Bluetooth is about to overcome a host of obstacles and will grow rapidly, according to a new Cahners In-Stat Group study that was released Wednesday.

In fact, the study predicts an annual growth rate in shipments of Bluetooth-enabled devices of 360 percent between now and 2005. That will result in shipments 955 million Bluetooth-enabled devices in 2005, according to the study.

Despite regular predictions of rapid growth, Bluetooth has yet to take off as a short-range wireless technology. Various analysts have blamed too-high chipset prices and technical issues such as interference with other wireless technologies. That is changing quickly, according to the report's author.

"Positive signs are here as more silicon is going into production, more products are closing in on production schedules and are coming to market very soon," said Joyce Putscher, director of In-Stat's Consumer and Converging Markets and Technologies Group.

In the near-term, add-in cards for PCs, laptops and handhelds will dominate the Bluetooth market. However, in the next few years, Bluetooth technology embedded in devices such as wireless phones and handhelds will dominate, the study said.

The findings are part of the study: Access Anytime, Anywhere: Bluetooth Will `Make it So'!"