HOME AUTOMATION NETWORKING
SYSTEMS TURNING ON
Oyster Bay, New York - 4/19/99
Navin Sabharwal Tel: 516-624-3113
www.alliedworld.com

The small office home office phenomenon has led to the emergence of the wired broadband home, according to a new study from Allied Business Intelligence. Although the market has gone virtually unnoticed during past years, 1999 marks the beginning of the Residential Networks and Home Automation Subsystem industry¹s growth period, which will see revenues almost triple from $2.3 billion in 1999 to $6.2 billion in 2004. ABI examines the Home Automation Network Systems (HANS) industry in its latest report covering the subject:. The Broadband Home: In-Home Networks, Control Subsystems and Residential Gateways.

Much of this rapid growth will be accounted for by the explosive emergence of home networking and the continued expansion in structured wiring installations. Both of these segments will see revenues grow by over 700 percent during this period.

Intel and Microsoft will play a crucial role in legitimizing the market with their emphasis on HANS industry standards. Both are expected to join start-ups like Epigram in accounting for a significant share of revenues generated, as well as leading the market in its transition from a small segment of the overall networking arena into a respected sector.

The recent entrance of IBM and Bell Atlantic has introduced the concept of structured wiring within the home. The prospect of a new home being properly wired for futuristic applications will no longer be a high-end adapter¹s dream but rather a common occurrence among residences priced above $100,000. Lucent Technologies is also active in this market and is poised to take advantage of the rapid growth.

One of the key factors driving growth is the increase in multiple PC households. By 2004, nearly 33% of US households will have more than one computer, up from almost 15% in 1998. Also driving the industry¹s growth will be the continued momentum of the Internet and broadband applications catering to the data-needy, making many US residences truly broadband homes. By 2004, 10.8 million houses will have broadband access.

Allied Business Intelligence, Inc. is an Oyster Bay, NY-based technology research think-tank specializing in communications and emerging technology markets. ABI publishes strategic research on the broadband, wireless, electronics, automation, energy and transportation industries. Details of these studies can be found at www.alliedworld.com. Or call 516-624-3113 for more info.

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