Global Home Networking Device Market: Snapshot

The demand for connectivity in a home is only expected to increase over time and is further supplemented by the increasing bandwidths offered by service providers. Both factors are expected to play a crucial role in the development of home networking devices. Wireless connected home appliances, wearable devices, mobile devices, and healthcare monitors form the bulk of all home networking devices that are in high demand. This will be the primary driver for the proliferation of home networking devices.

Another driver expected to have a greater impact in the near future is the trend of product upgrade. Connected devices are improving in hardware specifications at a very fast pace. Additionally, the improvements in connectivity networks and bandwidth, such as the recent upgrade to the 802.11ac protocol, have promoted the trend of replacing devices at a faster rate.

Home networking devices, however, face a serious challenge from the emerging portable router solutions being offered. The threat of portable networking solutions is low at the moment, but is expected to grow stronger as its technology improves over time.

The global market for home networking devices is expected to expand at a highly promising CAGR of 7.0% from 2015 to 2023 in terms of revenue. This revenue is expected to reach US$14.35 bn by the end of 2016 and US$23.23 bn by 2023.

APAC Dominance in Home Networking Devices to Continue

Asia Pacific has shown a meteoric rise in its usage of connected devices over the recent past. As of 2016 it is the leading consumer region for home networking devices and is expected to continue leading in this market till 2023. By the end of 2023, the Asia Pacific demand for home networking devices is expected to reach 451.6 mn units. Two reasons responsible for this region’s high volume of home networking devices consumption is its high population density pockets in the urban areas of emerging economies such as India and China. Additionally, these consumers are becoming increasingly capable of purchasing better quality devices due to a rising amount of disposable income.

Although a large part of the Asia Pacific consumer base still prefers wired networks, this is expected to change quickly over the coming years. Meanwhile, North America is expected to lose market share in home networking devices, not due to a decline in demand, but due to the penetration of prominent players in other regions. North America will continue to be a key provider of demand for home networking devices, but not on the same scale as Asia Pacific.

Wireless Networks to Gain Prominence Over Wired Networks in all Regions

Till recent times, a large number of consumers in emerging economies still preferred wired networks to wireless ones, owing to their higher cost. This is expected to change as wireless networking gets cheaper over time. By the end of 2023, wireless networking devices are expected to generate a revenue of US$14.81 bn, far higher than the revenue generated by wired home networking devices.

A key factor attributed to the growth in demand for wireless home networking devices is the high demand for Wi-Fi-based solutions. Furthermore, the increasing proliferation of wireless communication solutions such as Z-Wave and ZigBee are expected to add to the fluidity of wireless communication between devices, further increasing their appeal.

The top providers of home networking solutions from a global perspective include Belkin International, Inc., D-Link Corporation, Actiontec Electronics, Inc., Netgear, Inc., TP-Link Technologies Co., Ltd., Devolo AG, ZyXEL Communications Corp., Huawei Technologies Co. Ltd., Legrand SA, ASUSTeK Computer Inc., Buffalo, Inc.

Home networking devices are used to set up a local area network (LAN) in order to connect personal devices. The market is segmented on the basis of solution and component. The solution segmentation comprises wired and wireless home networking devices. Wired and wireless devices are further divided on the basis of technology into network line, powerline, Wi-Fi and, ZigBee and Z-Wave. This detailed segmentation indicates the upcoming trend in the market according to technological evolution. Wired home networking devices are connected through a network cable and electrical wires. Network line sub-segment consists of MoCA certified products which work on coaxial cable. Powerline-based home networking devices consist of adapters which convert home electrical wiring into network line for transferring data. Increasing use of Wi-Fi enabled connected devices is expected to support the demand for Wi-Fi based home networking devices. 

The component segmentation covers the complete range of products required for the functioning of a home network. Hub and switch, router, extender, adapter, and wireless access point (WAP) are the products covered under this segmentation. The revenue of each component segment is inclusive of both wired and wireless home networking devices. Demand for hubs and switches are expected to decline in the coming years owing to low demand for wired home networking devices. However, the demand for routers and adapters is expected to increase due to increase in demand for wireless home networking devices. 

In terms of geographical regions, the report segments the global home networking device market into North America, Europe, Asia Pacific, the Middle East and Africa (MEA), and Latin America, which are analyzed in terms of revenue and volume generation. North America is further segmented into the U.S. and Rest of North America, while Europe is divided into EU7, Commonwealth of Independent States (CIS), and Rest of Europe. Asia Pacific is subdivided into Japan, China, South Asia, Australasia, and Rest of Asia Pacific. Also, MEA is further segmented into Gulf Cooperation Council (GCC) countries, South Africa, and Rest of MEA, while Latin America is subdivided into Brazil and Rest of Latin America. 

Furthermore, the report analyzes the factors that drive and restrain the growth of the home networking device market. The report also discusses the prevailing market trends, prospective growth opportunities, and major strategies increasing the popularity of the home networking devices market. It also provides market estimates and forecasts for all the segments in terms of revenue. Market estimates based on volume is only provided for component segmentation. Also provided is the market positioning analysis and competitive strategies adopted by key players in the global home networking device market. 

Major business strategies adopted by key players, their market positioning, and various recent developments have also been identified in the research report. The prominent manufacturers who offer home networking devices include Belkin International, Inc., D-Link Corporation, Actiontec Electronics, Inc., Netgear, Inc., TP-Link Technologies Co., Ltd., Devolo AG, ZyXEL Communications Corp., Huawei Technologies Co. Ltd., Legrand SA, ASUSTeK Computer Inc., and Buffalo, Inc.

The home networking device market is segmented as below:

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