#United States #Dallas #Parks Associates #home networking #routers

Understanding the Current Trends in Home Networking Equipment

Recent research conducted by Parks Associates reveals that a notable 71% of households with home internet in the United States obtain their routers or gateways directly from their Internet Service Providers (ISPs). This statistic underscores the pivotal role ISPs play in the realm of home networking equipment, responding to consumer preferences and market demands.

The Shift in Trends

Historically, consumers tended to own their routers rather than lease or rent them. However, data from the 2022 and 2023 periods indicates a significant shift in this trend. The introduction of advanced technologies, including the new Wi-Fi 6E and Wi-Fi 7 routers, has led to rising costs associated with router ownership, pushing more households to rely on ISPs for their networking needs. In line with this, many consumers seek the benefits of free product offerings, leasing options, and various discounts available through their ISPs.

Kristen Hanich, the Research Director at Parks Associates, emphasizes that consumers prefer turning to their ISPs for home networking equipment, highlighting that ISP-provided routers—often marketed under white labels—are perceived to offer better features and functionalities. Notably, consumer satisfaction metrics for these ISP-provided devices exceed industry averages significantly.

Insights from the Research

The research analyzed data from 8,000 internet households to gauge ownership of home networking devices and the demand for new features in routers and gateways. Key findings included:
1. Popularity of ISP-Provided Routers: The routers offered by ISPs and those white-labeled from leading companies such as Vantiva and Technicolor significantly appeal to consumers. Individuals using ISP-branded products reported higher satisfaction levels, reflected in a Net Promoter Score (NPS) three times greater than the general NPS for home internet service providers.
2. Consumer Preferences: Many consumers express a strong preference for well-known consumer solutions like Amazon's eero and Google’s Nest Wifi, which are associated with high satisfaction rates. Conversely, devices from TP-LINK have gained popularity due to their comprehensive feature sets at more accessible price points.
3. Adoption of Mesh Systems: Approximately one-third of households using routers have adopted mesh systems, with over half of these setups incorporating additional pods or nodes. While mesh networking is becoming increasingly common, the adoption rate has recently plateaued, primarily because the performance and coverage provided by current generations of routers (6 and 6E) often satisfy customer needs.

The Future of Home Networking

Despite a slowdown in the adoption of mesh networking products, the home networking landscape continues evolving. Consumers increasingly favor ISPs for their home connectivity needs, in part due to the technological advancements seen in newer router models. Parks Associates will delve deeper into these insights at the upcoming CONNECTIONS™ conference taking place from May 13-15 in Dallas, Texas. This event will explore the intersection of technology and home living, focusing on innovative business strategies within connected home ecosystems.

As consumers become more attuned to their home networking needs, ISPs may continue to refine their offerings, providing even more features and options to maintain a competitive edge in this burgeoning market. By understanding consumer preferences and technological trends, both ISPs and router manufacturers can play pivotal roles in shaping the future of home networking.