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Media Networking to Drive Home Network Chip Market

Posted on: Tuesday, 14 September 2004, 06:00 CDT

Media networking to drive home network chip market

LOS ANGELES, Sept. 13 (Xinhua) -- Multimedia networking will drive the home networking chip market over the next five years, as revenues grow 12 percent per year, according to a study released Monday by In-Stat/MDR.

In-Stat/MDR, a high-tech market research firm, said networking chip market is expected to reach 2.3 billion US dollars in 2008, 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," In-Stat/MDR said in a statement.

The market research firm believes that Ethernet, new wireless networking standards such as 802.11n and new media backbone technologies 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, creating a 700 million dollar market by 2008, In-Stat/MDR said.

In-Stat/MDR also projects that Ethernet and wireless LAN will represent the lion's share of the market, accounting for over 90 percent of all physical layer connections shipped in 2008.

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