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Japan’s mobile service revenue is expected to see significant growth over the next five years, according to a forecast by GlobalData. The report predicts that Japan’s mobile service revenue will achieve a compound annual growth rate of 6.2 percent, reaching .9 billion by 2028.

The growth in revenue can be attributed to the mobile data service segment, which is projected to play a crucial role in shaping the industry’s landscape. The forecast also reveals a decline in mobile voice service revenue, driven by the prevalence of over-the-top communication platforms. This shift results in a decrease in average revenue per user for voice services.

In contrast, mobile data service revenue in Japan is expected to exhibit robust growth, with a projected compound annual growth rate of 8.2 percent between 2023 and 2028. This growth can be attributed to the increasing number of smartphone subscriptions and the anticipated rise in high-ARPU yielding 5G subscriptions.

The report emphasizes the role of evolving consumer habits in this transformation, highlighting the significant increase in average monthly data usage. This increase is driven by the consumption of online video and social media content on smartphones and facilitated by the growing adoption of 5G services and data-centric packages offered by mobile network operators.

In terms of technology shift, 4G subscriptions will continue to dominate until 2025, but it is expected that 5G subscriptions will surpass them by 2028, constituting about 79 percent of total mobile subscriptions. This shift is driven by major mobile operators’ efforts to expand 5G networks across the country.

Leading player NTT Docomo is projected to maintain dominance in terms of subscriptions until 2028, thanks to its strategic focus on expanding its 5G network coverage. NTT Docomo aims to reach 97 percent of the population by 2024 and has even collaborated with technology giants to pioneer experimental trials for 6G services.

With Japan’s continuous embrace of cutting-edge mobile technologies and adaptation to changing consumer preferences, the mobile service industry is expected to undergo significant transformations, driving substantial revenue growth and shaping the future of communication and connectivity.

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