Multimedia Apps Drive Residential Gateway Growth

Broadband service providers continue to evolve their customer premise equipment (CPE) requirements, as growing consumer demand and new multimedia applications expand the digital home market.

According to the latest market study by In-Stat, residential gateway unit shipments were up 18.1 percent from the previous quarter and 37 percent from the same quarter last year.

This growth surge was lead by Europe which posted more than a 30 percent increase in unit shipments. Technicolor was the global leader in both unit shipment and revenue market shares.

"The overall Broadband CPE market grew in 2Q10 but this was predominately as a result of significant increases in Residential Gateway shipments," says Brad Shaffer, Industry Analyst at In-Stat. "This is a continuation of an on-going trend that began in 4Q09."

Highlights from the In-Stat market study include:

- Total broadband CPE revenues for 2Q10 were $1.52 billion.

- D-Link saw the biggest revenue market share gains in the Residential Gateway market in 2Q10 compared with 2Q09, followed by Motorola and Zyxel.

- xDSL modem revenue decreased nearly 10 percent from the previous quarter.

- Cable modem shipments approached 6 million, a 1.3 percent increase from the previous quarter, but a double-digit decrease from the same quarter last year.

- Broadband router shipments were 8.3 million in 2Q10.

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