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

Posted: Thursday, October 09, 2008
|
Author: pradhana
|
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]

As Home Automation Goes Mainstream, Shipments Will Increase Dramatically to Four Million

Posted: Monday, September 29, 2008
|
Author: pradhana
|
Filed under: Home Area Networks

Two new approaches to home automation – “mainstream” systems based on standardized technologies and packaged components, and home automation as a managed service offered through a broadband or wireless service provider – have the potential for such broad market appeal that new research forecasts shipments to grow more than 50-fold between 2007 and 2013.

For 20 years, home automation systems were confined to two niche markets: luxury custom-designed and installed high-end systems that cover the whole home at a typical cost of $30,000-60,000 and up, and “do it yourself” X10 systems that tech-savvy customers typically bought online and installed themselves.

Now, however, according to ABI Research senior analyst Sam Lucero, “Home automation systems are becoming more mainstream and managed services are growing. ABI Research believes that they will appeal to a much wider public. Our forecasts indicate that the overall market will grow from a modest 237,000 systems shipped in 2007, to more than 4 million systems in 2013.”

By far the lion’s share of that growth will occur in the two new segments, “mainstream” and managed services. Mainstream systems are based on standard technologies and packaged components, as well as software that is integrated into other devices in the home, such as set-top boxes. They feature interoperable devices available from multiple vendors, as opposed to integrated single-vendor systems. Such products are typically sold via high-touch retail and “big box” outlets. Home builders are also using them as an option.

Managed home automation will show the strongest growth of all, with an anticipated 1.3 million shipments in 2013. Partnering with automation vendors such as 4Home, Portus, iControl, and uControl, broadband and telecom service providers are starting to offer such services, which provide functionality and remote monitoring via a computer or smartphone, as part of “quintuple play” bundles. [ABI Research]

Future Home Area Networks Will Allow Customized Energy Use

Posted: Wednesday, July 09, 2008
|
Author: pradhana
|
Filed under: Home Area Networks

“Smart metering” that communicates electric, gas or water usage data over a network to the providing utility is making inroads in some markets, but a further evolution of these technologies into “Home Area Networks” (HANs) will allow utilities greater management efficiencies while providing customers with choices about their consumption. Several technologies are vying for a place at the HAN table.

“We believe that in an era of rising energy costs the Home Area Network model – and its most sophisticated outgrowth, the Energy Management System – will eventually see wide deployment,” says ABI Research senior analyst Sam Lucero.

The HAN is an extension of smart metering intelligence into the home itself, connecting the meter to “load centers”: major power-consuming devices such as “smart thermostats,” air conditioners, and washer/dryers. While a few utilities today manage peak demand by directly capping these load centers’ usage, a HAN system would allow the homeowner to specify a mix of consumption and efficiency across a range of devices.

Four technologies have potential here: three wireless standards, ZigBee and Z-Wave (both already used for home automation) and the new 6loWPAN; and HomePlug Command and Control (HPCC), which communicates data over the building’s electrical wiring.

“ZigBee is seen as the most likely candidate for HAN success.” says Lucero, “It enjoys wide support from utilities. The ZigBee Alliance has been very focused on smart metering.”

Z-Wave also has support in the home automation market, especially in North America and Europe. Lucero terms 6loWPAN the “dark horse.” Technically it has much to recommend it, but is quite new and relatively untried. HPCC offers the advantage of using the same power lines that feed the load centers themselves, but is thus restricted to serving wired devices only.

“HANs are deployed in only small numbers today,” Lucero concludes, “but most utilities have plans in this direction, and we expect a large incremental ramp-up: first smart meters with HAN capabilities, then the addition of one or more load centers, and finally the Energy Management System.” [ABI Research]