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Media Networking Driving Home Network Chip Market to $2.3 Billion Reports In-Stat/MDR

Posted on: Monday, 13 September 2004, 06:00 CDT

Multimedia networking will drive the home networking semiconductor market over the next five years, as revenues grow 12% per year to reach more than $2.3 billion in 2008, according to In-Stat/MDR (http://www.instat.com). The high-tech market research firm reports that this growth will come despite decreasing per-unit prices, as overall unit momentum through 2008 will create a "rising tide" for the connected home silicon market.

"Delivering video and audio entertainment over the network is becoming the main focus of product development as well as end users," said Mike Wolf, a principal analyst with In-Stat/MDR. "Ethernet, new wireless networking standards such as 802.11n, and new media backbone technologies like MoCA and HomePlug AV, will become standard in many of the new media center and media hub designs hitting the market in the next few years. Entertainment servers in the home will also drive the demand for network-oriented media processing engines, which In-Stat/MDR believes will be a $700 million market by 2008."

In-Stat/MDR also projects the following during the 2004 to 2008 forecast period:

-- Ethernet and wireless LAN will represent the lion's share of the PHY market, accounting for more than 90% of all physical layer connections shipped in 2008.

-- Residential gateways and other home networking devices will help drive the communications processor market, as this overall segment of the market hits $338 million by the end of the forecast.

-- Multiroom PVR and other entertainment networking applications will boost both coax (MoCA) and powerline networking (HomePlug AV) to more than 23 million connections shipped in 2008.

-- Wireless LAN ICs will be propelled by 802.11g over next two years, which will account for 78% of connections in 2006. 802.11n will begin shipments in 2006, and as the first technology that will enable wireless video networking for the majority of end users, strong demand will translate to this variant of Wi-Fi. It will account for 55% of the consumer WLAN IC market by the end of the forecast.

The report, "Home Network IC 2004: Media Networking Boosts A Strong Market" (#IN0401431RC), includes forecasts for home networking ICs and revenues, including separate forecasts for the PHY, comm processor and networked media processor. The PHY forecasts are broken down between Ethernet, WLAN, MoCA, HomePlug, HomePNA and 1394. WLAN forecasts are broken down into different protocols, including 802.11n. To purchase this report, or for more information, please visit: http://www.instat.com/catalog/Ncatalogue.asp?id=99 or contact Courtney McEuen at 480-483-4454; cmceuen@reedbusiness.com. The report price is $3,495.

About In-Stat/MDR

In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider. With more than 38,000 employees worldwide, Reed Elsevier operates in the science & medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.

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