Skip to main content

Mobile Hotspot Router Sales to Exceed $5 Billion

According to the latest market study by ABI Research, beyond the typical bandwidth caps and network-based throttling efforts, a fundamental shift is about to begin in mobile data communications service delivery.

Mobile network operators around the globe have been ridiculed by their customers, due to perpetually poor service performance and declining user experience, as millions of new devices look to connect to the Internet.

It's true, many mobile operators have not scaled their broadband network capacity fast enough to meet the growing demand, and so they essentially crippled their service offering -- alienating their customers in the process.

A solution is close at hand, however, in the form of a smartphone-sized device that connects several Wi-Fi-enabled devices to a single mobile broadband subscription: the mobile hotspot router.

Shipments in 2011 are expected to reach 7.1 million units with an estimated end-user revenue value of $1 billion.

Instead of tackling mobile data service shortcomings by merely adding more core network capacity, network operators are increasingly looking for data signaling optimization and device aggregation techniques in the Radio Area Network (RAN), where mobile hotspot routers help alleviate these challenges.

"The first products to reach the market in 2009 generally overshot the mass consumer population," says Jeff Orr, group director, mobile devices at ABI.

Products were very complex to set up and catered to an IT-managed remote workgroup environment, such as a construction site or field emergency response team.

Advancements have been made by vendors to reduce the size and complexity of mobile hotspot routers. The solutions also address imminent carrier challenges as they expand operations to support the deluge of mobile data user demands.

Network operators want to grow the subscriber base profitably, but risk further alienating users who feel that the internet access continues to slow down as more devices are sold and activated. Clearly, punitive business practices that show contempt for customers are not a solution to the problem.

"The mobile hotpot router is the only standalone device capable of being distributed to the end customer that reduces the number of subscribers while growing ARPU," adds Orr.

The mobile routers also have the advantage of not consuming mobile data at the same rate as directly-connected devices -- meaning, users tend to interact with only one device at a time.

In 2016, rapid adoption of mobile hotspot routers will be rewarded with more than 60 million annual shipments and an approximate end-user revenue value exceeding $5 billion.

Popular posts from this blog

How to Drive Value Creation from Digital Business

Across the globe, many forward-thinking CEOs and CFOs continue to fund business technology investments that enable meaningful and substantive digital transformations, ahead of their industry peer group. That's why CIOs and other IT leaders must now accelerate the quest for value creation and drive digital growth from those ongoing investments, according to the latest market study by Gartner. "The pressure on CIOs to deliver digital dividends is higher than ever," said Daniel Sanchez-Reina, VP Analyst at Gartner . "CEOs and boards anticipated that investments in digital assets, channels, and digital business capabilities would accelerate growth beyond what was previously possible." Digital Business Market Development   CIOs expect IT budgets to increase 5.1 percent on average in 2023 -- that's lower than the projected 6.5 percent global economy inflation rate. A Gartner survey analysis revealed several ways in which CIOs can deliver "digital dividends&qu

Digital Transformation Investment at $3.4 Trillion

Business technology leadership matters. Across the globe, more leaders have been pursuing bold Digital Transformation (DX) initiatives with the goal of creating new sources of business value through digital products, services, and experiences. As an additional benefit, the COVID-19 pandemic revealed that digital transformation efforts improve an organization's resilience against global market disruptions. Global DX investment is forecast to reach $3.4 trillion in 2026 with a five-year compound annual growth rate (CAGR) of 16.3 percent, according to the latest worldwide market study by International Data Corporation (IDC). Digital Transformation Market Development "Despite strong headwinds from global supply chain constraints, soaring inflation, political uncertainty, and an impending recession, investment in digital transformation is expected to remain robust," said Craig Simpson, senior research manager at IDC . The benefits of investing in DX technology -- including aut

Artificial Intelligence for National Border Security

National border protection agencies are under pressure to provide the highest level of security in the face of growing threats, such as increasing illegal migration and international terrorism. Now, government agencies are embracing advanced border security technologies to aid in effectively and reliably securing national borders. These solutions look to detect and identify potential threats and prevent them from escalating to a point that may jeopardize security. Security Surveillance Market Development Traditional border security patrols and Closed-circuit Television (CCTV) surveillance systems aren't adequate protection, and agencies must increasingly deploy new solutions to stay ahead of criminals and other potential threats to ensure the safety of a country’s borders. According to the latest market study by Juniper Research, the value of the border security technology market will exceed $70 billion globally in 2027 -- that's rising from $48 billion in 2022. Growing by 47 p