Home Networking and Related Hardware - US

Home networking purchases are driven by demographics, technological advances, convenience, and the increased number of people working at home. This report provides detailed analysis of the home networking market, as well as consumer attitudes and behavior based on Mintel’s unique research.

In-depth discussion of important issues in home networking includes:

• America’s youth and students will become early adopters of home networking technology and will help drive growth in the near future. Hispanics, Asians and Pacific Islanders are especially interested in home networking, especially relating to entertainment.
• Wireless living has developed to include a wide range of products and services for communication, computing, and entertainment. Wireless access is even commonplace in retail establishments.
• Availability of entertainment content online will drive demand for more reliable home networks. This demand will push manufacturers and service providers to establish industry standards and products that meet current consumer needs.
• Consumers want home networking systems that are easy to install and maintain, and many find the task challenging. Males and consumers aged 18-24 are the most comfortable with the new technologies, while women express a need for more assistance.

Additionally, the report explores how consumers are networking their homes (how many devices they have networked, in which rooms, and what types of service providers they are using), and the direction in which the home networking market is heading.

As defined in this report, a home network is used to connect at least one PC to another device in the home for sharing files or printers, and a single connection to the Internet. Products covered include home computers, printers, modems, routers, Internet service providers, and entertainment electronics.

Scope and Themes

What you need to know

In-depth analysis

Definition and methodology

Abbreviations & terms

Abbreviations

Terms

Executive Summary

Snapshot of the market

Principal factors driving the home networking market

More consumers are connected and networked

Age and gender determine how networks are used and maintained

Many devices are connected to the network

What the future holds

Market Drivers

Demographic considerations

Figure 1: Population by age, 2002-12

Figure 2: Number of children in households, 2001-06

Networking and wireless now a part of daily life everywhere

Figure 3: Ownership of, or subscription to, wireless products/services, by age, June 2006

Computer-based entertainment content-sharing drives demand for home networks

Figure 4: Most popular websites, October 2007

The quest for convergence drives wireless living

The home office and the virtual work force

Technological developments

Figure 5: Unit sales and average wholesale price of personal computers, 2001-07

Market Size and Trends

Figure 6: Sales of home networking-related products, at current and constant wholesale prices, 2002-07

Figure 7: Sales of home networking-related products, at current and constant wholesale prices, 2002-07

Wireless versus wired

How Americans are networking

Triple play

Sales by segment

Figure 8: Sales of home networking equipment, segmented by type, at wholesale prices 2005 & 2007

Figure 9: Sales of Internet services, at current and constant prices, 2005 and 2007

ISPs

Figure 10: Sales of Internet services, at current and constant prices, 2003-07

Figure 11: Number of households with Internet subscriptions, 2003-07

Broadband versus dial-up

Figure 12: Internet households, by type of service, 2003-07

Cable versus broadband

Figure 13: Households connecting to the Internet by cable, 2006

Home computers

Figure 14: Sales of home computers, at current and constant wholesale prices, 2002-07

Home printers

Figure 15: Sales of home printers, at current and constant prices, 2002-07

Modems and routers

Figure 16: Sales of modems and routers, at current and constant prices, 2002-07

Routers

CE devices for entertainment

Figure 17: Sales of CE devices for entertainment, at current and constant prices, 2002-07

Company Profiles

Consumer preferences

Figure 18: Wireless router brand owned or rented, October 2007

Figure 19: Wireless router brand owned or rented, by age, October 2007

Top companies

Cisco-Linksys

D-Link

NetGear

Belkin

Buffalo

Advertising and Promotion

Overview

Retailers

Partners

Company advertising

ISPs

TV ad highlights

Cisco Systems

Figure 20: Cisco Systems, TV ad, 2007

The Consumer

Summary

Internet services

Figure 21: Type of home Internet service, by age, October 2007

Figure 22: Type of home Internet service, by income, October 2007

Figure 23: Type of home Internet service, by race and ethnicity, October 2007

Who has a home network

Figure 24: Has a home network, October 2007

Figure 25: Has a home network, by age, October 2007

Figure 26: Has a home network, by race and ethnicity, October 2007

Figure 27: Has a home network, by household size, October 2007

Figure 28: Has a home network, by presence of children in household, October 2007

Wired or wireless?

Figure 29: Type of home network connection, by age, October 2007

Figure 30: Type of home network connection, by household income, October 2007

Setting up the network

Figure 31: Involvement in setting up home network, by gender, October 2007

Figure 32: Involvement in setting up home network, by employment status, October 2007

Dealing with network problems

Figure 33: Handling home network problems, by gender, October 2007

Functions of the current or ideal network

Figure 34: Doing or would like to do with home network, by age, October 2007

Figure 35: Doing or would like to do with home network, by race and ethnicity, October 2007

The number of devices connected

Figure 36: Devices connected to home network, by age, October 2007

Figure 37: Devices connected to home network, by age, October 2007

Figure 38: Devices connected to home network, by age, October 2007

Figure 39: Devices connected to home network, by household income, October 2007

Figure 40: Devices connected to home network, by household income, October 2007

Figure 41: Devices connected to home network, by household income, October 2007

Figure 42: Devices connected to home network, by race and ethnicity, October 2007

Figure 43: Devices connected to home network, by race and ethnicity, October 2007

Figure 44: Devices connected to home network, by race and ethnicity, October 2007

Figure 45: Devices connected to home network, by household size, October 2007

Figure 46: Devices connected to home network, by household size, October 2007

Figure 47: Devices connected to home network, by household size, October 2007

Figure 48: Devices connected to home network, by household size, October 2007

Rooms of choice

Figure 49: Location of computing devices in the home, October 2007

Figure 50: Location of entertainment devices in the home, October 2007

Wireless need replacement intentions

Figure 51: Plan on replacing desktop computer with device with built-in wireless technology, October 2007

Figure 52: Plans to replace printer with device with built-in wireless technology, October 2007

Figure 53: Has replaced wireless router in last 12 months, October 2007

Future Trends and Market Forecast

The demographics of home networking

Figure 54: Population by age, 2002-12

Figure 55: Population, by race and Hispanic origin, 2002-12

Figure 56: Median household income by race and Hispanic origin of householder, 2006

Trends driving home networking

Trends adversely affecting the growth of home networking

Figure 57: Concerns over security, February 2007

A possible showdown: home networks versus cellular modems

The establishment of standards

Figure 58: Companies which have achieved 802.11n draft 2.0 certifications, November 2007

Providers

Market forecast

Home networking market

Figure 59: Forecast total U.S. retail sales of home networking-related products, at current and constant prices, 2007-12

Figure 60: Forecast U.S. retail sales of home networking-related products, at current and constant prices, 2007-12

Home computers

Figure 61: Forecast U.S. sales of home computers, at current and constant prices, 2007-12

Home printers

Figure 62: Forecast U.S. sales of home printers, at current and constant prices, 2007-12

Modems and routers

Figure 63: Forecast U.S. sales of modems and routers, at current and constant prices, 2007-12

CE devices for entertainment

Figure 64: Forecast U.S. sales of CE devices for entertainment, at current and constant prices, 2007-12

Forecast factors

Appendix: Trade Associations