THE WORLDWIDE INSTALLED BASE of home networks is expected to break the 200 million mark by the end of 2008, says U.S. market research firm In-Stat.
The number is driven by the still rising number of broadband subscribers, the desire to share bandwidth, residential gateway use by telecom broadband providers, and increases in Asia/Pacific, says the company.
Compared to previous years, the growth of the total market for broadband and network customer premises equipment (CPE) is slowing, but is expected to remain positive through at least 2012 as technological upgrades will spur replacements.
The total CPE market includes broadband modems, routers, and residential gateway equipment for DSL, cable, fibre to the home (FTTH), fixed wireless broadband (FWB), and fixed satellite broadband (FSB), says the report.
"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," said Joyce Putscher, In-Stat analyst, in the release. (Ed note: A previous version of this story said that there will be 500 million home networks. There will be over 500 million broadband subscribers. Cartt.ca regrets the error.)
"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,” she added.
The report also found:
* Worldwide CPE unit shipments grew 15% in 2007 to 149 million.
* By 2010, gateways will garner a majority share of global annual CPE revenue.
* By 2012, it’s expected that 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.
* "Green" network equipment is not among the most important features in consumers’ minds.
