Digital Entertainment in the Home: Technologies and Global Markets

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Digital Entertainment in the Home: Technologies and Global Markets

Published on January 2014

Report Summary

STUDY GOALS AND OBJECTIVES

Home entertainment technology has been around for decades, but it is now starting to enter the mainstream. The reasons for home

entertainment's growing popularity include developments on the demand side as well as the supply side. On the demand side, rising

incomes and standards of living have combined with technical advances to increase the attractiveness of technologies that promise to

enhance the owner's quality of life. In addition, many homebuyers are young, technologically savvy people with an affinity for the

latest electronic devices, thus creating a favorable market environment for home entertainment systems.

On the supply side, the declining cost and complexity of new home entertainment products are helping to attract new buyers. Until a

few years ago, the cost of quality home entertainment components was prohibitive for all but the enthusiast market, but now volumes

are rising and prices are dropping. In fact, the cost of installation labor and the expense of educating electricians in this field are

becoming the most inhibiting factors. Fortunately, other developments are helping to reduce the difficulty and cost of installation.

These developments include the growing use of standards-based wireless technologies that allow home entertainment devices to

integrate seamlessly and minimize the need for special wiring to connect them.

This report characterizes and quantifies the global market potential of residential entertainment and its different elements (digital TV,

gaming, audio, and networking). The goal of this report is to provide an understanding of the market factors, state-of-the-art

developments, and economic influences driving the home entertainment market. The study analyzes the different components of the

industry, the influence of networking technology on home entertainment automation, and the impact of the different components in

various world markets, such as Europe, North America, and Asia (including Australia).

The study contains information that is useful for planning production and the targeting of market efforts for the delivery of home

entertainment systems as well as integration with other systems. Trends in the market are investigated, particularly the increasing

emphasis on convergence. Increasingly, suppliers are bundling different home entertainment elements, so the traditional market

sectors are becoming blurry. Projections are provided for the total home entertainment market through 2018, along with estimates of

the market in terms of cost per device for each type of system, and the cumulative totals for the market overall.

REASONS FOR DOING THE STUDY

This study explores the major manufacturers of home entertainment equipment and the underlying technologies involved in delivery of

those systems. Several forces are driving trends toward increasingly diverse and sophisticated levels of networked home

entertainment systems. The development, proliferation and flexibility of microprocessor-based controls, interface devices, distributed

actuators, standardized network protocols, computerized interfaces, and wireless communications have presented an opportunity for

diverse, highly automated centralized entertainment systems.

The report addresses the global market for devices that are purchased by individual consumers for the downloading, creation, storage

and playback of digital video, audio and multimedia entertainment content for their personal use in the home or any other venue

except for motor vehicles. Motor vehicle entertainment systems often use many of the same technologies as home entertainments

systems, but are considered a market in their own right.

Analog devices, such as VCRs and analog TVs are specifically excluded from the scope of the report. Also excluded are digital

entertainment devices and technologies that are purchased by business, commercial and institutional (e.g., schools, hospitals) users,

rather than private individuals and households. The report does not cover consumers' purchases of commercially produced digital

entertainment content such as CDs, DVDs, and downloaded MP3s. BCC decided to exclude these purchases on pragmatic grounds,

because they represent a fundamentally different market that is best analyzed separately.

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The report also excludes subscription fees (such as cable TV, Internet, or wireless service fees) that make it possible to receive digital

entertainment content in the home. In purely physical terms, BCC defines the market for digital home entertainment as the four walls

of the home, the surrounding yard, and the individual household members when they are away from the home. Thus, digital devices

and technologies that are used commercially to produce digital content (recording and pre-recoded disk production equipment), for

example, are excluded from the report.

The wiring for home entertainment systems is usually installed at the onset in new buildings, and these systems are becoming more

complex. Integrated home theater systems are becoming fairly common in major renovations where new systems such as structured

cabling and wireless are being put into place.

The strength of the world home entertainment infrastructure market relies on the health of local or regional construction markets. This,

in turn, depends on world, regional, and national economies. Consequently, sales of these products have been largely seen in the

world's more advanced business epicenters: Europe, the U.S., China and Japan. This study analyzes the most prominent markets for

these systems and breaks them down into four sections: Europe, North America, Asia (including Australia), and South America and

Africa. The market's economic potential is framed in the context of the construction market for each area examined and then

consolidated to provide a complete picture of the market.

Extensive investigations have also been carried out to quantify the size of the market in four areas: digital TV, gaming, networking,

and audio systems. This was done to aid marketers, manufacturers, system integrators, contractors, and other parties involved in the

home entertainment industry to better direct their efforts at presenting their products and services to the most promising markets.

SCOPE OF REPORT

The shifts described above create new opportunities for vendors and service providers serving the home entertainment market. The

goal of this report is to identify the main business opportunities, while providing information on the conditions and challenges that

must be met in order to take advantage of these opportunities profitably.

Specific objectives of the report include:

' Identifying the digital home entertainment devices and technologies with the greatest commercial potential in the near to mid-term

(2013-2018).

' Analyzing recent sales trends and quantifying current sales of each device and technology.

' Identifying and evaluating the impact of economic, business, demographic technological, legal/regulatory and other factors that will

drive the future market for each device and technology.

' Forecasting future sales of each device and technology in value and, where possible, in unit terms through 2018.

Digital home entertainment systems feature a suite of components that include (in alphabetical order):

' Audio Systems.

' Digital TV.

' Gaming.

' Networking.

This report examines technologies, markets, and factors influencing the markets for integrated entertainment systems, one that

integrate the controls of various subsystems. Markets are forecast on the basis of historic activity and current opportunities,

government initiatives and policies, and the status of the construction and renovation industries in specific nations.

The forecasts presented are for the total available markets. Some discussion is provided that compares actual revenues with market

potential on various continents. Markets are broken down on a geographic basis and discussed within the context of the trends in

construction activity, regulatory initiatives, and the revenue potential associated with home entertainment systems.

The revenue comes from North American, European, and Asian markets. A detailed analysis of the home entertainment market

potential in these geopolitical economic regions is used as a basis for estimating world markets for these products. Thorough

analyses are carried out on construction industry practices in the target regions. Trends toward the uptake of home entertainment

products and costs are examined, along with associated laws, regulations, and common practices.









Geographic and environmental factors influencing requirements for the systems are examined, as are national and international

responses to global environmental challenges.

INTENDED AUDIENCE

This report was prepared for individuals who are interested in the residential home entertainment infrastructure market. Those

individuals could include vendors involved in the research, development, manufacturing, or marketing of these products. The report

will help these individuals evaluate market trends and respond to market changes so that they can perform more effectively in their

organizations. Lastly, financial analysts can benefit from the report. They will be able to determine the market potential for various

products and evaluate the performance of various vendors in this space.

METHODOLOGY AND INFORMATION SOURCES

Both primary and secondary research methodologies were used in preparing this report. Information was obtained from a wide variety

of sources, including interviews with manufacturer executives, inventors, engineers, and marketers; construction industry

representatives; purchasing officers; and real estate development company representatives. Much of the market research numbers

came from company financial reports and interviews with suppliers who outlined various market trends and company initiatives.

Extensive use was made of the Internet, industry trade publications, print media, and online information sources, such as Wikipedia.

Digital and printed statistics were gathered to quantify and help verify trends in the level of activity within the various market sectors.

The approach taken to quantify the world markets for home entertainment infrastructure systems involved several steps. Primary

among these was delineating the technologies involved in home entertainment and the companies that produce them. The focus is on

systems that have been tied together in some way rather than stand-alone solutions. Because the market is evolving, clear

boundaries among various categories can be difficult to discern. Autonomous product categories have been shifting, as suppliers

have been trying to deliver a more cohesive and integrated approach to home entertainment. In addition, vendors have been

broadening their product lines, such that many offer products in numerous categories. In some cases, vendors bundle systems

together to entice potential consumers; therefore, categorizing the revenue from different types of products can be difficult.

Consultations with various companies and industry experts helped to break those categories down as finely as possible.

Another step involved developing a quantitative understanding of the characteristics of residential construction industries in different

regions of the world. In addition, assessments were made of regulatory policies governing each region with respect to requirements

for home entertainment systems. This was done with varying degrees of granularity, keeping in mind that special codes are enforced

in different nations.

A summary understanding of the markets was developed for component systems of various home entertainment systems. With this

information in hand, trade publications and Internet searches were performed, along with interviews with industry representatives,

regulators, and legislators to discern trends in the extent of implementation of fully-integrated home entertainment systems.

Attention was also paid to activity in the markets for systems that integrate disparate component systems. In this regard, networking

and data transfer capabilities of the product lines of various component system vendors were taken as an indication of manufacturers'

thrust toward integrated systems.

Revenue from the various products comes from two sources. New construction is one source. Analysts estimate that home

entertainment elements account for 1.0% to 1.5% of the total construction project value for new homes. In addition, owners decide to

renovate their residences to make them more attractive and more fulfilling.

The world economy has become increasing complex, volatile, and difficult to forecast. The financial projections in this report came

from projections from various economic monitoring groups, including the International Monetary Fund (IMF), the World Bank, and the

CIA World Fact Book. Input from these various sectors was used to complete the five-year market projections. All revenues are

expressed in U.S. dollars.

The International Monetary Fund projects that worldwide revenue will increase from about $71.7 trillion in 2013 to $86.6 trillion in

2018, representing a growth rate of 3.85%. However, the numbers will be distributed quite unevenly. The Asian, South American, and

African markets will demonstrate the highest growth rates. At 5.5% China's growth is reshaping the world economy; however, that

growth is not directly translating into home entertainment market. To date, it has been a limited market lagging the significant pick up









seen in the rest of Asia, the U.S. and Europe. The lack of underlying intelligent network infrastructure as well as the lack of an

established high end, middle class has meant that growth in the home entertainment has been smaller and more limited in China.

Currently, the digital entertainment market is more established in Japan and South Korea than it is China. Those limitations will

eventually be addressed and the potential for dramatic growth is expected in China as the decade closes.

The long-term projections are extremely tenuous. The world economy has become much more interconnected and much more

volatile than it was in the past. Problems, such as the solvency issue in Greece and Spain, ripple throughout other countries'

economies. Many possible problems loom on the horizon. In addition, there is concern because China's high-flying market has slowed

and forced suppliers to take erasers to their business plans. Terrorism also remains a worldwide concern. Any future attack will

probably have an adverse impact on the world's gross national product (GNP). Therefore, while the forecast is for a growth of 3.1%,

that number could possibly be lower, depending on how world events unfold.

ANALYST CREDENTIALS

With more than two decades of experience, Paul Korzeniowski is a market research analyst and home entertainment infrastructure

consultant. His work has centered on determining major market trends in areas of interest such as the development of new

networking standards, integration of various home entertainment systems, and the emergence of new technologies, such as wireless

communications. He has authored reports on markets for home entertainment systems for a wide variety of publications, including

Investor's Business Daily, Business 2.0, and EnergyBiz.

REPORT HIGHLIGHTS

The global digital home entertainment systems market reached nearly $147.4 billion in 2012. This market is expected to grow to

$150.9 billion in 2013 and $176.3 billion in 2018, a compound annual growth rate (CAGR) of 3.2% over the five-year period, 2013 to

2018.

This report provides:

' An in-depth analysis and forecast of the home digital entertainment market

' Analyses of global market trends, with data from 2012, estimates for 2013, and projections of compound annual growth rates

(CAGRs) through 2018

' Coverage of market trends, drivers, and inhibitors

' Examination of the size and growth of identified entertainment technology categories

' Comprehensive company profiles of key players in the market.

Table of Content

TABLE OF CONTENTS

CHAPTER 1 INTRODUCTION 2

STUDY GOALS AND OBJECTIVES 2

REASONS FOR DOING THE STUDY 2

SCOPE OF REPORT 4

INTENDED AUDIENCE 5

METHODOLOGY AND INFORMATION SOURCES 5

ANALYST CREDENTIALS 6

RELATED BCC RESEARCH REPORTS 7









BCC RESEARCH ONLINE SERVICES 7

DISCLAIMER 7

CHAPTER 2 SUMMARY 9

SUMMARY TABLE FORECAST FOR GLOBAL DIGITAL HOME ENTERTAINMENT

SYSTEMS MARKET BY PRODUCT SEGMENT, THROUGH 2018 ($ MILLIONS) 10

SUMMARY FIGURE FORECAST FOR GLOBAL DIGITAL HOME ENTERTAINMENT

SYSTEMS MARKET SHARE BY PRODUCT SEGMENT, 2013 AND 2018 (%) 10

CHAPTER 3 OVERVIEW 13

DEFINING THE DIGITAL HOME ENTERTAINMENT SYSTEM 13

WHAT IS DIGITAL HOME ENTERTAINMENT' 14

DEVELOPMENTS THAT WILL SHAPE THE FUTURE OF DIGITAL ENTERTAINMENT 14

THE TYPES OF DIGITAL HOME ENTERTAINMENT DEVICES 15

DIGITAL TVS EMERGE 15

DIGITAL VIDEO RECORDERS' HISTORY 16

HOME AREA NETWORKS TAKE SHAPE 16

IDENTIFYING THE TWO KEY NETWORK ELEMENTS 16

WHAT IS A HOME NETWORK' 17

WHAT IS A GATEWAY' 17

GAMING SYSTEMS EMERGE IN THE 1950S 17

HOME THEATERS AND DIGITAL AUDIO SYSTEMS 18

TABLE 1 MARKET SHARE OF RESIDENTIAL HOME ENTERTAINMENT SYSTEM

PRODUCTS BY REGION, 2013 ($ MILLIONS/%) 18

COMPUTER TECHNOLOGY CONNECTS HOME ENTERTAINMENT SYSTEMS 18

INTERNET CONNECTIONS 20

THE VALUE OF INTEGRATION 20

NEED FOR OPEN SYSTEMS 20

COMPETITION HEATS UP 21

TABLE 2 TOP FIVE DIGITAL HOME ENTERTAINMENT SUPPLIERS, 2013 ($ MILLIONS

/%) 21

CHAPTER 4 DIGITAL TVS 23

DIGITAL TELEVISION RECEIVER BASICS 23

THE DIGITAL TV TRANSITION 25

WHY THE SWITCH TO DTV 26

TABLE 3 FORECAST FOR GLOBAL MARKET FOR DIGITAL TV MARKET, THROUGH

2018 (UNITS IN MILLIONS/AVERAGE PRICE IN $ AND REVENUE IN $ MILLIONS) 27

TABLE 4 FORECAST FOR EUROPEAN DIGITAL TV MARKET, THROUGH 2018 (UNITS

IN MILLIONS/AVERAGE PRICE IN $ AND REVENUE IN $ MILLIONS) 27

TABLE 5 FORECAST FOR NORTH AMERICAN DIGITAL TV MARKET, THROUGH 2018

(UNITS IN MILLIONS/AVERAGE PRICE IN $ AND REVENUE IN $ MILLIONS) 27

TABLE 6 FORECAST FOR ASIAN DIGITAL TV MARKET, THROUGH 2018 (UNITS IN

MILLIONS/AVERAGE PRICE IN $ AND REVENUE IN $ MILLIONS) 28

DIGITAL TV TECHNOLOGY CONSISTENTLY CHANGES 28









TABLE 7 TOP FIVE DIGITAL TV SUPPLIERS, 2013 ($ MILLIONS/%) 28

TABLE 8 TOP FIVE EUROPEAN DIGITAL TV SUPPLIERS, 2013 ($ MILLIONS/%) 29

TABLE 9 TOP FIVE NORTH AMERICAN DIGITAL TV SUPPLIERS, 2013 ($ MILLIONS/%) 29

TABLE 10 TOP FIVE ASIAN DIGITAL TV SUPPLIERS, 2013 ($ MILLIONS/%) 29

COMPANY PROFILES 30

BOE TECHNOLOGY GROUP CO., LTD. 30

CHIMEI INNOLUX CORPORATION 30

HISENSE GROUP CO. LTD. 31

HITACHI LTD. 31

KUNSHAN VISIONOX DISPLAY CO. LTD. 32

LG ELECTRONICS 32

MITSUIBISH ELECTRIC CORPORATION 33

NEC CORPORATION 34

NORITAKE ITRON CORP. 34

PANASONIC CORPORATION 35

SAMSUNG GROUP 35

SICHUAN CHANGHONG ELECTRIC CO. 36

SHARP CORPORATION 37

SONY CORP. 37

TCL MULTIIMEIDA TECHNOLOGY HOLDINGS LTD. 38

TOSHIBA CORPORATION 39

TV'S CHANGING DELIVERY MODELS 39

SET TOP BOXES TAKE FLIGHT 40

TABLE 11 FORECAST FOR GLOBAL SET TOP BOX MARKET, THROUGH 2018 (UNITS


TABLE 12 FORECAST FOR EUROPEAN SET TOP BOX MARKET, THROUGH 2018


TABLE 13 FORECAST FOR NORTH AMERICAN SET TOP BOX MARKET, THROUGH


TABLE 14 FORECAST FOR ASIAN SET TOP BOX MARKET, THROUGH 2018 (UNITS IN


THE CHANGING LANDSCAPE 42

TABLE 15 TOP FIVE SET TOP BOX SUPPLIERS, 2013 ($ MILLIONS/%) 43

TABLE 16 TOP FIVE EUROPEAN SET TOP BOX SUPPLIERS, 2013 ($ MILLIONS/%) 43

TABLE 17 TOP FIVE NORTH AMERICAN SET TOP BOX SUPPLIERS, 2013 ($

MILLIONS/%) 43

TABLE 18 TOP FIVE ASIAN SET TOP BOX SUPPLIERS, 2013 ($ MILLIONS/%) 44

COMPANY PROFILES 44

ADVANCED DIGITAL BROADCASTING GROUP 44

CISCO SYSTEMS INC. 44

COSHIP ELECTRONICS CO. LTD. 45

ECHOSTAR CORPORATION 45

HUMAX CO. LTD. 46

NETGEM INC. 46

PACE PLC 47

SAGEMCOM SAS 48

SAMSUNG GROUP 48

SHENZHEN SKYWORTH DIGITAL TECHNOLOGY CO., LTD. 49










SICHUAN JINWANGTONG ELECTRONIC SCIENCE AND TECHNOLOGY CO.,

LTD 50

SICHUAN JIUZHOU GROUP CO., LTD. 50

TECHNICOLOR SA 51

ZTE CORPORATION 51

NEXT GENERATION TV TAKES ROOT 51

TABLE 19 POPULAR MEDIA SERVER/IP TV CONTENT FORMATS, 2013 51

MEDIA SERVERS MANY FORMS 52

IPTV: THE NEXT WAVE OF HOME ENTERTAINMENT 54

TABLE 20 FORECAST FOR GLOBAL MARKET FOR MEDIA SERVER/IPTV RECEIVER

MARKET, THROUGH 2018 (UNITS IN MILLIONS/AVERAGE PRICE IN $ AND REVENUE

IN $ MILLIONS)

54

TABLE 21 FORECAST FOR EUROPEAN MEDIA SERVER/IPTV RECEIVER MARKET,

THROUGH 2018 (UNITS IN MILLIONS/AVERAGE PRICE IN $ AND REVENUE IN $

MILLIONS)

55

TABLE 22 FORECAST FOR NORTH AMERICAN MEDIA SERVER/IPTV RECEIVER


IN $ MILLIONS)

55

TABLE 23 FORECAST FOR ASIAN MEDIA SERVER/IPTV RECEIVER MARKET,


MILLIONS)

55

MEDIA SERVER/IPTV RECEIVER SUPPLIERS FEEL THE HEAT 55

TABLE 24 TOP FIVE MEDIA SERVER/IPTV RECEIVER SUPPLIERS, 2013 ($

MILLIONS/%) 56

TABLE 25 TOP FIVE EUROPEAN MEDIA SERVER/IPTV RECEIVER SUPPLIERS, 2013 ($

MILLIONS/%) 56

TABLE 26 TOP FIVE NORTH AMERICAN MEDIA SERVER/IPTV RECEIVER SUPPLIERS,

2013 ($ MILLIONS/%) 56

TABLE 27 TOP FIVE ASIAN MEDIA SERVER/IPTV RECEIVER SUPPLIERS, 2013 ($

MILLIONS/%) 57

COMPANY PROFILES 57

ABILIS SYSTEMS 57

ALCATEL-LUCENT CORP. 57

AMINO TECHNOLOGIES PLC 58

APPLE INC. 58

ARRIS GROUP INC. 59

BOXEE 60

COMTREND CORP. 60

DELL INC. 61

GOOGLE INC. 61

HAUPPAUGE COMPUTER WORKS INC. 62

HARMONIC INC. 63

HEWLETT PACKARD COMPANY 63









HUAWEI TECHNOLOGIES CO. LTD. 63

KONINKLIJKE PHILIPS N.V. 64

MICROSOFT CORP. 65

ONKYO CORPORATION 65

PACE PLC 66

ROKU INC. 66

SIANO MOBILE SILICON LTD. 67

TECHNISAT DIGITAL GMBH 67

THOMSON BROADCAST 68

WESTERN DIGITAL 68

DVRS GAIN MARKET TRACTION 69

TABLE 28 FORECAST FOR GLOBAL MARKET FOR DVR MARKET, THROUGH 2018


TABLE 29 FORECAST FOR EUROPEAN DVR MARKET, THROUGH 2018 (UNITS IN


TABLE 30 FORECAST FOR NORTH AMERICAN DVR MARKET, THROUGH 2018 (UNITS


TABLE 31 FORECAST FOR ASIAN DVR MARKET, THROUGH 2018 (UNITS IN


DVR SUPPLIERS JOCKEY FOR POSITION 71

TABLE 32 TOP FIVE DVR SUPPLIERS, 2013 ($ MILLIONS/%) 71

TABLE 33 TOP FIVE EUROPEAN DVR SUPPLIERS, 2013 ($ MILLIONS/%) 72

TABLE 34 TOP FIVE NORTH AMERICAN DVR SUPPLIERS, 2013 ($ MILLIONS/%) 72


COMPANY PROFILES 73

ADTRAN, INC. 73

ARRIS GROUP INC. 74

AT&T, INC. 74

AVER MEDIA 75

BHARTI AIRTEL LTD. 75

BUFFALO TECHNOLOGIES 76

CHANNEL MASTER INC. 76

COMCAST CORPORATION 77

DIRECTV LLC 77

ECHOSTAR CORPORATION 78

ELGATO SYSTEMS 78

FAST FORWARD VIDEO 79

GOOGLE INC. 79

KABEL DEUTSCHLAND HOLDING AG 80


NAGRAVISION SA 81

NDS GROUP LTD. 81


RELIANCE TV INDIA 83

TAIWAN BROADBAND COMMUNICATIONS 83

TIVO INC. 84

VERIZON 84

VIDEOCON GROUP 85









CHAPTER 5 HOME NETWORKING 87

THE CHANGING DIGITAL HOME ENTERTAINMENT SYSTEM LANDSCAPE 87

MOVEMENT TO INTERNET PROTOCOL (IP) 87

WIRED TECHNOLOGIES 88

WIRED ETHERNET NETWORKS 88

FIBER OPTIC NETWORKS HAVE GREAT POTENTIAL 89

POWERLINE NETWORKS GAIN TRACTION IN THE HOME 90

The HomePlug Alliance Drives Standards 91

HOMEPNA'S ROOTS 93

TABLE 36 FORECAST FOR GLOBAL MARKET FOR WIRED HOME ENTERTAINMENT

NETWORKS, THROUGH 2018 (UNITS IN MILLIONS/AVERAGE PRICE IN $ AND

REVENUE IN $ MILLIONS)

95

TABLE 37 FORECAST FOR EUROPEAN WIRED HOME ENTERTAINMENT NETWORKS,


MILLIONS)

95

TABLE 38 FORECAST FOR NORTH AMERICAN HOME ENTERTAINMENT WIRED



95

TABLE 39 FORECAST FOR ASIAN WIRED HOME ENTERTAINMENT NETWORKS,


MILLIONS)

96

OPTIONS GROW FOR WIRED CONNECTIONS 96

TABLE 40 TOP FIVE WIRED HOME ENTERTAINMENT NETWORK SUPPLIERS, 2013 ($

MILLIONS/%) 97

TABLE 41 TOP FIVE EUROPEAN WIRED HOME ENTERTAINMENT NETWORK

SUPPLIERS, 2013 ($ MILLIONS/%) 97

TABLE 42 TOP FIVE NORTH AMERICAN WIRED HOME ENTERTAINMENT NETWORK


TABLE 43 TOP FIVE ASIAN WIRED HOME ENTERTAINMENT NETWORK SUPPLIERS,

2013 ($ MILLIONS/%) 98

COMPANY PROFILES 98

ACTIONTEC ELECTRONICS INC. 98

ADTRAN, INC. 98


ALAXALA NETWORKS CORPORATION 100

ASOKA INC. 100

AVAYA INC. 100

BILLION ELECTRIC CO., LTD. 101


COMTREND CORP. 102

D-LINK CORPORATION 102

DASAN NETWORKS INC. 103

DEVOLO AG 103









FIBERHOME INTERNATIONAL TECHNOLOGIES CO. LTD. 104

GREENVITY COMMUNICATIONS INC. 104



IKANOS COMMUNICATIONS INC. 106

LEA NETWORKS LTD. 107

LINKSYS 107

NETGEAR INC. 107

MITSUIBISHI ELECTRIC CORPORATION 108

OF NETWORKS CO. LTD. 108

SAGEMCOM SAS 108

SMC NETWORKS INC. 109

SUMITOMO ELECTRIC NETWORKS INC. 109

TELSEY S.R.I. 110

TP-LINK TECHNOLOGIES CO., LTD. 111

ZHONE INC. 111

ZTE CORPORATION 112

ZYXEL COMMUNCATIONS CORPORATION 113

THE MOVE TO WIRELESS CONNECTIONS 113

SPEAKING THE SAME LANGUAGE 114

WI-FI'S HISTORY 115

WI-FI CERTIFICATION 115

CONNECTING TO A WI-FI NETWORK 116

WI-FI STANDARDS 117

WI-FI SECURITY RISKS 120

WI-FI INTERFERENCE 120

NETWORK SECURITY 120

WI-FI ENCRYPTION 121

ZIGBEE GAINS MOMENTUM 122

SECURITY OF WIRELESS SYSTEMS 122

MEETING THE BATTERY CHALLENGE 123

ENOCEAN ALLIANCE GAINS MOMENTUM 124

Z-WAVE EMERGES AS A WIRELESS ALTERNATIVE 124

INSTEON ADDRESSES HOME NETWORK SHORTCOMINGS 125

OTHER WIRELESS PROTOCOLS 125

TABLE 44 FORECAST FOR GLOBAL MARKET FOR WIRELESS HOME ENTERTAINMENT

NETWORK MARKET, THROUGH 2018 (UNITS IN MILLIONS/AVERAGE PRICE IN $ AND


126

TABLE 45 FORECAST FOR EUROPEAN WIRELESS HOME ENTERTAINMENT NETWORK


IN $ MILLIONS)

126

TABLE 46 FORECAST FOR NORTH AMERICAN WIRELESS HOME ENTERTAINMENT



127

TABLE 47 FORECAST FOR ASIAN WIRELESS HOME ENTERTAINMENT NETWORK










IN $ MILLIONS)

127

WI-FI MARKET MATURITY 127

TABLE 48 TOP FIVE GLOBAL WIRELESS HOME ENTERTAINMENT NETWORK


TABLE 49 TOP FIVE EUROPEAN WIRELESS HOME ENTERTAINMENT NETWORK


TABLE 50 TOP FIVE NORTH AMERICAN WIRELESS HOME ENTERTAINMENT

NETWORK SUPPLIERS, 2013 ($ MILLIONS/%) 128

TABLE 51 TOP FIVE ASIAN WIRELESS HOME ENTERTAINMENT NETWORK SUPPLIERS,

2013 ($ MILLIONS/%) 129

COMPANY PROFILES 129


ADTRAN, INC. 129


AVAYA INC. 131


D-LINK CORPORATION. 131

DASAN NETWORKS INC. 132


HITRON SYSTEMS 133


LINKSYS 134

NETGEAR INC. 134

MITSUIBISHI ELECTRIC CORPORATION 134

OF NETWORKS CO. LTD. 135

SAGEMCOM SAS 135

SMC NETWORKS INC. 136


TELSEY S.R.I. 137

TECHNICOLOR SA 138


UBEE INTERACTIVE 139

ZHONE INC. 140

ZTE CORPORATION 141


STANDARDS SPUR CABLE MODEM GROWTH 142

TABLE 52 FORECAST FOR GLOBAL MARKET FOR CABLE MODEM MARKET,


MILLIONS)

144

TABLE 53 FORECAST FOR EUROPEAN CABLE MODEM MARKET, THROUGH 2018


TABLE 54 FORECAST FOR NORTH AMERICAN CABLE MODEM MARKET, THROUGH


TABLE 55 FORECAST FOR ASIAN CABLE MODEM MARKET, THROUGH 2018 (UNITS










CABLE MODEM COMPETITION INTENSIFIES 145

TABLE 56 TOP FIVE GLOBAL CABLE MODEM SUPPLIERS, 2013 ($ MILLIONS/%) 146

TABLE 57 TOP FIVE EUROPEAN CABLE MODEM SUPPLIERS, 2013 ($ MILLIONS/%) 146

TABLE 58 TOP FIVE NORTH AMERICAN CABLE MODEM SUPPLIERS, 2013 ($

MILLIONS/%) 147

TABLE 59 TOP FIVE ASIAN CABLE MODEM SUPPLIERS, 2013 ($ MILLIONS/%) 147



ARRIS GROUP INC. 148

AVM GMBH 148

CASA SYSTEMS INC. 149

CASTLENET TECHOLOOGY INC. 149


COMMSCOPE INC. 150

COM TWENTY ONE LTD. 150

DRAYTEK CORP. 151


PACE PLC 152

TELESTE CORPORATION 153

TELSEY S.R.I. 153


UBEE INTERACTIVE 155

ZOOM TELEPHONICS INC. 155

DIGITAL SUBSCRIBER LINE INCREASE IN POWER 155

TABLE 60 FORECAST FOR GLOBAL MARKET FOR DSL MODEM MARKET, THROUGH


TABLE 61 FORECAST FOR EUROPEAN DSL MODEM MARKET, THROUGH 2018


TABLE 62 FORECAST FOR NORTH AMERICAN DSL MODEM MARKET, THROUGH


TABLE 63 FORECAST FOR ASIAN DSL MODEM MARKET, THROUGH 2018 (UNITS IN


DSL'S BEST DAYS ARE BEHIND IT 157

TABLE 64 TOP FIVE GLOBAL DSL MODEM SUPPLIERS, 2013 ($ MILLIONS/%) 158

TABLE 65 TOP FIVE EUROPEAN DSL MODEM SUPPLIERS, 2013 ($ MILLIONS/%) 158

TABLE 66 TOP FIVE NORTH AMERICAN DSL MODEM SUPPLIERS, 2013 ($

MILLIONS/%) 158

TABLE 67 TOP FIVE ASIAN DSL MODEM SUPPLIERS, 2013 ($ MILLIONS/%) 158



ADTRAN, INC. 159


AVM GMBH 161

BILLION ELECTRIC CO., LTD. 161

COMTREND CORP. 162

DEVOLO AG 162

DRAYTEK CORP. 163

ECI TELECOM LTD. 163










IKANOS COMMUNICATIONS INC. 164

LEA NETWORKS LTD. 165

NETGEAR INC. 165

PACE PLC 166


TELSEY S.R.I. 167


ZHONE INC. 168

ZOOM TELEPHONICS INC. 169

ZTE CORPORATION 169


CHAPTER 6 GAMING SYSTEMS 172

VIDEO GAME CONSOLES AND PLAYERS 173

TABLE 68 FORECAST FOR GLOBAL MARKET FOR GAMING MARKET, THROUGH 2018


TABLE 69 FORECAST FOR EUROPEAN GAMING MARKET, THROUGH 2018 (UNITS IN


TABLE 70 FORECAST FOR NORTH AMERICAN GAMING MARKET, THROUGH 2018


TABLE 71 FORECAST FOR ASIAN GAMING MARKET, THROUGH 2017 (UNITS IN


INFLUENCE OF INDUSTRY STANDARDS 174

SONY'S PLAYSTATION 4 EMERGES 175

SUPPORT FOR HIGH RESOLUTION GRAPHICS 176

THE DUALSHOCK 4 CONTROLLER 177

MICROSOFT XBOX ONE FOCUSES ON IMMERSIVE ENTERTAINMENT 178

NEW GAME SHARING OPTIONS 179

XBOX ONE SPECIFICAITONS 180

TABLE 72 XBOX ONE AND PLAYSTATION 4 FEATURE SETS, 2013 181

NINTENDO WII U CARVES OUT NEW GROUND 181

GAMING SUPPLIERS MUST FACE NEW TIMES 182

TABLE 73 TOP THREE GAMING SUPPLIERS, 2013 ($ MILLIONS/%) 182

TABLE 74 TOP THREE EUROPEAN GAMING SUPPLIERS, 2013 ($ MILLIONS/%) 183

TABLE 75 TOP THREE NORTH AMERICAN GAMING SUPPLIERS, 2013 ($ MILLIONS/%) 183

TABLE 76 TOP THREE ASIAN GAMING SUPPLIERS, 2013 ($ MILLIONS/%) 183


NINTENDO CORPORATION 184

MICROSOFT CORPORATION 185

ONLIVE INC. 185

SONY CORP. 186

CHAPTER 7 HOME THEATER/HOME AUDIO SYSTEMS 189

COMPONENT SYSTEMS VS. THEATER-IN-A-BOX 189

ONE MORE OPTION: HOME THEATER PROJECTORS 190









TABLE 77 FORECAST FOR GLOBAL HOME THEATER MARKET, THROUGH 2018


TABLE 78 FORECAST FOR EUROPEAN HOME THEATER MARKET, THROUGH 2018


TABLE 79 FORECAST FOR NORTH AMERICAN HOME THEATER MARKET, THROUGH


TABLE 80 FORECAST FOR ASIAN HOME THEATER MARKET, THROUGH 2018 (UNITS


INTEREST IN HOME THEATERS RISES 191

TABLE 81 TOP FIVE GLOBAL HOME THEATER SUPPLIERS, 2013 ($ MILLIONS/%) 192

TABLE 82 TOP FIVE EUROPEAN HOME THEATER SUPPLIERS, 2013 ($ MILLIONS/%) 192

TABLE 83 TOP FIVE NORTH AMERICAN HOME THEATER SUPPLIERS, 2013 ($

MILLIONS/%) 192

TABLE 84 TOP FIVE ASIAN HOME THEATER SUPPLIERS, 2013 ($ MILLIONS/%) 193


HITACHI LTD. 193

JVC KENWOOD HOLDINGS 193

LG ELECTRONICS 194

Product Support 194

MITSUIBISH ELECTRIC CORPORATION 195

NEC CORPORATION 195

NORITAKE ITRON CORP. 196


OPTOMA TECHNOLOGY 197


SAMSUNG GROUP 198

SEIKO EPSON CORP. 199


SONY CORP. 200

HOME AUDIO SYSTEMS OPTIONS INCREASE 200

THE EMERGENCE OF NEW AMPLIFIERS 201

TABLE 85 FORECAST FOR GLOBAL MARKET FOR AUDIO MARKET, THROUGH 2018


TABLE 86 FORECAST FOR EUROPEAN AUDIO MARKET, THROUGH 2018 (UNITS IN


TABLE 87 FORECAST FOR NORTH AMERICAN AUDIO MARKET, THROUGH 2018


TABLE 88 FORECAST FOR ASIAN AUDIO MARKET, THROUGH 2018 (UNITS IN


HOME AUDIO MARKET UNDERGOES SIGNIFICANT CHANGES 203

TABLE 89 TOP FIVE GLOBAL AUDIO SUPPLIERS, 2013 ($ MILLIONS/%) 204

TABLE 90 TOP FIVE EUROPEAN AUDIO SUPPLIERS, 2013 ($ MILLIONS/%) 204

TABLE 91 TOP FIVE NORTH AMERICAN AUDIO SUPPLIERS, 2013 ($ MILLIONS/%) 204

TABLE 92 TOP FIVE ASIAN AUDIO SUPPLIERS, 2013 ($ MILLIONS/%) 205


BOSE CORPORATION 205

BOSTON ACOUSTICS 205

CAMBRIDGE SOUNDWORKS INC. 206









EMERSON RADIO CORPORATION 207

HC SHINCO INTERNATIONAL PTE LTD 207

JBL 207

JVC KENWOOD HOLDINGS 208


POLK AUDIO INC. 209


PIONEER CORPORATION 210

VOXX INTERNATIONAL 210

YAMAHA CORPORATION 211

LIST OF TABLES

SUMMARY TABLE FORECAST FOR GLOBAL DIGITAL HOME ENTERTAINMENT SYSTEMS

MARKET BY PRODUCT SEGMENT, THROUGH 2018 ($ MILLIONS) 10

TABLE 1 MARKET SHARE OF RESIDENTIAL HOME ENTERTAINMENT SYSTEM

PRODUCTS BY REGION, 2013 ($ MILLIONS/%) 18

TABLE 2 TOP FIVE DIGITAL HOME ENTERTAINMENT SUPPLIERS, 2013 ($ MILLIONS /%) 21

TABLE 3 FORECAST FOR GLOBAL MARKET FOR DIGITAL TV MARKET, THROUGH 2018


TABLE 4 FORECAST FOR EUROPEAN DIGITAL TV MARKET, THROUGH 2018 (UNITS IN


TABLE 5 FORECAST FOR NORTH AMERICAN DIGITAL TV MARKET, THROUGH 2018


TABLE 6 FORECAST FOR ASIAN DIGITAL TV MARKET, THROUGH 2018 (UNITS IN


TABLE 7 TOP FIVE DIGITAL TV SUPPLIERS, 2013 ($ MILLIONS/%) 28

TABLE 8 TOP FIVE EUROPEAN DIGITAL TV SUPPLIERS, 2013 ($ MILLIONS/%) 29

TABLE 9 TOP FIVE NORTH AMERICAN DIGITAL TV SUPPLIERS, 2013 ($ MILLIONS/%) 29

TABLE 10 TOP FIVE ASIAN DIGITAL TV SUPPLIERS, 2013 ($ MILLIONS/%) 29

TABLE 11 FORECAST FOR GLOBAL SET TOP BOX MARKET, THROUGH 2018 (UNITS IN


TABLE 12 FORECAST FOR EUROPEAN SET TOP BOX MARKET, THROUGH 2018 (UNITS


TABLE 13 FORECAST FOR NORTH AMERICAN SET TOP BOX MARKET, THROUGH 2018


TABLE 14 FORECAST FOR ASIAN SET TOP BOX MARKET, THROUGH 2018 (UNITS IN


TABLE 15 TOP FIVE SET TOP BOX SUPPLIERS, 2013 ($ MILLIONS/%) 43

TABLE 16 TOP FIVE EUROPEAN SET TOP BOX SUPPLIERS, 2013 ($ MILLIONS/%) 43

TABLE 17 TOP FIVE NORTH AMERICAN SET TOP BOX SUPPLIERS, 2013 ($

MILLIONS/%) 43

TABLE 18 TOP FIVE ASIAN SET TOP BOX SUPPLIERS, 2013 ($ MILLIONS/%) 44

TABLE 19 POPULAR MEDIA SERVER/IP TV CONTENT FORMATS, 2013 51

TABLE 20 FORECAST FOR GLOBAL MARKET FOR MEDIA SERVER/IPTV RECEIVER










IN $ MILLIONS)

54

TABLE 21 FORECAST FOR EUROPEAN MEDIA SERVER/IPTV RECEIVER MARKET,


MILLIONS)

55

TABLE 22 FORECAST FOR NORTH AMERICAN MEDIA SERVER/IPTV RECEIVER MARKET,


MILLIONS)

55

TABLE 23 FORECAST FOR ASIAN MEDIA SERVER/IPTV RECEIVER MARKET, THROUGH


TABLE 24 TOP FIVE MEDIA SERVER/IPTV RECEIVER SUPPLIERS, 2013 ($ MILLIONS/%) 56

TABLE 25 TOP FIVE EUROPEAN MEDIA SERVER/IPTV RECEIVER SUPPLIERS, 2013 ($

MILLIONS/%) 56

TABLE 26 TOP FIVE NORTH AMERICAN MEDIA SERVER/IPTV RECEIVER SUPPLIERS,

2013 ($ MILLIONS/%) 56

TABLE 27 TOP FIVE ASIAN MEDIA SERVER/IPTV RECEIVER SUPPLIERS, 2013 ($

MILLIONS/%) 57

TABLE 28 FORECAST FOR GLOBAL MARKET FOR DVR MARKET, THROUGH 2018


TABLE 29 FORECAST FOR EUROPEAN DVR MARKET, THROUGH 2018 (UNITS IN


TABLE 30 FORECAST FOR NORTH AMERICAN DVR MARKET, THROUGH 2018 (UNITS


TABLE 31 FORECAST FOR ASIAN DVR MARKET, THROUGH 2018 (UNITS IN



TABLE 33 TOP FIVE EUROPEAN DVR SUPPLIERS, 2013 ($ MILLIONS/%) 72

TABLE 34 TOP FIVE NORTH AMERICAN DVR SUPPLIERS, 2013 ($ MILLIONS/%) 72


TABLE 36 FORECAST FOR GLOBAL MARKET FOR WIRED HOME ENTERTAINMENT



95

TABLE 37 FORECAST FOR EUROPEAN WIRED HOME ENTERTAINMENT NETWORKS,


MILLIONS)

95

TABLE 38 FORECAST FOR NORTH AMERICAN HOME ENTERTAINMENT WIRED



95

TABLE 39 FORECAST FOR ASIAN WIRED HOME ENTERTAINMENT NETWORKS,


MILLIONS)

96

TABLE 40 TOP FIVE WIRED HOME ENTERTAINMENT NETWORK SUPPLIERS, 2013 ($









MILLIONS/%) 97

TABLE 41 TOP FIVE EUROPEAN WIRED HOME ENTERTAINMENT NETWORK SUPPLIERS,

2013 ($ MILLIONS/%) 97

TABLE 42 TOP FIVE NORTH AMERICAN WIRED HOME ENTERTAINMENT NETWORK


TABLE 43 TOP FIVE ASIAN WIRED HOME ENTERTAINMENT NETWORK SUPPLIERS,

2013 ($ MILLIONS/%) 98

TABLE 44 FORECAST FOR GLOBAL MARKET FOR WIRELESS HOME ENTERTAINMENT



126

TABLE 45 FORECAST FOR EUROPEAN WIRELESS HOME ENTERTAINMENT NETWORK


IN $ MILLIONS)

126

TABLE 46 FORECAST FOR NORTH AMERICAN WIRELESS HOME ENTERTAINMENT



127

TABLE 47 FORECAST FOR ASIAN WIRELESS HOME ENTERTAINMENT NETWORK


IN $ MILLIONS)

127

TABLE 48 TOP FIVE GLOBAL WIRELESS HOME ENTERTAINMENT NETWORK


TABLE 49 TOP FIVE EUROPEAN WIRELESS HOME ENTERTAINMENT NETWORK


TABLE 50 TOP FIVE NORTH AMERICAN WIRELESS HOME ENTERTAINMENT NETWORK


TABLE 51 TOP FIVE ASIAN WIRELESS HOME ENTERTAINMENT NETWORK SUPPLIERS,

2013 ($ MILLIONS/%) 129

TABLE 52 FORECAST FOR GLOBAL MARKET FOR CABLE MODEM MARKET, THROUGH


TABLE 53 FORECAST FOR EUROPEAN CABLE MODEM MARKET, THROUGH 2018


TABLE 54 FORECAST FOR NORTH AMERICAN CABLE MODEM MARKET, THROUGH


TABLE 55 FORECAST FOR ASIAN CABLE MODEM MARKET, THROUGH 2018 (UNITS IN


TABLE 56 TOP FIVE GLOBAL CABLE MODEM SUPPLIERS, 2013 ($ MILLIONS/%) 146

TABLE 57 TOP FIVE EUROPEAN CABLE MODEM SUPPLIERS, 2013 ($ MILLIONS/%) 146

TABLE 58 TOP FIVE NORTH AMERICAN CABLE MODEM SUPPLIERS, 2013 ($

MILLIONS/%) 147

TABLE 59 TOP FIVE ASIAN CABLE MODEM SUPPLIERS, 2013 ($ MILLIONS/%) 147

TABLE 60 FORECAST FOR GLOBAL MARKET FOR DSL MODEM MARKET, THROUGH


TABLE 61 FORECAST FOR EUROPEAN DSL MODEM MARKET, THROUGH 2018 (UNITS










TABLE 62 FORECAST FOR NORTH AMERICAN DSL MODEM MARKET, THROUGH 2018


TABLE 63 FORECAST FOR ASIAN DSL MODEM MARKET, THROUGH 2018 (UNITS IN


TABLE 64 TOP FIVE GLOBAL DSL MODEM SUPPLIERS, 2013 ($ MILLIONS/%) 158

TABLE 65 TOP FIVE EUROPEAN DSL MODEM SUPPLIERS, 2013 ($ MILLIONS/%) 158

TABLE 66 TOP FIVE NORTH AMERICAN DSL MODEM SUPPLIERS, 2013 ($ MILLIONS/%) 158

TABLE 67 TOP FIVE ASIAN DSL MODEM SUPPLIERS, 2013 ($ MILLIONS/%) 158

TABLE 68 FORECAST FOR GLOBAL MARKET FOR GAMING MARKET, THROUGH 2018


TABLE 69 FORECAST FOR EUROPEAN GAMING MARKET, THROUGH 2018 (UNITS IN


TABLE 70 FORECAST FOR NORTH AMERICAN GAMING MARKET, THROUGH 2018


TABLE 71 FORECAST FOR ASIAN GAMING MARKET, THROUGH 2017 (UNITS IN


TABLE 72 XBOX ONE AND PLAYSTATION 4 FEATURE SETS, 2013 181

TABLE 73 TOP THREE GAMING SUPPLIERS, 2013 ($ MILLIONS/%) 182

TABLE 74 TOP THREE EUROPEAN GAMING SUPPLIERS, 2013 ($ MILLIONS/%) 183

TABLE 75 TOP THREE NORTH AMERICAN GAMING SUPPLIERS, 2013 ($ MILLIONS/%) 183

TABLE 76 TOP THREE ASIAN GAMING SUPPLIERS, 2013 ($ MILLIONS/%) 183

TABLE 77 FORECAST FOR GLOBAL HOME THEATER MARKET, THROUGH 2018 (UNITS


TABLE 78 FORECAST FOR EUROPEAN HOME THEATER MARKET, THROUGH 2018


TABLE 79 FORECAST FOR NORTH AMERICAN HOME THEATER MARKET, THROUGH


TABLE 80 FORECAST FOR ASIAN HOME THEATER MARKET, THROUGH 2018 (UNITS


TABLE 81 TOP FIVE GLOBAL HOME THEATER SUPPLIERS, 2013 ($ MILLIONS/%) 192

TABLE 82 TOP FIVE EUROPEAN HOME THEATER SUPPLIERS, 2013 ($ MILLIONS/%) 192

TABLE 83 TOP FIVE NORTH AMERICAN HOME THEATER SUPPLIERS, 2013 ($

MILLIONS/%) 192

TABLE 84 TOP FIVE ASIAN HOME THEATER SUPPLIERS, 2013 ($ MILLIONS/%) 193

TABLE 85 FORECAST FOR GLOBAL MARKET FOR AUDIO MARKET, THROUGH 2018


TABLE 86 FORECAST FOR EUROPEAN AUDIO MARKET, THROUGH 2018 (UNITS IN


TABLE 87 FORECAST FOR NORTH AMERICAN AUDIO MARKET, THROUGH 2018


TABLE 88 FORECAST FOR ASIAN AUDIO MARKET, THROUGH 2018 (UNITS IN


TABLE 89 TOP FIVE GLOBAL AUDIO SUPPLIERS, 2013 ($ MILLIONS/%) 204

TABLE 90 TOP FIVE EUROPEAN AUDIO SUPPLIERS, 2013 ($ MILLIONS/%) 204

TABLE 91 TOP FIVE NORTH AMERICAN AUDIO SUPPLIERS, 2013 ($ MILLIONS/%) 204

TABLE 92 TOP FIVE ASIAN AUDIO SUPPLIERS, 2013 ($ MILLIONS/%) 205









LIST OF FIGURES

SUMMARY FIGURE FORECAST FOR GLOBAL DIGITAL HOME ENTERTAINMENT

SYSTEMS MARKET SHARE BY PRODUCT SEGMENT, 2013 AND 2018 (%) 10








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