Home Networking CPE and Aggregation Devices to Generate $1.8 B in 2013

• Posted: Thursday, October 09, 2008
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• Author: pradhana
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• Filed under: CPE, Home Area Networks

The advent of high speed broadband connections and changes in consumer requirements have led to greater connectivity as households hop aboard the high-speed Internet bandwagon. Basic data-oriented devices currently account for more than half of the market, but they will soon become obsolete as full-fledged multimedia boxes with high throughput take over the market.

A new ABI Research study focused on residential gateways forecasts that home networking consumer premises equipment (CPE) and aggregation devices will deliver at least $1.8 billion in annual revenues by the end of 2013.

ABI Research industry analyst Serene Fong observes that, “Broadband households have a high propensity to adopt home networks and broadband subscribers will be the primary candidates for gateway products designed to distribute Internet bandwidth and multimedia applications.” The only question that equipment vendors have is about the speed of the broadband market’s growth, and the adoption of sophisticated equipment.

Fong adds that, “To date, modem and router shipments are still leading the charge, but vendors are also actively seeking multimedia solutions to set themselves apart from their competitors.”

ABI Research also notes that the role of the home router and residential gateway will grow over time to support various services and ultimately become the main interface between carriers and end-users.

However Fong warns that, “To distribute media with guaranteed QoS on wireless and existing fixed media is not a simple feat. To keep abreast of growing consumer expectations, manufacturers had better ensure that their products offer sufficient future-proofing, reliability and user-friendliness, as well as a reasonable price tag.” [ABI Research]

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