APAC mobile sector's contribution to GDP may rise to $1.4 trillion by 2030: GSMA
GSMA
.
The London-based telecom industry association, in its 'Mobile Economy Asia Pacific 2025' study released on Wednesday, attributed this growth to the adoption of the fifth-generation (
5G
) technology, particularly in countries such as Malaysia and India, where telecom carriers notably expanded their 5G network coverage.
GSMA estimates that by 2030, mobile's contribution in APAC may reach approximately $1.4 trillion – accounting for 6.6% of the GDP by then – driven by productivity improvements and efficiency gains led by ongoing expansion of mobile services and adoption of digital technologies, such as 5G, the Internet of Things (IoT), and artificial intelligence (AI).
'Between 2025 and 2030, the mobile sector in the region is expected to grow at a CAGR of 6.5%, surpassing the regional GDP growth forecast of around 4%,' GSMA said in the report, adding that the industry will play a key role in enhancing productivity in the region.
In 2024, the countries with the highest 5G and IoT adoption were South Korea, Australia, Japan and Singapore. By 2030, however, 5G usage is expected to be widespread across most Asia Pacific countries.
GSMA, however, noted that telecom operators allocated nearly $220 billion in capital expenditure (capex) between 2019 and 2024, with the majority earmarked for 5G infrastructure deployment.
It said that the peak capital intensity stood at 25%, on average, in 2023 among APAC markets, which exceeded 50% 5G coverage by June 2025. It emphasised South Korean telcos – SK Telecom, KT, and LG Uplus – in July 2020 committed to investing $22 billion across two years to enhance 5G nationwide, while India's
Reliance Jio
in August 2022 also said it planned to invest $25 billion in a nationwide 5G rollout.
'Today, 5G coverage is universal in South Korea, while Jio's 5G SA network in India now serves over 60% of the population,' GSMA said.
GSMA, which counts India's Jio and
Bharti Airtel
,
AT&T
,
T-Mobile
, Vodafone, and others, however cautioned that 5G capex has started stabilising as telcos have begun scaling down their spending after achieving significant 5G coverage.
It cited Swedish telecom gear maker Ericsson's revenue, which plunged by 33% year-on-year across Southeast Asia, Oceania, and India region in 2024, primarily dragged by normalisation of network investments in India following a period of rapid deployments.
'This development coincides with a growing shift in strategic focus from network deployment to monetisation, with operators seeking to recoup investments, maintain financial viability and support future innovation and technological advancements,' said GSMA, acknowledging that 5G came into existence during a period of stagnant mobile revenue growth, driven by factors such as the commoditisation of voice and data services and intense price competition, particularly in markets such as India.
'The significant financial burden of 5G infrastructure investments, combined with shrinking core communication revenues, has made monetisation a central focus for industry leaders since the technology's launch,' the association said.
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