Home Networking Market Finishes 1999 With A Bang!

In-Stat Research Reveals State Of Market And Identifies Early Leaders

4-Apr-00

The rapidly growing home networking equipment market reached $48 million for fourth quarter, 1999, according to Cahners In-Stat Group, a high-tech market research firm. The market, which is still in its infancy, was propelled by new technology such as higher speed phoneline based networking equipment and the emergence of 802.11b based, 11Mbps wireless networking technology for the home.The market is quickly moving from one that is home office oriented to one where the consumer has a choice of products, using emerging technologies that take advantage of the unique conditions of the home. ""Without a doubt, this market will be extremely dynamic throughout 2000 as new products come to market and channel strategies are ironed out,"" says Mike Wolf, Manager of LAN and Enterprise Services for In-Stat. ""However, we expect that demand will take time to build, given the need for education and awareness in both the vendor and service provider community."" In-Stat has also found that:- The market grew 49 percent sequentially in fourth quarter 1999, due to the emergence of new technologies and the entrance of new vendors into the market place. - 3Com made a strong debut in the 10Mbps phoneline networking space, garnering a 37.4 percent unit market share in fourth quarter 1999 - Apple's Airport product line, based on Lucent wireless LAN technology, garnered 38.8 percent of the market, coming in at a close second to wireless home networking leader, Proxim. In-Stat expects that the year 2000 will also be a big year for the emerging residential gateway marketplace. ""This new device class has received enormous attention from the service provider community, as they look to add value added services to their baseline broadband connections,"" said Wolf. ""This has resulted in new products from a variety of vendors that are moving to deployment late this year.""The report, ""Spring 2000 Home Networking Market Update"" (#RC00-02HN), is part of In-Stat's new Residential Connectivity Service which covers all aspects of the digitally connected home. As part of this cutting edge service, In-Stat publishes quarterly tactical market updates that give the reader up-to-date information on this rapidly developing market. This report includes segmentations for the different home networking technologies, four quarter rolling forecasts, vendor market shares, as well as an analysis of the different channels for the home networking market in fourth quarter 1999.Cahners In-Stat Group (http://www.instat.com) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.

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