Although embedded cellular modem sales have been slow to take off, momentum is building for increased sales, according to a recent study from ABI Research. One recent development is the GSMA’s Mobile Broadband Service Mark initiative which, backed by media spending of $1 billion, will create awareness of laptops with embedded connectivity.
Other drivers include: Qualcomm’s Gobi chipset that enables modem connectivity on both GSM and CDMA networks; lower mobile broadband pricing; and networks maintaining their current EV-DO Rev A and HSPA air interfaces for at least two more years. ABI Research forecasts that these and other market forces will increase embedded cellular modem sales to nearly $9 billion in 2013.
However ABI Research principal analyst Dan Shey observes that there are some near term barriers to market development. “Although embedded connectivity is convenient, operators can apply the important levers of PC Card and USB modem pricing and promotion, as well as device-specific mobile broadband pricing. These factors can change the total value proposition of an embedded modem device and limit their uptake in the near term.”
Another near-term barrier is the current negative economic environment.
Shey concludes, “The holiday season will be difficult this year for purchases of bigger ticket items such as laptops. It would not be surprising for laptop OEMs to work more closely with operators to help drive the sales of these devices both with and without embedded connectivity. In other words, product bundles that include laptops, mobile broadband price offers and/or USB modems may be made available to entice buyers during these difficult economic times.”
ABI Research’s study, “Cellular Modems and Mobile Broadband Connectivity” provides a comprehensive overview of the market for cellular modems. It analyzes the factors both driving and inhibiting growth, and describes how changes in the market are creating both opportunity and complexity for the value chain. The impact of these drivers is summarized quantitatively with market share and forecast information.
The study forms part of the firm’s Cellular PC Modems and Business Mobility Research Services, which includes Research Reports, Research Briefs, Market Data, ABI Insights, the ABI Vendor Matrix, and analyst inquiry support.
ABI Research is a leading market research firm focused on the impact of emerging technologies on global consumer and business markets. Utilizing a unique blend of market intelligence, primary research, and expert assessment from its worldwide team of industry analysts, ABI Research assists hundreds of clients each year with their strategic growth initiatives. For information, call +1.516.624.2500.