In-Stat Reports Smart Home Networking IC Market's Time Has Finally Come

Business Wire, May 8, 2001

Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--May 8, 2001

Fueled by ubiquitous Internet connectivity and cheaper technologies for embedding intelligence and connectivity in common home devices, the smart home networking market is positioned for rapid growth over the next few years, according to Cahners In-Stat Group (http://www.instat.com).

The high-tech market research firm projects that the smart home networking IC market will grow from a mere $41 million in 2000 to over $650 million in 2005.

"Narrowband power line networking is enabling low-cost communication over existing home wires. At the same time, various silicon and software solutions have been introduced that are creating low-cost intelligence, networking, and remote access capabilities.

"Instead of acting as a market barrier, price is now becoming a market enabler," said Katherine Bowen, a research analyst with Cahners In-Stat's Voice and Data Group.

"Tier 1" ICs, such as X-10, that traditionally dominate the market provided only simple, on/off types of functions. "Tier 2" ICs, those that support a range of functions and applications, including peer-to-peer networking, are finally reaching mass market price points.

"Device manufacturers are taking advantage of low-cost Tier 2 intelligence, and combined with remote access capabilities, are developing a myriad of new and innovative applications that have not been feasible in the past," continued Bowen. "These include telemetry e-services, data mining, appliance maintenance and monitoring, to name a few."

In-Stat has also found that:

-- Revenues for smart home networking chips in the United States are expected
to grow at a CAGR of 77 percent through 2005.

-- Chip solutions using power line transceivers are expected to experience the
highest level of growth, as well as shipments, throughout the forecast period.

-- Interoperability is still an issue being addressed, but not stopping OEMs
from embracing these newfound, low-cost solutions. Most smart home networks
will exist as stand-alone systems, using gateways and bridges to link into a
coherent, integrated network.

The report, "Who Needs a Killer App? ICs Build Momentum for Networking Smart Devices in the Home," (No. RC0105HN), provides a market analysis and five-year forecast from 2001-2005 for ICs used to enable the U.S. smart home networking market. These are segmented into four "tiers of intelligence" and physical media transport layers, including wireless, phone line and power line.

Chips are also segmented into the major market channels through which smart home networking devices are being deployed. Profiles of chip developers are also included, with a special focus on power line networking IC manufacturers.

To purchase this report or for more information, please visit http://www.instat.com/catalog/cat-rc.htm#rc0105hn or contact Courtney McEuen at 480/609-4533; cmceuen@instat.com. The report price is $3,495 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.

In-Stat is a unit of Cahners Business Information (www.cahners.com), a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.