The mobile services market is set to reach US$373.4 billion by 2026, propped up mostly by mobile data.
According to analyst firm Frost & Sullivan, this would mean the market, which recorded revenue of US$329.5 billion in 2020, will grow at a compound annual growth rate (CAGR) of 2.1 per cent over the period.
This will mostly be sustained by the mobile data market, which is anticipated to make up 68.5 per cent of the overall revenue, with digital services at 22 per cent and voice and SMS at 9.6 per cent.
Frost & Sullivan claimed this forecast comes as the mobile services market in the region is experiencing an increase in mobile application consumption.
This is set to provide communication service providers (CSP) with long-term growth opportunities and revenue generation through new business models and ecosystem collaboration.
"As the market experiences a rise in remote working, online learning, and demand for entertainment, connectivity has become crucial. This has led to an increase in the demand for mobile data and a surge in mobile data revenue for CSPs," said Sofea Zukarnain, information and communication technology research analyst at Frost & Sullivan.
"Many countries in APAC witnessed a hike in the usage of digital services, such as mobile financial services, ecommerce applications and mobile gaming. As a result, CSPs in the region are either launching or improving digital services through strategic partnerships with players in the vertical industries."
She also said there is an increase in the demand for mobile use cases across a range of different industries, like healthcare, education and financial services, while the uptake of “disruptive technologies”, like the internet of things (IoT), 5G networks and artificial intelligence (AI) provide the opportunity for CSPs to find new ways to gain market share.
“At the same time, robust network infrastructure, digital service innovation, and vertical industry collaboration are best practices observed in this region. These best practices are boosting revenues, aiding the development of new business models for CSPs, and maximising value for end-users,” Zukarnain added.
Additionally, Frost & Sullivan highlighted different ways CSPs can locate new growth opportunities.
For example, the firm claimed that passive and active infrastructure sharing could be used to improve network infrastructure, in turn generating cost savings.
Frost & Sullivan also said that AI and IoT can be used alongside the rise of remote working to add further value to their existing services.
5G use case deployments also should be considered, according to the firm, as they can be used to deliver new services and generate more returns through partnerships and industry collaborations.
The firm's research into Asia Pacific mobile services market comes a month after technology research and advisory firm firm Information Services Group (ISG)'s analysis of the region's managed services market, which found that it enjoyed a year-on-year increase in annual contract value (ACV) of 87 per cent during the three months ending 30 June, to a record US$929 million.