Sales of customer premises equipment (CPE) such as routers and residential gateway equipment are being driven by the growth in broadband, new research indicates.

A study by analyst In-Stat has found that the outlook for the CPE market is remains positive until the year 2012, driven by the growing number of broadband subscribers and the "desire to share bandwidth".

Figures from the market research firm show that worldwide CPE unit shipments grew 15 per cent in 2007 to 149 million.

Joyce Putscher of In-Stat explained: "With worldwide broadband subscribers predicted to exceed 500 million in 2010, there will be a very significant installed base of equipment that presents opportunities for replacements and upgrades."

According to In-Stat, the number of home networks installed worldwide should reach 200 million by the end of the year.

Another finding was that 'green' network equipment was not a major attraction for consumers.