When cellular, or WWAN, modems came to market, they were seen more as a tool for companies to equip their mobile workforce. Now it’s even more common that consumer modem purchases are outpacing those made by businesses.

 

A report released by market analyst firm ABI Research states that 51 percent of cellular modems, most of them being USB, will reach consumers by next year. And by 2014, consumers are expected to account for 63 percent of purchases.

 

The reason is, according to the researcher, there has been a sharp decline in integrating such modems into laptops and netbooks. This year, less than 5 percent of such devices were integrated with cellular modems.

 

By 2014, integrated modems will leap to account for 48 percent of laptops and netbooks shipped, ABI noted.

 

“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. But in 2010, 51 percent of these modems – mostly the USB form factor – will ship into the consumer segment,” said an ABI Research (News - Alert) analyst.

 

The popularity of the USB form factor, which has all but eclipsed the older PCMCIA and CardBus formats, has also influenced consumer adoption with its compact size and ease of installation. Modestly declining modem prices have also boosted sales.

 

“The decline in mobile broadband modem sales to business and the rapid growth of the consumer segment have several causes,” said senior analyst Jeff Orr. “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.”

 

Although new mobile computing products will increasingly feature embedded modem modules, penetration will remain slow in the near-term: ABI Research believes that in 2009 less than 5 percent of laptops and netbooks have embedded modems. However, over the long-term, the attachment rates will reach significant levels. In 2014, 48 percent of laptops and netbooks shipping will include 3G or 4G data connectivity.

 

There is one more factor that is shaping the market in the mid-term, said Orr. “In 2011 and 2012 we will see the first significant nationwide access to mobile WiMAX (News - Alert) and LTE networks in multiple geographic regions. That will create demand to upgrade to compatible modems, breathing new life into the market.”