Fixed Mobile Convergence Market

The growing adoption of FMC to save operational costsdrives market growth

Fixed-Mobile Convergence (FMC) has become increasingly important in the telecommunications industry. Integrated operators, who have control over both fixed and mobile networks, are highly interested in exploring the benefits of FMC as a means to reduce costs and generate additional revenue streams. Adopting the IMS (IP Multimedia Subsystem) core control architecture, the converged network is anticipated to aid operators in minimizing operational expenses. The IMS-based FMC services allow operators to select networks and terminals, empowering them to meet their operational requirements efficiently and adapt to changing market demands. This factor drives the market CAGR.

Additionally, the emergence of the 5G network presents a significant opportunity for deploying Fixed-Mobile Convergence (FMC). Industry experts predict that FMC will greatly benefit from the advancements brought by 5G technology in the future. Telecom operators and standards groups are actively working towards developing a unified 5G converged core network. In February 2019, the Broadband Forum, a non-profit industry consortium focused on broadband network specifications, provided recommendations to the 3rd Generation Partnership Project (3GPP), the organization responsible for developing protocols for mobile telephony.

The objective was to establish a converged network where services can be delivered over various access networks such as fixed-line, Wi-Fi, Bluetooth, and 3GPP-based access like 4G LTE or 5G New Radio.

Thus, driving the Fixed-Mobile Convergence market revenue.

The Global Fixed-Mobile Convergence Market Industry is poised for substantial growth, with projections indicating a rise from 4.2 USD Billion in 2024 to 14.2 USD Billion by 2035. This growth trajectory suggests a robust compound annual growth rate (CAGR) of 11.68% for the period from 2025 to 2035. Such figures reflect the increasing adoption of integrated communication solutions across various sectors, driven by technological advancements and changing consumer preferences. The market's expansion is likely to be fueled by the convergence of fixed and mobile networks, enabling service providers to deliver enhanced services that meet the evolving demands of consumers.

The emergence of the Internet of Things (IoT) and smart devices is reshaping the Global Fixed-Mobile Convergence Market Industry. As more devices become interconnected, the demand for seamless communication between fixed and mobile networks intensifies. IoT applications, ranging from smart homes to industrial automation, require robust connectivity solutions that can support high data volumes and low latency. This trend is driving service providers to innovate and offer integrated solutions that cater to the needs of IoT users. The growth of IoT is expected to significantly contribute to the expansion of the Global Fixed-Mobile Convergence Market Industry, creating new opportunities for service providers.

The Global Fixed-Mobile Convergence Market Industry is significantly influenced by advancements in network infrastructure. The deployment of 5G technology and improvements in broadband connectivity are facilitating faster and more reliable communication services. These advancements enable service providers to offer innovative solutions that combine fixed and mobile services, enhancing user experiences. As a result, the market is expected to grow substantially, with projections indicating a rise to 14.2 USD Billion by 2035. Enhanced network capabilities not only support higher data speeds but also foster the development of new applications, thereby driving the demand for fixed-mobile convergence solutions.

The Global Fixed-Mobile Convergence Market Industry is witnessing a shift in consumer preferences towards bundled services. Customers increasingly favor packages that combine mobile, internet, and television services, seeking convenience and cost savings. This trend is particularly pronounced in urban areas, where consumers are more likely to adopt comprehensive service bundles. Service providers are responding by creating attractive offers that cater to this demand, which could lead to increased customer retention and satisfaction. As the market evolves, the emphasis on bundled services is likely to play a crucial role in shaping competitive strategies within the Global Fixed-Mobile Convergence Market Industry.

Regulatory support for convergence initiatives is a key driver of the Global Fixed-Mobile Convergence Market Industry. Governments worldwide are increasingly recognizing the benefits of integrated communication services and are implementing policies to encourage convergence. This includes facilitating spectrum allocation and promoting competition among service providers. Such regulatory frameworks not only enhance market dynamics but also stimulate innovation within the industry. As a result, the market is poised for growth, with a projected CAGR of 11.68% for the period from 2025 to 2035. This supportive regulatory environment is likely to foster the development of new technologies and services that further enhance fixed-mobile convergence.

The Global Fixed-Mobile Convergence Market Industry experiences a rising demand for unified communication services, driven by the need for seamless connectivity across devices. Businesses are increasingly adopting solutions that integrate voice, video, and messaging into a single platform. This trend is evident as organizations seek to enhance collaboration and productivity. The market is projected to reach 4.2 USD Billion in 2024, reflecting a growing recognition of the value of integrated communication solutions. As companies continue to prioritize efficiency, the adoption of unified communication services is likely to accelerate, further propelling the growth of the Global Fixed-Mobile Convergence Market Industry.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American fixed-mobile convergence market area will dominate this market, owing to an increase in the Cisco Systems Inc., IBM Corporation, Comcast Corporation, and Qualcomm Technologies, Inc. are all headquartered in the US and substantially invest in developing this technology will boost the market growth in this Region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3 : FIXED-MOBILE CONVERGENCE MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's Fixed-Mobile Convergence market accounts for the second-largest market share due to the increase in adopting fixed-mobile Convergence to reduce operational costs, one of the key factors driving the market growth. Further, the German Fixed-Mobile Convergence market held the largest market share, and the UK Fixed-Mobile Convergence market was the fastest-growing market in the European Region.

The Asia-Pacific Fixed-Mobile Convergence Market is expected to grow at the fastest CAGR from 2024 to 2032. This is because enterprises are increasingly deploying convergent services to minimize complexity and obtain better value, with the FMC industry growing rapidly regarding commercial solutions. Moreover, China’s Fixed-Mobile Convergence market held the largest market share, and the Indian Fixed-Mobile Convergence market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Fixed-Mobile Convergence market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Fixed-Mobile Convergence industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Fixed-Mobile Convergence industry to benefit clients and increase the market sector. The Fixed-Mobile Convergence industry has offered some of the most significant advantages in recent years. Major players in the Fixed-Mobile Convergence market, including Cisco (US), Ericsson AB (Sweden), Nokia (Finland), Huawei Technologies Co., Ltd (China), and ZTE Corporation (China)., and others, are attempting to increase market demand by investing in research and development operations.

Türk Telekom is a state-owned Turkish telecommunications company. Türk Telekom was separated from Turkish Post in 1995. Türk Telekom Group provides integrated telecommunication services for PSTN, GSM, and wide-band Internet.Turk Telekom and Ericsson partnered to deploy Ericsson Dynamic Activation (EDA), a provisioning platform for the quick and automated activation of telecommunications services in mixed network environments.

Deutsche Telekom AG, a leading telecommunications company based in Bonn, Germany, is the largest provider of telecommunications services in Europe in terms of revenue. The company was established in 1995 as part of the privatization of Deutsche Bundespost. Recently, Deutsche Telekom introduced Multipath for Fixed Mobile Convergence on Campus. This innovative solution allows for the simultaneous connection of devices to Wi-Fi and a 5G Standalone (SA) network, providing enhanced capabilities and improved performance.

Deutsche Telekom has successfully launched and evaluated the functionality of Multipath by utilizing it to power an Automated Guided Vehicle (AGV), enabling the AGV to connect seamlessly to both Wi-Fi and the 5G SA network.