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ABI Research Predicts Bright Future for USB Cellular Modems

6:25 am on May 31, 2007 | Category: Cellular, Wireless, Wireless Technology

Over the past few months, several modem vendors have unveiled or launched cellular USB modems for laptop (and desktop) computers, allowing consumers and traveling businesspeople to conveniently access the internet over mobile data networks.

The market for these modems will become increasingly profitable and competitive in the years to come, according to a recent study by ABI Research, which predicts that annual shipments of cellular USB modems will exceed 22 million by the year 2012.

“Proliferation of 3G networks is the primary driver of growth of cellular modems regardless of form factor,” according to ABI principal analyst, Dan Shey. “However, new companies are jumping into the USB modem market because the installed base of devices for USB modems includes not only laptops but also desktops. Desktop PCs are ubiquitous around the world and will continue shipping in large volumes, exceeding 140 million units per year through 2011.”

Overall demand for cellular modems â€“ including PC Cards, ExpressCards, USB devices, internal cellular modems, and 3G-enabled Wi-Fi routers â€“ will see a compound annual growth rate of 53% over the next five years according to ABI, resulting in shipments of over 68 million units by 2012.

USB modems in particular, however, will benefit from a number of special market dynamics, presenting unique opportunities and challenges for manufacturers and suppliers around the world.

“There are two factors to watch which will affect the USB modem market,” commented Mr. Shey “First, the newer companies entering this market are in the Asia-Pacific region, a territory with notoriously price-competitive companies. Second, since the USB modem attaches externally to the computer, the device has no space or shape limitations. This fact will allow modem vendors to differentiate their products based on body design and functional features, providing for interesting marketing opportunities.”

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