APAC mobile industry to surpass $1tn by 2030

The mobile industry in Asia-Pacific (APAC) is set to surpass $1tn by 2030, thanks to the faster adoption of 5G technologies across the region, a study has found.

According to the GSMA’s Mobile economy Asia-Pacific 2024 report, mobile technologies and services generated 5.3% of APAC’s GDP in 2023, amounting to $880bn of economic value. Commercial 5G networks, already present in APAC markets such as Australia, India, Japan, the Philippines, Singapore, South Korea, and Thailand will further fuel this growth.

Between 2023 and 2030, the mobile industry’s contribution to the APAC economy is expected to grow by 15%, outpacing the global average growth of 12% over the same period. The manufacturing industry is forecasted to benefit the most, driven by new 5G-enabed applications including smart factories, smart grids, and internet of things (IoT)-enabled products. Financial services and public administration will also benefit from the use of 5G to digitally transform services and operations.

The growing use of artificial intelligence (AI) will further bolster the growth of the mobile industry in APAC, with operators across the region starting to invest in generative AI to drive internal transformations and new revenue streams. For example, a group of operators comprising Singtel, SK Telecom, Softbank and e& recently formed the Global Telco AI Alliance to develop telecoms-specific large language models.

Julian Gorman, head of APAC at the GSMA, said: “The growth in Asia-Pacific’s mobile internet usage over the past decade has been nothing short of remarkable and the region continues to innovate. Asia’s rapid adoption, and invention, of new mobile digital services is bringing new use cases to life that the rest of the world can learn from.”

“The large 5G investments mobile operators and governments are making puts many of Asia-Pacific’s nations in a leading position to secure strong economic growth, unleashing a new era of innovation particularly in sectors such as fintech and manufacturing,” he added.

However, in parts of the region, millions of people are still missing out on the mobile revolution, particularly in markets like Bangladesh, India and Pakistan, where the lack of device affordability and digital skills, particularly among older people, remain barriers to adoption.

“Addressing this usage gap and building online trust are crucial to closing this digital divide and ensuring everyone can benefit from the life-enhancing applications mobile can provide in areas such as finance, education and health,” Gorman added.