Home networking CPE and aggregation devices market to generate US$ 1.8bn in 2013

October 7, 2008 - The worldwide market for home networking customer premises equipment (CPE) and aggregation devices will reach at least US$ 1.8bn by 2013, according to a new study by ABI Research, driven by the advent of high-speed broadband connections and changes in consumer requirements leading to greater households connectivity.

In the new report, entitled 'Residential Gateways', ABI Research analyst Serene Fong comments: “Broadband households have a high propensity to adopt home networks and broadband subscribers will be the primary candidates for gateway products designed to distribute Internet bandwidth and multimedia applications.”

The only question that equipment vendors have is about the speed of the broadband market’s growth and the adoption of sophisticated equipment, according to the research firm. Fong adds that, “To date, modem and router shipments are still leading the charge, but vendors are also actively seeking multimedia solutions to set themselves apart from their competitors.”

ABI Research also notes that the role of the home router and residential gateway will grow over time to support various services, and ultimately become the main interface between carriers and end-users. However, Fong says that: “To distribute media with guaranteed QoS on wireless and existing fixed media is not a simple feat. To keep abreast of growing consumer expectations, manufacturers had better ensure that their products offer sufficient future-proofing, reliability and user-friendliness, as well as a reasonable price tag.”