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Home Network Device Market has Mixed Upside

Infonetics Research released its latest quarterly home networking devices market forecast -- which tracks, ranks, and analyzes vendors that make residential gateways, broadband routers, powerline adapters, coax-Ethernet adapters, and home network attached storage (NAS).

Sales of home networking devices grew 11 percent in 2010, to $5.15 billion, on the heels of a 46 percent jump the previous year, with all segments of the market posting increases.

"We're expecting a challenging year for residential gateways this year, as operators have a lot of inventory on hand. They're also having trouble adding new DSL and cable subscribers, said Jeff Heynen, directing analyst for broadband access at Infonetics Research.

This overall trend will keep the market flat in 2011 -- despite strong sales of Homeplug Powerline adapters, MoCA coax-Ethernet adapters, and some home NAS devices.

The Infonetics market study highlights include:

- Quarter-over-quarter, the home network device market was up just 0.1 percent in 4Q10 as residential gateway and broadband router sales slowed in Asia-Pacific and Central and Latin America after a surge the previous quarter.

- The small but fast-growing MoCA coax-Ethernet adapter segment posted the highest revenue growth in 2010, up 93 percent.

- D-Link leads the highly competitive broadband router market in 4Q10. Pace, which recently acquired 2Wire, now leads the residential gateway market.

- The EMEA region leads the world in HomePlug adapter and home NAS device sales, primarily because IPTV penetration is so much higher there, particularly Europe, where telco operators typically offer a HomePlug kit to connect an IP set-top box in the home to a residential gateway.

- While relatively small now, the home NAS market is forecast by Infonetics to more than quadruple between 2010 and 2015 as more consumers purchase these devices to centrally store digital content to share across multiple PCs, tablets, gaming consoles, connected TVs, Blu-ray players, smartphones, and other platforms in the home.

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