Hong Kong Mobile Services Market Sees Limited Growth Despite 5G Surge

The mobile services market in Hong Kong is projected to experience a period of stagnation, despite the anticipated surge in 5G service adoption, according to forecasts by GlobalData.
GlobalData's Hong Kong Mobile Broadband ForecastWhile 5G represents a positive trend for the industry, overall revenue growth in Hong Kong is expected to be limited, with forecasts indicating only marginal expansion from $2.7 billion in 2023 to $2.9 billion in 2028.

GlobalData’s Hong Kong Mobile Broadband Forecast Model suggests that while mobile data service revenue is expected to grow, revenue from mobile voice and messaging services is anticipated to decline. This shift indicates a changing trend towards data-centric communication and consumption patterns among consumers in the region.

The growth in data service revenue is primarily attributed to the projected increase in 5G subscriptions. Telecom operators are actively promoting and expanding their 5G services across the country, driving this growth.

Although 4G services currently dominate the market, accounting for 61 percent of total mobile subscriptions, 5G subscriptions are projected to grow at a compound annual growth rate (CAGR) of 18.9 percent between 2023 and 2028. By 2028, 5G subscriptions are expected to represent 79 percent of total subscriptions.

The average monthly mobile data usage is forecasted to increase significantly from 7GB in 2023 to 23GB in 2028. This surge is fueled by the growing consumption of online video and social media content on smartphones, supported by data-centric plans offered by operators and the increasing availability and adoption of 5G services.

In terms of market leadership, PCCW is expected to lead the post-paid segment by subscriptions, while China Mobile will dominate the pre-paid segment by subscriber share throughout the forecast period of 2023-2028.

Both players are poised to benefit from their ongoing investments in 5G infrastructure development. With nationwide 5G coverage exceeding 90 percent, both PCCW and China Mobile hold a significant advantage in the market.

TelecomLead.com News Desk