Projections indicate that Gulf Cooperation Council (GCC) countries will experience a significant surge in 5G technology adoption, positioning the region to become the second-highest globally in terms of 5G penetration rates in the world by 2029.
The GCC countries are Kuwait, Saudi Arabia, United Arab Emirates (UAE), Bahrain, Qatar, Oman.
In a 2024 Ericsson Mobility Report, North America led the global market in 5G subscription penetration rates at 59 per cent, setting a benchmark for other regions to aspire towards. Notably, the GCC countries followed closely behind with a 5G penetration rate of 34 per cent, showcasing a burgeoning appetite for next-generation connectivity solutions.
The report indicates that by 2029, GCC countries will achieve an impressive 5G penetration rate of 89%, positioning them alongside leading regions like North America in technological innovation.
The shift towards 5G dominance is imminent, with forecasts suggesting that by 2028, 5G will become the primary mobile access technology worldwide. By 2029, global 5G subscriptions are expected to reach nearly 5.6 billion, comprising 60% of total mobile subscriptions. This shift underscores the pivotal role 5G technology will play in the future of telecommunications, ushering in a new era of connectivity and innovation.
In the GCC countries, the economic impact of the 5G revolution is substantial. With 26 million 5G subscriptions recorded in 2023 and a projected growth to 81 million by 2029, the region is set for significant economic growth driven by the proliferation of 5G technology.
The annual growth rate of 21% highlights the rapid transition towards a digital-centric economy, capitalizing on the transformative effects of 5G and its associated services. As 4G subscriptions decline from 46 million in 2023 to an anticipated six million by 2029, the shift towards 5G as the dominant technology in the region becomes evident.
The report emphasizes a significant trend in the region: service providers are evolving from traditional ‘telcos’ to ‘tech-cos,’ focusing on innovative digital services such as factory network automation, artificial intelligence, Internet of Things (IoT), and content services. This strategic shift underscores the evolving telecommunications sector in the GCC, where technological innovation and digital transformation are driving the industry forward.
The growing demand for data services and the proliferation of smart devices are pushing data traffic per smartphone to unprecedented levels. Data traffic per smartphone increased from 24GB per month in 2022 to 28GB per month in 2023 and is projected to reach 58GB per month by 2029.
ALSO READ: ZAMBIA AIMS FOR 96% NATIONWIDE COVERAGE BY 2025
Additionally, total mobile data traffic in the region is forecasted to surge from 1.2EB per month in 2022 to 1.5EB per month in 2023 and is projected to reach 3.7EB per month by 2029, highlighting the exponential growth in data usage facilitated by widespread 5G adoption.
