Africa Roaming Tariff Market Worth $2.5 Billion By 2027

The Africa roaming tariff market size is anticipated to reach USD 2.5 billion by 2027, growing at a CAGR of 5.5%, according to a study conducted by Grand View Research, Inc. Roaming tariff are the charges incurred by the operator in return of roaming services, that allow the customers to use communication devices outside the geographical coverage area provided by the network operator. Increasing count of mobile phone users in urban as well as rural regions across Africa is expected to drive the market. Moreover, increasing international tourism is projected to escalate market growth in the forecast period.

Rising number of smartphone and internet users is also expected to bolster market growth in the region. Moreover, the adoption of 3G, 4G, and 5G technologies in Africa is expected to increase in the coming years, which is also projected to fuel market growth. For instance, according to the GSM Association (GSMA), the count of unique mobile subscribers will increase by up to 623 million in 2025 from 456 million in 2018. Additionally, mobile internet users are expected to have a 39.0% penetration rate and can reach up to 483 million subscribers by the end of 2025.

According to the GSM Association, Africa is amongst the rapidly growing mobile market across the globe. GSMA also states that the count of international travelers is increasing in the region at a larger extent, which in turn escalates market growth. Rising technological awareness among users has enabled service providers to introduce technological advancements, thereby resulting in market growth. Moreover, growing population in the region has paved way for growth of subscriber base of mobile phone operators, which is one of the additional factors expected to fuel the growth of the market in the region.

Technical barriers such as interoperability, due to the use of different GSM/3G spectrum, can restrict many low-cost handsets from roaming, and the network coverage, mainly 3G continues to remain underdeveloped as operators continue to upgrade to new technology and roll out the older. Whereas, the introduction of roaming regulations such as, pricing regulations, taxation related policies are anticipated to hinder market growth. However, substantial investments from operators in order to provide consistent services to users are projected to propel market growth. Similarly, significant investments from communication service providers are also expected to reduce the intensity of the aforementioned restraints, thereby positively impacting the market in the region.

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Further key findings from the study suggest:

• The national roaming segment is expected to continue its dominance over the forecast period owing to the demographic bulge. Growing count of young consumers in the region also escalates the growth of the segment, as the youth is more leaned towards usage of smartphones and internet in the region
• International roaming segment is expected to witness a highest CAGR from 2020 to 2027. This is attributed to rising international tourism
• Wholesale roaming is expected to account for revenue share of over USD 2.0 billion by 2027 owing to increasing adoption of service in the medium and large enterprises in the region
• The voice service type of the Africa roaming tariff market is the major shareholder amid other services such as data, and SMS. The voice service market is expected to exceed USD 1,200 million by the end of 2027
• The key players operating in the market are America Movil, AT&T Inc., Bharti Airtel Ltd., China Mobile Ltd, Deutsche Telekom AG, Digicel Group and others

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Grand View Research has segmented the Africa roaming tariff market based on type, distribution channel, and service:

Africa Roaming Tariff Type Outlook (Revenue, USD Million, 2016 - 2027)

• National
• International

Africa Roaming Tariff Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)

• Retail Roaming
• Wholesale Roaming

Africa Roaming Tariff Service Outlook (Revenue, USD Million, 2016 - 2027)

• Voice
• SMS
• Data

About Grand View Research        

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

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