ISP Dominance in Home Networking Equipment

Apr 9, 2025 at 12:00 AM

A recent study by Parks Associates reveals that Internet Service Providers (ISPs) are the primary source for home networking equipment in the United States. According to the research, 71% of American internet users have obtained their routers or gateways from ISPs. The report delves into consumer preferences and market trends regarding home networking products, focusing on emerging technologies like Wi-Fi 6E and Wi-Fi 7. It highlights a shift in consumer behavior where leasing or renting routers from ISPs has surpassed purchasing personal ones since 2022/2023. This trend correlates with the increasing cost of advanced router models.

The extensive analysis involved surveying 8,000 U.S. households with internet access. Kristen Hanich, Research Director at Parks Associates, noted that consumers increasingly rely on ISPs not only for equipment but also for financial incentives such as free products, leasing options, and discounts. ISP-branded routers enjoy high satisfaction rates, surpassing industry averages when measured by Net Promoter Scores (NPS).

In addition to ISP dominance, other key findings include the popularity of specific brands and solutions among consumers. Devices provided by ISPs under private labels, such as those from Vantiva/Technicolor, receive favorable reviews. Leading consumer brands like Amazon eero and Nest Wifi also associate with high satisfaction levels. TP-LINK devices stand out due to their affordable yet robust feature set. Furthermore, approximately one-third of home network router owners utilize mesh systems, though adoption growth has slowed. Many users find current generation routers sufficient without needing additional mesh nodes or pods.

As technology evolves, consumers' reliance on ISPs for networking equipment continues to grow. Brands offering competitive pricing and advanced features maintain strong positions in the market. Despite slower adoption rates for mesh systems, the overall landscape reflects ongoing innovation and changing consumer expectations.

While mesh systems have seen stagnation in adoption, newer routers provide adequate coverage and performance, reducing the perceived need for additional enhancements. Consumers continue to seek value and functionality, aligning closely with offerings from ISPs and select brands. These dynamics underscore an evolving marketplace shaped by technological advancements and shifting consumer priorities.