SINGAPORE, July 30, 2024 – The mobile industry’s contribution to Asia Pacific’s economy is projected to surpass $1 trillion by 2030, driven by the rapid adoption of 5G technologies. This growth is expected to outpace the global average, according to the GSMA’s Mobile Economy Asia Pacific 2024 report unveiled recently.
The report, released at the GSMA’s Digital Nation Summit Singapore last week, highlights that mobile technologies and services generated 5.3% of GDP across Asia Pacific in 2023, amounting to $880 billion in economic value. The productivity effects of mobile services and digital transformation in industries such as manufacturing and fintech are cited as key drivers of this growth. The region’s mobile economy is set to grow by 15% between 2023 and 2030, compared to the global average growth of 12%.
Commercial 5G standalone (SA) networks, now operational in seven APAC countries (Australia, India, Japan, the Philippines, Singapore, South Korea, and Thailand), alongside advancements in 5G Advanced, RedCap, and AI, are expected to further fuel this growth. The report’s authors, GSMA Intelligence, predict that 5G will add almost $130 billion to the Asia Pacific economy by 2030, with the manufacturing industry benefiting significantly from new 5G-enabled applications like smart factories, smart grids, and IoT-enabled products.
To support this growth, the GSMA launched the GSMA APAC Fintech Forum, a new community program aimed at uniting the connected fintech and commerce sectors with Asia Pacific’s mobile network operators through new technologies.
Key Report Findings:
- Mobile Internet Users: The number of mobile internet users in APAC is expected to grow from 1.4 billion (51% penetration rate) to 1.8 billion (61% penetration rate) by 2030.
- Mobile Data Traffic: Data traffic in Asia Pacific is projected to quadruple between 2023 and 2030 due to increased data-intensive content and 5G adoption.
- Connectivity Solutions: Satellites and non-terrestrial networks are anticipated to help reduce the connectivity gap in challenging terrains like archipelagos, rainforests, deserts, and mountains.
- Generative AI: Operators in the region are leveraging generative AI to drive internal transformations and seize new revenue streams. Notably, the Global Telco Alliance, including Singtel, SK Telecom, Softbank, and e&, is co-developing telecom-specific AI models.
Despite these advancements, significant portions of Asia’s population remain unconnected, even in areas with mobile coverage. This usage gap is particularly pronounced in Bangladesh, India, and Pakistan, with barriers including lack of affordability for devices and insufficient digital skills, especially among older citizens.
Julian Gorman, Head of Asia Pacific at the GSMA, stated, “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 at a rapid pace. Asia’s swift adoption and creation of new mobile digital services bring new use cases to life that the rest of the world can learn from.”
He added, “The substantial 5G investments by mobile operators and governments position many Asia Pacific nations for strong economic growth, ushering in a new era of innovation, particularly in sectors like fintech and manufacturing. However, addressing the usage gap and building online trust are crucial to ensuring everyone benefits from the transformative potential of mobile technology.”
Singtel Group CEO Yuen Kuan Moon commented, “We see the exponential rise in enterprise mobile applications and solutions as a significant boost to businesses, especially with the emergence of GenAI and the shift to the cloud. While supporting our customers in their digital transformation journey, we are also committed to providing vulnerable groups with access to digital tools, empowering them to participate in the digital economy.”
The Digital Nation Summit Singapore, where the APAC Mobile Economy report was launched, brings together industry leaders, policymakers, and innovators to explore the critical role of mobile technology in driving economic growth and creating a more inclusive digital future for Asia Pacific. The summit also includes the newly launched GSMA APAC Fintech Forum, which aims to accelerate innovation and integration of mobile networks to advance the mobile economy and nurture digital trust.
The report underscores the need for greater collaboration to combat cybercriminal activities, particularly in online payments and financial services. Governments, mobile operators, and other digital ecosystem players are urged to work together to build consumer trust and online safety. The GSMA Open Gateway initiative, launched in 2023 and supported by over 280 mobile operators, is already helping to mitigate identity fraud and transaction risks through newly launched security and anti-fraud APIs. Operators across Asia Pacific, including in Australia, Indonesia, Japan, Malaysia, Singapore, South Korea, Sri Lanka, Thailand, and Vietnam, are committed to launching more online security services.