01 Feb 2021
Posted in Coronavirus
Asia-Pacific mobile communications market to grow at 6.11% CAGR during 2020-2025, forecasts GlobalData
The total revenue of mobile communications services market in the Asia-Pacific (APAC) region is expected to grow at a compounded annual growth rate (CAGR) of 6.11% between 2020 and 2025, supported by conducive government policies and growing demand for 5G services, according to GlobalData, a leading data and analytics company.
Amit Sharma, Project Manager of Telecoms Market Data & Intelligence at GlobalData, says: “Between 2022 and 2025, use cases such as massive machine-type communications and ultra-reliable low-latency communications will help in the growth of 5G services, which will in turn drive the mobile services market.”
An analysis of GlobalData’s Mobile Broadband Forecast Packs reveals that the total mobile communications market revenue in APAC is expected to grow at a compounded annual growth rate (CAGR) of 6.11% from US$300.4bn in 2020 to US$404bn in 2025, supported by the growth in the mobile subscription penetration and increase in mobile services average revenue per user (ARPU).
At the same time, mobile data services segment will represent the largest revenue contributor to the overall mobile services market in Asia-Pacific.
For instance, India, which is one of the fastest growing telecom markets, will register a CAGR of 19.8% from an estimated US$6.4bn in 2020 to US$15bn by 2025-end for the mobile data segment, driven by increasing smartphone subscriptions and the growing adoption of 4G services with high ARPU.
The major drivers of the mobile broadband adoption in the region during the forecast period will be the supportive government policies to speed up national broadband deployment projects, long-term evolution (LTE) and 5G network roll outs.
Mr Sharma concludes: “The existing mobile network expansion and 5G rollouts will increase in 2021 as the COVID-19 pandemic will slow down and businesses will get back to normal. In the developed markets across the region, the planned 5G network rollouts will play an important role in increasing the overall telecom revenues. In addition, LTE-A will remain a major mobile communication technology till 2025, constituting more than 56% of total mobile subscriptions by the end of 2025.”