While SOHO/home WLAN equipment shipment volumes have increased strongly since Apple first launched its AirPort line of 802.11b-compliant consumer WLAN gear in 2000, prices have eroded sharply over the past several years, and few vendors are making much money in the market segment at present, reports In-stat. The SOHO/consumer AP market will rise from approximately 17.6 million units in 2004 to roughly 32.6 million units in 2009, the high tech market research firm forecasts. A major story in this market is a transition from the 802.11g air standard to MIMO-based products. “In-Stat believes that there will be a gradually shrinking price premium for MIMO/802.11n throughout the forecast period,” says Sam Lucero, In-Stat analyst. “The benefits of dramatically increased range appear to be resonating with consumers, actually more so than the increased throughput offered, and we believe customers are willing to pay the extra amount for whole-home coverage.” A recent report by In-Stat found the following:

• Eventually, while 802.11g will remain throughout the forecast period in very cost-optimized equipment, MIMO/802.11n will become the primary air standard; having a “universal” air standard is less confusing for consumers and easier to manage for vendors.
• Shipment volumes for MIMO-based equipment were small in 2004, but at least five vendors have now introduced products, with more expected in 2005.
• In contrast to the enterprise WLAN market, 802.11a/g equipment is not expected to gain traction in the SOHO/consumer WLAN market.

The report, “Here Comes MIMO: SOHO/Consumer WLAN Analysis,” covers the SOHO/consumer WLAN equipment market. Unit shipment and revenue market shares for 2004 are provided for SOHO/consumer APs, wireless routers, wireless Residential Gateways (RG) and external SOHO/consumer WLAN NICs. Five-year forecasts, from 2005 to 2009, are provided for SOHO/consumer APs, wireless routers, wireless RGs and external/embedded SOHO/consumer WLAN NICs. Brief vendor profiles are included.