Thursday, November 21, 2024
Thursday, November 21, 2024
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GCC to have second highest 5G penetration rates globally by 2029

5G subscriptions to grow to 81m in 2029 compared to 26m in 2023 as the region is poised for substantial economic growth driven by proliferation of 5G technology

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  • Major trend emerging in the region is the transformation of service providers from “telcos” to “tech-cos” focusing on de-layering network elements and offering digital services.
  • Global 5G subscriptions forecast to reach close to 5.6b in 2029, making up 60% of all mobile subscriptions.

The Gulf Cooperation Council (GCC) countries are poised to witness a remarkable surge in 5G technology penetration rates, with projections indicating a trajectory towards becoming the second-highest region globally in terms of 5G adoption.

According to Ericsson Mobility Report 2024, as of 2023, North America led the global market in 5G subscription penetration rates at 59 per cent, setting a benchmark for other regions to aspire towards. Notably, the GCC countries followed closely behind with a 5G penetration rate of 34 per cent, showcasing a burgeoning appetite for next-generation connectivity solutions.

The report further projects that by 2029, the GCC countries are expected to soar to an impressive 5G penetration rate of 89 per cent, positioning them on the cusp of technological innovation alongside established regions like North America.

Transition towards 5G dominance

The transition towards 5G supremacy is imminent, with forecasts indicating that by 2028, 5G subscriptions will emerge as the dominant mobile access technology on a global scale.

By 2029, the total global 5G subscriptions are predicted to reach nearly 5.6 billion, representing a significant milestone where 5G subscriptions will constitute 60 per cent of the total mobile subscriptions worldwide.

Such a monumental shift underscores the pivotal role that 5G technology is poised to play in shaping the future landscape of telecommunications, heralding a new era of connectivity and innovation.

Economic impact

In the context of the GCC countries, the economic ramifications of this 5G revolution are profound. With 26 million 5G subscriptions recorded in 2023 and a projected growth to 81 million by 2029, the region is poised for substantial economic growth driven by the proliferation of 5G technology.

The annual growth rate of 21 per cent exemplifies the rapid pace at which the GCC countries are transitioning towards a digital-centric economy, capitalizing on the transformative impacts of 5G technology and its associated services.

Furthermore, as 4G subscriptions witness a decline from 46 million in 2023 to an anticipated six million by 2029, the transition towards 5G as the predominant technology in the region is apparent. The report underlines the emergence of a significant trend in the region, whereby service providers are pivoting from ‘telcos’ to ‘tech-cos’, focusing on innovative digital services such as factory network automation, artificial intelligence, Internet of Things (IoT), and content services.

The strategic pivot underscores the evolving nature of the telecommunications sector in the GCC countries, where technological innovation and digital transformation are driving the industry forward.

Data traffic

The escalating demand for data services and the proliferation of smart devices are propelling data traffic per smartphone to unprecedented levels.

With data traffic per smartphone surging from 24GB per month in 2022 to 28GB per month in 2023 and projected to touch 58GB per month by 2029, the GCC countries are witnessing a seismic shift in data consumption patterns.

Moreover, total mobile data traffic in the region is forecasted to surge from 1.2EB per month in 2022 to 1.5EB per month in 2023 and is projected to reach 3.7EB per month by 2029, underscoring the exponential growth in data usage facilitated by the widespread adoption of 5G technology.

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