SCOTTSDALE, AZ, Jan. 3 - The cellular modem market had a breakout year in 2004, and prospects for the next five years are even brighter, according to In-Stat/MDR.

The market grew 167% last year, based on data from the first three quarters of 2004 and estimates of the final quarter of the year. By 2009, more than 14 million wireless modems will be shipped worldwide, up from slightly more than 2.5 million in 2004, the research firm said.

In-Stat credits high-speed wireless 3G networks, particularly UMTS networks in western Europe, and growing corporate demand for wireless data services in North America and Europe. Says analyst Ken Hyers, "As the rollout of high-speed wireless networks continues in both highly developed markets and in developing markets, the opportunities for cellular modem manufacturers to expand their sales will continue."

Other findings:

* Most growth will initially come from cellular modem cards (primarily PCMCIA cards for notebook computers).

* But by the end of the decade, embedded cellular modems will outsell PCMCIA-style modems.

* While North America has traditionally been the largest market for cellular modems, expansion of UMTS networks in western European has created a significant new market for cellular modems in the last year.