Driven by ever increasing numbers of residential broadband subscribers, the desire to share bandwidth, and falling prices for networking equipment, the worldwide installed base of home networks is expected to grow by over 35% in 2007. Worldwide CPE unit shipments grew almost 20% in 2006 to 127 mln. By 2011, annual CPE revenue will be dominated by gateways, with gateways garnering over half of the worldwide revenue. By 2011, we expect routers to still be comprised of a higher share of wireless units than DSL gateways. Asia/Pacific’s share of routers will continue to increase through 2011. This region’s router market is increasingly being driven by China, due to that region’s annual rise in the number of home networks. Worldwide home LAN PHY interface shipments will surpass 500 mln in 2010, In-Stat says.