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February 17, 2009

Intelligent Broadband Gateways Set to Dominate Home Networking CPEs

By Nitya Prashant, TMCnet Contributor

A new study from ABI Research on residential gateways predicts that intelligent broadband gateways are likely to generate double-digit annual growth results over the 6-year forecast period ending in 2013.

ABI Research (News - Alert) Industry Analyst Serene Fong notes that, “Intelligent broadband gateways will gain popularity and account for more than 40 percent of home networking CPE shipments by 2012. Basic equipment with limited intelligence and management capabilities currently dominates more than half of the market, but it will soon be phased out as full-fledged intelligent multimedia boxes with high throughput take over.”

Entitled, “Global Residential Gateways,” the ABI Research study analyzes the changing nature of gateway activities around the globe. The study shows that service providers can no longer refuse to be part of a home’s internal network, especially with the devices that consumers utilize.

The key factors contributing to this change are the advent of broadband, increased competition and the consumer use of multiple devices in the home network to create a richer media experience. 

The study shows that the Internet and home broadband connections have become the primary source of content for consumers. Pointing out that broadband households are more likely to adopt home networks, the study forecasts that the number of households with data networking and gateway solutions will continue to grow.

With regard to pricing, Fong explains that home gateways are more expensive as compared to other available markets and have to be purchased separately or as a hardware upgrade. Gateway (News - Alert) vendors are thus at a disadvantage in this price-sensitive market. 

According to the study, with content being shared out among multiple devices, service providers now have to create new revenue opportunities by offering value-added services while vendors need to provide user-friendly and affordable equipment to consumers. 

Fong states, “Nevertheless, if it is of any consolation to vendors, future gateway solution deployments are expected to be catalyzed largely by service providers.”
This study addresses leading broadband gateway solutions offered by service carriers, IC and consumer premises equipment (CPE) vendors. It also discusses regional growth patterns with regard to leading broadband technologies, subscriber penetration and current and future market dynamics. Detailed market trend data and forecast information for key regions around the globe are provided where available.

The study forms part the company’s Home Networking Research Service subscription Research Service, which also includes other Research Reports, Research Briefs, Market Data, Online Databases, ABI Insights, the ABI Vendor Matrix, and analyst inquiry support.

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Nitya Prashant is a contributing editor for TMCnet. To read more of Nitya's articles, please visit her columnist page.

Edited by Michelle Robart

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