Data and analytics company GlobalData predicts that the Asia Pacific (APAC) mobile communications services market will expand significantly between 2023 and 2028, with 5G technology leading the growth.
According to the company’s forecast, total revenue from mobile services in Asia Pacific is expected to grow at a compound annual growth rate (CAGR) of 4%, from $321.9 billion in 2023 to $388.7 billion by 2028. This expansion will be primarily driven by the 5G mobile data services segment, which is expected to see significant adoption and investment across the region.
Mobile data services are expected to remain the primary revenue driver for the APAC mobile services market throughout the forecast period, with the surge expected to stem from the high average revenue per user (ARPU) associated with 5G services and their widespread adoption.
With 5G already being rolled out in developed markets such as Australia, China, Japan, Hong Kong and South Korea, and planned for rollout in countries such as Bangladesh and Sri Lanka, the revenue outlook for the mobile data segment remains robust. Operators such as Grameenphone, Robi and Teletalk in Bangladesh, Dialog and Airtel in Sri Lanka have begun trialing 5G networks in major cities and are gearing up to roll out full-scale 5G services by the end of the year.
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 aim to foster the 5G ecosystem and expand coverage. These initiatives include public sector investment in 5G applications, tax incentives, industry and government cooperation forums, fostering technological innovation, and spectrum management reforms to optimize usage.
China is poised to maintain its position as the world’s largest 5G market, with 88% of mobile subscriptions expected to be on 5G networks by 2028. This growth will be driven by significant investments by telecommunications companies and regulatory efforts to expand coverage to rural and industrial areas.
Moreover, forecasts indicate that average monthly data usage will grow significantly, from 22.5GB in 2023 to 40.7GB in 2028. This surge will be driven by the widespread adoption of 5G services, increased consumption of online video and social media content via smartphones, and data-centric packages offered by mobile network operators.
The Asia-Pacific region has emerged as a battleground for 5G supremacy, with countries such as South Korea, Japan and China not only rolling out 5G networks but also developing comprehensive ecosystems to support related industries such as electronics manufacturing and ICT. This focus also extends to driving opportunities in the Internet of Things (IoT) and Machine-to-Machine (M2M) sectors.
Despite the growth of mobile data services, mobile voice services revenue is expected to decline at a CAGR of 5% over the forecast period. This decline is driven by the continued shift of consumers to over-the-top (OTT) and internet-based communication services.
GlobalData telecom analyst Hrushikesh Mahananda highlighted that while the mobile data sector continues to trend upwards, the decline in mobile voice service revenue highlights changing consumer preferences in the digital age.
