The cellular modem market experienced an upswing in sales last year, with unit shipments reaching 20 million, according to a new study from analyst firm In-Stat.
The company said the growth in sales was driven by carriers beefing up their 3G data service offerings.
The market is experience two major trends, said In-Stat. Modem form factors are increasingly moving away from PC Cards toward USB modems, and embedded modems are becoming more popular. The firm predicts embedded modem shipments will exceed external modem shipments by 2011, following a peak year in 2010 when external modems will generate $2.6 billion in revenues.
“Clearly, here is an instance where capex (capital expenditure) investments in good times are paying dividends in lean years” said Daryl Schoolar, In-Stat analyst. “Operators continue to move forward with their mobile data subscription initiatives even as the economy suffers. This has put cellular modem manufacturers in a really nice place to be.”