A substantial majority of cellular modems purchased as add-ons to portable and mobile computing devices have traditionally been bought by businesses to equip their mobile workforces. However, in 2010, 51 percent of these modems — mostly the USB form factor — will ship into the consumer segment. By 2014 ,that percentage is expected to rise to 63 percent.

The decline in mobile broadband modem sales to business and the rapid growth of the consumer segment have several causes. The overall economic climate has put a crimp in business spending and lengthened equipment replacement cycles. At the same time the explosion in consumer demand for mobility, fueled in large part by the popularity of netbooks, has pushed up consumers’ interest. Another factor will shape the market in the mid-term. In 2011 and 2012, we will see the first significant nationwide access to mobile WiMAX and LTE networks in multiple geographic regions. That will create demand to upgrade to compatible modems, breathing new life into the market.

To learn more about the cellular modem market and how it may affect your business model now and in the future, please visit ABI Research's “Cellular Modems and Mobile Broadband Connectivity” which examines the market for mobile broadband modems that provide WWAN connectivity to broadband routers and mobile computers, including laptops and netbooks. It provides analysis of market dynamics that influence, drive and inhibit the adoption and growth of PCMCIA cards, USB modems and embedded modules, including shipment and revenue data and forecasts. It is a component of the Cellular PC Modems Research Service, which also contains Research Briefs, Market Data, an ABI Vendor Matrix, ABI Insights, and analyst inquiry support.