5G is rapidly transforming into a worldwide phenomenon, with the Asia-Pacific (APAC) region consistently serving as a vital nexus for this burgeoning industry. According to recent research from the GSMA, the global trade association for the mobile industry, the APAC region is expected to constitute over two-fifths, or 41%, of global mobile connections by the end of 2030. This marks a significant leap from the 4% share in 2022, translating to an estimated 1.4 billion 5G connections in the region.
The GSMA’s ‘Mobile Economy APAC 2023’ report provides comprehensive insights into the mobile ecosystems of eight significant countries in the region, including Bangladesh, India, Indonesia, Pakistan, Japan, Malaysia, Singapore, and South Korea. The report identifies several factors driving this anticipated growth, including falling average prices of 5G devices, expansive network growth in numerous countries, and focused efforts by prominent governments to incorporate mobile technologies extensively into societal frameworks.
Nevertheless, the annual report reveals some persistent challenges. While developed markets like Australia, Japan, Singapore, and South Korea are pioneering 5G mobile innovation, several other APAC countries continue to grapple with barriers limiting overall mobile access and usage.
Among the critical projections in the report is the anticipation of an increase in mobile subscribers by 400 million between 2022 and 2030, reaching a total of 2.11 billion. Mobile penetration is expected to follow suit, rising to 70%, although this still falls short of the global average of 73%. Smartphone adoption is forecast to climb to 94% by 2030, up 18% from 2022, propelled by more affordable devices and enhanced digital literacy across the region.
“As the mobile market spanning the world’s largest geographical area, APAC’s connectivity ecosystem is highly nuanced and consists of both pioneering mobile innovators and emerging markets.” said GSMA head of APAC Julian Gorman.
In terms of economic impact, the GSMA report estimates that the mobile sector contributed a substantial $810 billion to the APAC economy in 2022, representing just under 5% of the region’s GDP. By the end of the decade, this figure is projected to approach a staggering $1 trillion ($990 billion). According to these forecasts, 5G technology alone could infuse more than $133 billion into the APAC economy in 2030, with the services (42%) and manufacturing (34%) sectors expected to be the principal beneficiaries. These gains will likely be fueled by innovations such as smart cities, smart factories, and smart grid technologies.
Furthermore, as 5G adoption swells, so will the urgency to monetize these new networks, drawing in new customers and encouraging higher spending among existing ones. Extended Reality (XR), encompassing both augmented and virtual reality, is highlighted as a potential pivotal driver for adoption, leveraging 5G’s exceptional speed, latency, and capacity to pioneer a new era of immersive consumer experiences. The report also points to 5G fixed wireless access services as promising additional revenue streams, especially in regions with low fixed broadband penetration.
The GSMA’s report also sheds light on the burgeoning fintech sector in the APAC region, ranging from highly developed markets like India to emerging markets such as Vietnam and Indonesia. The research indicates that fintech growth, particularly in the wake of the Covid-19 pandemic, has significantly elevated financial inclusion levels across the region, marked by a surge in mobile money accounts.
However, despite these strides and marked improvements, the GSMA report brings a sobering perspective: nearly half of the APAC population, or 47%, still remains without access to mobile internet. This places the region behind others globally, including Latin America, China, and Eurasia. Insufficient digital skills, especially among older populations, as well as issues related to device and service affordability and online safety, are identified as key factors constraining broader adoption. Furthermore, while nearly half of the APAC population is now connected to mobile internet (49%), 47% of those who have the ability to access these services remain disconnected.
“If we are to fully realise the digitally transformation mobile connectivity can bring, we need to establish a flexible, forward-looking regulatory and policy regime to support mobile network deployment and operations. This includes greater efforts to close the digital divide, particularly for women and vulnerable populations,” Gorman said.
