Home Networking Market Enjoys Solid Growth: VendorsLearn Lessons From Foraging New Market.

Business Editors

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--July 24, 2000

The home connectivity market place continued its growth into 2000, as the market for home networking gear grew to $58 million in the first quarter, according to Cahners In-Stat Group.

The high-tech market

research firm reports that the market was driven largely by the continued momentum of wireless shipments, while phoneline-based equipment slowed due to expected quarterly cyclicality and an overstocked channel. "Vendors in the home networking equipment industry are pioneers, figuring out where and how to get these products to consumers," according to Mike Wolf, Manager of In-Stat's Residential and Enterprise Communications Service. "Because much of what they are doing has never been done before, this process will ultimately take time and the underlying technology that is being delivered is only part of the equation."

While the number of overall nodes shipped dropped in the first quarter of the year, overall revenue was up by nearly 10% as the mix of products shifted to higher priced wireless equipment. Vendors such as Lucent, Proxim and SOHOware benefited from this shift, while phoneline-based vendors such as Intel and 3Com readied wireless products. According to In-Stat, the dynamics of the market will continue to shift due to the emergence of the HomePlug powerline networking standard group, which will create further competition among the different alternatives for connectivity in the home. In addition, the channel for home networking products continues to evolve and the battle between PC and Retail channels continues.

The report, "Summer 2000 Home Networking Market Update", No. RC0006HN, is part of Cahners In-Stat Group's Residential Connectivity Service, which covers all aspects of the digitally connected home. As part of this leading service, In-Stat publishes quarterly tactical market updates that give the reader up-to-date information on this rapidly developing market. This update includes market shares for the different home networking technologies as well as quarterly rolling forecasts and an analysis of the different channels for the home networking market in 2000. To purchase this report or for additional information, please visit http://www.instat.com/catalog/cat-rc.htm#rc0006hn or call Courtney McEuen at 480/609-4533; cmceuen@instat.com. The report price is $2,995 USD.

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.