According to data and analytics firm GlobalData, total mobile communication services revenue in the Asia Pacific (APAC) region is expected to grow from $321.9 billion (€294.3 billion) in 2023 to $388.7 billion in 2028, at a compound annual growth rate (CAGR) of 4%, mainly driven by the 5G mobile data services sector.
Analysis of GlobalData’s Asia Pacific Mobile Broadband Forecast Pack (Q4 2023) reveals that mobile data services will remain the largest revenue contributing segment in the region’s overall mobile services market from 2023 to 2028. This growth will be primarily driven by the expansion of higher average revenue per user (ARPU) services and increasing adoption of 5G services in the region.
Hrushikesh Mahananda, Telecom Analyst, GlobalData, commented: “With 5G services already launched in almost all developed markets, including Australia, China, Japan, Hong Kong and South Korea, and expected to be launched soon in countries such as Bangladesh and Sri Lanka, the revenue outlook for the mobile data segment is likely to remain robust throughout the forecast period. For example, operators such as Grameenphone, Robi and Teletalk in Bangladesh, Dialog and Airtel in Sri Lanka are trialing 5G networks in major cities in their respective countries and are gearing up to roll out 5G services by the end of the year.”
Government support for 5G expansion will also strengthen the mobile data services market in the region. Telecommunications regulators and government authorities in countries such as Australia, China, India, South Korea, Japan and Taiwan have launched national 5G strategies/action plans outlining their vision and guidelines for establishing a 5G ecosystem and driving 5G coverage expansion. These action plans include supporting efforts such as public sector investment in 5G applications, favorable tax incentives, forums for industry-government collaboration, fostering 5G-led innovation, and licensing agreements to enhance spectrum use and reuse.
China will remain the world’s largest 5G market throughout the forecast period, with 88% of mobile subscribers being on 5G networks by 2028. This is mainly due to telecom company investments and regulators’ efforts to expand 5G service coverage to rural areas and industrial parks, as well as spur 5G adoption.
Mahananda added: “Average monthly data usage (excluding voice-only subscriptions) is expected to grow significantly due to the launch and expansion of 5G services across the regional markets, increasing from 22.5 GB in 2023 to 40.7 GB in 2028. Increased consumption of online video and social media content via smartphones, driven by increasing usage and adoption of 5G services, data-centric packages offered by MNOs and higher mobile broadband penetration, will also drive the growth in mobile data usage throughout the forecast period.”
The Asia-Pacific region has become the epicenter of the technology race for 5G+ supremacy. South Korea, Japan and China are working beyond just 5G rollout to develop a broader 5G ecosystem, which also means supporting their large electronics manufacturing and ICT industries and facilitating IoT/M2M opportunities.
Mahananda concludes: “While the mobile data segment will continue its growth trajectory, mobile voice service revenues will decline at a CAGR of 5% over the forecast period as consumers continue to move towards OTT/Internet-based communication services.”