Boosted by 3G network deployments, cellular modems are providing
wireless connectivity to laptops, UMPCs and even desktop computers.
2007 data contained in a new study from ABI Research reveals that
cellular modem sales, including PC Cards, Express Cards, USB modems,
embedded modems and 3G/Wi-Fi routers cumulatively, increased more than
300% compared to 2006. The firm forecasts that by 2013, shipments of
cellular modems will exceed 200 million units.
According to principal analyst Dan Shey, “2007 saw cellular modems
established as an important connectivity technology for operators as
well as for the mobile customer.”
However the incredible growth of 2007 did not benefit just
traditional market share leaders such as Option Wireless, Sierra
Wireless and Novatel. Asia-Pacific vendors including Huawei, ZTE, and
C-motech now control the majority of worldwide sales and they are
bringing a completely new set of capabilities to the marketplace. Says
Shey, “The leading Asia-Pacific cellular modem vendors have robust
portfolios of other telecommunications products and services. This
positions them to compete for operator sales at a very different level,
and is forcing changes to incumbent modem supplier business models.”
The factors driving this market go beyond a very competitive modem
supplier market and 3G networks. Enterprise customers have been the
traditional buyers of these devices, but operators have expanded their
portfolio of mobile broadband price plans, opening up the market to SMB
and consumer demand. In addition, Qualcomm’s Gobi, the eventual
consolidation to GSM 3G and 4G networks, and WiMAX will all have
positive effects on the supply chain, creating cellular-enabled devices
which will drive up sales of embedded modems.
ABI Research’s study, “Cellular Modems and Mobile Broadband Connectivity”
provides a comprehensive overview of the market for cellular modems.
The report analyzes the factors both driving and inhibiting growth and
how changes in the market are creating both opportunity and complexity
for the value chain participant. It provides comprehensive market share
and forecast information for modem supplier, distribution channel and
customer type. Forecasts are provided for each of five different form
factors by worldwide region, technology standard and air interface, and
average selling price.
The study forms part of two ABI Research Services, Business Mobility and Mobile Devices,
which include Research Reports, Research Briefs, Market Data, an Online
Database, ABI Insights, ABI Vendor Matrices, and analyst inquiry support