The mobile services market is set to reach $373.4 billion by 2026 propped up mostly by mobile data, according to analyst firm Frost & Sullivan. The market is likely to grow at a compound annual growth rate (CAGR) of 2.1 percent over the period from the recorded revenue of $329.5 billion in 2020.

Majority of the growth is likely to come from the mobile data market, which is expected to make up 68.5 percent of the overall revenue, with digital services at 22 percent and voice and SMS at 9.6 percent.

The analyst firm claims that 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, Frost & Sullivan. 

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.

Additionally, 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.