While many of the initial music servers in use today are basic consumer PCs, ABI Research sees an opportunity growing over time in the dedicated music server hardware market. Dedicated music server hardware revenue is expected to grow to $3.2 billion worldwide by the end of 2012, according to a recent ABI Research report.
“Many of the necessary forces are beginning to come together to enable networked audio to move beyond the early adopter market, and networked audio servers will stand to benefit,” says research director Michael Wolf. “Standards-based software and lower costs of mass storage, as well as dedicated off-the-shelf processors that enable networked media solutions are becoming a reality.”
Consumers’ desire to connect and deliver music around the home has been dampened by the difficulty of setting up and connecting existing solutions, as well as by the high cost. Industry-wide efforts for networked entertainment in the form of DLNA and other advances will help this effort, as will more large vendors entering the market for networked audio. As easy-to-use solutions for centrally storing a consumer’s content arrive in the form of attractively priced consumer electronics media servers, more consumers will begin to adopt these products.
“The early market ascendancy of high-priced proprietary solutions will begin to make way for products targeting digital music enthusiasts who want to take advantage of the technology but don’t want to invest thousands of dollars,” adds Wolf. “These solutions will capitalize on the new enabling technologies that make lower prices and wider interoperability a possibility.”
ABI Research’s study, “Networked Home Audio” (http://www.abiresearch.com/products/ market_research/Networked_Home_Audio), describes use-case scenarios for networked home audio, analyzes market drivers and inhibitors, forecasts market growth, and identifies key players in this new sector. It forms part of two ABI Research Services: Digital Media (http://www.abiresearch.com/products/service/ Digital_Media_Research_Service), and Home Networking (http://www.abiresearch.com/products/service/ Home_Networking_Research_Service), which includes Research Reports, Research Briefs, Market Data, Online Databases, the ABI Vendor Matrix, ABI Insights, and analyst inquiry support.
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