The market for the discontinuation of 2G and 3G networks is projected to reach US$ 28.75 billion in 2020, but it is anticipated to decrease to US$ 3.65 billion by 2030, reflecting a compound annual growth rate (CAGR) of -18.6% over the decade.

To adapt to the evolving needs of consumers regarding wireless technology, the 3G network in the United States is being phased out. Telecom companies are reallocating their investments towards more advanced 4G and 5G networks. As part of this transition, support for older networks is being withdrawn, leading to the shutdown of both 2G and 3G services. The Federal Communications Commission (FCC) has advised consumers that those with older mobile devices may need to upgrade their phones before their service providers discontinue their 3G networks to avoid service interruptions. Various mobile operators across the country are decommissioning their 3G networks to pave the way for enhanced services like 5G. For example, UScellular, which operates a wireless network in approximately 21 states and serves nearly 5 million customers, announced in November 2023 that it would deactivate its 3G CDMA network on January 14, 2024. Similarly, Cellcom has revealed plans to shut down its 2G network by December 2023, following the closure of its 3G network in March. Consequently, regulatory measures and the decisions made by operators to discontinue 2G and 3G services are expected to drive the growth of the 2G & 3G switch off market.

The 2G & 3G switch off market is categorized by type into 2G and 3G segments. The second generation of cellular networks, known as 2G, is based on the Global System for Mobile Communication (GSM) standard. This generation introduced cellular services such as SMS, multimedia messaging, and digitally encrypted voice calls to accommodate the growing number of mobile users. Additionally, it optimized the utilization of the radio frequency (RF) spectrum, allowing multiple devices to operate on the same frequency bands. However, this technology is now over thirty years old. Despite improvements made by telecom companies over the years, including the introduction of General Packet Radio Service (GPRS) and Enhanced Data rates for GSM Evolution (EDGE), 2G connectivity is no longer competitive with modern alternatives. Many Mobile Network Operators (MNOs) have begun the process of phasing out their 2G networks, and in several countries, 2G services are no longer available. These developments are contributing to the expansion of the 2G & 3G switch off market.

In terms of application, the 2G & 3G switch off market is divided into categories such as messaging, voice, data, and IoT. SMS, or Short Message Service, allows users to send brief text messages of approximately 160 to 224 characters to other mobile devices via mobile data and cellular networks. The 2G network was the first to enable the transmission of text-based data through SMS. It also supported multimedia messaging (MMS) and picture messages. With the advent of 2G, SMS became a popular communication method. Text messages sent to recipients are stored in distinct channels, a process that continued into the 3G era. However, with the transition to 4G, the infrastructure for SMS has faced challenges. The older switching and transceiver stations that facilitated SMS delivery are no longer operational, leading to the introduction of a new messaging gateway known as IP-SM-GW, which interacts with the SMSC to send and receive messages promptly. These factors are further driving the growth of the 2G & 3G switch off market.

The 2G network was initially launched in the 1990s, primarily for voice calls, text messaging, and low-speed data communications. The deployment of 3G networks in the 2000s allowed for internet access via mobile phones, but 2G and 3G networks had limitations, such as the inability to handle simultaneous voice and data services. For instance, during a call on a 2G network, incoming text messages could not be received until the call ended. In contrast, 4G and 5G networks allow for concurrent voice and data usage, which has hindered the growth of 2G and 3G networks and accelerated the transition to the 2G & 3G switch off market.

The segmentation of the 2G & 3G switch off market is based on type and application. The market is divided into 2G and 3G categories based on type, while applications are classified into messaging, voice, data, and IoT. Geographically, the market is segmented into regions including North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America.

Key players in the 2G & 3G switch off market include AT&T Inc, BCE Inc, China Mobile Ltd, Deutsche Telekom AG, KDDI Corp, NTT Data Corp, Orange SA, Telefonica SA, Telenor ASA, and Vodafone Group Plc, all of which are profiled in this market analysis.

The overall size of the 2G & 3G switch off market has been determined through a combination of primary and secondary research methods. Extensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative data related to the market. This process aids in providing a comprehensive overview and forecast of the market across all segments. Additionally, numerous primary interviews have been carried out with industry stakeholders to validate the findings and gain deeper analytical insights. This includes discussions with industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the 2G & 3G switch off market.