Taiwan’s mobile service industry is set for substantial growth, with mobile service revenues projected to surge at a Compound Annual Growth Rate (CAGR) of 5.3 percent, climbing from $6.2 billion in 2023 to an impressive $8.0 billion by 2028. These promising figures are attributed primarily to the increasing adoption of mobile data services, according to forecasts by GlobalData.
Global Data’s Taiwan Mobile Broadband Forecast for Q3 2023 has shed light on key industry trends. It predicts a decline in mobile voice service revenue at a CAGR of 1.3 percent from 2023 to 2028. This decrease is due to falling Voice Average Revenue Per User (ARPU) levels, driven by the growing user preference for Over-The-Top (OTT) and internet-based communication platforms.
In contrast, mobile data service revenue is expected to experience significant growth, with a CAGR of 7.3 percent over the same period. This growth is fueled by the anticipated increase in the adoption of higher ARPU-5G services.
One pivotal factor behind this expansion is the forecasted rise in the average monthly mobile data usage, expected to increase from 31 gigabytes in 2023 to approximately 47.3 gigabytes by 2028. This surge is attributed to the growing consumption of high-bandwidth online entertainment and social media content through smartphones.
4G services are projected to dominate the majority of total mobile subscriptions in 2023. However, 5G subscriptions are on track to surpass 4G in 2024, ultimately accounting for over 90 percent of the total mobile subscriptions share in 2028. This growth is primarily driven by the increasing availability and adoption of 5G-enabled smartphones, coupled with ongoing 5G network expansions by top telecom operators.
As of 2023, Chunghwa is leading the mobile services market in Taiwan, followed closely by Taiwan Mobile and FarEasTone. Chunghwa is expected to maintain its leading position through 2028, thanks to its ongoing 5G network expansion within the country and its commitment to accelerate 5G service adoption. This is achieved through flexible pricing plans and a diverse range of mobile value-added services, including music, movies, TV, and cloud gaming.
The future of Taiwan’s mobile service industry appears promising, with data services and 5G adoption driving this impressive growth, offering users enhanced connectivity and a wider range of digital experiences, Kantipudi Pradeepthi, a Telecom Analyst at GlobalData, said.
