The global mobile virtual network operator market size was valued at USD 76,015.4 million in 2022 and is estimated to expand at a CAGR of 7.7% from 2023 to 2030. The growing adoption of data and value-added services such as M-commerce-based and live streaming services are expected to propel the market growth during the forecast period. The increasing smartphone penetration worldwide and subsequent rise in mobile subscriber base are estimated to remarkably contribute to the industry growth. Mobile virtual network operators cater to various customer needs; however, they do not own the full infrastructure or license for using radio frequencies.
The presence of a large number of market players has led to increased competition among service providers. Consecutively, this has led the players to offer mobile services at cheaper rates. The emergence of groundbreaking services such as machine-to-machine transactions and mobile money is expected to impel the market growth. Furthermore, MVNOs are collaborating with smartphone manufacturers to offer their services at cheap prices to attract a new customer base, which is instrumental in driving the market growth during the forecast period.
Technological advancements such as cloud and M2M are expected to propel the market demand during the next eight years. MVNOs are expected to provide cheaper and more convenient mobility options for different sectors, such as entertainment, lifestyle, and productivity, to increase revenue generation. MVNO also provides various features to their customers by offering roaming services while traveling or for tourists. For instance, Lyca mobile offers cheap international calling rates to their users.
Factors such as increase in network speed and the growing use of advanced devices have led to a high growth in the use of data applications such as video streaming and internet browsing. Significant investments to improve Mobile Broadband (MBB) connections and network coverage benefits offered by the MVNO model also include time efficiency and cost-effectiveness. In addition, low-cost data and voice services offered by the model is expected to lure more consumers, which, in turn, is expected to accelerate its growth. MVNOs also provide potential opportunities to MNOs in the market by improving network utilization, thus facilitating them in developing their own MVNOs.
Mobile Network Operators (MNOs) are making substantial investments in upgrading and maintaining their existing infrastructure. However, this has resulted in high operational costs and declining average revenue per user for MNO. Moreover, the lack of operational expertise is expected to restrict the market growth. Fragmented and lower spectrum holding by MNOs may impact service quality and could make entry of MVNOs in certain regions unviable.
Based on type, the market is segmented into M2M, business, discount, roaming, media, migrant, retail, and telecom. The discount segment accounted for a market share of around 24.0% in 2022. The MVNO market is expected to witness significant growth in the M2M segment owing to the rising adoption of cellular connectivity in machines starting from vehicles to vending machines.
Advancements in technology in the 3G M2M segments, initiatives by MNOs to expand their service portfolio, and the extension of mobile network coverage are the main factors supporting the growth of MVNOs in the M2M market. There has been a significant growth in the number of MNOs collaborating with M2M application service providers, which is anticipated to fuel demand for the mobile network element deployment in M2M applications during the forecast period.
MNOs offer various service plans and products for different markets with fewer users, leading to expensive and inefficient operational and business support systems. The cost associated with retaining and acquiring new customers is relatively high, mainly for fixed-term contracts. The MVNOs can help overcome cost issues, optimize resource allocation, and improve the Quality of Service (QoS) that would contribute to the market's growth. Moreover, low-cost access to voice and data services is expected to be the key interest for customers.
Based on the operational model, the market is segmented into full MVNO, reseller MVNO, and services operator MVNO. The full MVNO segment accounted for a market share of around 60.0% in 2022.The full MVNO segment led the market in terms of revenue in 2022. Implementing a full MVNO network infrastructure involves minimal capital investment and provides complete call control, allowing customers to call internationally at highly discounted rates. The emergence of MVNOs is the result of regulatory interventions to lower the barriers for entry and eventually increase competition and strategic decisions undertaken by MNOs.
MNOs have their own mobile licenses, infrastructure, and customer relationships with their end-users and are capable of handling network routing. They generally have roaming deals with foreign counterparts. However, in an attempt to expand their existing customer base and operations, MNOs are collaborating with MVNOs and targeting niche segments.
To avoid direct competition with MNOs, MVNOs are focusing on offering differentiated services. They are aiming at capitalizing opportunities related to roaming services by providing special services to tourists and youth. MVNOs aid in increasing revenue for MNOs by providing wholesale deals, increasing network utilization, and creating their MVNO’s by launching sub-brands.
Based on end-use, the mobile virtual network operator (MVNO) market is segmented into consumer and enterprise. The consumer segment accounted for a market share of around 77.0% in 2022. The consumer segment dominated the market in 2019 and is expected to maintain its dominance during the forecast period. Increasing network speed and use of advanced devices enable growth of data applications such as internet browsing and video streaming.
Increasing investments are made to improve network coverage and growth in mobile broadband (MBB) connections. The MVNO model offers benefits such as time efficiency and cost-effectiveness, which is expected to lure more consumers, in turn, accelerating the growth of consumer segment.
Managing connected living, personal data, and rising e-commerce activities is also anticipated to provide significant growth opportunities for key players operating in the market along with increasing consumer benefits. Intelligent networks connecting a wide range of devices enable increased productivity of enterprises. The partnership between MNOs and MVNOs majorly depends on brand reputation, distribution network, promotional strategies, and access to segments. The MVNO model is shifting from voice to a more data-centric experience. MVNOs across the globe are looking for data-capable smartphones as a way to expand their businesses.
Europe dominated the market in 2022. Europe accounted for a market share of 47.39% in 2022. The growth can be attributed to the favorable regulatory framework, which is expected to play a crucial role in developing the MVNO. Countries such as the U.K., Germany, and the Netherlands are likely to impact regional growth in a positive manner during the forecast period. Data services are expected to be the key services for regional growth during the forecast period.
Asia Pacific and MEA are estimated to experience significant growth during the forecast period. The growth in this region can be attributed to the phenomenal expansion of the telecom services industry in this region. Emerging economies in the region, such as India, Vietnam, Myanmar, and China are making efforts in the expansion and modernization of their telecommunication services. Southeast Asian countries such as Thailand, Singapore, and Philippines are also estimated to contribute substantially to the regional market expansion during the forecast period.
Countries with advanced cellular networks, such as Malaysia, Japan, and Australia, are expected to play a major role in expanding the Asia Pacific regional market. For instance, in Japan, MVNOs provide services such as online gaming, remote management of vending machines, M2M, and surveillance, among others. In the healthcare sector, they also offer voice-controlled services for the patient monitoring and security applications.
Geographic expansion remains the key focus of all the players operating in the market. For instance, Virgin Mobile is present in various countries, such as the U.S., Mexico, the U.K., Canada, Australia, Poland, France, and Saudi Arabia. It provides a wide range of services such as TV-on-demand, digital cable recorders, cable, broadband, television, mobile and converged solutions.
Industry players are also adopting various strategic initiatives such as partnerships, mergers & acquisitions, collaborating with other firms to gain a competitive edge and deploying better services to their customers. For instance, in June 2021, Lebara Group extended its MVNO partnership with Vodafone to continue to host network for the U.K. businesses. This alliance will allow the former company’s customers to access Vodafone’s 5G services. Some of the prominent players in global mobile virtual network operator market include:
Talk Talk Group
Giffgaff
Lebara Group
Lyca Mobile
TracFone Wireless Inc.
Poste Mobile SpA
Virgin Mobile
Report Attribute |
Details |
Market size value in 2023 |
USD 81.81 billion |
Revenue forecast in 2030 |
USD 137.31 billion |
Growth rate |
CAGR of 7.7% from 2023 to 2030 |
Base year for estimation |
2022 |
Actual estimates/Historical data |
2018 - 2021 |
Forecast period |
2023 - 2030 |
Market representation |
Revenue in USD million and CAGR from 2023 to 2030 |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; France; Germany; Italy; Netherlands; Spain; UK; Australia; Hong Kong; Japan; Malaysia; Singapore; Thailand; Vietnam; Philippines; South Korea; Brazil; Colombia; Mexico; Chile; Peru; Middle East; Africa |
Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
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Pricing and purchase options |
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This report forecasts revenue and subscriber growth at the global, regional, and country levels in addition to provides an analysis of the industry trends from 2018 - 2030. For this study, Grand View Research has segmented the global mobile virtual network operator market report based on the type, operational model, end-use, and regions:
Type Outlook (Revenue, USD Million; 2018 - 2030)
Business
Discount
M2M
Media
Migrant
Retail
Roaming
Telecom
Operational Model Outlook (Revenue, USD Million; 2018 - 2030)
Full MVNO
Reseller MVNO
Service Operator MVNO
End-use Outlook (Revenue, USD Million; 2018 - 2030)
Consumer
Enterprise
Regional Outlook (Revenue, USD Million; Volume, Million Subscribers; 2018 - 2030)
North America
U.S.
Canada
Europe
France
Germany
Italy
Netherlands
Spain
UK
Asia Pacific
Australia
Hong Kong
Japan
Malaysia
Singapore
Thailand
Vietnam
Philippines
South Korea
Latin America
Brazil
Colombia
Mexico
Chile
Peru
MEA
Middle East
Africa
b. The global mobile virtual network operator market size was estimated at USD 76,015.4 million in 2022 and is expected to reach USD 81.81 billion in 2023.
b. The global mobile virtual network operator market is expected to grow at a compound annual growth rate of 7.7% from 2023 to 2030 to reach USD 137.31 billion by 2030.
b. Europe dominated the mobile virtual network operator market with a share of 47.39% in 2022. This is attributable to the favorable regulatory framework, which is expected to play a crucial role in developing the mobile virtual network operators.
b. Prominent players in the mobile virtual network operator market for mobile virtual network operators are Lebara Group; Lyca Mobile; TalkTalk Group; Giffgaff; Poste Mobile SpA; Virgin Mobile; and TracFone Wireless Inc.
b. The growing use of data and value-added services such as live streaming and M-commerce based services are expected to drive the mobile virtual network operator market for mobile virtual network operators over the forecast period.
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In order to ensure business continuity amidst the COVID-19 crisis, business organizations, especially in highly affected countries are allowing their employees to work from home. The increase in people working from home has led to a surge in demand for online video viewing, downloading, and communication through video conferencing, all of which are leading to increased network traffic and data usage. COVID-19 shall accelerate the demand for agile and flexible work styles and further push the adoption of communication services that tend to improve work-life balance. On the flip side, telecom regulators worldwide have postponed their plans of 5G spectrum auction amidst the global pandemic. This is expected to have an impact on the commercialization of commercial 5G standalone deployments and revenue generated through 5G services. The ongoing pandemic has forced telecom operators worldwide to test their network resiliency and revisit their planned investments, especially in 5G technology. The report will account for Covid19 as a key market contributor.
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