28 August 2008

Health Growth Expected For Home Networking

A healthy growth is expected for home networking, with a worldwide installed based for home networks expected to break the 200 million mark by the end of this year, according to a report.

Compared to previous years, the growth of the total market for broadband and network customer premises equipment (CPE), however, is slowing, but is expected to remain positive through at least 2012 as technological upgrades will spur replacements, according to market research company In-Stat. The total CPE market includes broadband modems, routers, and residential gateway equipment for DSL, cable, Fiber-to-the-Home (FTTH), Fixed Wireless Broadband (FWB), and Fixed Satellite Broadband (FSB).

"With worldwide broadband subscribers predicted to exceed 500 million in 2010, there will be a very significant installed base of equipment that presents opportunities for replacements and upgrades," explained Joyce Putscher, an analyst for In-Stat. "Gigabit Ethernet, VoIP, the DSL Forum's TR-69, and 802.11n are examples of drivers for CPE upgrades and replacements over the next several years. But, we see a potential issue in terms of consumers' lack of knowledge regarding the benefits and differences between 802.11g and 802.11n, which could spell trouble for 802.11n upgrades."

By 2012, In-Stat expects routers to still be comprised of a higher percentage of wireless units than DSL gateways. Asia/Pacific's share of routers will continue to increase through 2011. This region's router market is increasingly being driven by China, due to that region's annual rise in the number of home networks, the market research company explained.