The global mobile virtual network operator (MVNO) market is expected to reach $94.82 billion by 2025, according to a new report by Grand View Research. The market is anticipated to expand at a CAGR of 7.6% during the forecast period. The growth can be attributed to growing demand for data services and increasing number of mobile users across the globe. In addition, increasing numbers of services such as cloud, machine-to-machine (M2M), and mobile money are expected to drive MVNO demand further.
Growing demand to access mobile applications, social media, and multimedia services is also expected to propel the MVNO market over the forecast period. Declining prices of smartphones are resulting in increasing numbers of subscribers across the globe, which is expected to drive the MVNO market. Increasing partnerships between key companies for providing high-speed data services to consumers are anticipated to propel the market in the years to come.
Favorable government guidelines for MVNOs that allow them to access single wholesale network (SWN) and mobile operator networks while eliminating national roaming charges are also expected to augment market development. Government initiatives like the Digital Single Market (DSM) strategy, to eliminate copyright issues and geo-blocking problems and to provide better network services in Europe, are expected to spur market growth.
Growing numbers of market entrants have led to increased competition among service providers. This has led companies to offer mobile services at cheaper rates, which is also expected to strengthen market growth. The MVNO model is considered cost-effective and time-efficient to enter into the telecom market. This is expected to provide potential opportunities for new market entrants.
Other findings indicate:
- By type, the discount segment is expected to account for the largest market share, in terms of revenue, expanding at the highest CAGR of more than 7.0% from 2018 to 2025. High competition among MVNO service providers to provide better and low-cost services and consumer preference for services offered at a discount are expected to drive the segment.
- By operational model, the service operator segment is expected to register the highest CAGR as it provides various service platforms such as voicemail and missed call notifications.
- The consumer segment is projected to be the dominant end-use segment over the forecast period. It is likely to register a CAGR of 7.4% from 2018 to 2025. This growth can be attributed to MVNOs that provide customer-centric offerings such as latest technologies and affordable data and voice plans.
- North America is expected to continue its dominance over the forecast period and is anticipated to reach $37.28 billion by 2025. High demand for efficient cellular networks, coupled with increasing speeds of mobile broadband, are factors positively impacting the market in North America.