Forecast: Data to drive mobile services market in India
May 30, 2024
India’s mobile services revenue is forcast to increase at a compound annual growth rate (CAGR) of 3 per cent from $27.7 billion (€25.6bn) in 2023 to $32.6 billion in 2028, mainly driven by the robust growth in mobile data services segment, according to GlobalData, the data and analytics company.
GlobalData’s India Mobile Broadband Forecast Pack (Q1-2024) reveals that the mobile voice service revenue will decline at a CAGR of 2.1 per cent between 2023 and 2028, owing to the growing consumer preference for internet-based communication services and the subsequent decline in voice service average revenue per user (ARPU) levels. Mobile data services will however offset this decline in mobile voice service revenue during the forecast period.
Mobile data service revenue will increase at a healthy CAGR of 7.1 per cent between 2023 and 2028, driven by the growing availability of 4G/5G networks across the country, increasing consumption of mobile data services, continued rise in smartphone subscriptions and projected rise in higher-ARPU yielding-5G subscriptions.
Hrushikesh Mahananda, Telecom Analyst at GlobalData, commented: “The average monthly data usage is forecast to increase from 16.4GB in 2023 to 37.4GB in 2028, driven by the growing consumption of online video and social media content over smartphones, on the back of data-centric packages offered by MNOs.”
4G will remain the leading mobile technology in terms of subscriptions through 2028, driven by the operators’ LTE network expansions. 5G subscriptions, on the other hand, are estimated to increase at the fastest rate over the forecast period and are expected to garner about 45 per cent share of the total mobile subscriptions by the end of 2028, driven by the ongoing 5G network investments and expansions by operators and proliferation of 5G-enabled smartphones.
Mahananda concluded: “Reliance Jio will lead the mobile services market in terms of subscriptions through 2028 given its strong focus on 4G and 5G network developments and expansion across the country catering to the rising demand for high-speed services by customers.”