In-Stat sees potential issue in migration to 802.11n

August 26, 2008 - The worldwide installed base of home networks will enjoy healthy growth through 2010, according to market research firm In-Stat, but there could be a potential issue as consumers grapple with the advantages of 802.11n wireless technology compared to previous incarnations.

The worldwide installed base of home networks is projected to surpass 200mn by the end of this year, and while growth is slowing for consumer premises equipment (CPE), it is expected to remain positive through 2012 as technological upgrades will spur replacements.

"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," says Joyce Putscher, 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."

Recent research by In-Stat has found that CPE unit shipment grew 15% last year to reach 149mn, while by 2012 gateways will hold a majority share of global annual CPE revenue. By 2012, the research firm expects routers to still be comprised of a higher percentage of wireless units than DSL gateways.