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iSuppli: Home Networking Moves into Consumer Devices Riding Multiple Physical Interfaces (23/7/2007)

Home networking is migrating beyond its PC-centric beginnings, to incorporate a variety of consumer electronics (CE) devices, from digital TVs, to multi-room DVRs, digital media adapters, set top boxes and game consoles. The drive to incorporate IP-based connectivity in more CE and PC devices is being driven by both telecom/network operators and consumer electronics manufacturers. By the end of 2006, 76 million home LANs were deployed.

IPTV and multi-room DVR demand is driving cable, satellite and telecom operators to consider a variety of new high-speed home networking technologies, ranging from Coax (Moca, HPNA, Hana), to powerline, to WiFi (802.11n).

TV and other CE manufacturers are incorporating IP-based connectivity to enable a path to both user-created content and to new Internet-based media portals. This will be vital to Internet TV growth.

The awareness and demand for media home networking is growing among consumers. According to iSuppli's Q1 2007 consumer demand survey:

- 61% of respondents "agreed" or "strongly agreed" that they wanted the ability to connect the internet to their TV.

- Male respondents were even more favorable with a 71% "agreed" or "strongly agreed" response.

Across select computing, consumer electronics and consumer networking devices, iSuppli's research identified nearly 240 million networked devices shipped in 2006. These devices will grow to nearly 760 million networked devices by 2011. By 2011, WiFi will be the most common physical interface, followed by Cat 5, and powerline, and Coax, in relative percentage of shipments. The technology choice will be significantly influenced by which geographic region devices are shipped into.

Among the different physical interface technologies, 802.11x is projected to have the largest silicon TAM through 2011; however, we will see a sharp rise of Coax and Powerline.

iSuppli's "Home Networking: In Search of a Killer Connection" research, profiles the internet connectivity among select computing, consumer electronics and consumer networking devices. The research includes segmentation by networking technology and by geographic region, including N.A., Europe, Japan, China, RO Asia, and ROW. The report provides market sizing in equipment units, ports, as well as semiconductor revenue.

www.isuppli.com