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 per cent to $479.1 billion in 2028 from $326.2 billion in 2023, driven by the mobile data segment, as the availability and adoption of 5G services across countries continue to rise, according to a report by GlobalData. Currently, China stands as the world’s frontrunner in 5G adoption, amassing an estimated 1.5 billion 5G subscriptions in 2023. This remarkable figure is projected to surge to 3.3 billion by the end of 2028.
Meanwhile, with the current availability of 5G in most countries like China, Japan, Australia, Hong Kong, India and Korea, and soon to be launched in countries like Sri Lanka and Bangladesh, the revenue prospect for mobile data segment is expected to remain strong throughout the forecast period. As per the report, more than 60 per cent of the subscription in the Asia Pacific region will come from the 5G services by 2028, which will in turn lead to mobile data services being the largest revenue contributing segment to the overall mobile services market as the base of high-average revenue per user (ARPU) 5G services expand. Currently, less than 40 per cent of the subscribers in the region are 5G users.
However, the report added that while the mobile data segment will continue with its growth trajectory, mobile voice service revenue will decline at a CAGR of 2.2 per cent over the forecast period, as consumers continue to migrate towards over-the-top/internet-based communication services.
Additionally, the proactive support extended by governments in various regions to foster 5G expansion is poised to further bolster the mobile data services market. These supportive policies encompass a range of initiatives aimed at accelerating 5G adoption and driving innovation like 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.
