5G penetration rates in GCC to be second highest in the world in 2029

Region poised for substantial economic growth propelled by the proliferation of 5G technology

DUBAI: The Gulf Cooperation Council (GCC) countries are on the cusp of a remarkable technological revolution, poised to experience a dramatic surge in 5G technology adoption.

Projections suggest that the region will soon become the second-highest in the world in terms of 5G penetration rates in 2029, mirroring the remarkable success of North America, which currently leads the global market with a 59 per cent 5G subscription penetration rates.

The GCC, with its current 34 per cent 5G penetration rate, is demonstrating a clear commitment to embracing next-generation connectivity solutions, setting the stage for a transformative shift in its economic and societal landscape.

The Ericsson Mobility Report 2024 paints a compelling picture of this impending 5G dominance. By 2029, the report forecasts that 5G penetration in the GCC will reach an impressive 89 per cent, placing the region firmly alongside technological pioneers like North America.

It signifies a powerful shift towards 5G as the dominant mobile access technology, both within the GCC and globally.

Pivotal role 5G plays

By 2028, 5G subscriptions are projected to overtake all other mobile access technologies worldwide, with global 5G subscriptions reaching nearly 5.6 billion by 2029, representing a staggering 60 per cent of total mobile subscriptions.

The monumental shift underscores the pivotal role that 5G technology will play in shaping the future of telecommunications, heralding a new era of interconnectedness and innovation.

The economic implications of this 5G revolution for the GCC countries are profound and far-reaching. With 26 million 5G subscriptions recorded in 2023, a number projected to soar to 81 million by 2029, the region is poised for substantial economic growth propelled by the proliferation of 5G technology.

It translates to an impressive annual growth rate of 21 per cent, showcasing the rapid pace at which the GCC is transitioning towards a digital-centric economy. This transition is further fueled by the anticipated decline of 4G subscriptions from 46 million in 2023 to just six million by 2029, demonstrating a decisive shift towards 5G as the dominant technology within the region.

The shift is not merely about technological upgrades; it signifies a strategic pivot for service providers in the GCC, transforming them from traditional ‘telcos’ into ‘tech-cos’.

This transformation is driven by the realisation that 5G offers a platform for a myriad of innovative digital services, including factory network automation, artificial intelligence, the Internet of Things (IoT), and advanced content services. The strategic pivot underscores the evolving nature of the telecommunications sector in the GCC, where technological innovation and digital transformation are driving the industry forward.

Strategic vision for the future

The remarkable surge can be attributed to a confluence of factors, highlighting the region’s commitment to technological advancement and its strategic vision for the future.

Firstly, the GCC’s robust economic base and substantial investments in infrastructure lay a solid foundation for 5G deployment. Governments have prioritised digital transformation, recognising the transformative potential of this technology across industries.

This has led to substantial public and private sector investments in network infrastructure, fueling the widespread adoption of 5G services.

Secondly, the region’s highly digital-savvy population, characterized by high smartphone penetration and internet usage, fuels the demand for advanced wireless connectivity.

5G offers unprecedented speed, latency, and bandwidth, enabling seamless access to next-generation applications like cloud gaming, AR/VR, and the Internet of Things. These applications hold tremendous appeal to the tech-savvy GCC population, driving the demand for 5G services.

Thirdly, the GCC’s proactive regulatory environment fosters a supportive ecosystem for 5G development. Governments are actively streamlining spectrum allocation, licensing processes, and fostering collaboration between telecom operators and technology providers. This streamlined approach ensures efficient and effective 5G deployment across the region.

The projected 5G dominance of the GCC signifies its transition into a leading global centre for innovation and technology.

Data traffic

The burgeoning demand for data services and the proliferation of smart devices are further accelerating this technological shift. Data traffic per smartphone is projected to surge from 24GB per month in 2022 to 28GB per month in 2023, reaching an astonishing 58GB per month by 2029.

The exponential growth in data consumption reflects the transformative power of 5G technology, enabling users to engage with a wider range of data-intensive applications and services.

The GCC’s total mobile data traffic is also poised for remarkable growth, projected to climb from 1.2EB per month in 2022 to 1.5EB per month in 2023, ultimately reaching 3.7EB per month by 2029.

The impressive growth underscores the pivotal role that 5G will play in shaping the future of data consumption in the GCC, driving the development of new digital services and transforming various sectors of the economy.