, the cost of labor, shipping, management and other materials have increased. Furthermore, Chinese manufacturers have not had any clear design wins, and are more likely to follow the steps of big brands. Manufacturers currently compete on price more than anything else.
There are no real competing technologies to Bluetooth at the moment. NFC does not have the range, and WiFi chipsets are too big for headsets at present.
Driven by wearables
With the wearables market heating up, related technologies such as Bluetooth, sensors and cloud services are also increasing in demand. Bluetooth is the primary data transmission method within the wearable industry. As wearable products become more popular, Bluetooth technology is also gaining significant traction, according to Zhang Ying, overseas sales manager of iLIKE Technology Co. Ltd.
In 2010, Bluetooth Special Interest Group (Bluetooth SIG) published the latest version of the protocol, Bluetooth 4.0. This version can support a low power consumption technology, Bluetooth Low Energy (BLE). At the time, most devices could not support BLE because of compatibility issues. However, in 2013 the Bluetooth SIG had marketed “Bluetooth Smart” and “Bluetooth Smart Ready” tags to identify compatible products that can support BLE v4.0. Many big companies, such as Apple, Microsoft, Blackberry, Google, Nike, Adidas, Kwikset, Tethercell, Hipkey, 94Fifty and Pebble, have updated their products to support “Bluetooth Smart.”
Even so, the compatibility issues between Bluetooth 4.0 and older versions are still inconvenient. The advanced functions of the latest Bluetooth version may not be compatible with previous versions, said Lu Tairong of Kiss Communications Technology Co. Ltd.
Demand boosted by traffic law in China
From January 1, 2013, a new "talking while driving" policy was implemented in China: drivers are not allowed to receive calls when they are driving unlessthey use a wireless headset. Consequently, most drivers choose a Bluetooth earphone as a solution. With the increase of demand, manufacturers have increased their production capacity as well. The increase has brought maturation to the industry as well as benefits such as low prices, high Ichiban rate, and varied designs to buyers.
Components development
Miniaturization of components, such as the battery, microphone, and chipset can greatly improve the performance of Bluetooth headsets. Nowadays, Bluetooth headsets can work longer, with a greater range, and provide a higher quality call. In addition, components have become less expensive. The senior marketing manager of CSR, Davide James, stated at the IIC-China Autumn 2014 that their company can provide Bluetooth chipsets with a price of less than US$5.
New headset trends
NFC
Though Apple has introduced NFC to its product lines with the iPhone 6 and iPhone 6 Plus, almost all big cell phone brands now support NFC. While the technology has most often been used for “bumping” media files between handsets, it has also been used to easily pair a Bluetooth headset with a smartphone.
Multi-connection
The development of the Internet of Things (IOT) has accelerated multi-connection technology. The Bluetooth 4.0 and 4.1 can support connections to more than one device at the same time. For example, headsets that support multi-connection can connect with two cellphones or other devices and switch between them.
Combination with other mobile accessories
It is also a new trend that combines Bluetooth headset with other devices, such as power banks, smart bracelets, glasses, hats, gloves, necklaces and so on. Such designs provide headsets far more diverse usage scenarios.
Bone conduction technology
Technically, bone conduction is not a new technology; it has been used in the military for more than 20 years. However, some manufacturers are applying the technology to Bluetooth headsets, which brings more convenience to users by allowing headsets to be mounted in places other than the ear.
Smart headsets with voice control
There are smart phones, watches, bracelets, glasses, shoes, and everything else you can attach the word “smart” to, and headsets are no exception. Some companies have already developed voice-control smart headsets that allow users to control their phones, home appliances, or in-car entertainment by voice commands.
Product guide
By wearing style, Bluetooth accessories can be categorized into six types: earphone, headphone, necklace, glasses, hats and gloves. The first three are the established types and the last three are newer developments.
Earphones
Bluetooth earphones are normally used in business – over the head designs for call centers, for example. Most products use an integrated design that combines a single earpiece and microphone together. It can be used when driving, typing or using audio/video conferences. Such Bluetooth headsets require long battery life, multi-connection and small size.
In a sample of 100 earphones that Global Sources analyzed, most (59 percent) use a Bluetooth version higher than 4.0, 30 percent use Bluetooth 3.0, and only 7 percent use Bluetooth 2.1. Compared with other versions of Bluetooth, the two advantages of version 4.0 are its BLE technology and multi-connection function. These two advantages are well matched with business use and it can explain why it dominates the business use segment.
Headphones
Headphones have two earpieces and one microphone (or none). These are normally used for entertainment, such as listening to music or watching video. Users of this type of headset have demand for high sound quality and consequently need a higher data transmission speed. As a result, the power consumption headphones tend to be higher and most of them use replaceable batteries.
In our sample of 100 headphones, Bluetooth 3.0 and higher were the most common versions. Thirty-two percent of headphones used Bluetooth 2.1 EDR (Enhance Data Rate), 36 percent Bluetooth 3.0 (EDR), and 32 percent were Bluetooth 4.0. For Bluetooth 3.0 and up, the transmission rate can be as high as 24Mbps via WiFi integration. This means that when high data transmission speed is needed (for instance, watching TV or movies on PC or TV), headphones can transfer data via WiFi.
According to the product development manager of Shenzhen Sande Dacom Co. Ltd, Xiao Peng, the headphone product development cycle is long and it may lag the latest technology trends. Furthermore, according to Lu Tairong, the burgeoning trend of sports-focused Bluetooth headsets has left many manufacturers still using older designs - such designs will change significantly next year.
Necklace
Bluetooth necklaces can be seen as the combination of a Bluetooth earphone and headphone. The receiver is shaped like a necklace, worn on a user’s neck, with two earpieces connected with the receiver via wires. It is designed like this to meet the needs of growing sports and fitness market, according to Liang Haiyu of Dart Cheng Communication Co. Ltd.
Glasses, hats and gloves
Bluetooth glasses, hats and gloves are three new concepts in the Bluetooth accessories market, oriented towards niche uses. Myopic users or those with photophobia can use Bluetooth glasses. For consumers leaving in a colder climate, warm Bluetooth-enabled hats or gloves are being introduced.
Profiles of Bluetooth headsets: HSP, HFP, A2DP, AVRCP
Headset Profile (HSP): It provides the basic data transmission protocol between Bluetooth headsets and cell phones. It is the fundamental communication protocol for Bluetooth headsets.
Hands Free Profile (HFP): An enhanced version of HSP with some additional functions. Through HFP, Bluetooth headsets can control additional functions such as answering, rejecting, or placing calls on hold. In addition, it allows users to control their cellphone via a Bluetooth car kit.
Advanced Audio Distribution Profile (A2DP): Uses stack technology from the headset’s Bluetooth chipset to offer high quality stereo sound. However, it does not mean that all A2DP-supported Bluetooth headsets are dual-channel capable. In addition, an A2DP Bluetooth headset may require users to install an A2DP driver or app in their cell phone first.
Audio/Video Remote Control Profile (ACRCP): A protocol used to support remote control functions via Bluetooth. For instance, users can play/pause/switch music on their computer or cellphone via their headset.
Bluetooth headset power classification
A common misunderstanding about Bluetooth is that its working distance is related to its version. Actually, the working distance is mainly determined by its power-class. From power-class 1 to 3, the working distances will decrease gradually from 100 meters (class 1) to 10 meters to 1 meter (class 3). The tradeoff is power: lower power classes consume less power. Most of Bluetooth headsets use power class 2 to reduce power consumption.
Price guide
Prices of different Bluetooth headsets within similar type are varied based on their battery life, Bluetooth version, material and chipsets. The price will increase with the increase of working time, Bluetooth version and the quality of the materials. Based on these criteria, the price guide in the table below can be used as general reference.
