Devices like TVs and Blu-ray players, which are either network connected or Internet-enabled, are fueling tremendous growth in the consumer electronics market. Analyst firm ABI Research predicts that connected devices shipped into consumer markets may increase steadily at a compound annual growth rate (CAGR) of 21 percent through 2016.

Between 2010 and 2016, more than three billion devices will have shipped worldwide, according to the forecast.

“Connectivity continues its inexorable march into home entertainment,” said the market researcher.

The most common home entertainment devices to include media connectivity are televisions and Blu-ray players.

“TV and video player connectivity is being strongly driven by streaming services such as Netflix in the United States and LOVEFiLM in the U.K.,” said ABI Research (News - Alert) practice director Jason Blackwell.

“Gaming consoles also create powerful demand for connectivity; although connected consoles are nothing new, they still rank strongly in connected home entertainment and will see increased shipment numbers through 2014,” Blackwell added.

Networked and streaming audio are also important segments of this market.

“Online radio such as provided by Pandora (News - Alert), and the new ‘cloud-based’ music streaming services from firms such as Rhapsody, Melon and Spotify are also boosting the market for networked audio,” noted Blackwell.

Other innovations such as Apple’s AirPlay (News - Alert), which allows wireless streaming of music or other audio content throughout the home, are also expected to help drive demand.

The reports covers Blu-ray players, TVs, mobile media players, game consoles, set-top boxes, media adapters, digital cameras and AV players, and its forecast includes network interfaces including shipments for HomePlug (News - Alert), MoCA, WiFi, Ethernet and UWB.