Home networking market sees modest growth, led by MoCA and gateways
Michelle Clancy | 31-10-2013
Globally, home networking device revenue totalled $5.4 billion in the first half of 2013, up 6% year-over-year, according to Infonetics Research.
"Like broadband CPE, home networking devices continue to grow as fixed broadband subscribers increase around the globe," said Jeff Heynen, principal analyst for broadband access and pay-TV at Infonetics. "The types of services being delivered over data networks are growing as well, with the most important being multiscreen video."
Drilling down further, the firm found that multimedia-over-coax (MoCA) devices, which ship primarily in North America, once again drove revenue growth for the first half of the year. Also, residential gateway revenue increased 7% in 1H13 from the previous half, as operators more heavily rely on residential gateways to deliver managed services.
Those operator-provided residential gateways continue to cannibalise retail routers too: broadband router revenue and shipments declined overall in the study period.
"Operators in North America and Western Europe are deploying higher-end gateways and set-top boxes with integrated wireless and wired technologies to distribute video to multiple devices in the home, driving a secondary market of MoCA set tops and HomePlug adapters for connecting TVs, Blu-ray players, game consoles and a growing list of peripherals to home networks."
In terms of markets, China, South East Asia, Eastern Europe, the Middle East and Latin America all stood out, being emerging markets where the focus of home networking is first on expanding Wi-Fi coverage, then shifting to distributing multiscreen video, the firm found.