Mobile Data Market

Market Overview

The global mobile data market size was valued at USD 561.34 billion in 2021 and is projected to reach USD 1013.06 billion by 2030 at a CAGR of 6.78% from 2022 to 2030.

Mobile phones are transforming into multi-function computers with increased processing power and display capabilities, and they are becoming an integral part of people's daily lives. In today's world, digital lifestyle devices are increasingly dependent on the Internet for optimal performance, establishing the Internet as the backbone of a communication system. In addition, mobile data consumption has skyrocketed due to the expansion of available bandwidth, the rise of social media and OTT streaming platforms, and the introduction of cutting-edge technologies like 4G/LTE.

Market Dynamics

Drivers For The Global Mobile Data Market

• High Internet Penetration Drives The Market

Due to the expanding use of broadband in the global communication industry, the market for mobile data continues to expand at a consistent rate. As the global digitalisation trend continues, governments, businesses, and individuals rely more and more on high-speed, uninterrupted internet connections for education, information, contact centre services, and entertainment. The mobile data market is also anticipated to be driven by the expansion of research and development activities. Growth of open-source platforms, smartphone display and sound quality, and ultra-fast Internet Protocol (IP) networks, among other services, are acting as primary factors to attract more customers to the 'freemium-based' business model of OTT providers, thereby resulting in an ever-increasing adoption rate and robust market growth.

• The Pandemic Helped in Further Growth Of The Market

The pandemic of COVID-19 has accelerated the globalization of businesses and cultures. Despite the economic downturn in 2020, mobile internet usage will continue to grow. According to GSMA Intelligence, 28 per cent of Sub-Saharan Africans will have a stable Internet connection by the end of 2020, continuing the upward trend that began in 2014. As the world struggles with the effects of the COVID-19 epidemic, digital entertainment platforms and global telecom service providers have profited from the current situation as a result of evolving business strategies and consumer preferences.

Restraints For The Global Mobile Data Market

• Data Security Is A Major Concern For The Market

In the form of mobile data, users store their sensitive data and business-related information. However, managing and storing the documents presents a number of potential liabilities and vulnerabilities. Security concerns regarding data breaches, unanticipated emergencies, application vulnerabilities, and the loss of data are growing in tandem with the increasing popularity. Some industries, such as academia & research, federal government departments, and financial services, may experience a decline in revenue due to information security and privacy concerns. This can wreak havoc on a company's reputation, eroding the confidence of its leaders. In turn, this may lead to criminal penalties and even legal liability. Often, sensitive information and data are stored in databases and the cloud, allowing cybercriminals to subvert valuable company information and engage in illegal transactions. Consequently, security and privacy risks are anticipated to impede market expansion over the forecast period.

Opportunities For The Global Mobile Data Market

• Remote Work Culture Is Expected To Bring In New Opportunities For The Market

The remote work culture is likely to increase the demand for data services and network infrastructure. Similarly, the temporary closure of multiplexes and other outdoor entertainment venues due to stringent social distancing has increased the use of various digital platforms, such as social networking, gaming, and over-the-top (OTT) applications. Mobile voice traffic has also increased during this time, with major communication companies reporting massive increases in voice traffic since the start of the epidemic.

Segmental Analysis

This market can be segmented on the basis of transmission, end-users, regions and competitors. On the basis of transmission in 2021, the wireless segment dominated the mobile data market and accounted for over 75% of the market's revenue. From 2022 to 2028, the segment is anticipated to expand at a substantial CAGR. The segment's growth is primarily attributable to the increasing use of internet and mobile data services for residential and commercial applications. A developing 5G wave would serve as a dividing line between wireless and wireline networks, combining the communication modes into a single end-to-end system across public, residential, and commercial locations. Parallel to 5G's wireless infrastructure, wireline infrastructure is crucial for enhancing mobile user quality and network speed. The rapid progression of mobile wireless services from 3G to 4G and now the nascent 5G technology has increased the demand and utilization of wireless mobile data services.

In 2021, the wireline mobile data services segment captured a significant share of the mobile data market's revenue. The ability of wireline services to deliver higher quality network signals directly from the operator's equipment to a company, business, or residence has contributed to the expansion. In recent years, wireline networks have gained popularity due to their ability to increase capacity in response to shifting business demands without necessitating the installation of new networks.

On the basis of end-users in 2021, the consumer/residential segment dominated the mobile data market and accounted for over 60 per cent of the market's revenue. The market's dominance is anticipated to persist throughout the forecast period. The segment's rapid expansion can be attributed to the global proliferation of smartphones. In addition, the rising demand for OTT applications is prompting customers to consider wireless internet subscriptions, thereby contributing significantly to the expansion of communication networks. Over the forecast period, the increasing popularity of ultra-high-definition movies and online gaming is likely to drive market expansion.

In 2021, the business segment captured a substantial revenue share of the mobile data market. In order to manage their network infrastructure and business operations, the majority of businesses require a quick and dependable Internet connection. The demand for broadband services influences nearly every aspect of contemporary business models, including marketing and sales, customer interaction, and profit analysis. In addition, the digital channelization of most business models has increased the use of broadband services across all industry verticals in tandem with the global digital revolution.

Regional Analysis

The Asia-Pacific region dominated the mobile data market in 2021, capturing the largest revenue share of approximately 35%, and is anticipated to experience rapid expansion in the near future. The regional market for mobile data is primarily driven by the increasing number of smartphone users, the continuously expanding retail and e-commerce industries, and investments in 5G infrastructure. China, Japan, and India have also made significant contributions to the mobile data market. In addition, escalating government initiatives on digital integration via Information ICT are anticipated to drive market growth.

In 2021, mobile data held a significant revenue share in the North American market. Accelerating technological advancements, the presence of the world's leading telecom corporations attempting to maximise network investments and enhance customer experience, and the escalation of network cyberattacks in this region all contribute to the growth of the North American market. In addition, the expanding use of smartphones and tablets in the United States is anticipated to encourage the BYOD policy. Increased device penetration, coupled with a strong network connection throughout the region, is anticipated to encourage businesses to adopt BYOD policies, thereby accelerating the expansion of the mobile data market.

Recent Developments

• IBM joined forces with HCL Technologies, a global leader in technology, in March of 2022. Together, the companies intended to launch a centre of excellence to aid communication service providers in streamlining network architecture, transforming service dispatch, and simplifying operations. In addition, the centre serves as a virtual hub for the creation of a suite designed to aid telco buyers in converting their networks, including edge modernisation, telco core, vRAN, private networks, ORAN, and 5G labs.
• Nokia formed a partnership with IP Telecom, the SME and enterprise VoIP provider in Ireland, in January 2022. Under the terms of this collaboration, Nokia would provide IP Telecom with optical networking equipment in order to expand the user data centre cloud connectivity architecture throughout Portugal's metropolitan areas. In addition, IP Telecom aimed to reach the government and businesses with a 100Gbps optical data centre interconnect solution that was both highly secure and constant.
• IS-Wireless, a developer of 4G and 5G mobile networks, joined forces with Comarch in December of 2021. The companies aimed to combine their solutions in order to provide fully functional mobile networks based on the Open RAN model. In addition, the network would provide inexpensive and quick networks compared to local dealers.
• Accenture joined forces with Bharti Airtel, the premier provider of telecommunications solutions, in November of 2021. Through this partnership, the companies aimed to bring 5G networks to enterprise productivity enhancement.

Mobile Data Market Segmentation

By Transmission

• Wireline
• Wireless

By End-Use

• Consumer/Residential
• Business

By Region

• North America
• Europe
• Asia Pacific
• Central & South America
• Middle East & Africa