Chips with everything by 2004 – for $669m market

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The ability to interconnect devices in the home to distribute data, voice, and video will launch a booming market for networking semiconductors – worth $669 million by 2004.

The home networking chipset market is worth $116 million today, but over the next few years, semiconductors will find their way into all forms of devices, according to In-Stat Group*.

“In the future, a multitude of devices will be enabled for inter-communication,” says Mike 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, exciting end user applications will drive networking connectivity into all corners of the home.”

While all the technologies will have a place in the connected home of the future, In-Stat believes that the greatest percentage will be wireless networking connections. The RF portion of the home networking IC market will represent 10% of total units shipped. This will increase to 37% by 2004.

In-Stat also found that manufacturers are increasing the level of integration and moving to more cost-efficient process technologies. This will be true, too, 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 to their solutions. The system manufacturer will require an in-home distribution component as part of its requirements over time.

* Pass the Chips: A Home Network Chipset Market Analysis includes a discussion of technologies, market forecasts and vendors in the home networking IC market, and five-year forecasts by physical media. The report is part of In-Stat’s Residential Connectivity Service covering all aspects of the digitally-connected home.

In-Stat

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