China Mobile Service Revenue Expected to Grow 5.6% CAGR 2021-2026, According to GlobalData Forecast
China’s total mobile service revenue is expected to grow from US$131.8 billion in 2021 to US$173 billion in 2026, at a compound annual growth rate (CAGR) of 5.6%, mainly driven by robust growth in the mobile data services segment, according to forecasts from GlobalData, a leading data and analytics company.
GlobalData’s China Mobile Broadband Forecast Pack (Q4 2021) reveals that growth in mobile data service revenue will offset declining mobile voice service revenue over the forecast period.
While mobile voice revenue will decline at a CAGR of 5.5% between 2021 and 2026, mobile data revenue will grow at a CAGR of 10% over the same period, primarily driven by the growing adoption of 5G services .
Average monthly mobile data usage in China is expected to increase from 10.4 GB in 2021 to 30.2 GB in 2026, driven by the growing consumption of online video content and social media on smartphones, mainly due to the widespread availability of 4G services and increased availability of 5G services.
Srikanth Vaidya, Telecom Analyst at GlobalData, said: “5G will become the dominant mobile technology in 2022, overtaking 4G subscriptions. 5G subscriptions are estimated to account for a majority share of 75.3% of total mobile subscriptions in 2026, due to the continued expansion of the 5G network by carriers and the proliferation of 5G-enabled smartphones.
China Mobile led China’s mobile services market in 2021, followed by China Telecom, according to GlobalData.
Vaidya concludes: “China Mobile will retain its leading position through 2026, supported by the continued expansion of its 5G services to meet the growing demand for broadband services by the residential and business segments. The company aims to achieve continuous 5G coverage in rural towns across the country by the end of 2022, for which it has already built more than 560,000 5G base stations.