The Connected Home is in the Chips — Home Networking IC Market to Hit $669 Million by 2004

Business Wire, Nov 6, 2000

Business/High-Tech Editors

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Nov. 6, 2000

The emergence of enabling technology to interconnect devices in the home to distribute data, voice, and video traffic will translate into a booming market for home networking semiconductors according to Cahners In-Stat Group (http://www.instat.com/).

The high-tech market research firm projects that the home networking chipset market will grow from $116 million in 2000 to $669 by 2004.

From a market that largely consists of networking cards today, home networking semiconductors will find their way into all forms of devices in the next several years. "In the future, a multitude of devices will be enabled for inter-communication," says Mike Wolf, Manager of In-Stat's Voice and Data Service. "From basic broadband Internet sharing to the need to distribute digital audio such as MP3 files, there will be exciting and extremely viable end user applications that will drive the addition of networking connectivity into all corners of the home." While all the different technologies will have a place in the connected home of the future, In-Stat believes that over time wireless networking connections will occupy the greatest percentage of connections. The RF portion of the home networking IC market will represent 10% of total units shipped. This will increase to 37% by 2004.

In-Stat has also found that:

-- The price points on wireless component technology are declining as
manufacturers increase the level of integration and move to more cost efficient
process technologies. This will also be true for next generation technologies
as well, as vendors begin to release technology solutions for RF networking in
the higher speed 5GHz spectrum.

-- Over time companies that are providing access silicon solutions in DSL,
Cable or wireless will need to consider adding home networking functionality to
their solutions. The system manufacturer will begin to require an in-home
distribution component as part of their requirements over time.

The report, "Pass the Chips: A Home Network Chipset Market Analysis", No. NT0006MS, includes a discussion of technologies, market forecasts and vendors in the home networking IC market. It includes five-year forecasts by physical media. This report is part of Cahners In-Stat Group's Residential Connectivity Service covering all aspects of the digitally connected home. To purchase this report or for more information please call Courtney McEuen at 480/609-4533; cmceuen@instat.com. or visit http://www.instat.com/catalog/cat-nt.htm#nt0006ms. The report price is $3495 USD.

Cahners In-Stat Group (http://www.instat.com/) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.