MVNO market to more than double as 5G and IoT demand grows

Allied Market Research says the mobile virtual network operator market was valued at $51.9 billion in 2016 and was projected to reach $102.9 billion by 2023, driven by 5G rollout, IoT adoption and demand for flexible mobile service plans. The report says the model is gaining traction as carriers and MVNOs compete to serve consumers, enterprises and connected devices without heavy infrastructure spending. Why it matters: - The MVNO model gives telecom brands a way to offer mobile service without building their own networks. - That lowers capital needs and can speed up entry into new customer segments. - The market is expanding as consumers, enterprises and IoT deployments want cheaper and more flexible connectivity. What happened: - Allied Market Research said the global Mobile Virtual Network Operator market was valued at $51.9 billion in 2016. - The firm projected the market would reach about $102.9 billion by 2023. - The report put the forecast CAGR at 10.6%. - The report was published June 19, 2026. - A sample brochure is available here . The details: - MVNOs lease network capacity from mobile network operators and sell services under their own brands. - The model lets providers focus on pricing, customer experience and niche markets instead of network buildout. - The market includes reseller MVNOs, service operator MVNOs and full MVNOs. - Full MVNOs generally have the most control over customer relationships, billing and service delivery. - The customer base spans consumers, small businesses, large enterprises and machine-to-machine services. - Rapid smartphone adoption, cloud technology, mobile broadband expansion and regulatory support are key growth drivers. - The report also points to digital onboarding, eSIM technology and automated service management as operational enablers. - The source lists Tracfone Wireless, RedPocket Mobile, AirVoice Wireless, FreedomPop, Freenet AG, KDDI Mobile, Polkomtel Plus, Tesco Mobile, Virgin Mobile USA and Kajeet among key industry participants. Between the lines: - The MVNO market is becoming more attractive because telecom infrastructure is improving while customers still want lower-cost plans. - 5G and IoT are widening the addressable market, especially for enterprise and industry-specific connectivity. - The report also highlights pressure points, including thin margins, pricing competition and rising customer acquisition costs. - Partnership economics matter on both sides: MNOs can monetize excess capacity, while MVNOs gain market access without heavy capital spending. What’s next: - 5G expansion is expected to support more enterprise-focused MVNO offerings. - IoT demand should keep rising across healthcare, transportation, manufacturing, logistics and smart cities. - eSIM adoption is likely to make switching providers easier and reduce onboarding friction. - The report expects digital-only brands, fintech-linked telecom products and industry-specific services to create new revenue opportunities. - A customized research report is available . The bottom line: - MVNOs are moving from a niche telecom model to a broader distribution channel for flexible connectivity as 5G, IoT and cloud tools reshape mobile service delivery.