Market Overview
In 2023, the MVNO market had a value of USD 79.2 billion, and it is projected to expand at a compound annual growth rate (CAGR) of 8.8% from 2024 to 2030, reaching USD 141.9 billion by 2030. This development of the market can be credited to the rise in the penetration of mobile devices and the need for low-priced mobile facilities; quick development in the requirement for triple-play facilities in emerging nations; and a surge in the need for high-speed internet connectivity. However, while the traditional, full MVNOs have always been market leaders in terms of revenue, there have been newer players entering the market with the foremost focus on value-added services. Companies, like banks, smartphone vendors, supermarkets, media companies, and others have joined the MVNO industry with new kinds of business models. Through this, players are giving the incumbent players a hard time concerning cost arbitrage.
Thus, the traditional players of the market also started concentrating on value-added services which can be in the form of IP-PBX, managed services, business applications beside price differentiation. These value-added services help the companies to them up to 25% of their revenue and when bundled with other calling programs can help them grow and bring in income.
Regional Outlook
- The Prepaid category is estimated to advance faster at a CAGR of more than 9.3% over the projection period because of its customization choices and pay-as-you-use model.
- In 2023, the postpaid category generated the larger revenue share and is projected to continue to lead the industry. This is mainly because they provide customers the ease of paying monthly bills based on service usage, along with advantages such as unlimited services and rollover of unused data.
- Discount MVNOs took the largest portion of the market in 2023, and it is predicted that they will maintain their dominance given the campaigns of digitalization, the growth of the target group, their capability to engage customers, the need of small and middle enterprises, and the high competitiveness of the telecom providers.
- Cellular M2M MVNOs will make the biggest mark due to intensified use of cellular connectivity across different gadgets, a new level of 3G M2M technology, larger mobile network coverage, and MVNOs expanding their service offerings.
- In 2023, full MVNOs had more than 55% of the revenue share and the category is also projected to uphold dominance.
- The full MVNO model is common because of offers SIM cards, provides value-added services, and guarantees complete customer ownership and relationship.
- In 2023, the consumer category had a higher revenue share, and the category is also projected to uphold its position.
- Constant extension of the mobile subscription list and growing numbers of mobile devices are primary reasons for mobile data connection growth.
- Data-intensive applications like web browsing and video streaming are gaining more and more popularity among consumers, which represents market growth.
- Funds are being set aside to boost the beneficial sources by connecting more mobile broadband and, as a result, to have a positive role in category growth.
- The European industry held the largest revenue share in recent years and is projected to uphold supremacy.
- High acceptance of enhanced technologies, infrastructure growth, and the existence of several MVNOs contribute.
- Acceptance of combined services like VoIP also propels industry development.
- The APAC region is to experience the fastest development because of partnerships between market players and mobile phone makers.
SOURCE:P&S Intelligence
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