In-Stat has published a new report, predicting that the worldwide installed base of home networks is will break the 200 million mark by the end of 2008.

This growth is widely driven by the still rising number of broadband subscribers, the desire to share bandwidth, residential gateway use by telecom broadband providers and increases in Asia/Pacific.

When compared to previous years’ activity, this growth of the total market for broadband and network customer premises equipment (CPE) is slowing, but is expected to remain positive through at least 2012 as technological upgrades will spur replacements.

The total CPE market, according to the high-tech market research firm, is made up of broadband modems, routers, and residential gateway equipment for DSL, cable, Fiber-to-the-Home (FTTH), Fixed Wireless Broadband (FWB) and Fixed Satellite Broadband (FSB).

“With worldwide broadband subscribers predicted to exceed 500 million in 2010, there will be a very significant installed base of equipment that presents opportunities for replacements and upgrades,” says Joyce Putscher, In-Stat analyst, in a Tuesday statement. “Gigabit Ethernet, VoIP, the DSL Forum’s TR-69, and 802.11n are examples of drivers for CPE upgrades and replacements over the next several years. But we see a potential issue in terms of consumers' lack of knowledge regarding the benefits and differences between 802.11g and 802.11n, which could spell trouble for 802.11n upgrades.”

This recent research by In-Stat also found that worldwide CPE unit shipments grew 15 percent in 2007 to 149 million; by 2010, gateways will make up the majority share of global annual CPE revenue; by 2012, In-Stat expects routers to still be comprised of a higher percentage of wireless units than DSL gateways.

In-Stat also determined that Asia/Pacific’s share of routers will continue to increase through 2011. This region’s router market is increasingly being driven by China as a result of the country’s annual rise in the number of home networks.

In addition, worldwide home LAN PHY interface shipments are expected to surpass 500 million during 2010; and “green” network equipment is not among the most important features in consumers’ minds.

“Global Home Networking & Broadband CPE Outlooks,” the latest research by In-Stat, provides analysis of worldwide and regional equipment shipments, home networks, and international and domestic consumer survey data, as well as detailed forecasting.

The trend for mobility and telecommuting is also contributing to the drive for increased home-based networks. In addition, consumers no longer have patience for slower and cumbersome systems at home and want the same functionality and speed that they enjoy at work.

This anticipated growth and strength in the market is great news for vendors as well as customers as the intense competition in the industry will help to create competitive price points and packet offerings for the end user.

Source:TMCnet