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Demand Continues to Outstrip Supply in the ISP Space, but is Falling Among Consumers

Internet service providers seek upgrades to their CPE deployments, looking to offer new value-added services using the router as a distribution platform. However, supply chain constraints continue to impact the market, making it difficult for router OEMs to ship products to their clients. To this end, over-the-air updates of existing CPE are becoming part of many companies’ strategies. With some ISPs, notably smaller players, having to delay CPE upgrades, many are choosing to move directly to Wi-Fi 6E or even Wi-FI 7 to gain 6GHz support and avoid another round of upgrades in the next several years.

Meanwhile, consumer demand for routers has begun to fall as many consumers who planned on upgrading their routers already did so during the first two years of the COVID-19 pandemic.

  • In its Q1 2022 earnings call, Technicolor reported that it was unable to meet market demand given supply chain constraints
  • Netgear reported a sharp 46% YoY drop in revenue for its premium consumer Wi-Fi brands in both the retail and service provider channels.
  • Consumer demand for high-end premium mesh products and value-added services remains strong. Netgear reports 626K paid subscribers to its services, with revenue growing 47% YoY

Although device purchases in the consumer market are slowing, demand from ISPs remains high. OEMs are turning to subscription services to stabilize revenues and meet customer demand.

Parks Associates latest study Home Networking Smart Product Market Assessment, provides a comprehensive view of the Home Networking market. Parks Associates analysts identify key market drivers and barriers and assess market growth via topline market forecasts. This research includes consumer data for home networking equipment, trends across years, and deep-dive questions on product usage, pain points, and preferences.

Parks Associates surveys 10,000 US broadband households every quarter, with additional surveys throughout the year. The survey results represent the national demographics for US broadband households, 89% of all US households.

For more information on this research or other research from Parks Associates library of studies, visit or contact any of our team.

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