US 2G and 3G Switch Off Size & Share Analysis - Growth Trends and Forecast (2026 - 2035)
US 2G and 3G Switch Off Market: by Type (Complete Switch Off, Partial Switch Off), Application (Smartphones, Feature Phones, IoT Devices, M2M Communication, Automotive Connectivity, Others), Distribution Channels (Retail, Online, Distributors, Enterprise Sales, Direct Sales, Others), Technology (GSM, EDGE, WCDMA, HSPA, CDMA2000, Others), Organization Size (Small, Medium, Large) and By US Historical & Forecast Period (2020-2035) Comprehensive Study 2025
Last Updated: 12-09-2025 | Format: PDF | Report ID:21051 | Author: Clara
US 2G and 3G Switch Off Market Size, Share, and Trends, 2025-2035
The US 2G and 3G Switch Off market reflects a strategic migration to next-generation connectivity, driven by growing demand for advanced wireless services and the obsolescence of outdated cellular networks. As major operators sunset legacy networks between 2025 and 2035, a broad industry transition is underway, impacting millions of devices—from consumer handsets to critical IoT applications. The shift is catalyzed by the proliferation of 4G/5G coverage and innovations in connected devices, while stakeholders actively upgrade infrastructure and streamline services. These moves lay the foundation for robust digital growth and new business models in telecom.
Latest Market Dynamics
Key Drivers
Accelerated 5G Expansion: Rapid nationwide rollouts of 5G, led by companies like Verizon and AT&T, are compelling the switch off of legacy 2G and 3G networks to reallocate spectrum and resources for new, high-speed services.
Rising IoT Integration: Increased IoT deployments in automotive, healthcare, and smart cities demand modern, secure, and high-capacity networks, pushing operators, such as T-Mobile, to expedite the phase-out of older technologies.
Key Trends
Device Migration Initiatives: Leading telecoms, such as AT&T, have launched large-scale upgrade programs, offering incentives for customers to migrate from legacy networks to LTE/5G-enabled devices.
Enterprise Digital Transformation: The shift is driving digital transformation within enterprises as they replace M2M and IoT endpoints previously dependent on 2G/3G, with Verizon reporting a sharp uptick in business-grade device upgrades.
Key Opportunities
Emerging Retrofit Solutions: Companies like Cisco and Nokia are capitalizing by introducing retrofit modules, allowing enterprise and industrial IoT devices to seamlessly transition to 4G/5G connectivity.
Smart Mobility Growth: The decommissioning of legacy networks generates opportunities for automotive manufacturers and tech firms like Qualcomm to embed next-gen modules in connected vehicles, supporting autonomous features and real-time telematics.
Key Challenges
IoT Disruption Risks: The transition threatens service continuity for millions of legacy IoT devices in utilities and transport, requiring coordinated upgrade campaigns by providers such as T-Mobile.
Rural Coverage Gaps: Operators like US Cellular face logistical and economic hurdles in supporting legacy device users in rural areas, risking loss of connectivity before full LTE/5G coverage is achieved.
Key Restraints
Cost Barriers for SMEs: Small and medium enterprises face significant upgrade costs, as illustrated by feedback from industry groups lobbying for phased transitions.
Customer Resistance: Segments reliant on feature phones or legacy M2M devices, particularly in healthcare and public safety, display reluctance to migrate, impacting the adoption pace for players like AT&T and Verizon.
Market Share of US 2G and 3G Switch Off by Type, 2025
In 2025, the US market for 2G and 3G Switch Off is segmented into ‘Complete Switch Off’ and ‘Partial Switch Off’. Complete Switch Off accounts for the majority share at 68%, reflecting aggressive legacy network shutdowns by leading telecom operators. Meanwhile, Partial Switch Off holds 32%, representing regions or sectors with ongoing dependencies on older networks. The dominance of Complete Switch Off underscores the rapid transition to all-IP and high-capacity LTE/5G networks. However, operators are still managing select enclaves with gradual phase-outs, ensuring critical legacy-based applications retain temporary support during transition periods.
Market Share of US 2G and 3G Switch Off by Applications, 2025
By application, the largest share of network switch-off impact in 2025 is seen in Smartphones, representing 41% of the market as millions of older devices require replacement or upgrades. IoT Devices closely follow at 29% as businesses and governments rush to modernize critical infrastructure. Feature Phones make up 14%, M2M Communication 9%, Automotive Connectivity 5%, and Other applications 2%. The dominance of Smartphones and IoT Devices reflects a digital-first economy and the growing reliance on connected systems for productivity, safety, and user experience enhancements in the US.
US 2G and 3G Switch Off Market Revenue (USD Million), 2020-2035
Market revenue from the US 2G and 3G Switch Off is projected to expand significantly from $1,100 million in 2021 to $2,100 million in 2025, as major transitions ramp up. This momentum is driven by the growing footprint of LTE/5G and the urgency of device and infrastructure upgrades. By 2035, revenue is expected to climb further, propelled by continuous demand for retrofitting, device replacements, and digital transformation investments across enterprises and government sectors.
US 2G and 3G Switch Off Market YOY Growth (%), 2020-2035
The Year-Over-Year (YOY) growth rate for the US 2G and 3G Switch Off market is expected to peak at 12% between 2024 and 2026, corresponding with extensive legacy network shutdowns and concurrent device migrations. Post-2028, YOY growth decelerates to around 4%, as the majority of transition activities are concluded and the focus shifts to ongoing device support and legacy migration services.
US 2G and 3G Switch Off Market Share by Regions, 2025
In 2025, the largest share of activity is concentrated in the South and West regions of the US, accounting for 38% and 28% of switch-off implementations, respectively, due to higher network density and user base. The Midwest follows at 19%, and the Northeast makes up 15%. This regional distribution underscores the imperative of quick infrastructure adaptation in urban and fast-growing suburban areas, while operators ensure legacy support for rural users particularly in the Midwest.
US 2G and 3G Switch Off Market Players Share, 2025
AT&T and Verizon each command significant market shares, at 30% and 28% respectively, leveraging nationwide infrastructure and aggressive upgrade incentives. T-Mobile holds 23% following its rapid integration of Sprint assets, while US Cellular, Vodafone, and other players collectively account for the remaining 19%. This competitive landscape is defined by ongoing investments in network modernization and device migration, as outlined in recent company earnings reports.
In 2025, enterprise customers, led by automotive, healthcare, and industrial buyers, form 57% of the market by value, as they prioritize the migration of mission-critical infrastructure. Consumers contribute 36%, primarily replacing affected smartphones and feature phones. Public sector agencies make up the remaining 7%, focusing on public safety and emergency system upgrades. This snapshot highlights the breadth of organizational impact as America transitions from legacy cellular technologies.
Study Coverage
Metrics
Details
Years
2020-2035
Base Year
2025
Market Size
2100
Regions
South, West, Midwest, Northeast
Segments
By Type (Complete Switch Off, Partial Switch Off), By Application (Smartphones, Feature Phones, IoT Devices, M2M Communication, Automotive Connectivity, Others), By Distribution Channels (Retail, Online, Distributors, Enterprise Sales, Direct Sales, Others), By Technology (GSM, EDGE, WCDMA, HSPA, CDMA2000, Others), By Organization Size (Small, Medium, Large)
June 2024: Verizon completed its nationwide 3G network sunset, impacting millions of legacy IoT and consumer devices.
July 2024: AT&T announced incentives for small businesses to upgrade M2M endpoints ahead of the Q4 2G shutdown.
August 2024: T-Mobile accelerated feature phone migration by launching affordable 5G devices targeting rural customers.
September 2024: Cisco introduced a retrofit LTE-based IoT module to support rapid legacy migrations in utility and transportation sectors.
October 2024: Qualcomm collaborated with automotive OEMs to launch 5G-enabled connected vehicle platforms as legacy networks are shut down.
Frequently Asked Questions
About the Author
Clara
Senior Market Research Analyst
Clara is a Senior Market Research Analyst specializing in market research, industry analysis, and business consulting across Telecommunication. Clara brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Clara has helped organizations translate data into actionable growth strategies.
