GlobalData, a data and analytics company, predicts that the Asia Pacific (APAC) mobile communications services market will expand significantly from 2023 to 2028, with 5G technology leading the growth.
According to their forecast, total revenue from mobile services in the APAC region is expected to grow at a compound annual growth rate (CAGR) of 4%, rising from $321.9 billion in 2023 to $388.7 billion by 2028. I am. This expansion will be primarily driven by the 5G mobile data services sector, which is expected to see significant adoption and investment across the region.
Mobile data services are expected to continue to be the main revenue source for the APAC mobile services market throughout the forecast period. This surge is expected to be driven by the high average revenue per user (ARPU) adoption associated with 5G services.
With 5G adoption already underway in developed markets such as Australia, China, Japan, Hong Kong and South Korea, and countries such as Bangladesh and Sri Lanka to follow, the revenue outlook for the mobile data segment remains strong. Telcos such as Grameenphone, Robi and Teletalk in Bangladesh and Dialog and Airtel in Sri Lanka have begun piloting 5G networks in major city centers, with a view to rolling out full-scale 5G services by the end of the year. Preparations are underway.
Government support for 5G expansion initiatives will further strengthen the mobile data services market in the APAC region. National strategies and action plans in countries such as Australia, China, India, South Korea, Japan, and Taiwan are aimed at fostering 5G ecosystems and expanding coverage. These initiatives include public sector investment in 5G applications, tax incentives, industry and government cooperation forums, fostering innovation, and spectrum management reforms to optimize usage.
China is poised to maintain its position as the world’s largest 5G market, with an estimated 88% of mobile phone subscriptions expected to be connected to 5G networks by 2028. This growth will be driven by significant investments from telecommunications companies and regulatory efforts to extend coverage to rural areas. regions and industrial areas.
Additionally, the forecast shows a significant increase in average monthly data usage, from 22.5GB in 2023 to 40.7GB in 2028. This surge will be driven by the widespread adoption of 5G services and increased consumption of online video and social media content via smartphones. It also includes data-centric packages offered by mobile network operators.
The APAC region has emerged as a battleground for 5G supremacy, with countries such as South Korea, Japan, and China looking to not only deploy 5G networks but also support related industries such as electronics manufacturing and ICT. We are developing a comprehensive ecosystem of This focus extends to driving opportunities in the Internet of Things (IoT) and Machine-to-Machine (M2M) sectors.
Despite the growth in mobile data services, revenue from mobile voice services is expected to decline at a CAGR of 5% during the forecast period. This decline is due to consumers continuing to migrate to over-the-top (OTT) and internet-based communication services.
Hrushikesh Mahananda, Telecom Analyst at GlobalData, highlighted that although the mobile data sector continues its upward trajectory, the decline in mobile voice services revenue highlights the evolution of consumer preferences in the digital age. .
