Broadband CPE Revenue Hits $4.2BBroadband CPE Revenue Hits $4.2B

Broadband modem, router, and gateway revenue hit $4.2B and unit shipments reached 47.5M in 2003, according to Infonetics Research

March 17, 2004

3 Min Read

LONDON -- Worldwide broadband modem, router, and gateway revenue reached $4.2 billion and units hit 47.5 million in 2003, with revenue expected to grow at a respectable pace through 2007 and units expected to grow even quicker, according to Infonetics Research's Broadband Gateway biannual worldwide market share and forecast service.

"Broadband is growing fast and CPE is shifting in the right direction in large volumes from basic wired to secured wireless," said Infonetics Research's Richard Webb, lead analyst of the report. "Inexpensive, highly integrated chips are allowing broadband gateway vendors to add security features into existing and new products without passing along much additional cost to the end-user. This is driving secure wired and wireless products to grow much more quickly than standard products. The secure broadband gateway market in particular is growing soundly due to more and more companies rolling out broadband VPNs using DSL or cable to connect remote offices and telecommuters to their corporate networks in a secure way."

"Meanwhile, consumers are looking to squeeze more and more out of their $30/month broadband connections through new services to the home such as video on demand, online education, e-commerce, messaging services, broadcast TV, streaming video, and 3D gaming, all of which are enabled by broadband gateways. These new applications will help sustain growth in the consumer market after the initial opportunity of Internet connection sharing is saturated."

Total Broadband Gateway, Modem, and Router Market Highlights

  • Linksys leads overall revenue market share in 4Q03, ahead of a cluster of vendors including Motorola, Siemens, NETGEAR, and ZyXEL; Linksys holds its lead because of its strong SOHO/consumer presence in North America and a wide range of products; Motorola's and Siemens' positions are merited through their leading positions in cable modem and ADSL modem sales, respectively

  • Worldwide broadband modem, router, and gateway revenue reached $4.2 billion, and units hit 47.5 million in 2003, with revenue expected to grow at a respectable pace through 2007 and units expected to grow even quicker



Broadband Gateway Market Highlights

  • Worldwide broadband gateway revenue grew 10% between 3Q03 and 4Q03, while units fell 12%, indicating a higher ASP now pervading the market as security and wireless features become popular

  • Over the next four quarters, revenue will remain relatively flat and units will grow 24%; between 2003 and 2007, units will nearly double and revenue will increase moderately

  • Wired gateways account for 47.5% and wireless gateways for 52.5% of total broadband gateway revenue in 2003; by 2007, the gap will widen to 44.5% and 55.5% respectively

  • Standard gateways account for 82% and secure gateways for 18% of total broadband gateway revenue in 2003, but by 2007, the trend will reverse to 36% and 64% respectively as security features become increasingly regular and expected features



ADSL CPE Market Highlights

  • Thomson took the lead over Siemens in 4Q03 ADSL CPE revenue market share, though just barely, having had a great quarter with unexpectedly high volumes of ADSL modem shipments

  • Worldwide ADSL CPE revenue hit $1.8 billion in 2003, and units hit 19.2 million



Cable CPE Market Highlights

  • Motorola is the number-one market leader for cable CPE revenue, followed by Chinese vendor Ambit, and then Terayon, Thomson, Scientific Atlanta, and Toshiba; Ambit has a strong number-two lead because of its strength in the fast-growing Chinese market

  • Worldwide cable CPE revenue hit $956.8 million in 2003; units hit 11.9 million



Infonetics Research Inc.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like