Mobile services market in Hong Kong faces stagnation

5G only positive trend in an otherwise stagnant market

According to GlobalData, a leading data and analytics company, the mobile services market in Hong Kong is expected to face stagnation, with limited overall revenue growth projected despite the anticipated surge in 5G service adoption. Here are some key insights from GlobalData’s forecast:

  • Marginal Expansion: The mobile services market in Hong Kong is predicted to experience only marginal expansion, reaching $US2.8 billion in 2027 compared to $US2.7 billion in 2022. This suggests that while 5G represents a positive trend, it may not lead to significant revenue growth for the industry.
  • Data Service Revenue Growth: The forecast highlights a growth in mobile data service revenue in Hong Kong. This growth is primarily attributed to the projected increase in 5G subscriptions, as telecom operators actively promote and expand their 5G services throughout the country.
  • Shifting Consumption Patterns: The revenue from mobile voice and messaging services is expected to decline, indicating a shift in consumer preferences towards data-centric communication and consumption patterns. This trend reflects the increasing reliance on data-intensive applications and services.
  • 5G Subscription Growth: While 4G services currently account for the majority (70 per cent) of total mobile subscriptions in Hong Kong, 5G subscriptions are projected to grow at a compound annual growth rate (CAGR) of 22 per cent between 2022 and 2027. By 2027, 5G subscriptions are expected to represent 70 per cent of total subscriptions.
  • Increasing Data Usage: The average monthly mobile data usage is forecasted to grow significantly from 5.4GB in 2022 to 19.6GB in 2027. This surge in data usage is attributed to the increasing consumption of online video and social media content on smartphones, supported by data-centric plans offered by telecom operators and the wider availability and adoption of 5G services.
  • Leading Players: According to the forecast, PCCW is expected to lead the post-paid segment, while China Mobile will top the pre-paid segment in terms of subscriber share throughout the forecast period. Both players are set to benefit from their continued investments in 5G infrastructure developments, with nationwide 5G coverage exceeding 90 per cent as a significant advantage.

In summary, while 5G adoption is expected to drive growth in mobile data service revenue and subscriptions, the overall mobile services market in Hong Kong is projected to witness limited expansion, with revenue growth being predominantly driven by data-centric services rather than traditional voice and messaging services.



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