The Asia Pacific (APAC) region is anticipated to witness a compound annual growth rate (CAGR) of 4% in mobile services revenue, surging from $321.9 billion in 2023 to $388.7 billion by 2028, primarily fueled by the adoption of 5G mobile data services, according to the latest report from GlobalData released on Tuesday ie 12th Mar 2024. Mobile data services are projected to maintain their status as the largest revenue-contributing segment in the region’s overall mobile services market during the period of 2023-2028, as outlined by the research firm. The growth trajectory is expected to be driven by the expansion and increasing adoption of high-average revenue per user (ARPU) in 5G services across the region.
Hrushikesh Mahananda, Telecom Analyst at GlobalData, emphasized, “With 5G services already launched in almost all the developed markets including Australia, China, Japan, Hong Kong, and Korea, and set to be launched soon in countries like Bangladesh and Sri Lanka, the revenue prospect for the mobile data segment will remain strong through the forecast period.” He noted that several telecom operators in Bangladesh and Sri Lanka, such as Grameenphone, Robi, Teletalk, Dialog, and Airtel, have conducted 5G network trials in major cities and aim to roll out fifth-generation services by the end of the year.
GlobalData also anticipates that government support for 5G expansion will bolster the mobile data services market in the region. However, China is expected to maintain its position as the largest 5G market globally throughout the forecast period, with an estimated 88% of its mobile subscriptions transitioning to the 5G network by 2028. This growth is primarily driven by telecommunications investments and regulatory efforts aimed at expanding 5G service coverage to rural areas and industrial parks, fostering 5G adoption.
Mahananda highlighted, “The average monthly data usage (excluding voice-only subscriptions) is forecast to increase from 22.5GB in 2023 to 40.7GB in 2028, receiving a significant boost from 5G service launches and expansions across regional markets.” The surge in consumption of online video and social media content over smartphones, coupled with the growing availability and adoption of 5G services, data-centric packages offered by telcos, and mobile broadband penetration levels, will also drive growth in mobile data usage levels throughout the forecast period.
Despite the growth in the mobile data segment, revenue from mobile voice services is projected to decline at a CAGR of 5% over the forecast period, as consumers increasingly transition towards over-the-top (OTT) and internet-based communication services, Mahananda concluded.
