IoT MVNO Market

IoT MVNO Market Forecast & Statistics, Global Size

[211 Pages Report] The global IoT MVNO Market is anticipated to be valued at approximately $2.9 billion in 2023 and is projected to hit a revenue of around $6.8 billion by the end of 2028, projecting a CAGR of 18.2% between 2023 to 2028. The IoT MVNO market's primary factor is the increasing adoption of IoT devices and applications. IoT devices are being used in various industries, including healthcare, manufacturing, and transportation. This leads to increased demand for connectivity solutions supporting IoT devices.

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IoT MVNO Market Dynamics

Driver: Growing demand for IoT connectivity

As more and more devices are connected to the internet, there is a growing demand for connectivity solutions that are specifically designed for IoT. IoT MVNOs can provide these solutions by offering specialized services and connectivity plans tailored to the needs of IoT devices. IoT devices have different connectivity requirements compared to traditional mobile devices. For example, they often require low bandwidth and low power consumption. This has created a need for specialized connectivity solutions tailored to IoT devices' needs. MVNOs are well-positioned to provide these specialized solutions, as they can offer customized connectivity plans that meet the specific needs of IoT devices. IoT devices often require dedicated networks that are optimized for their unique requirements.

Restraint: Rapid increase in deployment costs

Deploying an IoT MVNO network can be costly due to the need for specialized connectivity solutions and dedicated networks. This can limit the adoption of IoT MVNO services, especially among smaller organizations that may not have the resources to invest in expensive connectivity solutions. High deployment costs can significantly affect the growth and adoption of IoT MVNO services. To overcome this challenge, MVNOs can explore partnerships and collaborations with other players in the IoT ecosystem, develop more cost-effective connectivity solutions, and invest in technologies that can reduce deployment costs, such as network virtualization and software-defined networking.

Opportunity: Increase in adoption of network virtualization

Network virtualization technologies, such as software-defined networking (SDN) and network function virtualization (NFV), can help MVNOs to reduce deployment costs and improve network agility. These technologies can also enable MVNOs to offer innovative connectivity solutions like network slicing and edge computing. Network virtualization technologies, such as software-defined networking (SDN) and network function virtualization (NFV), enable MVNOs to deploy and manage their networks more cost-effectively. By virtualizing network functions, MVNOs can reduce the need for expensive hardware and can use more flexible and scalable software-based solutions. Network virtualization can help MVNOs provide a better customer experience by offering more customized and tailored solutions. By virtualizing network functions, MVNOs can create specialized connectivity solutions for specific industries or use cases, which can provide a better fit for customers' needs.

Challenge: Lack of interoperability of solutions

Interoperability is a critical factor for the success of the IoT MVNO market, as it allows devices and platforms from different manufacturers to communicate and work together seamlessly. The lack of interoperability can create challenges for MVNOs and limit their ability to provide end-to-end solutions. IoT solutions require integrating multiple devices and platforms, including sensors, gateways, cloud platforms, and analytics tools. Interoperability allows MVNOs to integrate these components seamlessly, providing a more efficient and effective solution. Lack of interoperability can result in vendor lock-in, where customers are limited to using devices and platforms from a single vendor. This can limit innovation and increase costs, as customers are unable to take advantage of the latest technology from other vendors.

Market Ecosystem

Prominent companies in this market include well-established, financially stable software and solutions providers. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. KDDI (Japan), KORE Wireless (US), Sierra Wireless (Canada), Twilio (US), Asahi Net (Japan), Telit (US), BICS (Belgium), Lycamobile (UK), Wireless Logic (UK), Truphone (UK) are some of the major players operating in this ecosystem.

Based on the operational model, the service operator segment is expected to grow at the highest CAGR during the forecast period

Within the service operator model, MVNOs have more control over customer-facing elements, enabling the model to integrate better with its own services and systems. In supplementary to the reseller operational model, service operator MVNOs manage all customer care processes, including Customer Relationship Management (CRM), customer support, self-care, and billing processes from flexible account lifecycle, complex tariff bundles, packages, voice, data, and SMS services.

Based on subscribers, the enterprise segment to hold the largest market size during the forecast period

The adoption of IoT devices and applications is growing rapidly in enterprises. This is being driven by the increasing demand for connected devices in a variety of industries, including healthcare, manufacturing, and transportation. IoT devices can be used in a variety of different ways. This means enterprises need flexible connectivity solutions tailored to their IoT devices' specific needs. IoT MVNOs offer flexible connectivity solutions that can be tailored to the specific needs of enterprises.

Based on region, the North American segment is expected to have the largest market share during the forecast period

IoT MVNO services are expected to see huge growth in North America due to the convergence of the IT and telecom sectors. This convergence is expected to open huge opportunities for enterprise customers in North America for IoT MVNO services. IoT MVNOs offer attractive opportunities to the mature telecom industry as they come up with reduced OPEX, attractive prices, customized service plans, and others for new businesses and consumers. The countries included in the market analysis for North America are the US and Canada. The US is the most prominent market in the region due to the presence of prominent end users, such as large enterprises and SMEs.

Market Players:

The major players in the IoT MVNO market are KDDI (Japan), KORE Wireless (US), Sierra Wireless (Canada), Twilio (US), Asahi Net (Japan), Telit (US), BICS (Belgium), Lycamobile (UK), Wireless Logic (UK), Truphone (UK), Aeris Communications (US), Cubic Telecom (Ireland), Hologram (US), 1NCE (Germany), 1OT (Estonia), Soracom (Japan), Onomondo (Denmark), etc. These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and enhancements, and acquisitions to expand their footprint in the IoT MVNO market.

IoT MVNO Market Report Scope

This research report categorizes the IoT MVNO market to forecast revenues and analyze trends in each of the following submarkets:

Based on the Operational Model:

• Reseller
• Service Operator
• Full MVNO

Based on Subscribers:

• Enterprise
• Consumer

Based on Enterprise:

• Manufacturing
• Transportation & Logistics
• Healthcare
• Retail
• Energy & Utilities
• Agriculture
• Others

By Region:

• North America
  • United States (US)
  • Canada
• Europe
  • United Kingdom (UK)
  • Germany
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • Australia and New Zealand
  • Rest of Asia Pacific
• Middle East & Africa
  • UAE
  • KSA
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments

• In May 2023, KORE Wireless announced the launch of its new vertical offering in retail solutions. The retail industry is rapidly undergoing a digital transformation, and KORE has aligned its portfolio to offer high-bandwidth solutions to meet these needs. The KORE Retail solution includes high bandwidth 5G cellular connectivity through fixed wireless access (FWA) to provide high-speed internet access traditionally available through wireline solutions.
• In March 2023, Aeris Communications announced the closing of the purchase of Ericsson's IoT Accelerator (IoT-A) and Connected Vehicle Cloud (CVC) businesses and related assets. Ericsson will establish a small stake in the new Aeris. The Aeris serves thousands of customers across a wide range of industries – including healthcare, fleet, utilities, and automotive.
• In January 2023, Truphone, a global mobile virtual network operator, launched a new IoT platform. The platform offers businesses a secure and reliable way to connect their IoT devices.
• In January 2023, Semtech Corporation and Sierra Wireless, Inc. announced the completion of Semtech's acquisition of Sierra Wireless in an all-cash transaction representing a total enterprise value of approximately USD 1.2 billion. This transaction nearly doubles Semtech's annual revenue and adds approximately USD 100 million of high-margin IoT Cloud services recurring revenue.
• In January 2023, Sierra Wireless, a subsidiary of Semtech Corporation, announced the introduction of Smart Connectivity Premium with eUICC capabilities and extended connectivity coverage in the United States.

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