GSMA: 5G to contribute $130 billion to Apac mobile economy by 2030
The adoption of 5G technology in the Asia Pacific region is gaining momentum, as highlighted in GSMA’s report, “The Mobile Economy Asia Pacific 2024.” GSMA, which represents the global mobile ecosystem, estimates that 5G will contribute nearly $130 billion to the region’s economy in 2030, making up 12% of the overall economic impact of mobile technologies.
“The significant contributions of the mobile industry to the economy highlight the potential for further growth and innovation,” said Julian Gorman, head of Asia Pacific at GSMA, during the organization’s Digital Nation Summit held recently in Manila.
GSMA predicts that the broader mobile economy will generate approximately $1 trillion in economic value in the Asia Pacific by 2030. Of this, 5G is expected to drive advancements, particularly in industries leveraging its capabilities.
The report states that manufacturing will account for 37% of 5G’s economic benefits between 2023 and 2030. “This will be driven by smart factories, smart grids, and IoT-enabled products,” the report noted.
Public administration and services are projected to account for 14% and 9% of the benefits, respectively.
By the end of 2024, 5G connections will make up at least a third of mobile connections in countries like Australia, Japan, and Singapore, with South Korea leading at over 60%. India and Thailand, part of the second wave of 5G rollouts, are seeing rapid growth in adoption.
Looking ahead to 2030, developed 5G markets in the Asia Pacific are expected to achieve 95% adoption on average, positioning them as global leaders. However, less-developed markets may only reach 40% adoption, with Thailand standing out as an exception, likely achieving nearly 80%.
4G as dominant mobile tech
GSMA acknowledges that 4G will remain the dominant mobile technology in the region for the short-to-medium term. Operators are prioritizing expanding 4G networks in urban and underserved areas while gradually building the infrastructure for broader 5G deployment.
“Ensuring adequate 5G spectrum and upgrading networks is crucial for a sustainable rollout,” GSMA noted.
The report underscores the importance of collaboration between policymakers, operators, and other industry players to establish the groundwork for efficient and widespread 5G adoption across the region.
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