17 November 2011

Mobile broadband device market to reach 525 million by 2016, driven by hotspots and USB modems

The mobile broadband device market will claim a global installed base of more than 525 million units by 2016, according to Strategy Analytics’ report ‘Mobile Broadband Devices: 5-Year Market Forecast for Embedded and External Modems’, which shows steady growth for external modems over the forecast period.

Expansion will be driven by device costs, more flexible tariffs, a shift to LTE and growth in mobile hotspots for multiple devices, such as tablets and other consumer electronics, says the market research firm. Embedded modems, however, will experience slower growth due to the higher cost of embedding cellular capabilities and the need for additional data services.

“Strategy Analytics anticipates continued growth in mobile broadband devices as operators improve user segmentation, such as flexible plans and content bundling all underpinned by LTE,” comments report author Andrew Brown, director, Wireless Enterprise Strategies. “Mobile hotspots have been a highlight in this sector, typically enabling up to five devices at a time to connect anywhere on one data plan. The growth in the number and variety of Wi-Fi enabled devices has considerably increased the value proposition of these mobile hotspot devices,” he adds.

The report includes forecasts of shipments of mobile broadband devices, both embedded and external, as well as sizing of the installed base of mobile broadband devices. Also included is further segmentation for embedded and external mobile WiMax devices.

Tags: Mobile broadband device market

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