The total mobile communications services revenue in the Asia-Pacific (APAC) region is expected to increase at a compound annual growth rate (CAGR) of 2.8% from $301.7 billion in 2024 to $346.1 billion in 2029, driven by continued rise in mobile subscriptions, as operators continue to roll out and expand their 5G networks, reveals GlobalData, a leading data and analytics company.
GlobalData’s report, “Asia-Pacific (APAC) Mobile Broadband Market Trends and Opportunities, 2024 Update,” reveals that mobile data services will remain the largest revenue contributing segment to the overall mobile services market in the region over the forecast period, primarily driven by the expansion and increasing adoption of high-average revenue per user (ARPU) generating 5G services in the region.
Srikanth Vaidya, Telecom Analyst at GlobalData, says: “With 5G services launched in almost all developed markets including Australia, China, Japan, Hong Kong, and South Korea, and set to be launched soon in countries like Bangladesh and Sri Lanka, the revenue prospects for mobile data services will remain strong through the forecast period.
“Operators like Grameenphone, Robi and Teletalk in Bangladesh and Dialog and Mobitel in Sri Lanka, for instance, have conducted 5G network trails in major cities of their respective countries and are gearing up for 5G service roll outs in 2025.”
Government support for 5G expansion will also strengthen the mobile data services market in the region. Telecom regulatory bodies and governing authorities in countries like Australia, China, India, South Korea, Japan, and Taiwan have launched national 5G strategies/action plans, outlining the vision and guidelines to establish 5G ecosystems and drive 5G coverage expansions. These action plans include supporting initiatives such as public sector investment in 5G applications, favorable tax incentives, forums for industry-government collaboration, promotion of 5G led-technological innovations, and license arrangements to enhance spectrum use and reuse.
China will remain the largest 5G market in the world through the forecast period with 90% of its mobile subscriptions to be on 5G network by 2029, primarily driven by the telco investments and the regulator’s efforts to expand 5G service coverage to rural areas and industrial parks, and boost 5G adoption. For instance, the Ministry of Industry and Information Technology (MIIT) reported that in 2024, China had deployed 4.19 million 5G base stations, and expected to increase to 4.5 million by end of 2025, further enhancing its network capacity and reach.
Vaidya continues: “The average monthly data usage (excluding voice-only subscriptions) in the region is forecast to increase from 25.1GB in 2024 to 48.6GB in 2029, receiving a significant boost from 5G service launches and expansions across markets. Growing consumption of online video and social media content over smartphones, on the back of data-centric service plans offered by MNOs, will also drive the growth in mobile data usage levels through the forecast period.”
APAC has become the center of the technological race for 5G+ supremacy. South Korea, Japan, and China have gone beyond just the deployment of 5G, to the development of the wider 5G ecosystem, thereby supporting the manufacturing and IT industries in these countries and driving IoT/M2M opportunities.
Vaidya concludes: “While mobile data segment will continue with the growth trajectory, mobile voice service revenue will decline at a CAGR of 5.7% over the forecast period, as consumers continue to migrate towards OTT/internet-based communication services.”
