Hong Kong’s mobile services market will see moderate growth in its revenue at a compound annual growth rate (CAGR) of 1.2% from $2.7 billion in 2024 to $2.9 billion in 2029, mainly supported by growth in mobile data service segment, while mobile voice service revenue continues to decline, forecasts GlobalData, a leading data and analytics company.

GlobalData’s Hong Kong Mobile Broadband Forecast (Q1-2025) reveals that mobile voice service revenue will decline at a 2.7% CAGR over the forecast period, owing to the increasing consumer shift towards OTT/internet-based communication platforms, and the subsequent decline in voice average revenue per user (ARPU) levels.

Mobile data service revenue, on the other hand, will increase at a CAGR of 3% between 2024 and 2029, driven by continued to growth in mobile internet subscriptions, most importantly with increasing adoption of higher-ARPU yielding-5G services.

Hrushikesh Mahananda, Telecom Research Analyst at GlobalData, comments: “The average monthly data usage over mobile networks is forecast to increase from 8.8GB in 2024 to 28.7GB in 2029, driven by the growing consumption of online video and social media content over smartphones, on the back of data-centric packages offered by telcos.”

4G services accounted for the largest share of mobile services market, in terms of subscriptions, in 2024. However, its share will decline over the forecast period, due to the continued migration of subscribers to 5G services.

The growth in 5G subscriptions will be driven by the growing consumer demand for high-speed wireless network connectivity, 5G network expansions and promotional 5G plans and devices with greater data volumes for data-hungry applications like video streaming and social media content.

Furthermore, the Office of the Communications Authority (OFCA)’s auction of 300 MHz of spectrum in the 6/7 GHz band for public mobile services in November 2024 will further aid in the 5G network deployment and future 6G advancements, enhancing mobile broadband connectivity and the digital economy.

China Mobile Hong Kong (CMHK) will lead the mobile services market in terms of subscriptions through 2029, given its strong focus on 5G network expansion and modernization efforts.

Mahananda concludes: “Hong Kong’s mobile services market is gradually transitioning towards a data-first future, with 5G emerging as the cornerstone of this evolution. As mobile data consumption accelerates and the regulatory push for spectrum availability aligns with operator innovation, the market is poised to unlock new revenue streams from advanced digital services. Strategic investments in network modernization and differentiated 5G offerings will be critical for telcos to sustain competitiveness and capitalize on the evolving demands of a hyper-connected consumer base.”