NEW YORK, USA: Boosted by 3G network deployments, cellular modems are providing wireless connectivity to laptops, UMPCs and even desktop computers. ABI Research forecasts that by 2013, shipments of cellular modems will exceed 200 million units.

The 2007 data contained in a new study from ABI Research reveals that cellular modem sales, including PC Cards, Express Cards, USB modems, embedded modems and 3G/Wi-Fi routers cumulatively, increased more than 300 percent compared to 2006.

According to principal analyst Dan Shey, “2007 saw cellular modems established as an important connectivity technology for operators as well as for the mobile customer.”

However the incredible growth of 2007 did not benefit just traditional market share leaders such as Option Wireless, Sierra Wireless and Novatel. Asia-Pacific vendors including Huawei, ZTE, and C-motech now control the majority of worldwide sales and they are bringing a completely new set of capabilities to the marketplace. Says Shey, “The leading Asia-Pacific cellular modem vendors have robust portfolios of other telecommunications products and services. This positions them to compete for operator sales at a very different level, and is forcing changes to incumbent modem supplier business models.”

The factors driving this market go beyond a very competitive modem supplier market and 3G networks. Enterprise customers have been the traditional buyers of these devices, but operators have expanded their portfolio of mobile broadband price plans, opening up the market to SMB and consumer demand.

In addition, Qualcomm’s Gobi, the eventual consolidation to GSM 3G and 4G networks, and WiMAX will all have positive effects on the supply chain, creating cellular-enabled devices which will drive up sales of embedded modems.