OYSTER BAY, N.Y., Sept. 19, 2001- The "no new wires" home networking market, driven by wireless local area networking (WLAN) solutions, is poised to grow to $243 million in 2001, up from $123 million last year.
By 2006 the global market will be worth $2.4 billion according to Allied Business Intelligence's (ABI) latest report "Home Networking Equipment - A Practical Assessment of Technologies and Changing Market Dynamics."
In 2000 wireless solutions accounted for 34% of the "no new wires" home networking units shipped, with HomePNA-based phoneline solutions accounting for 63%. By 2006 wireless will account for 48% of nodes as WLAN products hit more consumer-friendly cost points and manufacturers look to embed wireless functionality.
"The immense consumer and OEM interest in WLANs will translate into wireless leading phoneline and powerline solutions in home networking market adoption," said Navin Sabharwal, ABI Vice President of Residential and Networking Technologies and report author. "We expect that 802.11b will be the predominant wireless home networking protocol over the next few years, with HomeRF playing a far more peripheral role."
The study found that while HomeRF accounted for 58% of wireless home networking nodes in 2000 its market share has been eroding precipitously in 2001. In 2001 802.11b is expected to account for at least 71% of wireless nodes shipped, up from a 42% share in 2000.
"The reversal of fortune for HomeRF has been remarkable and sudden," stated Sabharwal. "The data rate gap, aggressive 802.11b vendors and Intel's defection to 802.11b have all exacted a heavy toll on HomeRF. The successful launch of 10 Mbps-rated HomeRF 2.0 solutions will be critical in determining whether HomeRF can survive."
The study also found that HomePNA is experiencing growing pains, though it has got a solid response from residential gateway vendors and service providers. ABI expects that powerline solutions will play a growing role, with HomePlug-compliant products arriving in late 2001. By 2006 powerline solutions are expected to account for 27% of "no new wires" nodes.
The report also covers other home networking market segments including residential gateways and structured wiring. The total high-speed residential connectivity market, which includes these two segments, will be worth $10.8 billion by 2006.
Allied Business Intelligence Inc is an Oyster Bay, NY-based technology research think tank and consultancy that offers expert advice and research on wireless, broadband, and emerging technologies. Details can be found at www.alliedworld.com or by calling 516-624-3113.
# # #
CONTACT:
Allied
Business Intelligence Inc
Nancy
I. Szekretar
516/624-3113