Silicon home networking sector set for boom

By SUSAN RUSH
From CED Broadband Direct, August 12, 2002

Consumers are finally jumping on the home networking bandwagon, news that bodes well for the home networking silicon market. The sector is expected to grow to a $1.4 billion industry by 2006, one analysis says.

The number of worldwide home networks is projected to be at about 16.6 million this year, according to In-Stat/MDR, a sister company to CED. The need for these networks will in turn increase demand for technology that enables disparate devices to be interconnected. Silicon technologies, including the communication processor and PHY layer, will benefit from this demand, growing from a $261 million industry in 2001 to a $1.4 billion industry by 2006, In-Stat says.

Vendors are looking to system-on-a-chip products to assist in the integration of LAN interfaces and Media Access Control layers as they look to integrate wireless LAN, Ethernet and other LAN media connections into their devices.

The "Chips Ahoy: Home Networking Chipsets Set Sail for a Prosperous Future" report also found that the number of silicon devices in home networks will grow from 20.5 million this year to more than 167 million in 2006.

The goal of the report is to "demystify" the home networking silicon market by explaining the different PHY standards and technologies. The report also looks at the various market segment players, including PHY, communications processor and access silicon.