NORTHPORT, N.Y. - The current home wiring infrastructure, comprised of low-bandwidth telephone lines and inflexible coaxial cabling for cable television, cannot support the new consumer broadband applications. New technologies, including new wiring via structured wiring systems (SWSs), or "no new wires" using new technology in conjunction with telephone lines, power lines and wireless, are expected to be used in homes in the future. SWSs will be focused on new single-family homes because they need new wiring behind the walls. The other three technologies, because they do not require any new wiring, will be used primarily in existing homes. This is according to a new study on the developing home networking market, Home Networking Structured Wiring Systems - U.S. Markets, Technologies and Opportunities: 1999-2003 Analysis and Forecasts, by World Information Technologies Inc.
The graphs depict the shares of the market of each one of the technologies. In 1999, telephone line technology had a leading share of 51 percent, followed by SWS technology with a 36 percent share. Phone line technology offers less bandwidth than the SWS, but is easier to implement in existing buildings without the need for new wires. By 2003, it is projected that wireless technology will be the leading networking approach with a 49.8 percent share, followed by phone line technology with a 33.3 percent share, leaving SWS technology with only a 12.7 percent share. Wireless technology is expected to lead the market share in the future because of technology developments expanding the performance capabilities of RF wireless technologies to provide sufficient bandwidth to support video interconnectivity in the home.
Even though SWS technology is expected to have only 12.7 percent share by 2003, the market is anticipated to be over $2.2 billion by that time, starting to approach the commercial SWS marketplace size. The reason is that the entire home networking market is expected to experience outstanding growth over the next several years as buildings` communications infrastructures supporting broadband applications become as commonplace as buildings` electrical wiring infrastructures.
According to the study, the foremost market driver for this explosive market growth is the need to share and have access to high-speed Internet inside the home. This is the "killer application" providing a substantial cost benefit that will have consumers inquiring about a new home`s wiring infrastructure. This is expected to filter down to the existing buildings needing new networking infrastructures, fostering the other no new wires technologies. Other new broadband applications will also create consumer demand. This includes home office telecommunications needs, telecommuting and new interactive video service offerings.
