Wednesday , December 1 2021
Mobile Technologies, Services Generate $4.4 Trillion in 2020, Adds 5.1% to Global GDP - GSMA

Mobile Technologies, Services Generate $4.4 Trillion in 2020, Adds 5.1% to Global GDP – GSMA



…As Smartphones will make up 81% of mobile connections in 2025, Rise by 13%

…Mobile Internet Users to Hit 5 Billion, 60% of World Population by 2025

Owing to the instrumental roles played by mobile smartphones during the COVID-19 pandemic period, the GSM Association (GSMA) has revealed that mobile technologies and services generated $4.4tn of economic value added (5.1 per cent of GDP) globally in the year 2020.

The association said this in its ‘Mobile Economy 2021’ report.

 

GSMA is an industry organisation that represents the interests of mobile network operators worldwide.

GSMA also noted that this figure will grow by $480 billionn by 2025 to nearly $5 trillion as countries increasingly benefit from the improvements in productivity and efficiency brought about by the increased take-up of mobile services.

According to the report, by the end of 2020, 5.2 billion people subscribed to mobile services, representing 67 per cent of the global population. It added that nearly half a billion new subscribers will be added by 2025, taking the total number of subscribers to 5.7 billion (70 per cent of the global population).

The report said  people around the world relied on the internet to stay connected and access life-enhancing services during lockdowns.

It added that the shift to online activities caused an increase in the growth in data traffic at the peak of the pandemic, adding that mobile network traffic grew 50 per cent on average in the 12 months to September 2020.

READ MORE: Mobile Broadband Connections to Surpass 1.08 Billion by 2024 – Reports

It further said that the figure was higher in sub-Saharan Africa and other developing regions, where mobile was the primary form of internet access. It said that in 2020, 225 million people connected to the mobile internet for the first time, bringing the total to over 4 billion people (51 per cent of the global population).

Sub-Saharan Africa accounts for half of live mobile money services and two thirds of the total transactions value according to the report.

In 2020, the number of registered mobile money accounts grew by 12.7 per cent globally. Over 136 million accounts were added in just one year, taking the total number of registered accounts globally to 1.2 billion.

Furthermore, the report stated, theere will be a half billion new subscribers between now and 2025. Most of them – nearly two thirds – will be in large, under-reached markets in Asia and sub-Saharan Africa. Not to mention a billion more mobile Internet subscribers.

Mobile Internet users, now 51% of the world’s population at 4.0 billion, will reach 60% or 5 billion by 2025, the GSMA predicts.

Smartphones will make up 81% of mobile connections in 2025, up from 68% in 2020. And things will also get smarter, and fast. There will be 24.0 billion Internet of Things (IoT) connections in 2025, up by 85% from 13.0 billion in 2020. Still, COVID is stretching out replacement cycles – from 2.25 years on average, up to three years or more. With many consumers pinched in the pocket, there’s a pivot to lower-cost handsets, with average retail prices for 5G handsets falling more than a third since 2019.

And total worldwide operator revenues, $1.04 trillion in 2020, will creep up slightly more slowly, to $1.15 trillion at the half-decade mark. It will be a pricey five years for operators, who will outlay $1.1 trillion globally in capital expenditures. Of these, 80% will be on 5G networks. The biggest winners of these new networks, says the GSMA, will be the manufacturing, utilities, and professional and financial services industries.

And all told, 5G could add as much as $2.2 trillion to the global economy at the close of 2034.

 

 


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