Mobile Users to Surge 3.5% Annually, Reaching 14.3 Billion by 2029

The global mobile user base is anticipated to reach 14.3 billion by 2029, according to a recent analysis by Omdia. This projection is underpinned by several key factors, including the increasing adoption of 4G services in regions such as Africa, Central Asia, and South Asia, where consumers are becoming more connected. The report indicates that the compound annual growth rate (CAGR) for mobile users from 2023 to 2029 is expected to be 3.5%, with significant increases in user numbers in North America and China. Emerging markets like India and Saudi Arabia are also poised for substantial growth in the Internet of Things (IoT) sector, with Saudi Arabia heavily investing in smart city projects.

Service revenue is forecasted to grow by 4.7% in 2024, although this growth rate is expected to decline to 2.7% by 2029. By 2029, service revenue is projected to reach $981 billion, with a CAGR of 3.5%. This growth is largely attributed to the increasing adoption of 5G technology, which offers substantial potential for network revenue, particularly in the enterprise sector. Operators are advised to develop new services that showcase the unique capabilities of 5G, such as live streaming of sports events, augmented reality and virtual reality (AR/VR) experiences, and 4K ultra-high-definition (UHD) video. Strategic partnerships with content providers are crucial for creating compelling 5G services that can drive faster adoption and unlock the full potential of 5G technology.

However, the report cautions against overpricing 5G services due to the high initial capital expenditure. While this strategy may yield short-term benefits, it could lead to a loss of market share and revenue to more competitively priced rivals in the long run. Many consumers, especially those who use mobile services occasionally, may not see enough value in 5G to justify the additional cost. Instead, operators are encouraged to leverage the lower data carrying costs of 5G to improve profitability without raising prices, focusing on increasing adoption rates to drive long-term revenue growth.

The report also emphasizes the importance of balancing investments in 4G and 5G technologies. While 5G is the future, 4G remains the dominant technology in many markets. In regions with a large number of 3G users, operators should prioritize expanding 4G infrastructure to accelerate the migration of consumers to 4G services. As the market matures, attention can then shift to 5G. This balanced approach ensures that operators can maximize their returns on investment while meeting the evolving needs of their customers.