Customer Premise Equipment (CPE) market is evolving from one comprised of nearly 100% modems to one where the CPE is a complete whole-home services delivery device. As a result, Residential Gateways, with higher degrees of intelligence, network management capabilities, and network bridging, will increase from 3% of the CPE market in 2003 to one third of all devices shipped in 2007. The high-tech market research firm estimates that the total broadband CPE market, which includes modems, residential gateways, and SOHO routers, will be $5.1 billion in 2003.
Consumers are showing that if the service providers will not give them home network support in the form of equipment sales, installation and management, they will do so themselves by going out and connecting their broadband connections and multiple PCs together through a home router. Low-cost SOHO routers have hit multi-million unit volumes since 2000 and will continue to sell well.