Home Networking Market to Hit $23 Billion by 2023

According to Transparency Market Research, the global home networking device market is expected to reach a value of $23.24 billion by 2023. The market is expected to expand at a CAGR of 7% during the forecast period from 2015 to 2023. In terms of volume, the home networking device market stood at 444.8 million units in 2014 and is expected to increase at a CAGR of 10.1% during the forecast period.

Increase in demand for connected devices among end users is expected to support the demand for home networking devices in the coming years. Specifically, the high demand for wireless home networking devices can be attributed to the popularity of WiFi-based devices. Further, there is an increasing demand to replace wired with wireless home networking devices in North America and Europe. Home networking device manufacturers are increasingly focusing on partnerships with service providers and dealers in order to expand their market share across different geographic regions. Manufacturers are focusing on products based on the requirement to increase Internet bandwidth.

In 2014, the Asia-Pacific region was the largest market for home networking devices, accounting for a share of around 28.9%. APAC has a high adoption rate of home networking devices due to increase in number of fixed broadband subscribers.

By various solutions offered, wireless home networking devices held the largest share of around 62.6% in 2014. WiFi, ZigBee and Z-Wave-based home networking devices are expected to contribute to the growth of the wireless home networking device market in the coming years. The network line sub-segment is expected to contribute a higher market share owing to its popularity in developing nations. WiFi-based home networking devices are expected to grow at a consistent rate from 2015 to 2023.

By component, the router segment was the largest segment of the home networking device market, accounting for approximately 34% of the total market in 2014. Increasing adoption of WiFi-based home networking devices is expected to support the growth of routers, extenders, and adapters in the coming years. The application of power line-based home networking devices is expected to decline in the coming years owing to limited market exposure in the North American and Europe. The ZigBee and Z-Wave segment is expected to register a high growth rate due to the increasing adoption of ZigBee and Z-Wave enabled smart lighting and security systems.