The worldwide home network market is booming, with broadband modem, router, and gateway shipments growing 5% to $1.2 billion between the last quarter of 2004 and the first quarter of 2005, according to a new report by Infonetics Research. The report, "Broadband Modems, Routers, and Gateways," forecasts continuing growth, to $5.5 billion by 2008, fueled by new applications such as VoIP and by higher access speeds.

The report found that D-Link is the overall broadband leader in broadband CPE (customer premises equipment) revenue, followed closely by Cisco-Linksys and Thomson. It also noted that 41% of worldwide broadband CPE revenue comes from DSL CPE, 34% from broadband routers, 15% from cable CPE, and the remainder from voice terminal adapters and IP set top boxes. Worldwide DSL CPE revenue was down 8%, it reports, but is projected to grow 29% by the first quarter 2006. Worldwide cable CPE revenue was up 2% and is projected to grow 19% by the first quarter of 2006. The report attributes volume sales of lower-priced consumer routers for much of the expected growth.

"Carriers are under increasing pressure to raise revenue by delivering a bundle of high-speed data, voice (increasingly VoIP), and IP video over broadband, providing this market with future growth drivers beyond Internet connectivity," Infonetics Research analyst Richard Webb, who wrote the report, said in a statement. "IP set-top box products are now beginning to reach the market providing the services for IPTV, including entertainment on demand, broadcast TV, and broadband Internet. These devices will enable operators to deliver new revenue-generating services, such as networked PVR, video on demand, audio on demand, 3D graphics, interactive games, eCommerce, and communications services including video telephony."