Consumers are increasingly cautious about their home network spending

Consumers are increasingly cautious about their home network spending

The home networking landscape continues to evolve, with networking products incorporating new technology and features including Wi-Fi 7, mesh networking, 5G mobility and fallback, and router-enabled services.

Parks Associates new research investigates the changing home networking space. It examines consumer awareness of and demand for home networking products and services, including consumer awareness of home networking features and willingness to subscribe to premium services such as professional technical support, whole-home cybersecurity, and advanced parental controls.

Check out this excerpt from the Executive Summary of the new Market Assessment study Home Networking Products: Mesh, Wi-Fi 7, and the Competitive Landscape

The router/gateway market is in a period of low demand with regards to retail unit sales, with internet service providers deploying CPE from existing excess inventory while also cautiously minimizing new spending. Services and premium home networking products are a bright spot in the industry, with services providing recurring revenue to smooth out this period of low demand and consumer interest in premium products remaining strong.


Parks Associates Research

Router makers are looking to gen-AI enabled technical support options for customer self-service, both as a differentiator for D2C sales and as a cost-savings benefit for ISP clients. Gateway-enabled service, including whole-home cybersecurity and VPNs, are a leading priority and driver of recurring revenues.

  • Vantiva reported that in North America and LATAM, telco and cable operators holding too high inventories impacted demand for its Connected Home products, with broadband revenues declining by ~26% YoY for this segment in the first half of 2024. The company expects recovery on the strength of Wi-Fi 7.
  • NETGEAR reported 555K recurring revenue subscribers in Q3 2024, the most recently reported quarter, with recurring revenue growing 22% YoY. Home customers accounted for 67% of its revenue in the Americas, with 78% of global home revenue in the D2C market.

Router/gateway makers are seeing strong demand for enterprise and campus networking solutions as the consumer market slows. For consumer solutions, both D2C and via the ISP channel, services and premium Wi-Fi 7 products are leading the way. As ISPs clear excess inventory, and consumer devices start to include Wi-Fi 7 chipsets, demand will improve.

Home Networking Products: Mesh, Wi-Fi 7, and the Competitive Landscape

Executive Summary

Connected Home Landscape

  • Average Number of Connected Devices per HH by Category
  • Average Number of Connected CE Devices Owned by Device Type – Trending
  • Average Number of Smart Home Devices Owned – Trending
  • Distribution of Smart Home Adopters by Number of Devices

Market Trends

  • ISP Deployments
  • New Router Functionality
  • Leading Player Assessment

Router Adoption by Model

  • Router Adoption Channel – ISP vs. Retail
  • Adoption of Routers by Source
  • Home Networking Product Ownership Among US Internet Households
  • Brand of Home Network Router/Wi-Fi Mesh Network??? – Trending
  • Wi-Fi Router/Gateway Brand by Acquisition Channel? (ISP vs. Retail)
  • Adoption of Gateway-Enabled Services – Trending
  • Adoption of Gateway-Enabled Services – Free vs. Paid
  • Familiarity with Home Networking Technologies - Trending
  • Mesh Networking and Extenders
  • Whole Home Wi-Fi Mesh Networking System Adoption Among Router Owners
  • Most Recent Wi-Fi Extender/Mesh Networking Unit Acquisition Channel
  • Home Internet Net Promotor Score by Network Router/Gateway Brand
  • Most Recent Wi-Fi Network Router Acquisition Channel – Trending
  • Most Recent Wi-Fi Extender/Mesh Networking Unit Acquisition Channel – Trending
  • Home Internet Service Issues Experienced in Past 90 Days – Trending
  • Impact of Compounded Service Issues on Home Internet Provider Net Promoter Score
  • Net Promoter Score of Home Internet Provider by Service Issues Experienced
  • Number of Home Internet Service Issues by Home Size
  • Home Internet Service Issues Experienced by Home Size

Router/Gateway Applications

Use of Router/Gateway Apps and Features

Use of Router/Gateway App by Router Brand

Router/Gateway App Feature Usage by Router Brand

Impact of Router App Usage on Internet Provider NPS

Router-Enabled Services

  • Interest in New Router-Enabled Services from Home Internet Provider
  • Interest in New Service from Internet Service Provider by Current Access Method
  • Interest in Tested Service Concepts by Parental Status and Age of Householder
  • Demographic Profile of Interested Buyers – Age, Parental Status, Second Home

Appendix

Interested in this research? Available for purchase - Home Networking Products: Mesh, Wi-Fi 7, and the Competitive Landscape
Want to meet with our team to see how we can help support your business? Contact me or visit www.parksassociates.com
Scott Luton

Passionate about sharing stories from across the global business world

1 个月

Thanks for sharing Elizabeth Parks

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Aaron Lax

Info Systems Coordinator, Technologist and Futurist, Thinkers360 Thought Leader and CSI Group Founder. Manage The Intelligence Community and The Dept of Homeland Security LinkedIn Groups. Advisor

1 个月

I cannot wait for the new Wifi to be in my home and office Elizabeth Parks

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Brian Stahlhammer

Connected Experience Product Leader | Groundbreaking Innovator | End-User Delighter | Freeskier

1 个月

Curious if others believe consumers have started to think the benefits may not be worth the cost vs. are “cautious”. Meaningful innovations keep this Wi-Fi guy from upgrading.

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Dr. Robin Kiera

Let's hack the attention of your customers with modern sales, marketing, strategies, and speaking.

1 个月

thanks for sharing!

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Louis C.

Marketing & Product Mgmt. Leader | LinkedIn Top Voice | Software Expertise in AI, Analytics, ERP, Cloud, CPQ & Cybersecurity

1 个月

Your newsletters always have such great information and insights,?Elizabeth Parks. Thank you for taking the effort to put them together. Always a fascinating read!

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