Car OEMs are still struggling to connect with mobile devices, but Bluetooth and USB in cars still have problems
It is true that all large car OEMs have solved the connectivity problem, and now all cars sold worldwide provide Bluetooth and USB connection. At the beginning of the 21st century, you would think that car manufacturers must have satisfied the wishes of consumers: all mobile devices can be connected to their cars.
However, you may be wrong.
Bluetooth is still the "standard" in question. Consumers and car dealers are or have experienced the connection. Some experiences are amazing, and some are desperate. Many OEM manufacturers are still looking for ways to connect, although some manufacturers have managed to solve this problem.
This issue became clearer this week than ever before, and iSuppli visited car dealers in Paris this week. The two Fiat dealers interviewed basically have no hope for the Blue & Me solution, which is a combination of USB and Bluetooth. A Ford dealer claims that its sales staff reported that it had not encountered any problems in selling Bluetooth connectivity.
Bluetooth is still not popular
In fact, Bluetooth is a wonderful technology with powerful capabilities. When the Bluetooth connection is working properly, consumers are almost completely unaware of the technology, and it works well.
Consumer electronics technology and cars should work this way to meet demand instantly. You turn the key and the car starts! The disconnect between expectations and actual performance helps explain why Bluetooth is still gaining acceptance.
Interestingly, only in the United States does Bluetooth really have a firm acceptance-no reservations. iSuppli's technology availability report shows that according to preliminary data, 52% of North American 2008 series cars have Bluetooth installed, while the 2009 series models have increased to 86%. In contrast, Japan still seems to be skeptical of Bluetooth, with a Bluetooth installation rate of 36% for the 2008 series and a slight increase to 42% for the 2009 series. Of course, in Japan, domestic technical issues may be an influencing factor, including the existence of alternative wireless connectivity solutions. In Europe, the Bluetooth installation rate in the 2009 series is 62%, higher than the 48% in the 2008 series.
Sync thrives
The success of OEMs such as Fiat and Ford has been the main factor driving the growth of these in-vehicle connection technologies. Fiat is the first car manufacturer to adopt the Blue & Me solution. But Ford quickly followed suit, launching the Sync solution in the United States and the Bluetooth-only solution from Nokia in Europe.
Blue & Me is of great significance as the first USB-Bluetooth solution. It allows users to change the road map and voice through the USB flash drive they provide, which is a revolutionary development. Ford's Sync adds software upgradeability and is compatible with iPod, better than Blue & Me.
Sync has become the industry standard for implementing USB-Bluetooth solutions. But this does not mean that it has no room for improvement. It may be for this reason that the second-generation Sync, scheduled for 2009 in Europe by Ford, will turn to Elektrobit. , Although the Bluetooth connection is not very reliable.
Ford seems to have adopted this Bluetooth solution in Europe because dealers in Paris said that neither the customer nor the sales staff reported any problems. Ford dealers have recently started offering cars with both USB and Bluetooth, as well as models with only Bluetooth.
Ironically, Ford dealers are very enthusiastic about the Bluetooth solutions they provide, but customers have never asked for this technology. This is one of the many challenges facing automakers: anticipating the needs and ideas of elusive consumers. Ford's success is in stark contrast to Fiat's experience outside Europe in Italy. German and French distributors rarely awaken consumers' attention to Blue & Me.
But as a pioneer, Fiat is now facing trouble-its first-generation solution, like the Ford Nokia solution, neglects compatibility with the iPod. With the next generation of Ford solutions currently being launched in the European market, and Fiat expects to upgrade its own solutions, this compatibility issue should be resolved.
In fact, several new Bluetooth-USB solutions will appear at the upcoming Paris Motor Show. OEMs that will showcase new solutions at this event include Volvo, Renault and PSA Auto Group. Volvo is expected to announce the deployment of Bluetooth and USB at the end of November. Renault and PSA Auto Group may introduce similar connection devices to the market by the end of the year.
New benchmark
Behind these phenomena, supplier relationships are changing. Handheld device compatibility has become the new benchmark.
Car manufacturers already know the price to pay for a Bluetooth solution that lacks compatibility with a wide range of handheld devices. Only suppliers who can conduct adequate testing and can prove the compatibility of a wide range of handheld devices can win OEM customers.
But the challenge OEMs face in adopting Bluetooth is not only the compatibility of handheld devices, but also the compatibility of handheld devices is only a manifestation of deeper problems. The relatively low unit shipments of the automotive industry have led some semiconductor manufacturers to abandon the opportunities offered by the automotive industry for Bluetooth technology.
These vendors may be making mistakes. Stimulated by the government's safety regulations, Bluetooth shipments in the automotive market are expected to reach 10 million by 2010. The problem facing manufacturers exploring the automotive market is that the mobile phone market is setting the tone for product development, and products are currently tending to integrate GPS, and Wi-Fi will soon be integrated. In terms of opportunities in the automotive market, GPS and Wi-Fi are nice-to-have functions that can be very expensive in a pressure cooker-like procurement environment.
Undoubtedly, the real battlefield for Bluetooth applications lies in the mobile market for headsets and handheld devices, with shipments in these markets easily hundreds of millions. CSR, Parrot, Renesas Technology and other manufacturers that have maintained vitality have at least benefited from market integration. There are few suppliers currently in the market.
Drive on the fast lane?
It is too early to think that the Bluetooth-USB combination will be widely popular, but it does seem to be on the fast lane and is expected to become a standard device. It is worth noting that there are regional differences. In Japan, the 2008 USB device rate was 3%, and the 2009 model will only rise to 5%. The European equipment rate will rise from 15% to 26%, and the US will increase from 16% to 35%.
However, the installation situation is inconsistent, and not all upgrades are allowed. Bluetooth functions such as mobile phone book sharing and audio streaming should be deployed more widely in cars than they are currently. Some people estimate that through Bluetooth, about 60% of mobile phones can transmit audio streams. Similarly, AVRCP and the portable navigation feature that will appear soon will be expected to change this market.
Although Bluetooth has many potentials, unpredictable performance and compatibility are still a challenge for car dealers. Until Bluetooth can provide reliable and predictable connectivity, the technology will still face many challenges, which will prevent it from being accepted by the market.
Expect more car Bluetooth, specifically, more USB-Bluetooth deployments. Bluetooth and USB are the lowest cost platforms to achieve high-quality, low-cost content transmission in the car.
Roger C. Lanctot is an automotive electronics analyst at iSuppli.
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