Rapid Growth in Wireless Home Networking Predicted

By Joseph Schwartz

The first personal computers were a lot like islands: They sat isolated until their owners fed them information on floppy disks.Then came the development and widespread acceptance of the Web.

Web-based communication has added so much value to computers that few machines today are sold without built-in Web connectivity.Within a few years, the same should hold true for wireless interconnect capability, according to Cahners In-Stat Group, a research firm specializing in high-tech marketing issues and trends.

"In the future, a multitude of devices will be enabled for inter-communication," predicts Michael Wolf, manager of In-Stat's Voice and Data Service."From basic broadband Internet sharing to the need to distribute digital audio such as MP3 files, there will be exciting and extremely viable end-user applications that will drive the addition of networking connectivity into all corners of the home."

Several manufacturers already offer wireless networking accessories such as Apple Computer's AirPort or 3Com's AirConnect.The continued demand for inter-device connections and the associated technology will boost the market for home networking chipsets from $116 million today to $669 million by 2004.Eventually, wireless networking connections will be the most common type of connection, according to In-Stat.

Cahners In-Stat reached these conclusions in its recent report, "Pass the Chips: A Home Network Chipset Market Analysis." This report analyzes the impact of wireless intercommunication on chipset manufacturers.In this report, In-Stat also predicts:

  • Price points on wireless component technology are declining as manufacturers increase the level of integration and move to more cost-efficient process technologies.This will also be true for next generation technologies, as vendors begin to release technology solutions for RF networking in the higher speed 5GHz spectrum.
  • Companies that are providing access silicon solutions in DSL, Cable or wireless will need to consider adding home networking functionality to their solutions.The system manufacturer will begin to require an in-home distribution component as part of their requirements over time.
Cahners' report, "Pass the Chips: A Home Network Chipset Market Analysis", also includes detailed discussions of the home networking IC market, plus five-year forecasts by physical media.This report is part of Cahners In-Stat Group's Residential Connectivity Service covering all aspects of the digitally connected home.

For more information about this report, visit: In-Stat Research

For additional information about high-tech market trends, visit: Cahners In-Stat

Published Tuesday, January 30th, 2001

Written by Joseph Schwartz

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