I was learning about Multipeer Connectivity framework of iOS from the tutorial site http://www.ralfebert.de/tutorials/ios-swift-multipeer-connectivity/ .
The example provided was really useful to understand the concept, in which, the devices simply have a view and its color can be changed by near devices.
My Question is that is there is any limitation to the number of devices(iPhone) that can be connected to the available service at a time? if it is over bluetooth? please let know, it will be helpful.
Yes, It has a limitation to max 7 peers. That means 8 devices you can connect. But you may have multiple instance of multi-peer session.
Multi-peer connectivity transfer data via Wifi/Bluetooth with the best option automatically choice. If one of the two options is missing then other option will be chosen to transfer data.
You can see this http://www.slideshare.net/waynehartman/multipeer-connectivity
which claims: