Home Networking CPE and Aggregation Devices to Generate $1.8 billion in 2013, According to ABI Research

Business Wire, Oct 6, 2008

SINGAPORE -- 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's new study, "Residential Gateways" (http://www.abiresearch.com/products/market_research/Residential_ Gateways) analyzes gateway activities around the globe. The report addresses leading gateway solutions offered by service carriers, IC and CPE vendors. Regional growth patterns are discussed in light of leading broadband technologies, subscriber penetration and current and future market dynamics. Detailed market trend data and forecast information for key regions around the globe are provided where available.

The study forms part of two subscription Research Services, Home Networking (http://www.abiresearch.com/products/service/Home_Networking_Research_ Service), and Multi-Channel Video (http://www.abiresearch.com/products/service/Multi-Channel_Video_ Service) which also includes other Research Reports, Research Briefs, Market Data, an Online Database, ABI Vendor Matrices, ABI Insights, and analyst inquiry support.

ABI Research is a leading market research firm focused on the impact of emerging technologies on global consumer and business markets. Utilizing a unique blend of market intelligence, primary research, and expert assessment from its worldwide team of industry analysts, ABI Research assists hundreds of clients each year with their strategic growth initiatives. For information, visit www.abiresearch.com, or call 1.516.624.2500.

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