target audience: TECH SUPPLIER Publication date: Mar 2023 - Document type: Market Presentation - Doc Document number: # AP47754822
The State of 5G in Asia/Pacific
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Abstract
This IDC Market Presentation outlines the state of 5G adoption across Asia/Pacific. Since its first mover origins in South Korea in 2019, 5G adoption has shown tremendous growth at the back of massive adoption in China. The enormous volumes coming out of China are a big driver of the overall 5G ramp up. Indeed, 5G will have the fastest increase of any cellular technology through 2026 to account for over 40% of the region's mobile connections, including machine to machine (M2M).
Outside of China and South Korea, several markets, including Japan, Australia, Singapore, Thailand, and more recently, India, have all allocated 5G spectrum, and mobile network operators (MNOs) have launched commercial services. As we approach the later years of the forecast period in 2026, IDC expects the China market to mature, with net adds decelerating. However, India's net adds will rise significantly to keep 5G momentum strong. Capex spending on 5G is accelerating as telcos shift capital resources away from 4G Long Term Evolution (LTE) to 5G. The radio access network (RAN) will account for the majority of spend, but there will also be significant investment on transport networks as well as internal IT and operational support system/business support system (OSS/BSS).
5G will also create new segments of demand for telcos, with the core consumer segment tapping into enhanced mobile broadband (eMBB) offerings as well as new services, such as fixed wireless access (FWA). Moreover, telcos will cater to increasing demand from enterprise users for private 5G networks, will use 5G in WAN scenarios, will deploy multi-access edge computing (MEC) resources, and will even deploy FWA for enterprises in specific scenarios, such as small and medium-sized enterprises (SMEs) or campus networks.
"5G momentum across Asia/Pacific is strong and growing," says Nikhil Batra, Research Director, IDC Asia/Pacific. "China has driven massive volumes in the first phase, but Japan, South Korea, Southeast Asia, and finally, India will continue on their upgrade paths to 5G. India, despite its delayed start in late 2022, will contribute a rising share of 5G net adds by 2026. In terms of the revenue mix, IDC expects that total mobile revenues for communications SPs are expected to hit US$351 billion in Asia/Pacific in 2026, with the growing 5G ecosystem and universal broadband acting as key drivers," he adds.