Home Networking Devices Demand in Asia Pacific to Skyrocket, reports TMR

The three leading players in the global market for home networking devices in 2014 were TP-Link Technologies Co., Ltd., ASUSTeK Computer, Inc., and D-Link Corporation. Their lead in this market is attributed to their greater focus on constant product innovation and a wide global distribution network.

According to a recently published report by Transparency Market Research, product development and innovation are essential for home networking devices providers to stay ahead of the curve in a technology industry that evolves by the day.

Armed with a CAGR of 7.0% within a forecast period from 2015 to 2023, the global market for home networking devices is expected to reach US$14.35 bn by the end of 2016 and US$23.23 bn by the end of 2023.

Wireless solutions not only continue to be the more popular solution in home networking devices, but the disparity between wired and wireless networking device revenues is expected to grow even further. By the end of 2023, the revenue generated by wireless home networking devices is expected to reach US$14.81 bn.

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Routers have consistently been the leading home networking device components in terms of consumption. By the end of 2023, US$8.61 bn are expected to be generated by home networking device providers through the sale of routers.

By 2023, Asia Pacific is expected to generate a revenue of US$7.20 bn for its home networking devices providers. This region’s leading share in the global home networking devices market is attributed to its high population density coupled with the increasing disposable income among urban consumers.

North America is expected to lose part of its share to Asia Pacific due to an increased focus by home networking devices companies on emerging economies. North America, nonetheless, will continue to be a key contributor to the global demand for home networking devices.

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High Demand for Home Connectivity Likely to Boost Need for Home Networking Devices

“More and more consumers are looking towards wirelessly connected devices operating within their homes. The scope of application of connected devices is increasing day by day, and so is the bandwidth that the devices can communicate on,” states a TMR analyst.

Connected devices in the home are more or less concerned with home appliances, wearable devices, healthcare monitors, and mobile devices. The communication between these devices is expected to improve even further through the use of innovative communication technologies such as ZigBee and Z-Wave.

Portable Networking Devices Challenge Home Networking Devices

The sales of home networking devices are expected to receive a noticeable setback over the coming years due to the proliferation of portable networking devices. IT giants are planning to offer portable router solutions, such as the OnHub provided by Google, Inc. The growing demand for these devices is expected to hinder the demand for home networking devices over the coming years.

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The threat of portable networking devices is low at the moment, due to this technology being in a relatively nascent stage of development. As time progresses, this threat is likely to increase.

“A long-term solution that home networking devices providers can adopt is to give home networking solutions as a complete package within connected homes. This can be a comprehensive and end-to-end package that directly cater to end-user requirements,” adds the analyst.

Key Takeaways:

Wireless home networking devices expected to accrue US$14.81 bn in revenue by 2023.
Routers expected to generate US$8.61 bn in revenue by 2023.
Asia Pacific expected to generate US$7.20 bn in revenue from home networking devices by 2023.

Key segments of the Global Home Networking Device Market

Home Networking Device Market

By Solution

Wired
- Network line
- Powerline
Wireless
- Wi-Fi
- ZigBee and Z-Wave

By Component

Hub and Switch
Router
Extender
Adapter
Wireless Access Point (WAP)

By Geography

North America
Europe
Asia Pacific
Middle East and Africa
Latin America

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