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Japan’s mobile service revenue is expected to experience substantial growth over the next five years. According to a forecast by GlobalData, the country’s mobile service revenue is on track to achieve a compound annual growth rate (CAGR) of 6.2 percent, reaching an impressive .9 billion by 2028.

The driving force behind this growth lies in the mobile data service segment. GlobalData’s forecast predicts a decline in mobile voice service revenue, attributed to the increasing popularity of over-the-top (OTT) communication platforms. This shift is expected to decrease the average revenue per user (ARPU) levels for voice services.

On the other hand, mobile data service revenue is projected to exhibit robust growth with an anticipated CAGR of 8.2 percent between 2023 and 2028. This surge can be attributed to the rise in smartphone subscriptions and the expected increase in high-ARPU yielding 5G subscriptions.

Evolving consumer habits are also playing a significant role in this transformation. The average monthly data usage in Japan is forecast to increase significantly, driven by the consumption of online video and social media content on smartphones. This trend is facilitated by the growing adoption of 5G services and data-centric packages offered by mobile network operators.

The report also highlights the technological shift within the mobile subscription landscape. While 4G technology will continue to dominate until 2025, 5G subscriptions are expected to surpass 4G subscriptions, constituting a remarkable 79 percent share of total mobile subscriptions by 2028. This shift is driven by major mobile operators’ initiatives to expand 5G networks across Japan.

NTT Docomo, a leading player in the Japanese mobile services market, is projected to maintain its dominance in terms of subscriptions until 2028. The company is focused on expanding its 5G network coverage across the country and aims to reach 97 percent of the population by 2024. NTT Docomo is also collaborating with technology giants like Nokia, NEC, and Fujitsu to pioneer experimental trials for 6G services.

As Japan continues to embrace cutting-edge mobile technologies and adapt to changing consumer preferences, the mobile service industry is set to undergo significant transformations. These changes will drive substantial revenue growth and shape the future of communication and connectivity in the country.

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