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July 31, 2007 – The worldwide installed base of home networks is to grow by over 35% in 2007, according to market research firm In-Stat.
Reasons for the predicted growth include rising numbers of residential broadband subscribers, the desire to share bandwidth, and falling prices for networking equipment. Asia is expected to be a significant contributor towards the growth.
“By the time worldwide broadband subscribers exceed 500 million in a few years, there will be a very significant installed base of equipment that presents opportunities for replacements and upgrades,” said Joyce Putscher, analyst for In-Stat. “Gigabit Ethernet, 802.11n, VoIP and TR-69 are all drivers for customer premises equipment (CPE) upgrades and replacements.”
The research also revealed that worldwide CPE shipments rose by nearly 20% in 2006 to reach 127mn. By 2011, annual CPE revenue is expected to be dominated by gateways, which are anticipated to generate over half of worldwide revenue. By 2011, there is still expected to be a higher percentage of wireless units than DSL gateways.
The Asia/Pacific region’s share of the router market is expected to continue to increase through 2011, driven increasingly by China and its growth in number of home networks. Global home LAN PHY interface shipments are also expected to exceed 500mn in 2010.
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