Taiwan’s mobile communication market is poised to grow at a compound annual growth rate (CAGR) of 2.8% from $6.4bn in 2022 to $7.4bn in 2027, driven mainly by the rising adoption of mobile data services, says GlobalData, a leading data and analytics company.

GlobalData’s Taiwan Mobile Broadband Forecast (Q3 2022) reveals that mobile voice revenue will decline at a CAGR of 2.2% between 2022 and 2027 due to the falling voice average revenue per user (ARPU) levels resulting from growing user preference for OTT/Internet-based communications.

Mobile data revenue, on the other hand, will increase at a CAGR of 4.6% over the same period, driven by the projected rise in the adoption of higher ARPU-5G services.

The average monthly mobile data usage is forecast to increase from 29 GB in 2022 to about 36.0 GB in 2027, driven by the growing consumption of high-bandwidth online entertainment and social media content over smartphones.

Subba Reddy, Telecom Analyst at GlobalData, says: “While 4G services currently account for the majority of the mobile subscriptions, 5G subscriptions will surpass that of 4G in 2024 and go on to account for more than 90% of the total mobile subscriptions share in 2027, driven by the ongoing 5G network expansion by operators and increase in the availability and adoption of 5G-enabled smartphones.

“Chunghwa leads the mobile services market in Taiwan as of 2022, followed by Taiwan Mobile and FarEasTone. Chunghwa will retain its leading position through 2027, driven by its continued investments in the expansion and acceleration of 5G network in the country. The operator will continue to focus on expanding 5G services, offering flexible pricing plans and diversified mobile value-added services such as music, movie, TV, and cloud gaming to reinforce its leadership in the market.”