Asia-Pacific’s Mobile Services Market Set for Growth from 5G Expansion, Projects GlobalData

Mobile communications services revenue in the Asia-Pacific (APAC) region is poised for robust growth, anticipated to achieve a compound annual growth rate (CAGR) of 8% from $326.2 billion in 2023 to $479.1 billion in 2028, according to research conducted by GlobalData. The APAC region is emerging as a focal point in the global technological race for supremacy in the next generation of mobile communications. Countries such as South Korea, Japan, and China are not only deploying 5G but are also actively involved in creating a broader 5G ecosystem that supports their extensive electronics manufacturing and information and communication technology (ICT) industries. 

GlobalData’s Asia-Pacific mobile broadband forecast pack for Q3 2023 reveals that mobile data services will continue to be the largest revenue-contributing segment in the overall mobile services market during the forecast period. The growth in this segment is expected to be driven by the expansion and increasing adoption of high Average Revenue Per User (ARPU) in the region, primarily through the mobile data segment. This expansion is supported by the growing availability and adoption of 5G services across several countries. 

While the mobile data segment follows a growth trajectory, mobile voice service revenue is projected to decline at a CAGR of 2.2% over the forecast period. This decline is attributed to consumers’ ongoing migration towards Over-the-Top (OTT)/internet-based communication services. 

The report also highlights that government support for 5G expansion will strengthen the mobile data services market in the region. Regulatory bodies and governing authorities in countries like South Korea, Japan, Australia, China, and Taiwan have initiated national 5G strategies and action plans, outlining the vision and guidelines to establish comprehensive 5G ecosystems. These initiatives encompass public sector investments in 5G applications, tax incentives, industry-government collaboration forums, promotion of 5G-led technological innovations, and license arrangements to optimize spectrum use. 

China emerges as the current largest 5G market globally, with an estimated 1.5 billion 5G subscriptions in 2023, expected to rise to 3.3 billion by the end of 2028. This growth is driven by substantial investments and regulatory efforts aimed at expanding 5G networks and boosting adoption. China’s Ministry of Industry and Information Technology (MIIT) announced plans to deploy 2.9 million 5G base stations by 2023 and 3.6 million by 2025 to extend 5G coverage to rural areas and industrial parks. 

“With 5G services already available in most countries like China, Japan, Australia, Hong Kong, India, and Korea, and set to be launched soon in countries like Sri Lanka and Bangladesh, the revenue prospect for the mobile data segment will remain strong throughout the forecast period,” commented Srikanth Vaidya, a telecom analyst at GlobalData. “Operators like Dialog and Airtel in Sri Lanka, and Grameenphone, Robi and Teletalk in Bangladesh, for instance, conducted 5G network trials in major cities in their respective countries and are gearing up for 5G service roll-out by 2024,” added Vaidya. 

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