The Asia-Pacific (APAC) region is poised for a robust growth in mobile communications services revenue, projected to soar at an impressive compound annual growth rate (CAGR) of 8 percent from $326.2 billion in 2023 to an estimated $479.1 billion by 2028, GlobalData said.
This upsurge is predominantly propelled by the flourishing mobile data segment, buoyed by the widespread availability and adoption of 5G services across multiple APAC countries.
GlobalData’s latest Asia-Pacific Mobile Broadband Forecast Pack (Q3 2023) underscores that mobile data services will retain its position as the primary revenue-contributing segment in the region’s mobile services market throughout the forecast period. The segment’s growth will be predominantly driven by the expansion and increasing embrace of high-average revenue per user (ARPU) 5G services across the region.
With 5G services already operational in countries like China, Japan, Australia, Hong Kong, India, and Korea, and impending launches in countries such as Sri Lanka and Bangladesh, the revenue potential for the mobile data segment remains robust in the forecast period.
Operators like Dialog, Airtel, Grameenphone, Robi, and Teletalk have conducted 5G network trials in major cities, gearing up for a comprehensive 5G service rollout by 2024.
Governmental support for 5G expansion is expected to further fortify the mobile data services market in the region. Telecom regulatory bodies and governing authorities in countries like South Korea, Japan, Australia, China, and Taiwan have initiated national 5G strategies and action plans, outlining comprehensive visions and guidelines to establish robust 5G ecosystems.
These policies encompass a range of supportive initiatives, including public sector investments in 5G applications, favorable tax incentives and deductions, forums facilitating industry-government collaboration, promotion of 5G-led technological innovations, and strategic license arrangements aimed at enhancing spectrum use and reuse.
China stands as the largest 5G market globally, estimated to have 1.5 billion 5G subscriptions in 2023, projected to escalate to 3.3 billion by the end of 2028. This growth is propelled by substantial investments and regulatory endeavors aimed at expanding 5G networks. For instance, China’s MIIT announced plans to deploy 2.9 million 5G base stations by 2023 and 3.6 million by 2025, expanding 5G service coverage to rural areas and industrial parks.
The APAC region has emerged as the focal point for the 5G+ technological race. Countries like South Korea, Japan, and China are not solely focusing on 5G deployment but are developing comprehensive 5G ecosystems, supporting expansive electronics manufacturing and ICT industries within their borders.
While mobile data segment continues its growth trajectory, mobile voice service revenue is anticipated to decline at a CAGR of 2.2 percent over the forecast period, owing to consumers’ sustained migration towards OTT/internet-based communication services, Srikanth Vaidya, Telecom Analyst at GlobalData, said.
