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Cellular Modem Market Booms in 2004
Dec 31, 2004
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The cellular modem market had a breakout year in 2004, and prospects for the next 5 years are even brighter, according to research firm In-Stat/MDR.

The market has grown by 167 percent from 2003 to 2004, based on data from the first three quarters of 2004 and estimates of the final quarter of the year. By 2009, the research firm expects that more than 14 million wireless modems will be shipped worldwide, up from slightly more than 2.5 million in 2004.

"The impetus for the dramatic growth in 2004, and for even more rapid growth projected in later years, is a result of the build-out of high-speed wireless (3G) networks, particularly UMTS networks in Western Europe, and growing corporate demand for wireless data services in both North America and Europe," says Ken Hyers, In-Stat/MDR analyst. "As the rollout of high-speed wireless networks continues in both highly developed markets and in developing markets, the opportunities for cellular modem manufacturers to expand their sales will continue."

In-Stat/MDR has also found that:

  • Most of the growth will initially come from cellular modem cards (primarily PCMCIA cards intended to be inserted into PCMCIA slots in notebook computers).
  • However, by the end of the decade, embedded cellular modems will outsell PCMCIA-style modems.
  • While North America has traditionally been the largest market for cellular modems, Western European expansion of UMTS networks has created a significant new market for cellular modems in the last year.

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