Broadband Gateways Hit $1.17B in Q2

Broadband gateway revenue hits $1.17B in 2Q04 as home networking gains momentum, says Infonetics

September 15, 2004

2 Min Read

LONDON -- Worldwide broadband modem, router, and gateway revenue increased 5% to $1.17 billion and units increased 15% from 1Q04 to 2Q04, according to Infonetics Research’s Broadband Gateway biannual worldwide market share and forecast report, released today. Revenue will grow to $4.8 billion and units will jump 141% between 2003 and 2007. Overall worldwide growth is being driven by widespread broadband adoption and falling broadband gateway product prices.

“The broadband gateway market is a significant signpost along the road to converged home networking, media, and content services, and represents an opportunity for consumer electronics players to address the home network market,” said Infonetics Research’s Richard Webb, lead analyst of the report. “We are already seeing increased convergence between home entertainment and home networking, and this will continue to drive innovation and growth in this market for the next few years. Vendors must understand both parts of the equation to succeed.”

2Q04 Market Highlights

  • It’s a very tight race for market share, with D-Link taking the lead for overall revenue, followed very closely by Linksys and Thomson, who are tied for second, and Siemens and NETGEAR, who are tied for third, with Motorola right behind them

  • ADSL CPE accounts for close to half of total revenue and cable CPE for just over a quarter

  • Wireless gateways continue to grow and make up a larger portion of total revenue, while wired gateways remain flat

  • Secure wired and wireless products are growing much more quickly than standard products and will continue to do so as many broadband gateway vendors begin adding security features into existing and new products

  • ADSL modems, routers, and gateways are now frequently being bundled into DSL subscription packages for little or no cost to the consumer, significantly stimulating demand for ADSL CPE

  • Vendors in the cable CPE market are beginning to deploy DOCSIS 2.0 equipment to enable triple-play services for residential subscribers; this bundling of data, voice, and video services are now key drivers for broadband cable subscriber growth and product success for cable CPE

  • North America accounts for more than a third of total revenue; EMEA is next, also with more than a third, followed by Asia Pacific with close to a quarter, and CALA with 5%

The Broadband Gateway market share and forecast report tracks wired and wireless gateways, standard and secure gateways, and ADSL and cable modems, routers, and IADs. The report includes current and forecasted market size data, current market share data, fundamental drivers of the market, rates at which market segments are growing, market trends and developments, and analysis of all geographic regions.

Companies tracked in this service include 2Wire, 3Com, ADC,ADTRAN, Allied Telesyn, Ambit, Arris, Avaya, Belkin, Buffalo, Cisco, ComTrend, D-Link, Larscom, Linksys, Lucent, Microsoft, Motorola, NETGEAR, Netopia, Proxim, Samsung, Scientific Atlanta, Siemens, SMC, Sumitomo, Terayon, Thomson, Toshiba, US Robotics, Verilink, Westell, Zhone, ZyXEL, and others.

Infonetics Research Inc.

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