With 5G technology expected to hit the ground running in 2020, widespread adoption of the service will follow.
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Data and analytics company GlobalData reported the number of global 5G subscriptions is expected to hit 1.5 billion in the next five years. The Asia-Pacific region will lead the way in 5G adoption, accounting for 954 million subscriptions by 2024, followed by North America at 254 million and Europe at 242 million. Africa, Latin America, and the Middle East will be slower to adopt 5G.
“Currently each operator with 5G service availability only has a handful of compatible smartphones on offer and usually at the flagship tier,” Malcolm Rogers, senior technology analyst at GlobalData, said in a press release. “Once 5G devices become more mainstream and competitively priced, we expect a large uptick in 5G subscription and revenue growth.”
Annual mobile 5G service revenue will reach $301 billion by 2024. The Asia-Pacific region will account for $122 billion of the revenue, followed by North America at $110 billion, according to the report.
“Players like AT&T and Verizon are looking to launch more advanced 5G based services around AR/VR, robotics, and cloud based traffic control and other services based on real-time 5G IoT analytics,” Rogers added in the release. “Operators willing to innovate around 5G will be able to drive more revenue from the technology.”