Europe Mobile Virtual Network Operator (MVNO) Market Size (2024 - 2029)

Europe Mobile Virtual Network Operator (MVNO) Market Analysis

The Europe Mobile Virtual Network Operator Market size is estimated at USD 34.40 billion in 2024, and is expected to reach USD 47.26 billion by 2029, growing at a CAGR of 6.56% during the forecast period (2024-2029).

The total number of mobile virtual network operators (MVNOs) in Europe has increased, and they have significantly strengthened their presence. This growth has been mainly driven by the emergence of non-telco brand-led MVNOs entering the mobile service provider space, which boosted market growth opportunities.

• Enabled by 5G network slicing, European businesses are poised to witness a surge of MVNOs targeting specific verticals. These MVNOs are focused on building solutions that cater to specialized connectivity needs and integrate cloud services and AI/big data solutions. These emerging MVNOs empower small businesses and entrepreneurs by harnessing AI, big data, and cloud services.
• According to Ericsson, Western Europe's 5G subscribers are estimated to reach 443 million by 2028. Also, the rising adoption of services like cloud computing, machine-to-machine (M2M) transactions, and mobile money is set to boost the demand for mobile virtual network operators (MVNOs) in Europe during the forecast period.
• Advancements in network and cloud technologies, alongside the adoption of eSIMs, are reshaping the MVNO landscape, democratizing it, and broadening access. This shift is enabling not just telcos but also brands and individuals to enter the market. As MNO retail revenues surge and the imperative to capitalize on 5G investments intensifies, MVNOs are finding a more receptive network partner environment. Additionally, the rise of multi-tenant MVNE (mobile virtual network enabler) platforms is significantly simplifying the task for host MNOs in managing their MVNO tenants in the region.
• Cost-effective pricing, tailored service offerings, and a saturated mobile market propel the growth of Europe's MVNO market. Also, the advent of 4G and the ongoing 5G deployment are enhancing service quality. Established retail and media brands are leveraging MVNOs to strengthen market penetration and consumer trust. Focusing on superior customer service, innovative business models, and increased consumer awareness further solidifies MVNOs' appeal, allowing them to effectively cater to niche markets and diverse customer demands.
• Growth in e-SIM technology accelerates changing dynamics, offering European consumers enhanced convenience and flexibility. By eliminating the logistical hurdles of physical SIM cards, digital-only MVNOs can now launch faster and at significantly reduced costs. This advancement allows consumers to seamlessly switch providers, avoiding high roaming charges or gaining extra minutes and data when reaching plan limits. Consequently, MVNOs have a broader opportunity to introduce innovative offerings and attract new clientele.
• Key market players are actively forming partnerships to expand the overall reach of their innovative products across various markets, bolstering their market share. In September 2023, fliggs Mobile partnered with T-Mobile, unveiling the pioneering all-digital Web3 MVNO. This strategic move not only merged Telco and Web3 but also positioned fliggs Mobile as a pivotal player in driving widespread Web3 adoption.
• By embedding a non-custodial wallet directly into its mobile app, fliggs Mobile has provided its clientele with a seamless and safe entry point into Web3, the future of the Internet. fliggs Mobile, the significant MVNO offering a decentralized ID (DID), empowers users with universal access to Web3 and FinTech services. This grants customer heightened data control and bolsters privacy in their digital transactions. Moreover, the wallet streamlines cryptocurrency payments, introduces cashback loyalty programs, and supports charitable donations.
• However, the intense competition in Europe's MVNO market has led to price wars and minimized profit margins. MVNOs face hurdles in profitability due to steep operational costs, notably network leasing fees from MNOs (Mobile Network Operators). The increasing dependency on host MNOs can be a significant concern, further restricting the market's growth over the forecast period.

Europe Mobile Virtual Network Operator (MVNO) Industry Segmentation

Mobile virtual network operators (MVNOs) are mainly the wireless service providers that operate without owning the wireless network infrastructure. Instead, they buy network capacity from existing MNOs to deliver services to their users.

The European mobile virtual network operator (MVNO) market is segmented by type (consumer (youth, rural, and urban) and enterprise (business)) and country (the United Kingdom, France, Germany, Denmark, Italy, Spain, and the Rest of Europe). Operational models, such as resellers, service operators, full MVNOs, and other modes, are considered under the scope. The study includes country-level analysis for key markets such as the United Kingdom, France, Germany, and Spain. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.