Home Routers Market Size
The percentage of households in the US that are using home cable routers for accessing the Internet is 82.77% and the US market size for these routers is approximately US $11.08 billion, being the second largest market on a global scale.
Market size helpful relevant findings
Market Size in Households
- In 2016, the number of fixed broadband subscribers in the United States reached 106.3 million.
- In the US, cable broadband represents the largest share in the internet market with 62% of all connections.
- The main type of broadband subscription in the country is cable, increasing its number of subscribers by 105% in Q1 2017.
- However, although it still has a steady 6% growth with many households depending on fixed broadband connections, during the past few years this growth has been slowing in comparison to previous years due to the number of users transitioning to mobile broadband.
- Global Market Intelligence forecasted that the percentage of households using cable broadband will grow from 51.6% in 2017 to 52.7% in 2025.
- Its competitor, fiber broadband connection, is expected to grow from 4.5% households to 23.2%, while DSL broadband connections are expected to drop from 42% to 23.5% by 2025.
- However, this expectation was surpassed when in 2018 when the percentage of households with cable broadband subscription in the US was 93%. *
- 89% of broadband households use WiFi. *
- In 2018, there were 127.59 million households in the US. *
Market Size in US Dollars
- The global home WiFi router market is expected to reach $12.96 billion by 2026 at a CAGR of 6.6% during the period of 2018-2026.
- The US represents the second largest broadband market in the world with 111.7 million subscribers in 2018.
- The regular home wireless network requires one broadband cable wireless router to connect all devices. *
- Another type of configuration uses one cable/broadband router as the main ISP source and then multiple WiFi points like WiFi replicators or non-broadband routers.
- In the US, a broadband router used for a home can cost between $40 to $60 if it is a simple Wireless-G router and from $70 to $170 for more advanced Wireless-N routers. The recommended one is about $90. *
* This information will be used in our research strategy.
To determine the number of households, we began our research by looking for pre-compiled statistics of the number of households with cable or cable broadband routers for a WiFi connection in the US. However, we noticed there were no pre-compiled reports with all the information requested. We were able to find, however, enough data points to triangulate:
With this information, we began calculating the number of households with broadband connection by multiplying the number of households by 93% or 0.93: 127,590,000 x 0.93 = 118,658,700 meaning that there were over 118.65 million households with broadband connection in the US in 2018.
Then we determine the ones with routers by multiplying this number by 89% as we know that 89% of the houses with broadband have WiFi connection setup, indicating they use a broadband router: 118,658,700 x 0.89 = 105606243.
Based on our calculations, we know that the number of households in the US with broadband routers is 105,606,243.
Finally, to determine the percentage they represent in the total number of US households we divided this number between the total number of households and multiplied by 100:
(105,606,243 / 127,590,000) = 0.8277 x 100 = 82.77%
This demonstrates that in the US, the percentage of households with broadband routers is 82.77%.
Market size in US dollars
To determine the market size in US dollars, we also began by searching for pre-compiled data and statistics. However, while we were able to obtain the total router market size in the US and the global market size of home wireless routers, we were unable to find a direct result for broadband routers for homes.
Since we had already calculated that the number of households in the US that use broadband WiFi connection in the US as 105,606,243, we decided to locate additional data points to find the market size.
We were able to find two WiFi setups: the recommended setup for a wireless broadband connection for a home which needs one broadband/cable router to set up the home network, and another setup wherein some houses that require more WiFi points connect their additional WiFi replicators or non-broadband routers to the main broadband router. From these and many other examples found online of how the broadband wireless connection is set up, we can assume that an average broadband WiFi household uses 1 broadband router.
With this in mind, we know that if there are 105,606,243 households in the US that have broadband wireless connection and they only use 1 broadband router in average, the market size of broadband or cable routers in the US of approximately 105,606,243 routers.
To determine the monetary value, we located the average price of a broadband router which starts at $40 for the most economic broadband routers and ends at $170 for the most expensive one.
We calculated the average of the price of the routers by finding the average of these two values (($40+$170)/2= $105). We then multiplied the average price of a broadband router by the number of broadband routers used in households:
105,606,243 routers x $105 per router = $10,560,624,300
Based on our calculations, we can determine that the approximate market size of broadband home routers in the US is $11,088,655,515 or $11.08 billion.