South Korea’s mobile service revenue is on an upward trajectory, poised to increase at a compound annual growth rate (CAGR) of 2.5%. This rise will see revenues escalate from USD 21.6 billion in 2024 to USD 24.5 billion by 2029, according to the latest report from GlobalData.
The anticipated growth is primarily driven by the ongoing expansion of mobile data services and a significant surge in machine-to-machine (M2M) and Internet of Things (IoT) connections. These connections are projected to grow at an impressive CAGR of 8.4% during the same period, spurred by widespread adoption of IoT applications in sectors such as asset management, fleet tracking, and telehealth services. In a world where your washing machine could soon be sending you reminders about laundry day, this trend certainly adds intrigue to the industry landscape.
However, it’s not all rosy in the telecom world. The report details a decline in mobile voice service revenue, expected to decrease at a rate of 4.9% CAGR from 2024 to 2029. This downturn is largely attributed to a growing preference for over-the-top (OTT) communication platforms and a decreasing average revenue per user (ARPU), signaling a paradigm shift in how consumers communicate.
On a brighter note, mobile data service revenue is set to rise at a robust 5.4% CAGR. This growth is buoyed by increasing mobile internet subscriptions and a broader acceptance of premium 5G plans. Monthly data usage is anticipated to more than double, jumping from 16.8 GB in 2024 to 35.9 GB in 2029, as users indulge in video streaming and social media, leaving traditional voice service in the dust.
GlobalData also points to a rapid acceleration in 5G adoption in the years ahead, driven by consumer demand for lightning-fast connectivity and increasingly affordable 5G plans. The South Korean government’s ambitious 5G+ Strategy aims to secure over 90% mobile user access to 5G by 2026, promoting hefty investments and regulatory reforms while establishing testbeds for cutting-edge services such as smart factories, autonomous vehicles, smart healthcare, and smart cities. By 2029, 5G subscriptions are forecasted to account for nearly 89% of total mobile connections in the nation, heralding a new era of connectivity.
In this evolving landscape, SK Telecom is expected to maintain its top position in mobile subscriptions through 2029, bolstered by substantial investments in 5G and IoT technologies. The operator is also broadening its focus on enterprise M2M/IoT solutions to facilitate digital transformation across various sectors.
As consumer data usage continues to soar and the demand for smart solutions from enterprises accelerates, telecommunications companies are reinventing themselves from traditional connectivity providers to key players in a burgeoning digital ecosystem.
What is driving the growth of mobile service revenue in South Korea?
The growth is driven by the expansion of mobile data services and a significant increase in M2M and IoT subscriptions, with these connections expected to grow at a CAGR of 8.4% by 2029.
How is mobile voice service revenue expected to change?
Mobile voice service revenue is projected to decline at a CAGR of 4.9% due to a shift towards over-the-top communication platforms and a decrease in average revenue per user.
What role does 5G play in the future of mobile services in South Korea?
5G is set to revolutionize connectivity, with government-backed strategies aiming for over 90% mobile user access to 5G by 2026, leading to an expected 89% of total mobile connections being 5G by 2029.
