Robust Broadband Internet And Home Networking Markets Point To Strong Residential Gateway Growth

6-Dec-00

Recent forecasts from Parks Associates predict robust growth in both home networking and broadband services, two markets that have a strong influence on the deployment of residential gateways. This relationship will help to create a strong market for the residential gateway (RG), the subject of Parks Associates' ""Residential Gateway Report (Third Edition),"" because the need for a gateway solution increases in conjunction with the escalating number of devices and services in the home. According to Parks Associates, revenues from broadband Internet services and home networking will be $2.4 billion and $1.4 billion, respectively, by the year 2000. By 2004, broadband Internet revenues will be approximately $9.4 billion, an increase of almost 300 percent, and home networking revenues will be $5.6 billion, an increase of exactly 300 percent from the expected revenues for the year 2000. These factors indicate a strong market for residential gateways in the near future.""This projected growth in broadband Internet and home networking revenues is phenomenal,"" said Ian Bryant, Research Analyst for Parks Associates. ""With such tremendous growth occurring over the next four years, broadband Internet and home networking will become fairly standard in the home. This increased adoption will act as a driver for residential gateway development as technology management becomes a necessity for the average consumer. To take advantage of all the applications that broadband and home networking have to offer in the easiest and most user-friendly manner, consumers will have to integrate a residential gateway into the system.""The gateway solution, according to Parks Associates' ""Residential Gateway Report (Third Edition),"" increases the overall value and functionality of the in-home network. This device can enable a number of services, including shared high-speed Internet access, digital entertainment (digital and interactive television, video-on-demand and MP3 streaming audio), interactive gaming, shared peripherals (printers, scanners, etc.), packet-switched voice (VoIP, VoDSL and VoCable), remote energy management and home automation, to name but a few. Additionally, the RG has many of the features usually found on more sophisticated enterprise devices, such as firewall protection, static and dynamic routing, remote configuration and upgradability, and VPN. In its most developed form, a residential gateway has the ability to interface with any wide-area network, regardless of the media, and deliver services over any local area network in the home.Parks Associates published the first residential gateway report in 1997 and released the third edition in November 2000. Residential Gateway Report (Third Edition) examines the residential gateway market, with topics including the history, definition, and classification of residential gateways, drivers and inhibitors to residential gateway development, specific players in the market, industry forecasts, and views from the industry. For more information on this study, contact Steve Harvey at 972 490 1113 or harvey@parksassociates.com.For more information about Parks Associates, visit www.parksassociates.com.

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