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Home Networking
Market Surges on Strength of Wireless
Total In-Home Network Market to Reach $585 Million
in 2001
SCOTTSDALE, Ariz., April 4, 2001
- The in-home networking equipment market showed strong growth in
2000, jumping by 97% in total sales to end the year at $290 million,
according to Cahners In-Stat Group (http://www.instat.com).
The high-tech market research firm finds that this strong growth
was driven by the surprising uptake of wireless home networking
gear by end users.
"Wireless was the story of 2000 for
the home networking industry. Both 802.11b and Home RF based networking
hardware saw brisk sales growth quarter to quarter, with the fourth
quarter of 2000 showing very impressive growth numbers," says Mike
Wolf, Director of Enterprise and Residential Communications
at In-Stat. "Our research has shown that wireless is very intuitive
to end-users, in that they embrace the benefits of wireless networking
for such applications as broadband Internet sharing.
Both the wireless and phoneline markets
had fierce competition among the different market participants in
2000. Agere Systems (formerly part of Lucent) saw its Orinoco wireless
LAN product garner nearly 37% of annual wireless home networking
end-use sales. Proxim totaled 25% of total wireless home networking
revenues in 2000 on its lower priced Symphony product line. Intel
dominated the phoneline home networking space with 53% of all connections.
"While the wireless and phoneline have been the primary focus among
the different media transport layers for home networking the past
couple of years, many continue to underestimate the continued strength
of good old Ethernet," says Wolf. "Because of its familiarity, field-tested
reliability and low cost, Ethernet continues to see strong uptake
in homes as consumers move to install low-cost PC to PC networks."
Cahners In-Stat expects the home networking
market to continue to see strong growth as:
- Vendors release second-generation
products and wireless networking products continue to drop in
price.
- Consumers beyond the early adopters
adopt broadband and begin to see the benefits of home connectivity.
- Consumer ISPs such as AOL and Earthlink
push new home network strategies.
- Windows XP for Consumers (with its
strong focus on networking connectivity and broadband) is released
in fourth quarter 2001 and drives a new PC sales cycle.
The report, "Are
We Connected Yet?: 2000 Home Network Market Shares and 2001 Preview",
(#RC0104HN), is part of the Cahners In-Stat Group's industry leading
Residential Connectivity Service,
which covers all aspects of the digitally connected home. This market
update includes market shares for wireless and phoneline technologies
as well as quarterly rolling forecasts through 2001 for all technologies.
Also included are breakdowns of home network shipments by channel.
To purchase this report, or for more information, please contact
Courtney McEuen at 480.609.4533;
cmceuen@instat.com.
Cahners In-Stat Group (http://www.instat.com)
covers the full spectrum of digital communications research from
vendor to end-user, providing the analysis and perspective that
allows technology vendors and service providers worldwide to make
more informed business decisions.
For more information,
contact:
Mike
Wolf, Director- Enterprise & Residential Communications
Services
Phone: 206.368.5553
Email: mikew@instat.com
Kirsten Skedd,
Marketing Manager
Phone: 480.609.4534
Email: kskedd@instat.com
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