Mobile Hotspot Router Market Will Witness a Steady Growth and Post a CAGR of 19.26% Through 2020: Technavio

LONDON--()--Technavio’s latest report on the global mobile hotspot router market provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.

Rakesh Kumar Panda, lead analyst from Technavio, specializing in research on M2M and connected devices sector, says, “Rising adoption of consumer electronic devices such as laptops, tablets, and wearable devices drives the market. In addition, increased use of enhanced LTE-Advanced connectivity infrastructure by telecom operators contributes to the market growth.”

Increasing demand for broadband-on-the-go model will contribute significantly to the growth of the market. Emergence of various wireless technologies such as 3G, 4G, and LTE has changed the way mobile devices are used. Consumers are increasingly using these wireless technologies to access internet-on-the-go. In 2015, there were more than 3 billion internet users worldwide and the demand will increase further as the internet has become an integral part of life and business.

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The top four emerging trends driving the global mobile hotspot router market according to Technavio ICT research analysts are:

  • Pay-as-you-go business model
  • Multiple operational features
  • Product differentiation
  • Increased average time spent in traveling

Pay-as-you-go business model

Vendors in the global mobile hotspot router market are adopting different strategies such as the pay-as-you-go model to attract consumers. The pay-as-you-go business model works on the concept of paying for the services availed and not for the amount of services that may or may not be used. In this model, users can pay to avail the service, as and when required. There is also an option for the consumer to carry over unused data allowances. Further, under this model, consumers can earn free data in their next recharge if they share data with other users via a hotspot.

“Many users find this feature a boon for them, as there is no issue of paying extra for the unused data. This scheme helps to load the data onto the device whenever needed without any monthly fees or extra charges. With the growing demand for data access, the providers are offering free data upon encouraging the socializing feature to get connected to that particular network,” according to Rakesh.

Multiple operational features

Mobile hotspots are known for their benefits such as access to Internet from anywhere at any time. These devices are also equipped with features such as power banks, GPS options, and storage devices. Power banks are increasingly being used by consumers worldwide to charge their portable devices, such as mobile phones and tablets. A mobile hotspot device can also be used as a power bank to charge mobile phones, if required. All devices are equipped with a battery that provides extended battery life for up to 20 hours.

Mobile hotspot devices also provide GPS data in connected devices for location identification purposes. These devices are designed and manufactured with microSD card slots provisioning up to 32 GB of storage for shared files. Currently, not all the devices available in the market offer these features. Advanced innovations in the market may result in all devices to be released with these features by vendors and even more, adding to the increased adoption of mobile hotspots.

Product differentiation

Vendors in the market are competing on several features such as data plans, data speeds, and prices to remain competitive in the market. This is one of the driving factors for the adoption of mobile hotspots, as consumers can choose products from different vendors that suit them best.

Some vendors are providing pay-as-you-go services, and some are offering free internet such as the Freedom Spot Overdrive Pro mobile hotspot. Launched in 2013, this mobile hotspot offered 500MB of data every month for free. AT&T provides a 2-in-1 projector and mobile hotspot known as ZTE Spro 2 Smart Projector. This 2-in-one device can connect up to 10 devices.

Increased average time spent in traveling

Increase in average time spent in traveling, including the time spent commuting to work and journeys, has boosted the development of mobile Wi-Fi hotspots. Cloud computing and mobile technology have transformed the travel experience. Mobile computing devices have become a standard accessory for travelers. Cloud computing provides travelers a platform to enjoy their traveling experience by enabling them access to the internet connection while users are on the go.

The key vendors are as follows:

  • Huawei Technologies
  • Novatel Wireless
  • TP-LINK Technologies
  • ZTE

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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Technavio Research
Jesse Maida
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US: +1 630 333 9501
UK: +44 208 123 1770

Release Summary

Technavio’s latest report on the global mobile hotspot router market provides an analysis on the most important trends expected to impact the market outlook from 2016-2020.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770