Bluetooth headset shipments will shrink a significant 28 percent in the United States in 2009, according to the latest research from Strategy Analytics Ltd.

The economic downturn has caused consumers and businesses to buy fewer Bluetooth headsets and the industry to register its worst period since sales volumes began taking off in 2000. Shipments reached 19.2 million units in 2008, but they will fall to 13.9 million by the end of 2009, according to Strategy Analytics.

?The U.S. and global Bluetooth headset market has really struggled in 2009,? said Neil Mawston, director of global wireless practice at Strategy Analytics, Milton Keynes, England. ?During the recession cautious retailers have been destocking to improve cash flow, while consumers and businesses have been delaying non-essential purchases.

?Mono headset shipments spiked in 2007 and 2008 when various states such as California introduced stricter driving laws,? he said. ?But shipments have since slumped in 2009 as cash-strapped consumers and businesses hang onto their existing headsets for a little bit longer and new customers have been less willing to spend.?

Strategy Analytics is a global independent research and consulting firm. It has offices in the U.S., Britain, France, Germany, Japan, South Korea and China.

Bluetooth is an open wireless protocol for exchanging data over short distances using short radio waves from fixed and mobile devices, creating personal area networks (PANs). It can connect several devices, overcoming problems of synchronization.

Bluetooth exists in many products, such as telephones, the Nintendo Wii, PlayStation 3, PSP Go, Lego Mindstorms NXT and recently in some high-definition watches, modems and headsets.

The technology is useful when transferring information between two or more devices that are near each other in low-bandwidth situations.

Bluetooth is commonly used to transfer sound data with telephones using a Bluetooth headset or transferring byte data files with hand-held computers.

Bluetooth protocols simplify the discovery and setup of services between devices. Bluetooth devices can advertise all of the services they provide. This makes using services easier because more of the security, network address and permission configuration can be automated than with many other network types.

A mobile phone that is Bluetooth-enabled is able to pair with many devices. To ensure the broadest support of feature functionality together with legacy device support, the Open Mobile Terminal Platform forum has recently published a recommendations paper entitled "Bluetooth Local Connectivity.?

Some brands have used Bluetooth technology as part of their marketing initiatives.

For example, a Bluetooth-based campaign to promote GM?s Chevrolet Spark LPG in a shopping mall activity achieved close to 11,000 downloads in two days (see story).

Japanese automaker Toyota launched a targeted location-based mobile marketing campaign using Bluetooth in September at the NFL?s New York Giants? season opener.

Proximity Blue powered the campaign that combined outdoor, television and mobile advertisements. The mobile marketing company said that the location-based campaign delivered a 14 percent increase of people downloading information about Toyota's campaign to their handsets (see story).

The U.S. is the world?s largest market for Bluetooth headsets. Demand for mono headsets has slumped during 2009, although stereo headphones have been more robust.

The stereo category is emerging and it continues to offer the brightest prospects for growth for companies such as Motorola, Jabra and Plantronics in 2010.

?Headset demand?down 28 percent year-over-year in 2009?has been hit much harder than handset demand?up 3 percent year-over-year in 2009?during the economic recession and it is a sign that consumers have been prioritizing their spending on buying new phones rather than new headsets,? Mr. Mawston said.