| Networked home electronics market set to take off |
Mar. 31, 2006
The market for home networking and connected entertainment devices will grow from $14 billion in 2005 to more than $85 billion in 2011, ABI forecasts. This "astonishing" growth rate will be driven by a desire for "pervasive connectivity" in applications such as multi-room PVRs, place-shifting, and networked gaming, according to the market research firm.
Another factor driving the market will be the use of home networks for video distribution by IPTV providers such as Verizon, France Telecom, and AT&T, ABI says. These and other service providers see home networks as a way to extend data services without the need for any rewiring, ABI says.
In terms of unit volumes, ABI expects the total number of network connections shipped into the home market to grow from 247 million in 2005 to over 861 million units by 2011.
ABI Principal Analyst Michael Wolf stated, "This market has reached a major turning point. Home networking has moved beyond a basic broadband sharing model to one of networked entertainment and convergence across the PC, consumer electronics and communications devices. The emergence of enabling technologies such as 802.11n for wireless video distribution, HomePlug AV and MoCA as alternative multimedia network backbones, and DLNA media server and device interoperability software, are all solidifying the foundation for an explosion of new devices and applications based on a fully connected home."
More information on ABI's study, "Home Networking and Connected Home Market Analysis," is available here.
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