The Asia Pacific (APAC) region is on the brink of a major shift in its mobile landscape as 5G technology accelerates rapidly, according to the GSMA’s Mobile Economy APAC 2023 report.
The report highlights a swift rise in 5G adoption across APAC, forecasting that by 2030 5G connections will represent more than two-fifths (41%) of all mobile connections in the region, up from just 4% in 2022.
Julian Gorman, Head of APAC at the GSMA, notes that APAC spans the world’s largest geographical area and contains a diverse connectivity ecosystem that includes both pioneering digital innovators and emerging markets.
“The region includes some of the fastest-growing 5G markets globally, particularly India, which is expected to add tens of millions of 5G connections in 2023. Yet across APAC we also see some of the largest disparities in mobile internet usage worldwide,” he added.
Drivers of 5G expansion
Several factors are driving the surge in 5G uptake. A major contributor is the falling average price of 5G-capable devices, which has broadened access to more consumers. Rapid network rollouts in many countries are also accelerating adoption, while proactive government initiatives that embed mobile-enabled technologies into public services and industry are helping to foster innovation and demand for 5G.
Projected impact and benefits
By the end of the decade, APAC is expected to have roughly 1.4 billion 5G connections. The economic implications are significant: in 2022 the mobile sector contributed $810 billion to the APAC economy—almost 5% of regional GDP. That contribution is projected to grow to about $990 billion by 2030, with 5G estimated to add over $133 billion of economic value.
Industries such as services and manufacturing stand to gain the most from 5G through applications in smart cities, smart factories, and smart grid systems. These technologies are expected to boost productivity and efficiency across multiple sectors, supporting broader economic growth throughout the region.
Remaining challenges
Despite the optimistic forecast, the report identifies several barriers that limit mobile access and usage in parts of APAC. While advanced markets such as Australia, Japan, Singapore, and South Korea lead in 5G innovation, nearly half of APAC’s population—47%—still lacks access to mobile internet. In this metric, APAC lags behind regions including Latin America, China, and Eurasia.
Contributing factors include limited digital skills, especially among older adults, affordability barriers for devices and services, and concerns around online safety. Closing these gaps is essential to achieve widespread mobile inclusion and unlock the region’s full potential for digital transformation and economic development.
Gorman emphasizes the need for a flexible, forward-looking regulatory and policy environment to support network deployment and operations, coupled with targeted measures to narrow the digital divide—particularly for women and other vulnerable groups.
New monetisation opportunities
As 5G adoption expands, operators and businesses will look for fresh revenue streams. Immersive technologies—Extended Reality (XR), augmented reality, and virtual reality—are expected to leverage 5G’s capabilities and help drive consumer uptake. Meanwhile, 5G fixed wireless access can unlock incremental revenue in regions where fixed broadband penetration is low, providing a viable alternative to wired connections.
The report also highlights a booming fintech sector across APAC, with strong growth in countries such as India, Vietnam, and Indonesia. Expansion of mobile financial services is improving financial inclusion and increasing mobile money account ownership, creating a more accessible financial ecosystem for millions of people.
Sustainability and circularity
The report calls attention to sustainability concerns related to e-waste and resource consumption in the mobile industry. To mitigate these issues, policymakers and industry stakeholders are encouraged to promote circular practices—encouraging recycling, device refurbishment, and resale—to extend device lifecycles and reduce environmental impact.
To realize the full promise of 5G and support continued innovation, regulators should create conditions that enable fair competition and flexible licensing for mobile operators, while implementing policies that bridge the digital divide for underserved and vulnerable communities.
The Mobile Economy APAC 2023 report presents a clear picture: with continued investment, supportive policy, and collaborative efforts among governments, industry and communities, the APAC region can harness 5G to drive inclusive economic growth, improve services, and raise living standards for billions of people across the continent.
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