Roaming Tariff Market to Grow with Borderless Communication Needs

The Global Roaming Tariff Market size is expected to increase from USD 75,354.9 million in 2023 to USD 113,405.9 million by 2030, at a CAGR of 6.0% during the forecast period. Europe dominated the market with a 32% share of the total revenue of US$ 25.98 billion in 2024. The Roaming Services Market size in Germany was US$ 6.49 billion and is expected to grow at a 4.7% CAGR.

The market and the associated service providers also need to stay abreast with the shifting global trade policies, tariffs and other implications to operate a roaming tariff business.

The Impact of Tariffs on Economy

Tariffs have been extensively implemented by various countries around the world to adjust to their intended levels of economic output. In most cases, this has had an impact on various industries in the global markets. For instance, in 2024, tariffs imposed on telecom equipment like smartphones, networking components and satellite communication gear increase the operational costs for telecom providers. In particular, markets that have largely based their tariffs on Chinese-made telecom equipment, like in the U.S., are finding it difficult to provide services such as network expansions, as the tariffs that have been increased on the Chinese hardware have led to increase in the operational cost of network rollouts and device manufacturing. These additional costs that have been indirectly added to the telecom industry are largely shared with the consumer, and with the implementation of increased roaming charges, it not only puts additional financial burden on the consumer but also has a bearing on companies and individuals who use this product and service in their day-to-day international communication activities.

Tariffs also lead to the misalignment of global supply chains, which then cause major roadblocks in the launch of new roaming services and 5G network support infrastructure. Not only does this affect the consumer, but the added costs and the unknown future of tariffs is beginning to influence changes in pricing models by telecom operators, which can also affect the competitiveness of their roaming tariffs on a global scale.

• Implications on Global Businesses
• Businesses affected by the increasing tariffs:
• Rising Costs & Supply Chain Shifts

Telecommunications companies have largely suffered from rising tariffs, as these companies often depend on imported hardware, software and network infrastructure to operate their businesses. Increased costs on tariffs such as smartphones, network routers and other network gear pieces will be seen as businesses are forced to shift their pricing structures upwards. In the case of the global roaming tariff market, this is likely to be seen in the raised charges for the use of international roaming on mobile devices. Furthermore, shifts in the supply chain will be implemented to further distance production and procurement activities from regions that are associated with a high percentage of tariffs, for instance, China.

Sector-specific impacts

Telecommunication services, and particularly roaming services, are some of the worst affected when it comes to impacts related to tariffs. The increased tariffs on the purchase of mobile network equipment are then calculated and added into the operational cost structure of the providers of this equipment. Roaming services are also heavily integrated with other businesses in the travel and hospitality sectors, which are also experiencing increased roaming charges, leading to higher operating costs and more disgruntled consumers.

How Businesses Can Combat Tariff Costs

In order to combat these tariff costs, some of the measures that have been suggested by industry experts are as follows:

• Supplier Diversification: Network components and equipment procurement can be sourced from other suppliers and countries with less or no tariffs.

• Cost Optimization: Operational cost-structures can be improved in order to be more efficient in absorbing increases in tariff and price costs.

• Technology Adoption: Adoption of next-generation telecoms technologies will help with increasing the overall efficiency of services, thus incurring less long-term costs.

• Geographical Expansion: Expansion to regions where tariffs are not imposed or the imposed tariffs are lower.

• Price Optimization: Roaming charges on top of the existing service charges can be further increased by telecom companies to maintain their bottom-line after incurring costs for higher tariffs.

Key Takeaways

• The market will grow to USD 113,405.9 million by 2030 at a 6.0% CAGR.

• Europe holds a dominant share of the market, with a revenue of US$ 25.98 billion in 2024.

• Increased tariffs on telecom equipment are causing more and more cost implications for the use of roaming services.

• Supply chain shifts are taking place to attempt to distance businesses from higher tariff regions.

• Telecom companies and telecom equipment vendors are taking measures to adapt to the changes that tariffs are causing in their market.

Analyst Viewpoint

The global roaming tariff market is, as of right now, adjusting itself to the new tariff implementations that have been set forth by various governments and trade authorities. As a result, some of the negative effects of tariffs such as increased operational costs and supply chain disruptions are being felt across the industry. This, however, is a short-term effect and the long-term looks promising as the shift to 5G, as well as the continued international travel and need for mobile data consumption, will see a continued need for roaming services. Telecom providers will take advantage of the situation to provide continued efficiency and service excellence via cost cutting and the adoption of more efficient and cutting-edge technologies. The market is therefore expected to maintain stable growth and profitability despite the short-term barriers of tariff implications.

Regional Analysis

Europe is dominating the global roaming tariff market share with a revenue of US$ 25.98 billion in 2024, claiming a 32% market share. In Europe, Germany is contributing significantly with a value of US$ 6.49 billion, growing at a CAGR of 4.7% during the forecast period. North America is also seen as a significant contributor in the global roaming tariff market. The growth in this region can be attributed to a well-established infrastructure and a strong demand for seamless and affordable roaming services when traveling outside of the region. The Asia-Pacific region is expected to register the highest CAGR as more people are consuming mobile data at a higher rate in this region. Latin America and the Middle East & Africa regions are gradually gaining traction in the market as the mobile user base grows in these regions along with the demand for affordable communication while traveling internationally.

Business Opportunities

Opportunities in the global roaming tariff market

• 5G Roaming Services: Telecom providers can offer high-speed 5G roaming services to customers traveling abroad.

• Enterprise Roaming Solutions: Enterprises with global presence require roaming solutions that can be customized to their needs. Telecom companies can offer solutions that are cost-effective and suit the needs of global businesses.

• Smartphone & Device Roaming: The increased adoption of connected devices and the Internet of Things (IoT) have created new opportunities for device-specific roaming tariffs.

• Travel & Tourism Industry: The growing international tourism industry is a lucrative opportunity for telecom companies to offer competitive roaming packages to frequent travelers.

Key Segmentation

The global roaming tariff market has been segmented based on Type (Voice Roaming, Data Roaming, SMS Roaming), End-User (Individual, Enterprise), Service Provider (Mobile Network Operators, MVNOs), and Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa). Among these, Data roaming is expected to dominate the market, due to the increased use of mobile data at a global level. The individual segment of the market is anticipated to account for the largest share, however, the enterprise segment is expected to register significant growth due to the custom solutions required by these entities. Among service providers, Mobile Network Operators will be the leading segment, however, the growth of MVNOs is an indication of the growing popularity of affordable roaming services offered by MVNOs. All of the above segments will continue to play a significant role in the growth of the market in the coming years.

Key Player Analysis

Key players in the global roaming tariff market are strengthening their existing service portfolios with the implementation of new and better technologies like 5G, AI-powered customer experiences and solutions, and data analytics. Strategic alliances are also being formed between global telecom network providers and regional governments for better reach and reduced roaming tariffs while at the same time adhering to the different regulations in various regions. The market has also seen an increase in the number of MVNOs, which are offering competitive and affordable roaming services for the users by utilizing the already existing infrastructure. These companies are also focusing on enhancing the customer experience for users when it comes to flexibility in roaming packages and seamless usage of services internationally.

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Top Key Players in the Market

• AT&T Inc.

• Verizon Communications Inc.

• Vodafone Group PLC

• T-Mobile

• Deutsche Telekom AG

• China Mobile Ltd.

• NTT Docomo Inc.

• Orange International Carriers

• Telefónica S.A.

• Airtel

• Bharat Sanchar Nigam Limited

• China Telecom Corporation Limited

• Claro Company

• Digicel Group

• Others

Recent Developments

Telecom providers have been introducing new roaming packages that are specifically designed to meet the needs of the upcoming 5G users to their network, allowing for faster data services internationally and at more competitive rates than before. New partnerships between roaming network providers on a global level and regional and local telecom providers are also being formed to increase coverage areas and reduce the cost of roaming charges.

Conclusion

The global roaming tariff market is likely to see stable growth in the coming years, backed by the progress in mobile technologies and the continued demand for seamless global roaming services. Tariffs have seen to create short-term negative impacts to the industry, however, businesses can also find ways to capitalize on the long-term opportunities that are present in the market.