Media Networking Shines Brightly in $74 Billion Home Networking Market

Growth in the market for core home networking products has been slowing in recent years, due to market saturation and price erosion. The decline is certainly not helped by the current global economic slump: forecasts for core home networking device revenues indicate a declining market through 2014.

However, the network connected media device market segment continues to show strong growth. The result, according to a new study from ABI Research, is that total revenues for network connected devices will rise from about $74 billion this year to over $94 billion in 2010.

“Network connected media devices such as game consoles, TVs, and set-top boxes offer an opportunity for ‘core networking’ companies to reorient themselves away from a declining market,” says senior analyst Jason Blackwell. “Home network device vendors such as Linksys by Cisco and Netgear, as well as networking silicon vendors such as Broadcom are targeting these growing product categories aimed at home entertainment networking and connecting consumer electronics devices to the network.”

Other vendors targeting this space include Apple, Roku and Vudu.

The best opportunities in the media networking market will arise from the growth of video and audio distribution around the home, as well as from new services that will be offered by service providers. Initially, Wi-Fi will provide the majority of connections; Ethernet will place a strong second. Over time, powerline, coax, and high-speed wireless connections will show strong adoption growth rates.

ABI Research’s new study “Home Networking and Digital Home Network Market Analysis” evaluates the market potential for core home networking equipment, including home routers, gateways, bridges and more. Forecasts for entertainment networks are included, along with the estimates of the potential for integrating networking into a number of consumer electronics and service provider platforms. Also included is a discussion of alternative networking technologies, enabling the distribution of data and video content over coax and power lines.

The report forms part of the firm’s Home Networking Research Service, which also includes other Research Reports, Research Briefs, Market Data, ABI Insights, and analyst inquiry support.

ABI Research provides in-depth analysis and quantitative forecasting of emerging trends in global connectivity. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advise thousands of decision makers through research and advisory services in seven key practice areas. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.