5G to Drive Mobile Services Revenue in Asia Pacific: GlobalData Predicts

GlobalData, a data and analytics company, forecasts a significant surge in the Asia-Pacific (APAC) mobile communications services market between 2023 and 2028, with 5G technology spearheading the growth.
5G and 4G growth in Asia PacificAccording to their projections, the total revenue from mobile services in the APAC region is set to rise at a compound annual growth rate (CAGR) of 4 percent, escalating from $321.9 billion in 2023 to $388.7 billion by 2028. The driving force behind this expansion will predominantly be the 5G mobile data services segment, which is poised to experience substantial adoption and investment across the region.

Throughout the forecast period, mobile data services are anticipated to remain the primary revenue generator in the APAC mobile services market. This surge is expected to stem from the widespread adoption of high-average revenue per user (ARPU) associated with 5G services.

With the deployment of 5G already underway in developed markets such as Australia, China, Japan, Hong Kong, and Korea, and forthcoming launches in nations like Bangladesh and Sri Lanka, the revenue outlook for the mobile data segment remains robust. Telecom operators like Grameenphone, Robi, and Teletalk in Bangladesh, as well as Dialog and Airtel in Sri Lanka, have initiated 5G network trials in major urban centers and are preparing for full-fledged 5G service rollouts by the year’s end.

Government backing for 5G expansion initiatives will further bolster the mobile data services market in the APAC region. National strategies and action plans in countries like Australia, China, India, South Korea, Japan, and Taiwan are aimed at fostering 5G ecosystems and extending coverage. These initiatives include public sector investments in 5G applications, tax incentives, industry-government collaboration forums, promotion of technological innovations, and spectrum management reforms to optimize usage.

China is poised to maintain its status as the world’s largest 5G market, with an estimated 88 percent of mobile subscriptions expected to be on 5G networks by 2028. This growth will be propelled by significant investments from telecommunications companies and regulatory efforts to expand coverage to rural areas and industrial zones.

Moreover, the forecast indicates a substantial increase in average monthly data usage, rising from 22.5GB in 2023 to 40.7GB in 2028. This surge will be driven by the proliferation of 5G services, growing consumption of online video and social media content via smartphones, and data-centric packages offered by mobile network operators.

The APAC region has emerged as a battleground for 5G supremacy, with countries like South Korea, Japan, and China not only deploying 5G networks but also developing comprehensive ecosystems to support related industries such as electronics manufacturing and ICT. This focus extends to driving opportunities in the Internet of Things (IoT) and machine-to-machine (M2M) sectors.

Despite the growth in mobile data services, revenue from mobile voice services is expected to decline at a CAGR of 5 percent over the forecast period. This decline is attributed to consumers’ continued shift towards over-the-top (OTT) and internet-based communication services.

Hrushikesh Mahananda, a Telecom Analyst at GlobalData, emphasized that while the mobile data segment continues its upward trajectory, the decline in mobile voice service revenue underscores the evolving preferences of consumers in the digital era.