rethinking

the future

Bluetooth 5, beacon technology

and the Internet of Things
rethinking the future / Bluetooth 5, beacon technology and the Internet of Things

table of
contents
1.0 introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

2.0 be smart, get smarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

3.0 beacons to follow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

4.0 the end of speculation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Copyright 2017. Bluetooth SIG, Inc. 2

rethinking the future / Bluetooth 5, beacon technology and the Internet of Things

1.0
introduction
Conversations around the future of the Internet of
Things often include a level of speculation. We have
an idea of a future world, where devices, systems and
tools talk to each other and interact in ways we perhaps
can’t quite imagine today. One in which our everyday
lives would become fundamentally different, because
of connection and collaboration.

It’s time now to end that speculation. To put some

more meat on the bones of what the IoT will be able
to do in the coming decade. And, instead of pushing
IoT conversations into the intangible and abstract,
to start talking about what’s practical and what we
confidently know can happen.

Copyright 2017. Bluetooth SIG, Inc. 3

rethinking the future / Bluetooth 5, beacon technology and the Internet of Things

1.0 INTRODUCTION

the future
of the IoT
It is expected that, by 2020, there will be upwards of
48 billion smart devices active in the world. As such,
the potential for the Internet of Things to grow
and connect over the next few years is phenomenal.

With the launch of Bluetooth 5, Bluetooth® technology

is seeking to be the primary connector between IoT
devices. In doing so, it is fundamentally changing
how the ‘things’ of the IoT will work together, as
well as which technologies can be used within
it, particularly beacons. That means connections
taken into public spaces, large buildings and Smart factories benefitting from asset tracking
workplaces, with richer data and information (such that tell managers where devices and inventory
as location) transmitted between connected devices. are situated. And homes that respond to the people
These connections will make the IoT and wireless living in them with a scale of intuition that has never
connectivity a workable solution for companies been seen before. All while using the same low-energy
in enterprise industry and automation. foundations that Bluetooth 4.0 had set.

Part of this future of the IoT is the proliferation This paper takes a look at Bluetooth 5 and
of beacons, as well as bigger ideas for what what its launch means for the industries who
they can do – such as wearables and personal will take advantage of the new functionality
technology relaying data faster. of this specification.

Copyright 2017. Bluetooth SIG, Inc. 4

rethinking the future / Bluetooth 5, beacon technology and the Internet of Things

2.0
be smart,
get smarter
Developers have been working with Bluetooth
technology for years. Harnessing each version’s
capabilities to power innovation, automation and
ideas-led creativity. Bluetooth 4.0 made wireless less
energy intensive, so developers could create products
that did more for users, without draining the batteries
on their devices. Bluetooth 5 will be the extra ingredient
developers need to take things further still, with more
innovation and more creativity in wireless tech.

While it’s not necessarily changing what Bluetooth

does, it is pushing the boundaries of wireless, using
four key features to make devices better connected,
and get more from the IoT.

Copyright 2017. Bluetooth SIG, Inc. 5

rethinking the future / Bluetooth 5, beacon technology and the Internet of Things

2.0 BE SMART, GET SMARTER

four
features
of 5

Long-range
Bluetooth 5 is increasing range substantially.
Making whole home wireless possible.
Interoperability
Bluetooth is already in 96% of tablets and
smartphones currently shipped. With that
kind of popularity, interoperability with
other devices is a growing priority.

Combined, these four features are beginning the

wireless story that will end with ideas and ambitions
Low energy speed
around connected cities, homes and workspaces
The speed of Bluetooth technology is doubling,
being part of every day life.
from 1MBps to 2MBps, without increasing
energy consumption.
Central to that story is beacons.

Greater capacity
Broadcast or Bluetooth advertisement messaging
capacity is going up by 800%. So richer data can
be sent and received.

Copyright 2017. Bluetooth SIG, Inc. 6

rethinking the future / Bluetooth 5, beacon technology and the Internet of Things

3.0
beacons
to follow
Every new development from the Bluetooth SIG
is aimed at furthering its mission to use wireless
connectivity to make user experiences more enjoyable,
rewarding and safe. But one of the questions everyone
who works with Bluetooth should be asking is: ‘How do
I make this work across a variety of devices?’

It’s a worthwhile question. Not least because recent

predictions suggest that a change in market share for
the various Bluetooth products shipped is on the way.

Importantly, this change is not because of a

decrease in smartphone popularity, or of Bluetooth
usage declining on phones. It’s simply that as the
market grows, there’ll be a wider range of Bluetooth
products for consumers to buy.

Copyright 2017. Bluetooth SIG, Inc. 7

rethinking the future / Bluetooth 5, beacon technology and the Internet of Things

3.0 BEACONS TO FOLLOW

It’s predicted that the changing market will make itself

felt by 2021, at which point Bluetooth accessories (such
as keyboards, wearables and audio equipment) will
rise to 13% of all Bluetooth products shipped. As will
beacons, which are expected to ship 565 million units in
2021 (a huge increase over the 8.2 million units in 2016).

beacon
background
The increase in units shipped means that beacons will be the third
largest market for Bluetooth developers. And, most likely, the fastest
growing. Bluetooth 5 is driving that, by increasing the possibilities of
what can be achieved with them.

Because Bluetooth 5 has far greater range than earlier iterations,

alongside greater power efficiency, device developers will be able
to use beacons and include them in far more products.

For example, beacons can benefit tourist boards by letting them

electronically identify places of interest. A city guide app on a tourist’s
smartphone can then automatically provide relevant information TELL ME
centred on their proximity to the beacon. Government bodies can also ABOUT BEACONS
use beacons in this way. They can identify a specific location, such as a
hospital or a particularly busy road, and provide up-to-date information Beacons are small devices with
on waiting times and traffic levels via an associated app or smartphone. big potential. They are Bluetooth
And universities can adopt similar beacon applications, using them to transmitters that can send data to
ascertain exactly where people are on campus at any given time. any other Bluetooth devices within
their range. Allowing those who
This does, however, depend on the low energy features first introduced deploy them to push messages,
in Bluetooth 4.0. The improved speed, range and advertising capacity or to simply communicate by
of Bluetooth 5 serve to enhance the experience even further. sending data out.

Copyright 2017. Bluetooth SIG, Inc. 8

rethinking the future / Bluetooth 5, beacon technology and the Internet of Things

3.0 BEACON TO FOLLOW

beyond the
permanent
connection
Instead, two devices share simply because they
are in range of each other (in addition to those
'traditional' paired connections).

In practice, this could mean a university positioning

Bluetooth 5's development has been driven by a desire
to dramatically increase both range and speed. And
just like Bluetooth 4.0 and its consequent iterations,
Bluetooth 5 gives developers various options to go
beyond a dedicated type of connection.
a set of beacons around its campus, and using
them to send messaging to students passing by. Or
even to do something as simple as connecting with
passing devices to ascertain how many people are
on campus at any one time.

Total Bluetooth enabled device shipments: World markets, forecast: 2016 to 2021

End Product CAGR

Shipments 2016 2017 2018 2019 2020 2021
Market Segment 16-21

Cellular (Millions) 2,338.2 2,501.8 2,646.8 2,775.9 2,894.6 3,003.5 5%

PCs/
(Millions) 330.1 349.4 368.9 384.1 403.2 416.8 5%
Peripherals

Mobile Devices (Millions) 180.4 179.0 175.2 170.5 163.5 154.1 -3%

Networking (Millions) 9.0 18.6 29.0 39.8 51.1 62.7 47

Connected Home (Millions) 335.7 379.4 429.8 474.8 520.2 554.0 11%

Smart Home (Millions) 10.3 20.8 39.5 71.3 120.2 179.1 77%

Automotive (Millions) 64.0 74.2 86.4 92.3 99.0 103.4 10%

Wearables and
(Millions) 116.4 146.4 174.5 202.4 232.1 265.0 18%
Healthcare Devices

Beacons (Millions) 8.2 26.2 83.1 217.5 372.0 565.3 133%

"Source: ABI Research" Copyright 2017. Bluetooth SIG, Inc. 9

rethinking the future / Bluetooth 5, beacon technology and the Internet of Things

3.0 BEACON TO FOLLOW

data, range
and energy
Bluetooth 5 is inherently power and energy efficient.
Meaning it can do more than Bluetooth 4.0, 4.1 and
4.2 with either range or data speed, without any
additional impact on the battery life of the devices
it's built into.

For developers this means far greater device

development opportunities and the freedom
to put more ideas into practice.

whole
If, for instance, the aim is faster software upgrades
over wireless, developers can use Bluetooth 5 at
2mbps across a short range, and the end user will

not see their device battery life suffer as a result.
Or, if the desire is to connect the smart home with
other tech in the garden and beyond, they can use
low power range, with the same result for the user.
Importantly, extended range and higher speed
cannot be used at the same time without
compromising energy. What this improvement
does is give developers more answers to the
question: ‘What do I want to use Bluetooth for?’
coverage
We’ve already seen our Bluetooth partners bust the
10 meter range myth. With Bluetooth 5, this distance
is extended even further. With four times the range,
whole building solutions are no longer a pipe dream
– they’re a reality. Bluetooth 5 is now developing
that proposition, with up to four times longer range.
Meaning that whole home and building solutions
are a reality. Not a pipe dream.

Copyright 2017. Bluetooth SIG, Inc. 10

rethinking the future / Bluetooth 5, beacon technology and the Internet of Things

3.0 BEACON TO FOLLOW

IoT
at home
Developers have been moving towards creating
smart homes for years. With product advances
ranging from smart thermostats and kettles, to
intelligent smoke alarms and security systems.
But they want to do more, making things better
connected, across a wider distance and with

and
greater efficiency.

Now, with Bluetooth 5, a series of beacons can

be placed in a home, joining traditionally paired
devices, to activate the lights, heating and even
the stereo when the owner arrives at the front
door. All controlled through the smartphones,
tablets and computers people own today.
at work
Similarly, those in charge of factories or retail outlets
can use beacon technology, alongside new range
capabilities, to create heat maps of people and
associated assets to better understand how their
property operates. Through this they can ensure that
the right people are in the right places at the right
times, with the right tools to carry out their work.

These are the kinds of ideas, technologies and

capabilities that will create the future of the IoT.
Using devices and connections to literally change
how people work and play. And, while the SIG
recognizes that Bluetooth will not be alone in
our connected future, by taking a proactive
leading role, it’s enabling manufacturers to
develop devices that find, talk to and work
with each other reliably and efficiently.

Copyright 2017. Bluetooth SIG, Inc. 11

rethinking the future / Bluetooth 5, beacon technology and the Internet of Things

4.0
the end of
speculation
By continually giving developers new innovation
possibilities, Bluetooth is ensuring that wireless plays
a vital role in today’s devices and solutions. Then by
ensuring that its specification grows with the times,
it’s providing the connective glue for an exciting future.
One in which connected devices will move further
into the home, the workplace and even public spaces.
Where data will be used to communicate, as well as
to organize and learn in new and different ways. And
wireless connections will do more work, with lower
energy usage.

While some of these ideas will only be fully realized in

five or ten years from now, the work to accomplish them
starts today. Bluetooth 5 is an exciting new version of
the world’s most popular wireless connection solution,
and its launch helps define the role of Bluetooth
technology in shaping the Internet of Things over
the next decade.

about beacons and

Find out more development with Bluetooth 5

Copyright 2017. Bluetooth SIG, Inc. 12