U.S. Mobile Virtual Network Operator Market Size, Share & Trends Analysis grow at a CAGR of 7.5% from 2024 to 2030
The U.S. mobile virtual network operator market size was valued at USD 27.96 billion in 2023 and is projected to grow at a CAGR of 7.5% from 2024 to 2030. A substantial increase in adopting 5G technology in the country, competitive pricing by MVNOs, and strategic partnerships between MVNOs and MNOs are key growth drivers for market expansion. Mobile Virtual Network Operators (MVNOs) do not possess or manage their cellular network infrastructure; instead, they acquire network capacity from established Mobile Network Operators (MNOs) at a reduced rate. Mobile virtual network operators in the U.S. offer competitive pricing plans for budget-conscious consumers. It has raised a large segment’s demand for affordable plans, propelling market growth.
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The increasing demand for data-centric mobile plans has created an excellent opportunity for MVNOs to offer flexible data packages at reasonable rates. The U.S. mobile subscription market has matured due to the country’s high mobile penetration. It challenges traditional MNOs to acquire new consumers in a saturated market. MVNOs, with their targeted marketing strategies and niche service packages, are addressing the underserved segments in the existing market. Moreover, by offering a unique bundled service package, MVNOs are catering to the requirements of consumers seeking value-added services, which is a major driver for the widespread adoption of their services.
Improvements in virtualization technology have made it viable and cost-effective for mobile virtual network operators (MVNOs) to expand their operations. For instance, cloud-based solutions enable them to leverage existing MNO infrastructure without substantial investments. Furthermore, collaborative efforts between MNOs and MVNOs through spectrum-sharing agreements have led to optimized network utilization and improved network capacity for MVNO subscribers. These factors and a rise in the popularity of technologies such as the Internet of Things (IoT) and machine-to-machine (M2M) communication ensure promising growth prospects.
Type Insights
The discount segment led the market, accounting for a revenue share of 24.2% in 2023. MVNOs strategically offer discounted plans to price-conscious consumers, attracting them to choose affordable alternatives. Moreover, many discounted plans are prepaid, giving users greater control over their spending. This emphasis on value for money and customized offerings by combining call and data plans caters to the requirements of individual consumers, driving segment growth.
The machine-to-machine (M2M) segment is expected to register the fastest CAGR of 8.1% over the forecast period. It is owing to the exponential growth in adoption of connected devices nationwide. For instance, several devices are connected via IoT technology, collecting and transmitting data over the internet and creating a vast network of M2M communication. Additionally, the rising adoption of industrial automation, smart city networks, and automation in logistics and transport have created a fertile ground for the exponential growth of this segment in the U.S.
