Home Networks Pursue Their Advancement Towards Becoming Multiple-Service Platforms


infonetics router vendors chart 3q2011It is apparent that the consumer home network is evolving. It used to be simply a couple of telephone lines and a data modem to connect to the internet, but now it is becoming a center for high quality online data and video services – clearly transforming the game.

It is due to this new multi-service environment that broadband CPE (Customer-premises equipment) and home networking suppliers are creating multi-function products that mix the capabilities of a voice gateway, router and modem.  Infonetics verifies this pattern within its two third quarter broadband access reports: DSL and Home Networking Devices, and Broadband CPE and Subscribers: PON, FTTH, Cable.

Directing analyst for broadband access and video at Infonetics Research, Jeff Heynen, said “With a bulk of the groundwork laid, service providers will shift their focus to turning up services in subscribers’ homes. In fact, we’re already seeing steady growth in wideband cable CPE and fiber-to-the-home CPE, particularly in China, a clear trend that operators are investing in the next generation of broadband technology for the home. The shift away from basic modems to high-end devices, such as VDSL (Very-high-bit-rate digital subscriber line) gateways, VDSL IADs, wideband cable gateways and wideband EMTAs, reflects the fact that operators are preparing consumer homes with enough processing power to handle premium services, from high definition video to home automation and home security.”

From a worldwide market point of view, the home networking device market amounted to $1.8billion in Q3 2011, a 2% decrease from Q2 2011 as a result of predicted periodic downturns. Nevertheless, on a year-over-year basis, sales of home networking devices increased by 10%.  Pushed by a 9% rise in revenue in broadband routers as well as a 16% increase in HomePlug powerline adaptors, Asia Pacific was the only region that submitted a consecutive earnings gain for home networking devices (an increase of 6%).

HOME NETWORKING DEVICE MARKET HIGHLIGHTS

  • The global home networking device market totaled $1.8 billion in 3Q11, down 2% from 2Q11 as seasonal softness hit nearly all market segments
  • Year-over-year, home networking device sales are up 10% worldwide
  • In the highly competitive broadband router segment (up 19% from the year-ago quarter), D-Link extended its revenue share lead in 3Q11 after expanding its marketing presence outside North America and Asia; NETGEAR and Cisco follow in 2nd and 3rd respectively

About Infonetics
Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.




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Filed in: Broadband, Home Networking Gear