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Home Networking Hardware Forecast

Revenue derived from annual networking hardware shipments and from equipment that incorporates a home networking connection will jump from almost $9 billion in 2004 to over $21 billion in 2009, reports In-Stat. A push for higher speeds, lower prices, and increasing network areas in the home is driving the market. However, one highly touted use, the storage and streaming of multimedia files, may take years to catch on with the mass consumer. �Our research shows that there is growing interest among US consumers to use home networks to connect their increasing library of digital entertainment audio and video files with their traditional entertainment equipment (i.e. stereo, TV),� says Joyce Putscher, In-Stat analyst. �As consumers become more comfortable and familiar with the idea of bridging their PCs with their traditional analog equipment, interest will pick up.� WLAN has now usurped Ethernet as the desired home network of choice, and is now dominated by multi-band 54 Mbps 802.11g.
The installed base of home networks worldwide went from about 24 million in 2003 to 37 million in 2004, a jump of 13 million. Home networking equipment continues to drop in price, and increasing functionality such as wireless and VoIP is being integrated. Silicon prices, higher volumes, and competition have all contributed toward aggressive pricing.

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