The global home networking device revenue market rose 6 percent to $5.4 billion in the first half of 2013 from the second half of 2012, said Infonetics Research.
The primary growth driver was multimedia over coax (MoCA) devices, which ship primarily in North America.
Residential gateway revenue increased 7 percent in H1, as operators rely on residential gateways to deliver managed services.
Operator-provided residential gateways continue to cannibalize retail routers: broadband router revenue and shipments declined in H1, said Infonetics Research, in its latest Home Networking Devices report.
The report focuses on tracks residential gateways; broadband routers; multimedia over coax (MoCA) set-top boxes (STBs), optical network terminals (ONTs), and coax-Ethernet adapters; HomePlug STBs and Powerline adapters; and HPNA/G.hn adapters.
Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research, said operators in North America and Western Europe are deploying higher-end gateways and set-top boxes with integrated wireless and wired technologies to distribute video to multiple devices in the home.
The operator activities are driving a secondary market of MoCA set tops and HomePlug adapters for connecting TVs, Blu-ray players, game consoles, and a growing list of peripherals to home networks.
Demand for multiscreen video is pushing the growth in home networking devices.
In China, South East Asia, Eastern Europe, the Middle East, and Latin America, the focus of home networking is first on expanding Wi-Fi coverage, then quickly shifting to distributing multiscreen video.