The mobile broadband market is experiencing rapid growth, propelled by technological innovations and a surge in global data consumption. Forecasts indicate that by 2025, the industry will undergo significant transformations, impacting both consumers and service providers.
By the end of 2025, nearly 5 billion people are anticipated to have mobile internet access, up from 4.6 billion in 2023. Despite 96% of the world’s population having mobile internet availability in 2023, approximately 350 million people still experience coverage gaps. Additionally, 39% of the population, or 3.1 billion individuals, have access to mobile connectivity but remain unconnected due to various factors.
Market Growth and Revenue Projections
The telecom services market is projected to grow by $705.9 billion between 2024 and 2029, with a compound annual growth rate (CAGR) of 6.2%. This growth is driven by increased demand for broadband services, mergers and acquisitions, and global mobile data traffic surge.
The rollout of 5G networks is a pivotal factor in the mobile broadband market’s evolution. 5G technology offers enhanced data rates, reduced latency, and supports a higher density of connected devices, facilitating applications like autonomous vehicles and smart cities. By 2025, 5G is expected to cover up to 65% of the global population, significantly enhancing mobile broadband capabilities. 5G is also expected to bring even greater gains to both developed and developing countries. With the greater gains expected to come to developing countries, it’s hoped that 5G can increase the quality of life for those in those regions.
Global mobile data traffic is forecasted to grow by approximately 2.5, reaching 303 exabytes (EB) per month by 2030. When including Fixed Wireless Access (FWA), total mobile network data traffic is anticipated to rise to 473 EB per month by the end of the forecast period. However, the year-on-year growth rate for mobile network data traffic is expected to decline from 21% in 2024 to 16% in 2030, indicating a maturation of the market.
Innovations in Addressing Coverage Gaps
Mobile operators are exploring satellite technology to eliminate “not spots” or areas lacking network coverage. For instance, Vodafone achieved the world’s first satellite-enabled video call from a no-coverage area, while T-Mobile is testing services that allow users to connect via Starlink satellites. These initiatives aim to provide coverage to the estimated 350 million people globally without access to mobile broadband. However, challenges such as lower speeds than terrestrial networks and spectrum access remain.
T-Mobile US has set ambitious targets, projecting postpaid net customer additions between 5.5 million and 6 million in 2025, significantly higher than previous estimates. The company’s premium plans and promotions have attracted customers from rival networks, with over 60% of new customers opting for top-tier plans. Additionally, T-Mobile aims to increase its wireless broadband subscriber base to 12 million by 2028, up from a previous target of 7.5 million by 2025.
Despite the positive outlook, the mobile broadband market faces challenges:
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Infrastructure Costs: Deploying advanced networks requires substantial investment, especially in rural or remote areas.
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Spectrum Allocation: Access to the necessary radio spectrum is crucial for expanding services, particularly with emerging technologies like satellite-based mobile broadband.
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Competition: The entry of new players and technologies intensifies competition, necessitating continuous innovation and strategic planning by existing operators.
The mobile broadband market is poised for significant growth by 2025, driven by technological advancements, increased global connectivity, and innovative solutions to address coverage gaps. While challenges persist, the industry’s trajectory suggests a more connected and technologically advanced global society soon.
In 2023, 96% of the world had access to mobile internet. However, 350 million people experienced coverage gaps, and 39% of the world’s population remained unconnected despite access. However, innovations in mobile broadband technology promise a bright future. By 2025, nearly 5 billion people are anticipated to have access to mobile internet. In addition, 5G networks are projected to cover 65% of the global population by 2025. It is also anticipated that mobile network data traffic will increase by 2.5 times, from 122 exabytes (EB) per month to 303 EB per month by 2030. The global telecom market is projected to grow by $705.9 billion between 2024 and 2029. Growth is driven by increased demand for broadband services, global mobile data traffic surge, and mergers and acquisitions.
