Home Networking And Hi Fi Markets Set To Grow

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Home networking penetration worldwide will grow nearly 50% from 2008 to 20010, according to a new Parks Associates white paper. The growth comes as telecommunication carriers like Telstra get set to role out new home gatway products that allow consumers to take advantage of central storage and content options. Parks have also said that adoption of networking technologies will make installed home theaters and multiroom audio systems more affordable, opening up this market to more consumers at low-to-medium income levels.

The Parks Report finds that US households with data networking solutions for broadband and file sharing, totaling 114 million at the end of 2006, will reach close to 170 million by the end of 2008, prompted in large part by service provider-led deployments of residential gateway solutions from the likes of Telstra.

Total U.S. revenues for installed home theaters and multiroom audio systems will grow from $6 billion in 2007 to more than $11 billion by 2012, and analysts forecast the number of new installations to grow 67% over the same period, from 166,000 per year in 2007 to 277,000 by 2012.

“The high-end A/V market is in a major stage of transition,” said Bill Ablondi, Director, Home Systems Research, Parks Associates. “Digital content is approaching the performance and quality of analog media, with the added flexibility only digital content offers.

 

Reduced costs coupled with advancements in wireless and powerline networking technologies are also growing the retrofit portion of the market, at a time when mid-market construction is slowing down. Soon PC-based systems from companies such as Dell, HP, and Cisco will compete for customers who traditionally purchased systems from JBL, Sony, and Yamaha.”

“Currently, the majority of high-end A/V customers are wealthy,” Ablondi said. “In addition, most installed entertainment systems are sold into new homes or homes going through a major renovation. This mix will change as builders, installers, and integrators become more accepting of ‘no-new-wires’ technologies.”

High-end Entertainment Systems: Analysis and Forecasts features surveys and research of principals in the home systems installation channel and updated forecasts for home theater, multiroom audio and media server systems, and home entertainment networks.

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