South Korea’s mobile services revenue is poised to increase at a compound annual growth rate (CAGR) of 2.5% from $21.6 billion in 2024 to $24.5 billion in 2029, driven by the growth in mobile data services segment and an increase in M2M/IoT subscriptions, forecasts GlobalData, a leading data and analytics company.

M2M/IoT subscriptions are set to increase at a CAGR of 8.4% over 2024-2029, as the commercial adoption of M2M/IoT-based asset management, fleet tracking, telehealth, etc. offered by telcos continues to increase and operators find new applications of M2M/IoT solutions.

For instance, KT’s smart building services offer a smart building energy management system and smart building sensing solutions that monitor boilers, water tanks, motors, and other operational facilities.

GlobalData’s South Korea Mobile Broadband Forecast (Q1-2025) reveals that mobile voice service revenue will decline at a 4.9% CAGR over the forecast period, owing to the increasing consumer preference towards over-the-top (OTT) communication platforms, and the decline in voice average revenue per user (ARPU) levels.

Mobile data service revenue, on the other hand, will increase at a CAGR of 5.4% between 2024 and 2029, driven by the steady 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 16.8GB in 2024 to 35.9GB 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.”

GlobalData expects 5G service adoption to increase over the forecast period, driven by the growing consumer demand for high-speed connectivity, wider availability and affordability of 5G service plans and ongoing 5G network expansions supported by government and telcos across the country. For instance, the South Korean government’s 5G+ Strategy aims to accelerate 5G network expansion and achieve over 90% mobile user access to 5G by 2026 by encouraging investments, removing regulatory barriers, and offering testbeds for 5G infrastructure to support rapid deployment of 5G-led digital services. These services encompass areas such as smart factories, autonomous vehicles, smart healthcare and smart cities, among others. 5G subscriptions are expected to account for about 89% of the total mobile subscriptions by the end of 2029.

SK Telecom will lead the mobile services market in terms of subscriptions through 2029, given its strong focus on investments in advanced technologies including 5G and IoT, while offering comprehensive services to meet evolving consumer needs. The company is also focusing on M2M/IoT services to drive opportunities in the enterprise segment.

Mahananda concludes: “South Korea’s mobile services market is evolving rapidly, with 5G and IoT at the forefront of this transformation. As consumer data usage soars and enterprise demand for smart solutions accelerates, telcos are transitioning from traditional connectivity providers to digital ecosystem enablers.”