Cellular PC Modem Shipments See Rampant Growth

Nearly 93 million units of WWAN modems are expected to be shipped this year, said market research firm ABI Research, a large figure compared to 72 million units in 2009 and 46.4 million units in 2008.

Chinese vendors have been making deep inroads in this market, making the most of their high-volume and low overhead manufacturing capabilities. “The overwhelming majority of these modems are found in the USB dongle form factor rather than embedded in their host devices,” said the research firm in a statement.

“The USB modem is the most efficient, lowest cost, quickest and easiest way to take any wireless device online in the widest range of locations. It’s a familiar interface, compact, easy to carry, and convenient. ABI Research (News - Alert) sees the USB modem continuing to provide strong growth to this segment for the medium-term at least,” said Practice Director, Kevin Burden, in a statement.

According to the research firm, new computer sales with embedded modem modules were being adopted between nine and 12 months after the new network services launch, while USB modems have been an immediate upgrade opportunity.

“Many new mobile broadband networks are being deployed right now,” said ABI Research Principal Analyst, Jeff Orr. “The HSPA and HSPA+ protocols, as well as WiMAX and LTE (News - Alert), are luring subscribers who want their existing computing and communications devices to be enabled for those networks.

Chinese vendors have been so successful in the segment that last quarter one European vendor, the Belgian firm Option Wireless, asked the EC to investigate possible dumping within its member states. That investigation is still in progress.

The research report titled “Cellular and mobile Broadband PC modem market” provides market share and shipment forecast data for cellular modems used to supply cellular connectivity for laptops and other portable computing devices such as netbooks and tablets.