Advantages of Mobile Hotspots

A mobile hotspot is a hardware device that allows users to connect to the Internet anytime, anywhere. It allows multiple mobile computing devices connect to WiFi, such as smartphones, tablets and laptops. For this reason, they are also known as Mi-Fi. In addition, unlike USB flash drives, they are easy to use and do not require any software to be uploaded on the connected device.

Mobile hotspots convert 4G or Long Term Evolution (LTE) signals into WiFi. The running of mobile hotspots depends on the availability of LTE networks. Therefore, users will choose the fastest network with the largest coverage area. Most smartphones today have built-in wireless hotspots that allow users to connect their smartphones to multiple devices over WiFi. Connecting multiple devices to smartphones through WiFi is called tethering. However, this may cause the smartphone battery to run out faster, so it is only recommended to use it in emergency situations.

The exhibit below depicts the advantages of using a mobile hotspot over tethering (Source: Technavio).

Overview of Mobile Hotspots in Global Market

The global mobile hotspot market is in a growth stage. The increase in internet penetration, the proliferation of mobile computing devices, and the availability of wireless technologies such as 3G, 4G, WiMax, and LTE are increasing the use of mobile hotspots. 3G, 4G, and LTE are very popular among individual users. In developed regions, such as the United States, Western Europe and Japan, most enterprise or home network users prefer to use WiFi rather than wired access. People often prefer WiFi over wired access. DSL or Fiber to Home (FTTH), followed by WiMax, is more popular in developing and underdeveloped countries. In developing and underdeveloped countries such as China, India, Southeast Asia, and the Middle East, it is more popular. The global mobile hotspot market is undergoing a paradigm shift from plug-in devices (such as USB drives) to mobile hotspots. Use mobile hotspot routers and smartphones as hotspots.

Several mobile hotspot equipment providers, such as Huawei, NETGEAR and ZTE, are developing innovative mobile broadband access devices to meet the growing demand for mobile broadband services. Several emerging equipment providers such as Karma and FreedomPop are entering the market with innovative products and data plans. KingTop, an emerging company, also offers technology products with high quality to customers around the world. Therefore, the global market forecast for mobile hotspots is booming.

Future Market Size

The global mobile hotspot market was valued at 42.94 million units in 2015. Shipment volume reach 129.4 million units in 2020, growing at a CAGR of 24.69%. The high growth rate is mainly due to the increasing demand for mobile broadband. The advent of various wireless technologies such as 4G and LTE has changed the way mobile devices used to be used. Now, consumers prefer to use wireless technologies to connect the Internet anytime, anywhere. With more than 3 billion Internet users worldwide in 2015, demand will increase further as the Internet has become an essential part of life and business. As broadband subscriber growing, global telecom operators are developing protable WiFi devices or mobile hotspot devices continuously.These devices access 3G or 4G cell phone networks and creating mini wireless broadband clouds, provide internet to 20 users. These devices also provide access to the Internet by being delivered by telecommunications service providers. Although the coverage is limited, portable devices such as mobile hotspots provide a convenient and effective way for transfer information via the Internet.

In addition to above factors, several other factors are expected to drive the demand for mobile hotspots globally:

①Smartphones, laptops, and tablets. Shipment volume of mobile computing devices are expected to grow at a CAGR of 6.99% from 2015-2020.

②Emergence of new generation wireless technologies such as 4G, 5G and LTE. LTE is already a common network technology in developed countries and is a trend in developing countries.

③Mobile telecom operators are rapidly developing their infrastructure based on 4G and LTE wireless technologies.

④As businesses and individual users move from one location to another, their demand for Internet access increases. As more and more enterprises require employees work on the go, a mobile hotspots that provide Internet anytime anywhere becomes necessary.

⑤ Average travel time is increasing. Global travel grew by more than 4% in 2015. In 2014, the international visitors is 1.1 billion, and the number increased to 1.2 billion in 2015.

⑥The rise of mobile cloud computing.