Both Bluetooth and Wi-Fi were previously seen as complementary technologies. However, the development of Bluetooth high speed and Wi-Fi Direct could bring the technologies head-to-head for the first time in certain applications.  IMS Research asks: is there room for both in specific devices? And will one technology eventually become the long-term winner?

Let’s begin with Bluetooth high speed; the technology combines classic Bluetooth technology with 802.11 to increase data throughput. It enables consumers to use the well recognised and trusted Bluetooth interface to download large files, synchronise music between two devices, and even transfer video quickly. Bluetooth high speed comes to the market with the advantage that classic Bluetooth has a huge installed base dominated by mobile handsets; Bluetooth was available in over 60% of the phones shipped in 2009.

Wi-Fi Direct on the other hand, formerly known as “Wi-Fi Peer-to-Peer”, is a set of software protocols that allow devices enabled for Wi-Fi communication to talk to each other without prior setup or the need for a dedicated wireless access point (hot spot). Wi-Fi Direct allows the construction of ad-hoc networks where one enabled device can communicate directly with another. Wi-Fi Direct will exploit WLAN’s installed base, dominated by PCs – in 2009 every notebook PC was WLAN-enabled.  

For Wi-Fi Direct, it is likely to be a case of simply upgrading the firmware of a single radio. Whereas Bluetooth high speed will require two radios (Bluetooth and 802.11). However, as we all know, Wi-Fi is not naturally a peer-to-peer technology; and has certain challenges, such as link set-up, authorisation, pairing, and system discovery. Bluetooth has already solved these issues; adding 802.11 will just provide a faster link.  Furthermore, Bluetooth high speed products have already been announced; whereas Wi-Fi Direct is expected to be deployed in 2011. With these factors in mind it’s hard for device manufacturers, IC suppliers and others to decide which technology to back. 

Filomena Berardi, Connectivity Market Analyst at IMS Research and author of the recently published report “The World Market for WLAN – 2010”,  commented: “The likely outcome is that initially Bluetooth high speed and Wi-Fi Direct will co-exist in specific products. However, with  the faster throughput offered by Wi-Fi Direct, in the long-term it is likely to emerge as the winner.” 

Furthermore, although Bluetooth has a larger installed base, its penetration is narrow compared to Wi-Fi in consumer devices. That said, Bluetooth will not suddenly disappear! Bluetooth’s presence in handsets cannot be ignored. The development of Bluetooth low energy will mean that the technology will still be important in handsets and will mean the technology can address markets such as medical, fitness, automotive and others that require a low power connection to the handset.

She added: “Wi-Fi is entering more and more consumer devices; the upgrade to Wi-Fi Direct will benefit them. Furthermore, the recent announcement made by the Wi-Fi and WiGig Alliance that they will work together sharing technology specifications to create the next generation of Wi-Fi products suggests to me that Wi-Fi will be big in consumer devices.  The Bluetooth SIG on the other hand is expected to create a study group to investigate a future gigabit-class version of Bluetooth.”