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In-Stat: Broadband, network CPE market slowing

Wed, 08/27/2008 - 8:10am
Traci Patterson

The number of global home networks is expected to pass the 200-million mark by the end of the year, while the total market for broadband and network customer premises equipment (CPE) is slowing but is expected to remain positive through 2012 as technological upgrades spur replacements, according to new In-Stat research.

The total CPE market includes broadband modems, routers and residential gateway equipment for cable, DSL, 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," said Joyce Putscher, an In-Stat analyst. "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."

In-Stat’s research, “Global Home Networking and Broadband CPE Outlooks Through 2012,” found that:

  • Worldwide CPE unit shipments grew 15 percent in 2007, to 149 million.
  • By 2010, gateways will garner a majority share of global annual CPE revenue.
  • By 2012, In-Stat expects routers to comprise a higher percentage of wireless units than DSL gateways; Asia/Pacific's share of routers will continue to increase through 2011.
  • Worldwide home LAN PHY interface shipments will surpass 500 million during 2010.
  • "Green" network equipment is not among the most important features in consumers' minds.

The research contains analysis of worldwide and regional equipment shipments, home networks, and international and domestic consumer survey data, as well as detailed forecasting, In-Stat said. Analysis of key worldwide CPE markets for broadband modems, routers and residential gateways for cable, DSL, FTTH, FWB and FSB, by region, is also provided. VoIP forecasts are included for DSL, cable and router equipment.

Unit and revenue global forecasts are included for home network-equipped devices, which are segmented by units and revenue for total NICs/LOM, aggregators and media-networked devices. And forecasts by region and technology segment are provided for installed home networks.For more information on In-Stat’s new research, or to purchase it online (the price is $3,995), click here.

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