Bluetooth vs. WiFi: What to Choose for Your IoT Project

The debate between Bluetooth vs. WiFi in IoT is more than just picking one technology over another. It’s about meeting your project’s core requirements. Do you need long-range connectivity, or is low power consumption a priority? Is your network ready to scale, or will costs jump as more devices come online?

With WiFi powering 31% of all IoT connections and 25% of connected devices relying on Bluetooth, the decision isn’t simple. Make the wrong choice, and you could face higher expenses, limited network scalability, or devices that don’t communicate as expected.

WebbyLab readily solves these exact challenges. Using Bluetooth Low Energy for MyBox charging stations allowed us to simplify user identification. In contrast, WiFi was a perfect choice for SmartHeat, where devices are always on and placed in areas with strong coverage.

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Learn everything about Bluetooth vs. WiFi for IoT in this post. From core differences to possible use cases, we’ll also share our real-life experience with IoT to help you choose the most suitable connectivity tech for your project.

Highlights:

• Bluetooth itself isn’t part of IoT — without a gateway, it can’t connect to the Internet.
• WiFi devices connect directly to the Internet without needing an intermediary solution like a gateway.
• Bluetooth shines in low-power, short-range applications, while WiFi is perfect for high-speed environments.

MyBox admin panel developed by WebbyLab

Key Connectivity Requirements for IoT Projects

Compatibility and connectivity are necessary for the IoT system to work properly. These features ensure your devices can easily connect to collect and transfer data. Why is that so critical?

IoT applications often rely on the real-time exchange of information between devices and the network infrastructure. Based on that info, the apps can automatically perform certain actions following pre-defined parameters or can be adjusted manually.

For example, in a smart home, sensors need to send updates on temperature, motion, and other parameters to a central hub. The hub then makes decisions, like adjusting the thermostat or activating an alarm. Without a reliable communication protocol, the system would be severely limited in functionality, causing delays, inaccuracies, or even failures.

When connecting devices through Bluetooth and WiFi in IoT, there are several things to consider in each technology:

• Bluetooth. Bluetooth alone isn’t a part of the IoT ecosystem. What truly makes it so is a gateway with Internet access. This means you’ll need a gateway, a device with a microprocessor that supports Bluetooth IoT, and another device to pair with.
• WiFi. For WiFi integration, you’ll need a device with a microchip that supports WiFi IoT connectivity. Beyond hardware, you’ll also have to develop firmware to manage the device’s WiFi credentials and follow IoT security protocols.

Many developers turn to WiFi and Bluetooth modules for IoT market to simplify connectivity. These WiFi Bluetooth modules for IoT market offer built-in support for both technologies.

Now that you’ve learned the difference between Bluetooth and WiFi compatibility, here’s a checklist of connectivity requirements to follow:

Connectivity requirements checklist

Bluetooth vs. WiFi: Feature Comparison

In our recent IoT application development guide, we highlighted some key features like device pairing, real-time monitoring and control, and data collection. These features rely heavily on the connectivity range that Bluetooth and WiFi provide. So, let’s explore these wireless technologies in greater depth to learn what is the difference between WiFi and Bluetooth.

Power Consumption

Bluetooth, especially Bluetooth Low Energy (BLE), offers very low-power IoT solutions. It’s ideal for battery-powered devices that need to operate for a long time without recharging. Examples include:

• Wearable gadgets
• Fitness trackers
• Smartwatches
• Sensors installed in hard-to-reach places
• Moving systems

In contrast, one of the drawbacks of using WiFi for IoT applications is that it needs more power as it works at higher data rates. It usually connects devices that have a constant power source — like smart cameras, TVs, or smart refrigerators. Still, some WiFi devices can be powered by batteries. However, their battery life is often significantly limited, meaning they have to spend most of their time in power-saving mode.

Range

Speaking of Bluetooth vs. WiFi range, there’s a noticeable difference between the two.

The Bluetooth’s data transmission range can reach hundreds of meters under ideal conditions. However, due to signal interference and obstacles, you should expect no more than 10 – 20 meters indoors. This range works well for devices that need to communicate over short distances, like smartphones and smartwatches.

The practical WiFi range for IoT devices can surpass 100 meters, but realistic figures are around 15 – 45 meters indoors, depending on the frequency band—much longer than for Bluetooth. It lets you connect devices to the Internet at distances suitable for home and office networks.

Data Transfer Speed

Let’s move on to other Bluetooth features for IoT devices — data transfer speed. The rate is limited to 2 Mbps for BLE, suitable for small data transfers, like sensor data or basic telemetry.

WiFi provides way higher bandwidth, up to several hundred Mbps. That’s why it is perfect for transferring large amounts of data, such as streaming video, images, or large data files.

Integration with the Internet

The biggest Bluetooth vs WiFi difference is how they connect to the Internet.

Bluetooth can’t connect to the Internet on its own. It needs a gateway — like a smartphone or any device with WiFi or mobile network access — to communicate with Bluetooth devices and pass data to the IoT system (and vice versa). If you’re using several Bluetooth devices, one gateway with Internet access can usually handle all the connections.

WiFi features for IoT devices have a clear advantage here. Any WiFi-enabled device can connect directly to the Internet, meaning it can interact with cloud services or other devices on the network without extra hardware. Whether it’s a single WiFi smart device or several from different manufacturers, all you need is a standard WiFi router — even a simple home one will do. This makes setup and operation much easier as it doesn’t require additional infrastructure.

Kostiantyn Oliynyk

Head of IoT at Webbylab

Cost and Complexity

IoT Bluetooth is generally cheaper and simpler to implement since it’s used in smaller devices with limited features. WiFi, on the other hand, tends to be pricier because it requires the best IoT WiFi modules and stronger hardware to support higher speeds and more complex connections.

How Bluetooth and WiFi Work?

When deciding between Bluetooth vs. WiFi for IoT project, it’s important to understand how these wireless communication technologies work behind the scenes.

Bluetooth operates on a peer-to-peer basis, where devices in close proximity communicate directly with each other — no central access point necessary. Each device broadcasts signals through UHF radio waves to establish connections.

Bluetooth operation scheme

WiFi, on the other hand, connects devices in a centralized access point. It works on 2.4 GHz or 5 GHz frequencies and generally covers longer distances than Bluetooth.

WiFi operation scheme

WiFi vs. Bluetooth: IoT Use Cases

Now that you’ve explored the difference between Bluetooth and WiFi let’s look at the possible use cases for each wireless protocol.

Bluetooth Use Cases

Bluetooth is used for personal or portable devices that interact with nearby devices — say, fitness trackers, headphones, beacons, or sensors. You can choose Bluetooth over WiFi for IoT devices where energy saving and short distances are important. Here are some practical applications:

• Logistics and cargo tracking. Freight companies use Bluetooth IoT devices like beacons to track goods in real time — whether in warehouses or during transportation.
• Sports and fitness. Devices like Apple Watch, Fitbit, and Peloton use Bluetooth to sync with smartphones, tracking everything from heart rate to workout performance. Similarly, smart scales like Withings Body+ and Fitbit Aria help monitor body weight and other health metrics.
• Smart locks and security systems. Smart locks from brands like August, Yale, and Nuki leverage Bluetooth to provide keyless access. No more fumbling for keys — just unlock your home or office door with your smartphone.
• Medical equipment and remote patient monitoring. Bluetooth-enabled oximeters, blood pressure monitors, and heart monitors let patients send health data to doctors via mobile apps.
• Gaming accessories. From PlayStation DualSense and Xbox Wireless Controllers to VR headsets, Bluetooth enables a seamless, wireless gaming experience — improving comfort for players.

WiFi Use Cases

WiFi works best for devices that need higher data transfer rates and have access to constant power supply. Consider video surveillance cameras, smart home devices like thermostats and TVs, IoT gateways, and others.

Let’s look at some of the use cases in greater detail:

• Smart cities. Cities are becoming smarter with WiFi-powered smart lights, air quality sensors, and surveillance cameras. Governments use these to monitor air pollution, optimize street lighting, and manage traffic flow efficiently.
• Industrial IoT. WiFi-enabled robotic assembly lines, vibration sensors, inspection cameras, and more can be used to enable real-time communication between machines and central servers in factory settings.
• Smart agriculture. WiFi redefines modern farming with drones, automated irrigation systems, and soil moisture sensors. These help farmers optimize water usage, monitor crop health, and so on.
• Retail and customer experience. Retailers use WiFi to improve the shopping experience with interactive kiosks, customer tracking systems, and POS terminals.
• Smart homes. When comparing Bluetooth vs WiFi for IoT in smart homes, WiFi is the better choice. It powers many everyday smart devices — speakers like Amazon Echo and Google Nest, thermostats like Nest and Ecobee, security cameras like Ring and Arlo Pro, plugs like TP-Link Kasa and Wemo Mini, and TVs like Samsung and LG OLED.

How to Decide Between WiFi and Bluetooth?

Choosing between WiFi and Bluetooth is a critical decision that impacts the ROI of your IoT projects. Why? It determines the infrastructure costs, scalability, and efficiency of the solutions.

Bluetooth and IoT, with its low power consumption, is ideal for wearable devices and medical sensors, where extended battery life reduces operational costs.

WiFi, on the other hand, provides high throughput, necessary for video surveillance, smart manufacturing, and large IoT networks, where centralized management and fast data transfer increase productivity.

To help you with the right pick, ask yourself the following questions:

Is your project battery-powered or plugged in?

• If your device needs to run for months or years on battery, Bluetooth (especially BLE) is the better choice.
• If power consumption isn’t an issue, connect IoT device to WiFi as the connection will be more stable and high-speed.

Do you need high-speed data transfer?

• If your application involves video streaming, large data transfers, or real-time processing, WiFi is one of the best IoT connectivity options.
• If you’re only transmitting small amounts of data (e.g., sensor readings, notifications), Bluetooth is more efficient.

Is range a critical factor?

• For long-distance communication (e.g., smart home systems, industrial monitoring), WiFi provides the best IoT access and better coverage.
• For short-range interactions (e.g., fitness trackers, medical sensors), Bluetooth is the better fit.

Will the device be used indoors or outdoors?

• WiFi is more reliable for fixed indoor setups, where Wi-Fi IoT development requires a stable connection.
• Bluetooth works well in mobile or outdoor applications where short-range, energy-efficient communication is needed.

Do you need to connect multiple devices?

• WiFi supports device interoperability, allowing for multiple connections at once, which makes it ideal for smart homes, industrial IoT, and large-scale deployments.
• Bluetooth for industrial IoT isn’t perfect — it works best for one-to-one or small-group connections like wearables, medical devices, and automotive applications.

WebbyLab’s Experience

Most of the time, we work with WiFi devices that connect directly to the IoT system, whether it’s in the cloud or on dedicated on-premise servers. This is dictated by the specifics of our projects.

However, we’ve also considered Bluetooth as an alternative or complementary technology. Many of our projects use ESP32, which come with both Bluetooth and WiFi modules.

For WiFi devices, we typically use MQTT to transport information. This allows for real-time communication with the devices through an MQTT broker, as they are always on and ready to interact.

Kostiantyn Oliynyk

Head of IoT at Webbylab

Let’s now explore our work where we’ve used either Bluetooth vs. WiFi for IoT.

Battery-Powered A/C Cleaners

In this IoT case study, we discuss how we developed a device and firmware that works via WiFi. Although we couldn’t create a Bluetooth solution because there were no user gateways available, we leveraged the advantages of WiFi over Bluetooth and ensured the device could run autonomously for over a year on a single battery.

Connecting A/C drain line cleaners to WiFi

Heat Pump Remote Monitoring and Control

We chose WiFi for our SmartHeat heat pump enhancement project. We did this because the devices are always powered on and are typically installed in areas with good coverage, often connected directly to a router. This allows for quick, real-time control and telemetry reception, along with the option for remote control.

To find out more, check out our success story about the mobile app for remote monitoring.

Monitoring telemetry sensors through SmartHeat

ACS Remote Controllers

We used WiFi for the controllers in our access control system, Propuskator. This allowed us to grant quick access to users, manage the system remotely, and receive real-time updates on its operation. Plus, it connects with video surveillance systems without any interruptions.

Connecting to surveillance cameras through Propuskator

IoT Device Launchpad

Our 2Smart Cloud is an IoT platform for testing and deploying devices to the market, as well as their subsequent monitoring and management. It supports WiFi devices, among other things. 

Configuring WiFi devices through 2Smart Cloud

Simple User Authorization

For MyBox, we worked on a task for charging stations where it was appropriate to use Bluetooth Low Energy vs WiFi. BLE technology allowed us to transfer tokens from the phone to the device for quick user authentication and authorization.

Authorizing users through BLE in MyBox

Teltonika IoT Device Monitoring

We integrated the BLE tracker from Teltonika through their gateway into our monitoring system on the 2Smart Standalone automation platform. We also managed development for IoT experience that surpassed expectations and set up a Gauge widget for every Teltonika device.

Monitoring Teltonika devices through 2Smart Standalone

To learn more about our work, you can explore our development services for IoT or view our portfolio.

Alexey Krol

Chief Business Development Officer

Consulted 30+ IoT startups to speed up time to market.

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Conclusion

If you’re still asking yourself, “What is the difference between WiFi and Bluetooth?” here’s a quick recap.

Still, the choice between Bluetooth vs WiFi is up to you. And your project requirements, of course. You may need WiFi for video streaming or AI in IoT or opt for Bluetooth to enable simple connections in wearables and other low-power devices.

In case you’re unsure which tech is right for your project’s structure, consult with WebbyLab’s experts. We’ll weigh the power consumption, range, data transfer, and other requirements to select the best wireless technology for your IoT system.