APAC mobile communications services market to hit $479 billion by 2028

The total mobile communications services revenue in the Asia-Pacific (APAC) region is expected to grow at a compound annual growth rate (CAGR) of 8% from $326.2 billion in 2023 to $479.1 billion in 2028, mainly driven by the mobile data segment, which is well supported by the growing availability and adoption of 5G services across several countries, forecasts GlobalData, a leading data and analytics company.

GlobalData’s latest Asia-Pacific Mobile Broadband Forecast Pack (Q3 2023) reveals that mobile data services will remain the largest revenue contributing segment to the overall mobile services market in the region during the forecast period. Growth in this segment will be primarily driven by the expansion and increasing adoption of high- average revenue per user (ARPU) 5G services in the region.

Srikanth Vaidya, Telecom Analyst at GlobalData, says: “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 mobile data segment will remain strong throughout the forecast period. Operators like Dialog and Airtel in Sri Lanka, and Grameenphone, Robi and Teletalk in Bangladesh, for instance, conducted 5G network trails in major cities in their respective countries and are gearing up for 5G service roll out by 2024.”

Government support for 5G expansion will also strengthen the mobile data services market in the region. The telecom regulatory bodies and governing authorities in countries like South Korea, Japan, Australia, China and Taiwan have launched national 5G strategies/action plans, outlining the vision and guidelines to establish 5G ecosystems.

These policies include several supporting initiatives such as the public sector investments in 5G applications, favorable tax incentives and deductions, forums for industry-government collaboration, promotion of 5G led-technological innovations and license arrangements to enhance spectrum use and reuse.

China is currently the largest 5G market in the world with an estimated 1.5 billion 5G subscriptions in 2023, which is set to go up to 3.3 billion by the end of 2028, driven by investments and the regulatory efforts to expand 5G network and boost adoption. For instance, in March 2023, China’s MIIT announced plans to deploy 2.9 million 5G base stations by 2023 and 3.6 million by 2025 to expand 5G service coverage to rural areas and industrial parks. Daily Host News