Analysts: Home media gateways on the uptick as consumers demand more functionality

Two analyst firms--SNL Kagan and Infonetics--released separate reports today on the growing demand for home media gateways. Both reports noted that consumers are demanding features from pay-TV providers that include such capabilities as personal video recording, streaming IP video and support for TV Everywhere.

SNL Kagan predicted that global shipments of home media gateway products will reach 10 million in 2013, up from 7.7 million in 2012. In addition, the firm projected that revenues from home media gateways will reach nearly $3 billion in 2013, up from $2.3 billion in 2012.

The research firm also noted that home media gateways have an average selling price of about $300, which makes them more attractive to set-top box makers. However, the higher price tag will likely limit the gateways to primarily higher-income households around the globe. For that reason, SNL Kagan is expecting most home gateways will primarily be deployed in North America and Europe.

Meanwhile, Infonetics is predicting a higher revenue figure for home networking devices, which it defines more broadly as devices that integrate wireless and wired technologies to distribute video to multiple devices in the home. The firm said home networking device revenue totaled $5.4 billion in the first half of 2013, up 6 percent from the second half of 2012. The company noted that multimedia over coax devices drove the revenue growth. In addition, it said residential gateway revenue increased 7 percent in the first half of 2013, up from the second half of 2012 as operators relied more heavily on residential gateways to deliver managed services.

For more:
- see this SNL Kagan release
- see this Infonetics report release

Related articles:
RDK GM: Comcast software platform could enable virtual cable delivery
Infonetics: Pace surpasses Cisco for share of set-top market
Cox eyes hybrid cloud DVR solution

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