Asia-Pacific's mobile communications services revenue is forecasted to increase to USD 388.7 billion by 2028 with a compound annual growth rate (CAGR) of 4%, driven by the booming 5G mobile data services sector.
Mobile data services will continue to be the dominant source of revenue in the mobile services industry in the region from 2023 to 2028 due to the increased adoption of higher average revenue per user (ARPU) in the 5G services in the region.
“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,” said Hrushikesh Mahananda, Telecom Analyst at GlobalData.
Creating Strong and Comprehensive 5G Ecosystems
Governments in the region will play an essential role in facilitating the expansion of 5G technology throughout the region.
Regulatory agencies and governing authorities in Australia, China, India, South Korea, Japan, and Taiwan have implemented national strategies and action plans to provide a clear vision and specific criteria for creating strong and comprehensive 5G ecosystems, including investments from the public sector, financial incentives, collaboration between business and government, and mechanisms for licensing to improve the use of spectrum.
Due to substantial investments by telecom companies and legislative efforts to extend 5G coverage to rural areas and industrial zones, China is projected to lead the global 5G industry. More than 88% of its mobile subscriptions will be on the network by 2028.
Additionally, monthly data usage is expected to increase from 22.5GB in 2023 to 40.7GB in 2028, driven by the introduction of 5G services, the expansion of regional markets, and the increasing consumption of online video and social media material on smartphones.
Countries in the Asia Pacific region are leading the race for the domination of 5G+. With 5G+, countries in the region can expect faster data speeds, lower latency, and increased network capacity, revolutionizing various sectors such as healthcare, transportation, and manufacturing. Additionally, 5G+ promises to enable innovative applications like augmented reality (AR), virtual reality (VR), and the Internet of Things (IoT), paving the way for enhanced connectivity and productivity across industries.
South Korea, Japan, and China are making significant efforts to establish the ecosystem that supports 5G technology as a whole. This helps promote the Internet of Things (IoT) and Machine-to-Machine (M2M) sectors, which helps electronics manufacturing and ICT enterprises.
