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U.S. Home Networking Markets
Frost & Sullivan, Jan 2002
Technological Developments Drive Sales in Home Internet Markets
Undergoing technological developments as dramatic as its growth, the home
networking market was one of the brightest spots in the personal computer
(PC) industry in 2001. A continued increase in the number of households with
broadband Internet access and the need to share access among residents will
continue to drive the market over the long-term.
This Frost & Sullivan study offers a comprehensive examination of the home
networking markets within the United States. By offering strategic analyses
and alerting companies to emerging trends, this research provides firms the
information necessary to capitalize on this burgeoning field.
Pre-Wired Homes Offer Key Growth Opportunity
While the recent economic downturn may result in a slight drop in the
number of new homes being constructed, buyers are expressing greater
interest in houses that are pre-wired for Internet connectivity. As a result, the
home building industry presents a potentially lucrative opportunity for
Internet networking hardware.
With over 50 percent of consumers expressing interest in a $5000 wiring
system for a new home, and approximately 34 percent of builders now offer-ing
such systems, the market is relatively robust for residential gateways, says
the author of this study.
Lack of Consumer Awareness Challenges Emerging Industry
Networking technology recently entered the consumer market, and its
offerings are not fully understood by the typical home PC-user. In addition,
consumers are further confused by conflicting information disseminated
by competitors.
The challenge is how to educate consumers about networking and bring their
particular message to the intended audience,” states the analyst. “This
obstacle is currently strong and expected to continue given that the costs of a
marketing campaign are probably too much to be borne by any one company
or group.
This Frost & Sullivan research offers a focused analysis of the U.S. home
networking markets, enabling readers to fully evaluate the industry’s potential
and make informed investment decisions.
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