The global roaming tariff market was valued at USD 74.25 billion in 2023. It is expected to reach USD 113.22 billion in 2032, growing at a CAGR of 4.8% over the forecast period (2024-32). Globalization of businesses and multinational operations require employees to travel internationally for meetings, conferences, and assignments. Business travelers depend on seamless mobile connectivity to stay connected with colleagues, clients, and business operations, contributing to the demand for roaming tariffs.
Mobile users can use their home operator number and data services while traveling outside their home country thanks to roaming, which expands the reach of the home operator's retail voice and SMS services. The roaming agreement covers the technical and financial facets of the service. Text messages, text messages, and internet services are all covered by tariff plans for roaming in national and international services. As mobile operators' marketing strategies changed, the market for roaming tariffs also changed. Due to mobile users' shifting demand and preference dynamics, new plans have emerged and been accepted. Regulations and policy frameworks change over time and between different regions.
The ability to roam allows users to use their mobile devices in areas where their home network operators do not offer coverage. The additional fees that roamers incur when they connect to a foreign network are known as roaming tariffs. Various roaming services, including SMS, data, and voice, are paid extra fees. The market for roaming tariffs is expected to grow due to several factors. Some of the factors anticipated to favorably affect the growth of the roaming tariff market over the forecast period include the increasing number of mobile phone users, the popularity of 3G and 4G-enabled smartphones, the rise in the number of unique subscribers, and the penetration of mobile internet.
International tourism is now recognized as one of the leading forces accelerating socio-economic development. International tourism makes up 30% of all trade services worldwide, according to the International Trade Center (ITC). In addition, the World Tourism Organization (UNWTO), an organization of the United Nations, is renowned for advancing economically stimulating and universally accessible tourism. Tourism growth worldwide is expected to drive the global roaming tariff market over the forecast period.
The tariff margins of different network providers are anticipated to decrease significantly due to increasing government intervention and regulatory pressure. Mobile Network Operators (MNO) must make significant investments to increase the efficiency of the operational services related to roaming services. It is anticipated that the mounting user pressure to eliminate the roaming tariff will hurt both the profitability of the roaming industry and vendors' market share.
Additionally, it is anticipated that pressure will increase on different network service providers due to the growing demand for upgraded networking services like 4G and 5G. Such sophisticated network services are expected to be a barrier for providers and small-scale operators because they require significant financial investments. In addition, international roaming services' operating costs and platforms require additional investments. This will likely limit market growth because smaller operators in developing regions can less afford investments than larger operators in developed regions.
Since 5G is expected to provide low latency and global coverage, it is becoming increasingly popular among mobile network operators. By ensuring improved digitization and a connected environment, 5G roaming is predicted to transform the telecom industry and boost economic growth.
In addition to the telecommunications industry, 5G is anticipated to positively impact several other industries, including logistics, smart cities, public safety, and smart agriculture. Many businesses are working to modernize digital security and provide effective mobile security solutions. Numerous operators benefit from the growing consumer demand for the roaming feature. Multiple connected solutions providers are inclined to introduce innovative solutions to reduce the gap between mobile operators and their customers to benefit mobile operators and satisfy consumer demand for improved network solutions while roaming.
| Study Period | 2020-2032 | CAGR | 4.8% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 74.25 billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 113.22 billion |
| Largest Market | Europe | Fastest Growing Market | Asia Pacific |
The global roaming tariff market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Europe is the most significant shareholder in the global roaming tariff market and is expected to grow at a CAGR of 5.3% during the forecast period. Europe has historically dominated the roaming tariff market and is predicted to continue to do so during the forecast period. According to a report from the European Union, roaming charges will no longer apply to anyone who frequently travels within the EU. Similarly, the OECD report states that wholesale data roaming fees are governed by transparency and bill control rules in the European Union and European Economic Area. According to the European Union Roaming Regulation amendments, customers should be given information on roaming tariffs regarding the fees that apply to data roaming services when they initially connect to a visited network and start a data session.
Furthermore, by recognizing the issue and placing obligations on data roaming providers, the European Union Roaming Regulation was seen as a significant step toward defending consumers from bill shock. The European Union Roaming Regulation, the complete illustration of regulatory intervention in international mobile roaming services, is also well-known. These elements help the regional market expand, which helps the market for roaming tariffs expand as a result.
Asia-Pacific is expected to grow at a CAGR of 6.4%, generating USD 31,936.9 million during the forecast period. The Asia-Pacific region is anticipated to reach its full potential as its mobile environment develops, both in terms of subscribers and data traffic and with roaming services still under development. Roaming services in Asia-Pacific will expand since the region is home to 42% of the world's population and 25% of the global roaming market. In addition, with mobile penetration in low-income groups and market trends for dual-SIM, the Asia-Pacific mobile market space is evolving differently from other parts of the world. Asia Pacific mobile users frequently use roaming alternatives like callback and international call forwarding services. In order to maximize the potential of the local market, some alternatives are preferable. Such elements favorably affect regional market expansion, which ultimately aids in expanding the market for roaming tariffs.
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The global roaming tariff market is segmented by type, distribution channel, and service.
Based on type, the global market is bifurcated into national and international.
The international segment is the highest contributor to the market and is expected to grow at a CAGR of 5.6% during the forecast period. Due to expensive packages and increased demand from people stranded abroad, international roaming dominated the market in 2021 despite the low overall revenue. The booming global tourism sector predicted to grow strongly after the pandemic, is credited with the segment's high growth rate. Additionally, several network service providers are charging minimally or not for domestic roaming, demonstrating that international roaming will ultimately be the primary source of income.
Based on the distribution channel, the global market is bifurcated into retail roaming and wholesale roaming.
The wholesale roaming segment owns the highest market and is expected to grow at a CAGR of 5.4% during the forecast period. The sale and purchase of mobile electronic communications services through an agreement between licensees to provide roaming services on a wholesale basis are called wholesale roaming. In exchange for allowing the latter's customer to use the infrastructure of the visited MNO, wholesale roaming fees are negotiated as inter-operator tariff rates assessed by the visited network provider to the home network operator.
Based on service, the global market is bifurcated into voice, SMS, and data.
The data segment is the highest contributor to the market and is expected to grow at a CAGR of 6.1% during the forecast period. The demand for high-feature smartphones, which is expected to increase demand for roaming data services, has contributed to this growth. Additionally, because of the COVID-19 crisis, people opted to work from home rather than go out, which is predicted to drive the segment over the forecast period.
