2030 Forecast: GCC Set for World’s Highest 5G Penetration, Says Ericsson

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The November 2024 edition of the Ericsson Mobility Report highlights the transformative potential of 5G Standalone (5G SA) and 5G Advanced technologies, which are set to remain central to communications service providers’ (CSPs) strategies through the remainder of the decade. These advancements are enabling CSPs to shift their focus from data volume-driven models to offerings centred on value delivery, leveraging new capabilities like programmable networks, artificial intelligence (AI), and advanced connectivity use cases.

As mobile network traffic data growth slows to an estimated 21% year-on-year for 2024, data traffic is still projected to grow nearly threefold by 2030. By the end of this decade, 5G networks are expected to handle 80% of total global mobile data traffic, compared to 34% by the close of 2024. Among global leaders, the Gulf Cooperation Council (GCC) countries are anticipated to reach 47% 5G subscription penetration by the end of 2024, with this figure climbing to a remarkable 93% by 2030. This is expected to position the GCC as the global leader in 5G adoption, followed closely by Western Europe (92%) and North America (91%).

The GCC region’s high mobile penetration, rapid urbanization, and strong purchasing power contribute to its favorable economic outlook, bolstered by thriving sectors such as tourism, technology, and renewable energy. These dynamics align with a significant trend in the telecom industry: the evolution of service providers from traditional telcos to technology-driven companies. This transition is supported by 5G’s capabilities, which enable cutting-edge services, including AI, cloud solutions, factory automation, and enhanced content delivery. Network slicing, high-performance APIs, and vibrant developer ecosystems are driving innovation and creating new growth opportunities in the region and beyond.

Mobile subscriptions across the GCC are forecast to grow at an annual rate of 3% through 2030, reaching 95 million by the end of the decade. Among these, 93% are expected to be 5G subscriptions, representing approximately 88 million users. Globally, 5G adoption continues to expand, with nearly 2.3 billion 5G subscriptions projected by the end of 2024, making up 25% of all global mobile subscriptions. The number of 5G subscriptions is expected to surpass 4G subscriptions globally by 2027, illustrating the technology’s rapid growth trajectory. By 2030, of the estimated 6.3 billion global 5G subscriptions, nearly 60% are expected to be 5G SA subscriptions.

Nicolas Blixell, Vice President and Head of GCC Countries at Ericsson Middle East and Africa, emphasized the crucial role of 5G SA and 5G Advanced in driving innovation and digital transformation in regions like the GCC. These technologies are unlocking new opportunities, such as programmable networks and AI-driven use cases, enabling service providers to deliver advanced connectivity solutions and enhance consumer and industrial engagement with technology.

Fixed Wireless Access (FWA) is emerging as the second-largest 5G use case globally, following enhanced Mobile Broadband (eMBB). Early movers in the industry are exploring differentiated connectivity models, offering guaranteed high-end connectivity tailored to specific needs, creating new avenues for monetization and business growth. This trend reflects a shift towards value-driven service models, as CSPs leverage advanced 5G capabilities to meet evolving consumer and industry demands.

The report also explores how AI, including Generative AI applications integrated into devices such as smartphones, laptops, smartwatches, and FWA products, could influence uplink and downlink network traffic. These AI applications have the potential to accelerate mobile traffic growth beyond current baseline projections. As the industry looks ahead, the first deployments of 6G are expected to emerge in 2030. These next-generation networks will build on and enhance the capabilities of 5G SA and 5G Advanced, further scaling connectivity and technological possibilities.

Since its inception in 2011, the Ericsson Mobility Report has served as a vital resource for the telecom industry, providing authoritative insights into network data, performance, and forecasts. This latest edition underscores the critical role of 5G in shaping the future of connectivity, highlighting the industry’s ongoing evolution and its transformative impact on global digital ecosystems.