Residential Gateway Market Set to Explode; Cahners In-Stat Group Sees Key Home Network Market To Exceed $2.4 Billion by 2003 - Company Business and Marketing - Brief Article

Edge: Work-Group Computing Report, August 2, 1999

According to recent research by Cahners In-Stat Group, the Residential Gateway (RG) market is expected to grow from a market that barely exists today to one that exceeds $2.4 billion by 2003.

A Residential Gateway is the device that connects the Home Area Network to the Internet. With the deployment of high-speed Internet connections and the push by service providers to offer integrated voice, data and video services over the same high-speed pipe to different nodes throughout the home, the Residential Gateway is expected to become an integral component in the network.

"The Residential Gateway is an integrated services enabler," stated Michael Wolf, Industry Analyst with Cahners In-Stat's Voice and Data Group.

"Equipment OEMs see a huge opportunity to provide the premise equipment to allow for the delivery of converged services to the end-user. AT&T, Sprint and others are looking to deploy large numbers of RGs and are actively engaging with equipment OEMs to develop these products."

In addition to integrated services, other drivers of the emerging Residential Gateway market are:

* The rapid emergence of viable, standards-based home networking technology such as those based on HPNA and Home RF

* New entertainment options including Digital TV and web based/interactive TV

* Non-PC based Internet Appliances

"In 2000 and beyond we will see large deployments of RGs in markets across North America and, to a lesser extent, Europe and Asia," said Wolf. "This market has enormous potential given the rapid expansion plans of the major players in the communication services market."

The report, Residential Gateways: The Heart of the Home Network, No. LN9909HN, discusses different Residential Gateway technologies and profiles different vendors. A five-year forecast for 1999-2003 by form factor is included.

Cahners In-Stat Group (http://www.cahnersinstat.com) is a high-technology market research firm covering the consumer/convergence, networking, wireless, telecommunications, Internet and semiconductor markets.

Headquartered in Newton, offices are also located in Scottsdale, Ariz. and San Jose, Calif. Cahners In-Stat Group is part of Cahners Business Information.