Analyst Predicts Increase Sale in Home Gateways

  • Posted on: 20 August 2009
  • By: Patrick Oliphant

Home GatewayLight Reading has projected an increase in Home Gateway over the next 24 months.  The report cited the increase convergence of home appliance and the need for a digital lifestyle.  The increase demand for home gateway is also down to its modern architecture and versatility over the standard home modem.  With more and more new digital home solution and the popularity of VoIP technology is also fuelling the demand for home gateways. The author sees this increase as an opportunity for service providers (SP).

According to Denise Culver the analyst and author of the report (Home Gateways: Door Opens for SPs to Realize Value-Adds) “there is a growing shift away from traditional modems and routers towards home gateways” and that A home gateway is the key convergence device at the heart of the digital home - an environment in which personal computers, TV, video, music, telephony, and automated home systems all converge to make daily life more simple and fun.

We at have seen product release from Ericsson (see Ericsson Enters Domestic Market with Connected Home Gateway) and Motorola (see Motorola Introduce Four New Line of Wireless Cable Modem Gateway Systems) and Netgear (see Netgear Released Digital Media Player: Digital Entertainer Elite) just to name a few.

Culvers says "One bright spot in the VoIP market continues to be the fast-growing digital home gateway segment, as more telcos use them to bundle broadband services," she notes. "Most analysts agree that broadband connections that deliver converged services will grow at a healthy clip from 2010 to 2013."

5 Key findings of the report were:

  • Home gateways no longer are easily defined or contained. Vendors see them replacing the set-top box entirely for media and Web applications on the TV.
  • While several apps and services are made possible through home gateways, there is no dominant killer app beyond wireless home networking.
  • While modem shipments remain strong, home gateways become more prevalent with their ability to become the primary interface between service providers and end users.
  • Home gateway vendors agree they need to develop more successful business models and increase ROI.
  • One trend to expect in home gateways is more requests for customized products, including external design and firmware.

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