Fuelled by 5G, Mobile Services Revenue in APAC Set to Surpass $479 Billion by 2028

Asia-Pacific (APAC) region anticipates a substantial growth in total mobile communications services revenue, set to reach $479.1 billion by 2028, propelled by the expanding reach of 5G services, reports GlobalData, a premier data and analytics company.

According to GlobalData's latest Asia-Pacific Mobile Broadband Forecast Pack (Q3 2023), the compound annual growth rate (CAGR) is forecasted at 8%, starting from $326.2 billion in 2023. The primary driver behind this surge is the flourishing mobile data segment, fostered by the widespread availability and adoption of 5G services across multiple APAC countries.

Mobile data services are anticipated to be the chief revenue contributor, with high Average Revenue Per User (ARPU) 5G services spearheading growth. As Srikanth Vaidya, Telecom Analyst at GlobalData, notes, "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."

The government's active support for 5G expansion is set to fortify the mobile data services market in the region. National 5G strategies and action plans have been launched by telecom regulatory bodies and governing authorities in countries like South Korea, Japan, Australia, China, and Taiwan. These policies include public sector investments, tax incentives, forums for industry-government collaboration, and license arrangements to enhance spectrum use and reuse.

China takes the lead as the largest 5G market globally, with an estimated 1.5 billion 5G subscriptions in 2023, projected to surge to 3.3 billion by 2028. This growth is propelled by substantial investments and regulatory efforts to expand 5G networks. 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.

 "APAC has become the center of a technological race for 5G+ supremacy. While the mobile data segment continues its growth trajectory, mobile voice service revenue is expected to decline at a CAGR of 2.2% over the forecast period, as consumers migrate towards OTT/internet-based communication services," adds Srikanth Vaidya.